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<SEC-DOCUMENT>0000930413-06-007823.txt : 20061109
<SEC-HEADER>0000930413-06-007823.hdr.sgml : 20061109
<ACCEPTANCE-DATETIME>20061109170549
ACCESSION NUMBER:		0000930413-06-007823
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		9
CONFORMED PERIOD OF REPORT:	20060831
FILED AS OF DATE:		20061109
DATE AS OF CHANGE:		20061109
EFFECTIVENESS DATE:		20061109

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK VIRGINIA MUNICIPAL BOND TRUST
		CENTRAL INDEX KEY:			0001169034
		IRS NUMBER:				383645607
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21053
		FILM NUMBER:		061203469

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

	MAIL ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>c44638_n-csr.htm
<TEXT>

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

<BODY bgcolor="#ffffff">


<P align="center">
<FONT face="serif">UNITED STATES <br>
</FONT><FONT face="serif">SECURITIES AND EXCHANGE COMMISSION <br>
Washington, D.C. 20549 </FONT></P>
<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="left"><FONT face="serif">Investment Company Act file number:<u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;811-21053&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; </u></FONT></P>
<P align="center">
<FONT face="serif"><u>&nbsp; &nbsp; &nbsp; &nbsp; BlackRock Virginia Municipal Bond Trust&nbsp; &nbsp; &nbsp; &nbsp;</u><br>
(Exact name of Registrant as specified in charter) </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
	<TD width=60%>
 &nbsp;<FONT face="serif">100 Bellevue Parkway, Wilmington, DE</FONT>
	</TD>
	<TD width=40%>
 &nbsp;<FONT face="serif">19809</FONT>
	</TD>
</TR>
<TR align="center">
	<TD>
      <hr noshade size=1>	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR align="center" valign="bottom">
	<TD>
<FONT face="serif">(Address of principal executive offices)</FONT>
	</TD>
	<TD>
<FONT face="serif">(Zip code)</FONT>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center"><font face="serif">Robert S. Kapito, President <br>
    </font><font face="sans-serif"><b>BlackRock Virginia Municipal Bond Trust</b></font><b><font face="serif"> <br>
    </font></b><font face="serif">40 East 52nd Street, New York, NY 10022</font></td>
  </tr>
  <tr>
    <td align="center"><hr noshade size=1></td>
  </tr>
  <tr>
    <td align="center"><font face="serif">(Name and address of agent for service)</font></td>
  </tr>
</table>
<P align="left">
<FONT face="serif">Registrant's telephone number, including area code: </FONT><U><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;888-825-2257</FONT></U><FONT face="serif">____________<br>
<BR>
Date of fiscal year end:___</FONT><U><FONT face="serif">&nbsp; August 31, 2006</FONT></U><FONT face="serif">______________________________<br>
<BR>
Date of reporting period:__</FONT><U><FONT face="serif"> August 31, 2006</FONT></U><FONT face="serif">______________________________</FONT></P>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left"> <B><FONT face="serif">Item 1. Reports to Shareholders.</FONT></B><FONT face="serif"> <br>
</FONT><FONT face="serif">The Registrant&#146;s annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:<br>
</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="43%" nowrap><FONT size=1 face="sans-serif">ALTERNATIVES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BLACKROCK SOLUTIONS
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EQUITIES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIXED INCOME &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LIQUIDITY &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REAL ESTATE</FONT></td>
    <td width="57%">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#000000">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#000000"><P align="justify"><FONT color="#FFFFFF" size=5 face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock </FONT><font color="#FFFFFF"><BR>
          <FONT size=5 face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Closed-End Funds</FONT></font></P>
      <font color="#FFFFFF"><BR>
      </font><P align="justify"> <FONT color="#FFFFFF" face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ANNUAL
          REPORT&nbsp;&nbsp; | &nbsp;&nbsp;AUGUST
    31, 2006<br>
    <br>
      </FONT></P>
      <div style="border-bottom:8px solid #DDDDDD">&nbsp;</div></td>
    <td valign="top"><center>
      <img src="c44289_n-csrx1x1.jpg" border=0>
    </center></td>
  </tr>
</table>
<P align="justify">&nbsp;</P>
<P align="justify">
<FONT face="sans-serif">BlackRock Insured Municipal Income Trust (BYM) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock Municipal Bond Trust (BBK)
    </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock Municipal Income Trust II
    (BLE)</FONT></P>
<P align="justify">
<FONT face="sans-serif">BlackRock California Insured Municipal Income Trust (BCK) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock California Municipal Bond
    Trust (BZA) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock California Municipal Income
    Trust II (BCL) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock Florida Insured Municipal
    Income Trust (BAF) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock Florida Municipal Bond Trust
    (BIE) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock Maryland Municipal Bond
    Trust (BZM) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock New Jersey Municipal Bond
    Trust (BLJ) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock New York Insured Municipal
    Income Trust (BSE) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock New York Municipal Bond
    Trust (BQH) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock New York Municipal Income
    Trust II (BFY) </FONT></P>
<P align="justify"><FONT face="sans-serif">BlackRock Virginia Municipal Bond
    Trust (BHV)</FONT></P>
<P align="justify">&nbsp;</P>
<P align="justify">&nbsp;</P>
<P align="justify">&nbsp;</P>
<P align="justify">&nbsp;</P>
<P align="justify">&nbsp;</P>
<P align="justify">
<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></P>

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




<P 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 nowrap>
<FONT face="serif">Letter to Shareholders</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">1</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Trusts&#146; Summaries</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">2</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Financial Statements</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Portfolios of Investments</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">16</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Assets and Liabilities</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">48</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Operations</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">51</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Changes in Net Assets</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">54</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Financial Highlights</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">60</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Notes to Financial Statements</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">74</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Report of Independent Registered Public Accounting Firm</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">82</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Dividend Reinvestment Plans</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">83</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Investment Management Agreements</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">83</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Additional Information</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">89</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Sector 19 Notices</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">92</FONT>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Directors/Trustees Information</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">93</FONT>
	</TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><BR>
</p>
<div style="border:1px solid #000000; padding:10px">
  <p align="center"><b><font size=2 face="serif">Privacy Principles of the Trusts</font></b></p>
  <p align="left"> &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 align="left"> &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 align="left"> &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 align="left"></div>
<HR noshade width="100%" size=4>




<P 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">August 31, 2006</FONT></P>
<P align="justify">
<FONT size=2 face="serif">Dear Shareholder:</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We are pleased to report that during the 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; audited financial statements and a listing of the portfolios&#146; holdings.</FONT></P>
<P align="justify">
&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 align="justify">
&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 August 31,
2006.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="16" align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

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

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

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

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

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

	</TD>
    <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust (Ticker)</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
 <center>
   <B><FONT size=2 face="serif">Price</FONT></B>
    </center></TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">NAV</FONT></B>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.00</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.69</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;
</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;14.65</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;
</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.54</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.79</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8.91</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17.89</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.35</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.84</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8.98</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17.22</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.82</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.76</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.32</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.61</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.24</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.30</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8.15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18.05</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.28</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.85</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.40</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.72</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.01</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.71</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13.88</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.24</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.59</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8.60</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.70</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.22</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.91</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.55</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17.45</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.98</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.92</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18.30</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.33</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.73</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.28</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.70</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.34</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.50</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8.46</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.81</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.02</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.94</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.60</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.38</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.47</FONT>
	</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">4.71</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">7.25</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">18.45</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">16.35</FONT>
	</TD>
    <TD align=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="16" align=left nowrap><div style="border-top:1px solid #000000">&nbsp;</div></TD>
  </TR>
</TABLE>

<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yields are based on closing market price. These yields may increase/decrease due to an increase/decrease in the monthly distribution per common share. Past performance does not
guarantee future results.</FONT>

<br>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Tax-equivalent yield assumes the maximum Federal tax rate of 35%.</FONT>
<P align="justify">
&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 June 30, 2006, BlackRock managed over &#36;25 billion in
municipal bonds, including seven open-end and 38 closed-end municipal bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world&#146;s largest institutional
investors. BlackRock Advisors, Inc., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock.</FONT></P>
<P align="justify">
&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 align="justify">
<FONT size=2 face="serif">Sincerely,</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td width="50%"><P align="left"><IMG src="c44289_n-csrx3x1.jpg" border=0> <br>
      <FONT size=2 face="serif">Laurence D. Fink</FONT><BR>
        <FONT size=2 face="serif">Chief Executive Officer</FONT><BR>
    <FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT></P>    </td>
    <td width="50%"><IMG src="c44289_n-csrx3x2.jpg" border=0> <BR>
      <FONT size=2 face="serif">Ralph L. Schlosstein</FONT><BR>
      <FONT size=2 face="serif">President</FONT><BR>
    <FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT></td>
  </tr>
</table>
<P align="left">&nbsp;</P>
<P align="justify">&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">1</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=74% colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"><center>
    <B><FONT size=2 face="serif">Trust Information</FONT></B>  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width="74%" align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>
	</TD>
	<TD width="3%" style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BYM</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">October 31, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width="14%" align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;14.65</FONT>
	</TD>
	<TD width="9%" align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.54</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;14.65):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.00</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.0610</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.7320</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1" color=black>

<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. Past performance does not guarantee future
results.</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><br>
<P align="justify">
<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;14.65</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.43</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(5.06</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.95</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">13.00</FONT>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.54</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.61</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.45</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.61</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.95</FONT>
    </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">28</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Resource Recovery</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">90</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">87</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BB/Ba</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest 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;) ratings.</FONT>
<P align="center">
<FONT size=2 face="serif">2</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"><center>
    <B><FONT size=2 face="serif">Trust Information</FONT></B>  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BBK</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;17.89</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;16.35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;17.89):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.79</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.086375</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;1.036500</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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>
<br>
<br>

<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;17.89</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;17.18</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">18.11</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.07</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.35</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.36</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.06</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.37</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.72</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BB/Ba</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">B</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"><center>
    <B><FONT size=2 face="serif">Trust Information</FONT></B>  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BLE</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">July 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;17.22</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.82</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;17.22):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.84</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.08375</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;1.00500</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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><br>
<br>

<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT><br>
<br>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Change</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;17.22</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.73</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9.47</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">17.50</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.94</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.82</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.75</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.44</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.82</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.11</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">32</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">30</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BB/Ba</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">B</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">CCC/Caa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</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 August 31, 2006 and August 31, 2005, the market value of these
securities was &#36;15,978,589 representing 2.8% and &#36;13,031,133 representing 2.3%, respectively, of the Trust&#146;s long-term investments. </FONT><br>

<P align="center">
<FONT size=2 face="serif">4</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"><center>
    <B><FONT size=2 face="serif">Trust Information</FONT></B>  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=74% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on the New York Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BCK</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">October 31, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=14% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;14.61</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;14.61):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.76</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.0580</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.6960</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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>
<br>
<br>

<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT><br>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;14.61</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.08</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(9.14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.35</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">13.00</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.24</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.22</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.29</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.54</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">29</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">33</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">98</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">92</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BZA</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;18.05</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;16.28</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;18.05):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.30</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.079656</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.955872</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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>

<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;18.05</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.33</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10.53</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">18.25</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.69</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.28</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.19</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.56</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.28</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.61</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">28</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">32</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">B</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</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 August 31, 2005, the market value of these securities was
&#36;4,431,304 representing 5.3% of the Trust&#146;s long-term investments.</FONT><br>
<p></P>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=78% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BCL</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">July 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=11% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.40</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.72</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;15.40):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.0655</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.7860</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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><br>

<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Change</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.40</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;14.26</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7.99</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.53</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">13.11</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.72</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.52</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.29</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.72</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.94</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">51</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">40</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">B</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</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 August 31, 2005, the market value of these securities was
&#36;4,280,829 representing 2.2% of the Trust&#146;s long-term investments.</FONT><br>
<P>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="3" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=76% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BAF</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">October 31, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD width=14% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;13.88</FONT>
	</TD>
	<TD width=10% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;13.88):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.01</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.0580</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.6960</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black><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. Past performance does not guarantee future
results.</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>
<br>
<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;13.88</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.30</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(9.28</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.50</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">12.92</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.24</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.26</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.26</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.73</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">83</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">83</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</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 August 31, 2006 and August 31, 2005, the market value of these
securities was &#36;4,363,040 representing 2.1% and &#36;5,029,809 representing 2.4%, respectively, of the Trust&#146;s long-term investments.</FONT><br>

<P align="center">
<FONT size=2 face="serif">8</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">BIE</FONT>
    </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;16.70</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;16.22</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;16.70):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.59</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.077808</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.933696</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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><br>
<br>

<P align="justify">
<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.70</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.95</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.70</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">17.25</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">14.65</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.22</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.31</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.55</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.31</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.83</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">27</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">27</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">39</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BB/Ba</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</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 August 31, 2006 and August 31, 2005, the market value of these
securities was &#36;1,661,600 representing 2.0% and &#36;2,831,177 representing 3.4%, respectively, of the Trust&#146;s long-term investments.<br></FONT>
<br>

<P align="center">
<FONT size=2 face="serif">9</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BZM</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;17.45</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.98</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;17.45):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.91</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.071350</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.856200</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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>

<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 align="justify">
<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;17.45</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.96</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9.34</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">18.05</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.42</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.98</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.11</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.81</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.11</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.66</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">34</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">27</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</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 August 31, 2005, the market value of these securities was
&#36;1,043,280 representing 2.2% of the Trust&#146;s long-term investments.</FONT><br>
<br>

<P align="center">
<FONT size=2 face="serif">10</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">BLJ</FONT>
    </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;18.30</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;16.33</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;18.30):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.078582</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.942984</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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><br>

<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=21% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=14% align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=14% align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=11% align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;18.30</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.98</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=8% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.52</FONT>
	</TD>
	<TD width=5% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">19.00</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.12</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.33</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.26</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.43</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.33</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.77</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">28</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">28</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">29</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">46</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">43</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">B</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<P align="center">
<FONT size=2 face="serif">11</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=74% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BSE</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">October 31, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=14% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;14.70</FONT>
	</TD>
	<TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.34</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;14.70):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.73</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.0580</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.6960</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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><br>

<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;14.70</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.35</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(4.23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.80</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">13.01</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.34</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.30</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.26</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.36</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.79</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">30</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">29</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">30</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">30</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">85</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">80</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<P align="center">
<FONT size=2 face="serif">12</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BQH</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;16.81</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;16.02</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;16.81):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5.50</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.077099</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.925188</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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>
<br>
<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.81</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.85</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6.06</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">17.25</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.10</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.02</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.09</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.44</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.10</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.67</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BB/Ba</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">B</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">CCC/Caa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<P align="center">
<FONT size=2 face="serif">13</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=78% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BFY</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">July 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=11% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;14.38</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;15.47</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;14.38):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.94</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.059250</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.711000</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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><br>

<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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=21% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=14% align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=14% align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Change</FONT></B>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=11% align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;14.38</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;14.02</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=8% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.57</FONT>
	</TD>
	<TD width=5% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.47</FONT>
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">12.68</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.47</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;15.23</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.58</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.47</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">14.82</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tax Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Power</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">32</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BB/Ba</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">B</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">CCC/Caa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<P align="center">
<FONT size=2 face="serif">14</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="4" align=left nowrap style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Trust
      Information</FONT></B>
  </center></TD>
  </TR>
<TR valign="bottom">
	<TD width=77% align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>
	</TD>
	<TD width=3% style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">BHV</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Initial Offering Date:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Closing Market Price as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD width=12% align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;18.45</FONT>
	</TD>
	<TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Net Asset Value as of 8/31/06:</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;16.35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/06 (&#36;18.45):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4.71</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.072428</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;0.869136</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Leverage as of 8/31/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">35</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<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. Past performance does not guarantee future
results.</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 colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/06</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Change</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Low</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Market Price</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;18.45</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;17.30</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6.65</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">19.37</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.00</FONT>
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">NAV</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.35</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;16.34</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.06</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">16.36</FONT>
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <FONT size=2 face="serif">&#36;</FONT><FONT size=2 face="serif">15.87</FONT>
      </center></TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The following unaudited charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Sector Breakdown</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sector</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Transportation</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Water &amp; Sewer</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Hospitals</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Housing</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">City, County &amp; State</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Education</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Tobacco</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Lease Revenue</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Credit Rating</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AAA/Aaa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">45</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">45</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">AA/Aa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">A</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">BBB/Baa</FONT>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</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 August 31, 2006 and August 31, 2005, the market value of these
securities was &#36;1,417,827 representing 3.8% and &#36;2,478,468 representing 6.5%, respectively, of the Trust&#146;s long-term investments.</FONT><br>

<P align="center">
<FONT size=2 face="serif">15</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width="10%" align=left nowrap>&nbsp;

	</TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="9%" align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width="4%">&nbsp;
	</TD>
	<TD width="54%" align=left nowrap>&nbsp;

	</TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="11%" align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
	</TD>
	<TD width="5%">&nbsp;
	</TD>
	<TD width="5%" align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>&nbsp;

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;147.7%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Alabama&#151;0.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36; 1,140</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Birmingham Wtr. Wks. &amp; Swr. Brd. RB, Ser. A, 4.50%, 1/01/35, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; 1,129,113</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Arizona&#151;2.5%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Phoenix Civic Impvt. Corp. RB, Civic Plaza Expansion Proj., 5.00%, 7/01/41, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,374,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">California&#151;31.0%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">14,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Dept. of Wtr. Res., Pwr. Sply. RB, Ser. A, 5.375%, 5/01/12</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">15,397,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">7,278,245</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">14,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.75%, 6/01/39</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">16,340,340</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,100</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Infrastructure &amp; Econ. Dev. RB, Bay Area Toll Brdgs. Proj, Ser. A, 5.00%, 1/01/28, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">11,260,490</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">17,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Met. Wtr. Dist. So. California RB, Ser. B-1, 5.00%, 10/01/33, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">18,315,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">15,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Pub. Utils. Comm. Wtr. RB, Ser. A, 5.00%, 11/01/31, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">15,571,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">53,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy. Toll Rd. RB, Ser. A, Zero Coupon, 1/15/31, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">17,012,470</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 4.75%, 5/15/37, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,179,900</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,330</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. G, 4.75%, 5/15/31, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,400,796</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,910</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. O, 5.00%, 9/01/28, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">09/10 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">11,376,839</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">126,132,980</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB, 6.75%, 5/15/40</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,275,010</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Florida&#151;6.4%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,880</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">JEA RB, Wtr. &amp; Swr. Sys. Proj., Ser. A, 4.75%, 10/01/36, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">04/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,895,303</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Miami Dade Cnty. RB,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">25,520</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cap. Apprec. Proj., Ser. A, Zero Coupon, 10/01/38, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/15 @ 30.363</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,955,729</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Miami Intl. Arpt. Proj., Ser. B, 5.00%, 10/01/37, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,130,055</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,485</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty. Tourist Dev. Tax RB, 4.75%, 10/01/32, XLCA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,603,805</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,600</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Tampa Wtr. &amp; Swr. RB, 4.625%, 10/01/36, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,636,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">26,220,892</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Georgia&#151;4.0%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">800</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Atlanta Arpt. Passenger Fac. RB, Ser. J, 5.00%, 1/01/34, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">832,520</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 11/01/34, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,085,520</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,235</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 11/01/37, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,366,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,555</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 11/01/38, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/09 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,800,945</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">16,085,585</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Illinois&#151;15.6%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">11,550</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Chicago Spec. Transp. RB, 5.25%, 1/01/31, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/11 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">12,180,861</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">24,010</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 12/15/28, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">24,901,491</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">15,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 6/15/28, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,477,850</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,165</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Mun. Elec. Agcy. Pwr. Sply. RB, 4.50%, 2/01/35, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,125,606</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">14,875</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Vlg. of Bolingbrook GO, Ser. A, 4.75%, 1/01/38, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">15,057,665</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">63,743,473</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Indiana&#151;1.2%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,725</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Mun. Pwr. Agcy. Pwr. Sply. Sys. RB, Ser. A, 4.50%, 1/01/32, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,717,629</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Louisiana&#151;1.4%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,450</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Gas &amp; Fuels Tax RB, Ser. A, 5.00%, 5/01/35, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/15 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,674,921</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Massachusetts&#151;7.6%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">24,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Tpke. Auth. Met. Hwy. Sys. RB, Ser. A, 5.00%, 1/01/39, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/09 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">24,528,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,985</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Wtr. Res. Auth. RB, Ser. A, 5.00%, 8/01/41</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,246,066</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">30,774,066</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Detroit RB, Ser. A, 5.00%, 7/01/32, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,177,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Missouri&#151;1.0%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Joint Mun. Elec. Util. Comm. RB, Plum Point Proj., 4.60%, 1/01/36, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,155,637</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">16</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width="9%" align=left nowrap>&nbsp;

	</TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="9%" align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
	</TD>
	<TD width="4%">&nbsp;
	</TD>
	<TD width="53%" align=left nowrap>&nbsp;

	</TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="15%" align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
	</TD>
	<TD width="2%">&nbsp;
	</TD>
	<TD width="6%" align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
      </center></TD>
	<TD><div style="border-bottom:1px solid #000000">&nbsp;</div>
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
	<TD><div style="border-bottom:1px solid #000000">&nbsp;</div>
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD><div style="border-bottom:1px solid #000000">&nbsp;</div>
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
	</TD>
	<TD><div style="border-bottom:1px solid #000000">&nbsp;</div>
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Nebraska&#151;1.1%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36; 4,280</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Omaha Pub. Pwr. Dist. Elec. Sys. RB, Ser. A, 4.75%, 2/01/44</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 <center>
   <FONT size=1 face="serif">02/14 @ 100 </FONT>&nbsp;
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,311,715</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Nevada&#151;9.6%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Reno RB, Transp. Proj., 5.125%, 6/01/12, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,447,540</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">4.875%, 7/01/34, XLCA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,238,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 7/01/25, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,323,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/30, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,770,985</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.25%, 7/01/11, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,357,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">39,137,325</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">New York&#151;4.4%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">7,305</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth. Wtr. &amp; Swr. Sys. RB, Ser. C, 5.00%, 6/15/35, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">7,639,423</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">New York City Trust Cultural Recs. RB, American Museum of Natural History Proj.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 7/01/44, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,406,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">18,045,623</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">12,280</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Air Qual. Dev. Auth. PCRB, Dayton Pwr. &amp; Lt. Co. Proj., 4.80%, 1/01/34, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">12,482,374</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Wtr. Dev. Auth. PCRB, Dayton Pwr. &amp; Lt. Co. Proj., Ser. A, 4.80%, 1/01/34, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,120,720</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">18,603,094</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Lebanon Cnty. Hlth. Facs. Auth. RB, Good Samaritan Hosp. Proj., 6.00%, 11/15/35</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,385,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,200</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Philadelphia Gas Wks. RB, Ser. 3, 5.125%, 8/01/11, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,548,504</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,934,104</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">South Carolina&#151;7.8%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pub. Svc. Auth. RB, Ser. B, 5.50%, 1/01/36, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,350,950</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">12,750</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 10/01/33, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">13,194,338</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">12,660</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.125%, 10/01/26, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">13,339,082</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">31,884,370</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Tennessee&#151;4.0%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">11,705</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/22, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 59.566</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,103,146</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,260</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/23, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 56.016</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,791,877</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">8,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/24, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 52.749</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,275,645</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,850</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/25, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 49.712</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,484,701</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/26, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 46.781</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,703,550</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">16,358,919</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Texas&#151;25.7%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,030</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Coppell Indpt. Sch. Dist. GO, Zero Coupon, 8/15/30, PSF</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,267,373</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,350</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Dallas Area Rapid Trans. RB, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,419,583</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Harris Cnty. GO,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">7,485</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/25, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,145,272</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,915</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/28, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,938,569</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">26,890</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-3, Zero Coupon, 11/15/38, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/24 @ 43.826</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,816,268</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">27,675</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-3, Zero Coupon, 11/15/39, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/24 @ 41.258</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,657,979</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,785</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. H, Zero Coupon, 11/15/38, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/31 @ 64.91</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,087,580</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,160</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. H, Zero Coupon, 11/15/39, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/31 @ 60.976</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,085,207</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,510</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Harris Cnty. Toll Rd. RB, 5.00%, 8/15/30, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">5,704,338</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Lower Colorado River Auth. RB, 4.75%, 5/15/36, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">6,044,760</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,045</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Montgomery Cnty. Mun. Util. Dist. No. 46 Wtr. Wks. &amp; Swr. Sys. GO, 4.75%, 3/01/30, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">03/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">1,060,111</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,500</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Northside Indpt. Sch. Dist., Sch. Bldg. Rmkt. GO, 5.125%, 6/15/29, PSF</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,012,715</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Pearland GO, 4.75%, 3/01/29, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">03/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,069,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,350</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 5/15/29, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,881,454</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 5/15/34, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">10,514,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">30,145</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Tpke. Auth. Central Sys. RB, Ser. A, 5.00%, 8/15/42, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">30,969,767</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Tyler Cnty. Hlth. Facs. Dev. RB, Mother Frances Hosp. Proj., 6.00%, 7/01/31</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,202,620</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

	</TD>
	<TD>&nbsp;</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">104,877,296</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">17</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width="10%" align=left nowrap>&nbsp;

	</TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="8%" align=center nowrap>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
	<TD width="3%">&nbsp;
	</TD>
	<TD width="52%" align=left nowrap>&nbsp;

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

	</TD>
	<TD width="1%">&nbsp;
	</TD>
	<TD width="15%" align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
	</TD>
	<TD width="2%">&nbsp;
	</TD>
	<TD width="6%" align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
      </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
	  <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
    </center></TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
	</TD>
	<TD style="border-bottom:1px solid #000000;">&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

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

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

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Chesterfield Cnty. Indl. Dev. Auth. PCRB, Elec. &amp; Pwr. Co. Proj.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
      <div align="right"><FONT size=1 face="serif">&#36; 3,000</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.875%, 6/01/17</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/10 @ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp; 3,275,790</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">4,000</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.875%, 6/01/17</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">11/10 @ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,367,720</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,643,510</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Washington&#151;10.8%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">9,610</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Central Washington Univ. Sys. RB, 5.00%, 5/01/34, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,987,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">3,655</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Chelan Cnty. Pub. Util. Dist. 1 RB, Chelan Hydro Sys. Proj., Ser. C, 5.125%, 7/01/33, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,804,745</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Care Facs. Auth. RB, Providence Hlth. Care Svcs. Proj.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">4.50%, 10/01/35, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,966,310</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">4,110</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 4.625%, 10/01/34, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,131,249</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">2,200</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">King Cnty. Swr. RB, 5.00%, 1/01/36, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">2,296,470</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">4,500</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Port of Seattle RB, Ser. A, 5.00%, 4/01/31, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">4,617,225</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">9,500</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Seattle GO, Ser. F, 5.125%, 12/15/28, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">12/08 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">9,719,260</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">6,380</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Washington GO, Ser. A, 5.00%, 7/01/25, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,617,145</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">44,139,404</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">West Virginia&#151;0.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">1,295</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Auth. RB, Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,357,509</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;566,869,007)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">601,754,725</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;7.6%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

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

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Delaware&#151;1.2%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">A-1+</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">4,700</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
    </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Auth. RB, Hosp. Billing Proj., Ser. B, 3.43%, 9/06/06, FRWD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,700,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Ohio&#151;4.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">VMIG1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">7,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
    </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Hamilton Cnty. Hosp. Facs. RB, Ser. A, 3.37%, 9/06/06, FRWD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">7,000,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">VMIG1</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">10,605</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Univ. of Akron RB, 3.41%, 9/07/06, FGIC, FRWD</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,605,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">17,605,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

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

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

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

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

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

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

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">Money Market Funds&#151;2.1%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

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

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">8,550</FONT>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,550,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost &#36;30,855,000)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">30,855,000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments &#151;155.3% (cost &#36;597,724,007</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">&#36; 632,609,725</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;0.9%</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=1 face="serif">3,803,120</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

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

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(56.2)%</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=1 face="serif">(229,074,736</font><font size=1 face="serif">)</font> </div></TD>
</TR>
<TR valign="bottom">
	<TD colspan="3" align=left nowrap>

	  <div align="right"></div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets &#151;100%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

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

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 407,338,109</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or
the next date on which the rate of interest is adjusted. Rate shown is rate as of August 31, 2006.</FONT>
<br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;597,701,813. The net unrealized appreciation on a tax basis is &#36;34,907,912, consisting of &#36;34,945,582 gross unrealized
appreciation and &#36;37,670 gross unrealized depreciation.</FONT><br>

<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 86.5% of the Trust's managed assets. The Trusts had
the following insurance concentrations:</FONT></P>
<TABLE border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left width=44% nowrap>
<FONT size=1 face="serif">AMBAC</FONT>&nbsp;
	</TD>
	<TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 21.7%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=44% nowrap>
<FONT size=1 face="serif">FGIC</FONT>&nbsp;
	</TD>
	<TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 23.3%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=44% nowrap>
<FONT size=1 face="serif">FSA</FONT>&nbsp;
	</TD>
	<TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 14.7%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=44% nowrap>
<FONT size=1 face="serif">MBIA</FONT>&nbsp;
	</TD>
	<TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 20.9%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=44% nowrap>
<FONT size=1 face="serif">PSF</FONT>&nbsp;
	</TD>
	<TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 2.1%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=44% nowrap>
<FONT size=1 face="serif">XCLA</FONT>&nbsp;
	</TD>
	<TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 2.5%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=44% nowrap>
<FONT size=1 face="serif">Other</FONT>&nbsp;
	</TD>
	<TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 1.3%</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">PCRB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Pollution Control
          Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FRWD</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Floating Rate Weekly
          Demand</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">PSF</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Public School Fund
          Guaranteed</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
  </table>
</div>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">18</FONT></P>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=8% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=55% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

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

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

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;153.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Alabama&#151;5.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;470</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Birmingham Wtr. Wks. &amp; Swr. Brd. RB, Ser. A, 4.50%, 1/01/35, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">465,512</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Huntsville Hlth. Care Auth. RB, Ser. A, 5.75%, 6/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,929,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,395,262</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Arizona&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San. Luis Fac. Dev. Corp. RB, Regl. Detention Ctr. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 5/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/10 @ 107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">303,417</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 5/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/10 @ 107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">303,957</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.25%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/10 @ 107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">612,720</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,220,094</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">California&#151;7.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">California GO, 5.00%, 6/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,865,016</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cnty. Tobacco Sec. Agcy. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">850</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 6/01/46</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/16 @ 17.602</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">81,447</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, Zero Coupon, 6/01/55</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/16 @ 8.90</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Stanislaus Cnty. Proj., Ser. D, Zero Coupon, 6/01/55</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/16 @ 6.219</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">167,383</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,735</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp. RB, 5.00%, 6/01/45, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,931,481</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,660</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Univ. of California RB, Ser. B, 4.75%, 5/15/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,697,479</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,585</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Val Verde Unified Sch. Dist. ST, 6.25%, 10/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,669,591</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">12,612,557</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Colorado&#151;0.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Colorado Springs Utils. RB, Ser. C, 5.00%, 11/15/45, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">657,193</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Park Creek Met. Dist. Ppty. Tax RB, 5.50%, 12/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">656,533</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,313,726</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">District of Columbia&#151;11.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">33,450</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Georgetown Univ. RB, Ser. A, Zero Coupon, 4/01/38, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/11 @ 20.243</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,410,538</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">595</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Friendship Pub. Charter Sch. Income Proj. RB, 5.25%, 6/01/33, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">609,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gallary Place Proj. TA, 5.40%, 7/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,367,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,580</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB, 6.75%, 5/15/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,035,216</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">18,422,674</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Florida&#151;19.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,535</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Halifax Hosp. Med. Ctr. RB, Ser. A, 5.00%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,557,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">770</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">JEA RB, Wtr. &amp; Swr. Sys. Proj., Ser. A, 4.75%, 10/01/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">776,268</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Martin Cnty. Indl. Dev. Auth. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/06 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,270,246</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,810</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,166,195</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth. RB, Hosp. Adventist Hlth. Sys. Proj., 5.625%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,705,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,845</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty. Tourist Dev. Tax RB, 4.75%, 10/01/32, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,884,963</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,255</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Beach Cnty. Hsg. Fin. Auth. Multi-Fam. RB, Indian Trace Apts. Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 1/01/44, FSA, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,474,173</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">990</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Stevens Plantation Cmnty. Dev. Dist. SA, Ser. A, 7.10%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,038,599</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">32,872,994</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Atlanta Arpt. Passenger Fac. RB, Ser. J, 5.00%, 1/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,300,813</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Atlanta Wtr. &amp; Wstwtr. RB, 5.00%, 11/01/37, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,203,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,504,213</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Illinois&#151;21.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">23,065</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bolingbrook GO, Ser. B, Zero Coupon, 1/01/36, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/12 @ 23.018</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,212,130</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,150</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,169,308</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,285</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 1/01/11, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,640,912</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,540</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 1/01/38, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,644,320</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">55</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.50%, 1/01/11, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">59,568</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Edl. Facs. Auth. Student Hsg. RB, Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/07 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,089,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">420</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">427,556</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">525</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Student Hsg. MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">532,261</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">425</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Student Hsg. MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">430,755</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Facs. Auth. RB, Lake Forest Hosp. Proj., Ser. A, 5.75%, 7/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,401,940</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">19</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=8% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=54% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Illinois&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 6/15/35, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,575,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 12/15/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,399,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 12/15/37, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,282,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,535</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mun. Elec. Agcy. Pwr. Sply. RB, 4.50%, 2/01/35, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,518,801</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">35,385,131</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Indiana&#151;3.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Fac. Fin. Auth. RB, Clarian Hlth. Oblig. Grp. B Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,275</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 2/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,313,671</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">955</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 2/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">981,014</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,970</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Multi-Fam. Hsg. RB, Canterbury House Apts. Proj., Ser. 1, 5.90%, 12/01/34, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,063,260</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,950</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mun. Pwr. Agcy. Pwr. Sply. Sys. RB, Ser. A, 4.50%, 1/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,946,958</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,304,903</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Kansas&#151;3.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wichita Arpt. Auth. Arpt. Facs. RB, Cessna Citation Svc. Ctr. Proj., Ser. A, 6.25%, 6/15/32, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,383,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Maryland&#151;3.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Baltimore ST, Harborview Lot No. 2 Proj., 6.50%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,334,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Frederick Cnty. ST, Urbana Cmnty. Dev. Auth. Proj., Ser. B, 6.25%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/07 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,045,240</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,040</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Facs. Auth. RB, Medstar Hlth., Inc. Proj., 5.50%, 8/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,095,286</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,475,026</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Massachusetts&#151;0.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,450</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wtr. Res. Auth. RB, Ser. A, 5.00%, 8/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,513,249</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Michigan&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,065</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hosp. Fin. Auth. RB, Henry Ford Hlth. Sys. Proj., Ser. A, 5.25%, 11/15/46</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,115,449</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Missouri&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,060</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Joint Mun. Elec. Util. Comm. RB, Plum Point Proj., 5.00%, 1/01/34, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,114,749</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;7.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">11,894,925</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Nebraska&#151;1.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,760</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Omaha Pub. Pwr. Dist. Elec. Sys. RB, Ser. A, 4.75%, 2/01/44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,773,042</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Nevada&#151;2.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,325</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Clark Cnty. Econ. Dev. RB, Alexander Dawson Sch. Proj., 5.00%, 5/15/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,362,842</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Las Vegas Spec. Impvt. Dist. No. 809 RB, Summerlin Area Proj., 5.65%, 6/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/06 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,437,982</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Truckee Meadows Wtr. Auth. RB, 4.875%, 7/01/34, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,047,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,848,524</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New Jersey&#151;9.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cigarette Tax RB, 5.50%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,577,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines, Inc. Proj. RB, 7.20%, 11/15/30, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,151,770</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Rd. Landfill Proj. SA, 6.50%, 4/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,043,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winchester Proj. RB, Ser. A, 5.80%, 11/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,597,410</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">915</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Middlesex Cnty. Impvt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">940,098</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">16,310,028</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New York&#151;14.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">455</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">451,574</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,330</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Env. Facs. Corp. St. Clean Wtr. &amp; Drinking Wtr. RB, NYC Mun. Wtr. Proj., Ser. B, 5.00%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,384,663</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,285</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liberty Dev. Corp. RB, 5.25%, 10/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,359,813</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,760</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Met. Transp. Auth. Svc. Contract RB, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,828,235</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.75%, 8/01/31, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,395,676</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,050</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York GO, Ser. A, 5.00%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,098,374</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">23,518,335</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">North Carolina&#151;1.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,945</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gaston Cnty. Indl. Facs. Fin. Auth. PCRB, 5.75%, 8/01/35, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,119,609</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Ohio&#151;2.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,220</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Air Qual. Dev. Auth. PCRB, Dayton Pwr. &amp; Lt. Co. Proj., 4.80%, 1/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,289,546</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Oklahoma&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,725</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,934,657</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Oregon&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">555</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Multi-Fam. Hsg. RB, Pacific Tower Apts. Proj., Ser. 6, 6.05%, 11/01/34, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">578,826</FONT>&nbsp;
        </TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">20</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=9% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=54% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Pennsylvania&#151;3.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 4,895</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Fin. Auth. Exempt Facs. RB, Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/09 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,259,678</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Comnwlth. Pub. Impvt. GO, Ser. B, 5.00%, 7/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,715,985</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">South Carolina&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Jobs Econ. Dev. Auth. Hosp. Facs. RB, Palmetto Hlth. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">890</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.00%, 8/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,060,266</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">110</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.00%, 8/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">127,570</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,187,836</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Texas&#151;17.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,005</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Brazos River Auth. PCRB, TXU Energy Co. LLC Proj., 5.00%, 3/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,002,638</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">940</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dallas Area Rapid Trans. RB, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">967,833</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,690</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Harris Cnty. Houston Sports Auth. RB, Ser. G, Zero Coupon, 11/15/41, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/31 @ 53.779</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,780,971</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">605</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lower Colorado River Auth. RB, Ser. A, 5.00%, 5/15/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">628,293</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">430</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Montgomery Cnty. Mun. Util. Dist. No. 46 Wtr. Wks. &amp; Swr. Sys. GO, 4.75%, 3/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">436,218</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,825</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Multi-Fam. Hsg. RB, Copperwood Ranch Apts. Proj., Ser. 9, 5.95%, 11/01/35, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,944,780</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tpke. Auth. Central Sys. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">60,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/35, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 25.665</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,797,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,115</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 8/15/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,172,866</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,840</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tyler Cnty. Hlth. Facs. Dev. RB, Mother Frances Hosp. Proj., 6.00%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,301,974</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">29,033,373</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Washington&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,690</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Care Facs. Auth. RB, Providence Hlth. Care Svcs. Proj., Ser. A, 4.625%, 10/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,698,738</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">905</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">King Cnty. Swr. RB, 5.00%, 1/01/36, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">944,684</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,643,422</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">West Virginia&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">520</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Auth. RB, Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">545,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Wisconsin&#151;5.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. &amp; Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,350</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Aurora Hlth. Care Proj., 6.40%, 4/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500,849</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wheaton Franciscan Svcs. Proj., 5.75%, 8/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,476,420</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,977,269</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;237,079,175)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">256,263,932</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio (cost &#36;1,400,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,400,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;154.3% (cost &#36;238,479,175</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 257,663,932</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liabilities in excess of other assets &#151;(0.1)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">(230,834)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(54.2)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(90,538,232)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 166,894,866</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 7.8% of its net assets, with a current market value of &#36;13,064,233, in securities restricted as to resale.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;238,483,655. The net unrealized appreciation on a tax basis is &#36;19,180,277, consisting of &#36;19,256,543 gross unrealized
appreciation and &#36;76,266 gross unrealized depreciation.</FONT><br><br>


<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">PCRB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Pollution Control
          Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">TA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Tax Allocation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
    </tr>
  </table>
</div>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">21</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=9% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=52% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;156.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Alabama&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 1,010</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Birmingham Wtr. Wks. &amp; Swr. Brd. RB, Ser. A, 4.50%, 1/01/35, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <center>
   <FONT size=1 face="serif">01/16 @ 100 </FONT>&nbsp;
    </center></TD>
        <TD>&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000,355</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">California&#151;7.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Agua Caliente Band RB, Cahuilla Indians Proj., 6.00%, 7/01/18</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,432,272</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,700</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">California GO, 5.00%, 6/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,797,524</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Cnty. Tobacco Sec. Agcy. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,840</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 6/01/46</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/16 @ 17.602</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">176,309</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,710</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, Zero Coupon, 6/01/55</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/16 @ 8.90</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">431,901</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">12,410</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Stanislaus Cnty. Proj., Ser. D, Zero Coupon, 6/01/55</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/16 @ 6.219</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">361,255</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mobilehome Park Fin. Auth. RB, Palomar Estates East &amp; West Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 3/15/34, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,636,395</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,620</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy., Cmnty. Facs. Dist. ST, Mission Bay South Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.625%, 8/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,988,214</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Statewide Cmnty. Dev. Auth. RB, Mem. Hlth. Svcs. Proj., Ser. A, 5.50%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,290,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,755</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Univ. of California RB, Ser. B, 4.75%, 5/15/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,836,088</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD>&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">25,950,158</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Colorado&#151;4.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Colorado Springs Utils. RB, Ser. C, 5.00%, 11/15/45, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,423,057</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Facs. Auth. RB, Catholic Hlth. Initiatives Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 3/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,638,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Northwest Pkwy. Pub. Hwy. Auth. RB, Ser. A, 5.25%, 6/15/41, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/11 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,218,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Park Creek Met. Dist. Ppty. Tax RB, 5.50%, 12/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,421,626</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD>&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">17,701,983</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">District of Columbia&#151;6.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,265</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Friendship Pub. Charter Sch. Income Proj. RB, 5.25%, 6/01/33, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,294,765</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.50%, 5/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,637,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.75%, 5/15/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">12,438,170</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD>&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">22,370,385</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Florida&#151;15.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">65</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fishhawk Cmnty. Dev. Dist. II TA, Ser. B, 5.00%, 11/01/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">64,796</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,670</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">JEA RB, Wtr. &amp; Swr. Sys. Proj., Ser. A, 4.75%, 10/01/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,683,594</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,780</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lakes by the Bay So. Cmnty. Dev. Dist. RB, Ser. A, 6.25%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/14 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,096,627</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Leesburg Hosp. RB, Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,749,825</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Live Oak Comm. Dev. Dist. No. 1 SA, Ser. A, 6.30%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,271,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,230</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,019,715</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Miami Dade Cnty. RB, Miami Intl. Arpt. Proj., Ser. B, 5.00%, 10/01/37, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,038,980</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,850</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth. RB, Hosp. Adventist Hlth. Sys. Proj., 5.625%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,333,062</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,990</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty. Tourist Dev. Tax RB, 4.75%, 10/01/32, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,076,423</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">14,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pinellas Cnty. Hlth. Fac. Auth. RB, Baycare Hlth. Sys. Proj., 5.50%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">15,376,480</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,065</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Stevens Plantation Cmnty. Dev. Dist. SA, Ser. A, 7.10%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,166,371</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,575</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sumter Cnty. Ind. Dev. Auth. RB, No. Sumter Util. Co. LLC Proj., 6.90%, 10/01/34, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/09 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,778,725</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD>&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">54,655,973</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Georgia&#151;1.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">205</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Atlanta Arpt. Passenger Fac. RB, Ser. J, 5.00%, 1/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">213,333</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Milledgeville-Baldwin Cnty. Dev. Auth. RB, Georgia Coll. &amp; St. Univ. Fndtn. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 9/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/14 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,326,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp; </TD>
        <TD>&nbsp; </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,540,283</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Illinois&#151;18.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bolingbrook GO, Ser. A, 5.375%, 1/01/12, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,326,640</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,470</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,511,471</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,290</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chicago O&#146;Hare Intl. Arpt. RB, Ser. C-2, 5.25%, 1/01/30, FSA, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,499,395</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,500</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Adventist Hlth. Sys. Sunbelt Oblig. Proj., 5.65%, 11/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,998,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">910</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">926,371</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,880</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Northwestern Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,013,386</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">22</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=8% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=52% align=left nowrap>&nbsp;

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

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=8% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Illinois&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 1,125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Student Hsg. MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,140,559</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Student Hsg. MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">912,186</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Hlth. Facs. Auth. RB, Elmhurst Mem. Hosp. Proj., 5.50%, 1/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,448,720</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">45,190</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 6/15/33, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">12,824,018</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 6/15/40, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,007,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,490</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mun. Elec. Agcy. Pwr. Sply. RB, 4.50%, 2/01/35, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,454,919</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">15,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sports Facs. Auth. Ded. St. Tax Supported RB, 5.25%, 6/15/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">13,571,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">65,634,840</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Indiana&#151;9.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Fac. Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ascension Hlth. Proj., Ser. F, 5.375%, 11/15/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,275,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,765</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Clarian Hlth. Oblig. Grp. B Proj., 5.00%, 2/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,848,863</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,075</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Clarian Hlth. Oblig. Grp. B Proj., 5.00%, 2/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,131,523</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">19,735</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Indianapolis Local Pub. Impvt. Bond Bank RB, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/12, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">21,354,454</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mun. Pwr. Agcy. Pwr. Sply. Sys. RB, Ser. A, 4.50%, 1/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,193,448</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">35,803,638</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Maryland&#151;1.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Frederick Cnty. ST, Urbana Cmnty. Dev. Auth. Proj., Ser. A, 5.95%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/07 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,045,480</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,240</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Medstar Hlth., Inc. Proj., 5.50%, 8/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,359,078</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Union Hosp. of Cecil Cnty. Proj., 5.625%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,055,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,459,958</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Massachusetts&#151;0.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,145</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wtr. Res. Auth. RB, Ser. A, 5.00%, 8/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,282,185</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Michigan&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,305</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hosp. Fin. Auth. RB, Henry Ford Hlth. Sys. Proj., Ser. A, 5.25%, 11/15/46</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,414,188</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Mississippi&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,950</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lowndes Cnty. Sld. Wst. Disp. PCRB, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,977,967</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Missouri&#151;2.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dept. of Transp. RB, Rt. 370/Missouri Bottom Rd./Taussig Rd. Proj., 7.20%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,712,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,305</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Joint Mun. Elec. Util. Comm. RB, Plum Point Proj., 5.00%, 1/01/34, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,424,053</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,136,973</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;3.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,070,190</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">3,500</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,845,660</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,250,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,219,270</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">13,385,670</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Nevada&#151;2.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,855</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Clark Cnty. Econ. Dev. RB, Alexander Dawson Sch. Proj., 5.00%, 5/15/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,936,539</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,675</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Henderson Local Impvt. Dist. No. T-14 SA, 5.80%, 3/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/07 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,765,549</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Truckee Meadows Wtr. Auth. RB, 4.875%, 7/01/34, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,504,940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,207,028</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New Jersey&#151;12.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cigarette Tax RB, 5.50%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,464,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cigarette Tax RB, 5.75%, 6/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,268,280</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines, Inc. Proj. RB, 7.20%, 11/15/30, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,610,959</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,475</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Rd. Landfill Proj. SA, 6.50%, 4/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,013,205</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Rd. Landfill Proj. RB, 6.50%, 4/01/31, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">11,733,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">45,090,244</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New Mexico&#151;1.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hsg. Auth. Region III RB, Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,230,472</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">23</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=9% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=52% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New York&#151;11.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 985</FONT>&nbsp;
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">977,583</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,845</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Env. Facs. Corp. St. Clean Wtr. &amp; Drinking Wtr. RB, NYC Mun. Wtr. Proj., Ser. B,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,961,930</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">12,150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liberty Dev. Corp. RB, 5.25%, 10/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">13,726,219</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,775</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Met. Transp. Auth. Svc. Contract RB, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,921,357</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,700</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.75%, 8/01/31, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,771,732</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,330</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York GO, Ser. A, 5.00%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,437,343</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ RB, Contl./Eastn. LaGuardia Proj., 9.00%, 12/01/10, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,928,744</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">40,724,908</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">North Carolina&#151;2.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gaston Cnty. Indl. Facs. Fin. Auth. PCRB, 5.75%, 8/01/35, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,944,675</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,140</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Air Qual. Dev. Auth. PCRB, Dayton Pwr. &amp; Lt. Co. Proj., 4.80%, 1/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,290,627</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Wtr. Dev. Auth. PCRB, Dayton Pwr. &amp; Lt. Co. Proj., Ser. A, 4.80%, 1/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,896,576</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">14,187,203</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Oklahoma&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,925</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,402,045</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Pennsylvania&#151;6.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,175</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Amtrak Proj., Ser. A, 6.375%, 11/01/41, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,615,393</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,565</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Exempt Facs., Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/09 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,352,092</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Monroe Cnty. Hosp. Auth. RB, Pocono Med. Ctr. Proj., 6.00%, 1/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,328,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">22,295,635</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,755</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Comnwlth. Pub. Impvt. GO, Ser. B, 5.00%, 7/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,898,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">South Carolina&#151;5.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Greenwood Cnty. Hosp. RB, Self Mem. Hosp. Facs. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,280</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 10/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,451,380</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 10/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,415,263</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Jobs Econ. Dev. Auth. Hosp. Facs. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Georgetown Mem. Hosp. Proj., 5.375%, 2/01/30, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,922,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,450</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Palmetto Hlth. Alliance Proj., 6.875%, 8/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,267,865</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">550</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Palmetto Hlth. Alliance Proj., 6.875%, 8/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">632,368</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,640</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Palmetto Hlth. Alliance Proj., Ser. A, 6.25%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,873,851</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">19,563,677</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Tennessee&#151;2.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">20,405</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Knox Cnty. Hlth. Edl. &amp; Hsg. Facs. Brd. Hosp. Facs. RB, Ser. A, Zero Coupon, 1/01/21, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 63.44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,498,119</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Texas&#151;19.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,190</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Brazos River Auth. PCRB, TXU Energy Co. LLC Proj., 5.00%, 3/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,184,853</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,015</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dallas Area Rapid Trans. RB, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,074,664</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">20,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gulf Coast Wst. Disp. Auth. Env. Impvt. RB, Ser. A, 6.10%, 8/01/24, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">21,609,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">25,375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Harris Cnty. Houston Sports Auth. RB, Ser. A-3, Zero Coupon, 11/15/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/24 @ 49.423</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,143,259</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,945</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Los Fresnos Cons. Indpt. Sch. Dist. GO, 5.00%, 8/15/39, PSF</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,020,622</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lower Colorado River Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 5/15/13, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,376</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 5/15/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,350,050</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">930</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Montgomery Cnty. Mun. Util. Dist. No. 46 Wtr. Wks. &amp; Swr. Sys. GO, 4.75%, 3/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">943,448</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tpke. Auth. Central Sys. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">73,370</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/36, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 24.171</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">13,586,656</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">65,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/37, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 22.708</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">11,310,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">27,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/38, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 21.384</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,522,536</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,575</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 8/15/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,700,172</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">69,451,686</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">24</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=9% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=53% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Virginia&#151;6.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;13,130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Alexandria Redev. &amp; Hsg. Auth. RB, 3001 Park Ctr. Apts. Proj., Ser. A, 6.375%, 4/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/08 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12,707,214</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">9,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Halifax Cnty. Indl. Dev. Auth. Exempt Fac. RB, Old Dominion Elec. Coop. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 6/01/28, AMBAC, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,708,660</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">22,415,874</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Washington&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">3,660</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Care Facs. Auth. RB, Providence Hlth. Care Svcs. Proj., Ser. A, 4.625%, 10/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,678,922</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">1,960</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">King Cnty. Swr. RB, 5.00%, 1/01/36, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,045,946</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,724,868</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">West Virginia&#151;1.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">1,115</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Auth. RB, Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,168,821</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mason Cnty. PCRB, Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,160,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,329,021</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. &amp; Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">3,930</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Aurora Hlth. Care Proj., 6.40%, 4/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,369,137</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wheaton Franciscan Svcs. Proj., 5.75%, 8/15/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,350,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,719,437</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;526,921,836)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">567,997,748</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">California&#151;0.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="right"><FONT size=1 face="serif">75</FONT><SUP><FONT size=1 face="serif">7</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Facs. Fin. Auth. RB, Scripps Hlth. Proj., Ser. B, 3.18%, 9/06/06, MBIA, FRWD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">75,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Money Market Fund&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">2,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,400,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost &#36;2,475,000)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,475,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;157.3% (cost &#36;529,396,836</FONT></B><B><SUP><FONT size=1 face="serif">8</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 570,472,748</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liabilities in excess of other assets&#151;(0.6)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">(2,252,624)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(56.7)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=1 face="serif">(205,612,581</font><font size=1 face="serif">)</font> </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 362,607,543</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. </FONT><SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is collateralized by Municipal or U.S. Treasury obligations.</FONT>
<br>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT>
<br>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 4.4% of its net assets, with a current market value of &#36;15,897,141, in securities restricted as to resale.</FONT>
<br>
<SUP><FONT size=1 face="serif">7</FONT></SUP><FONT size=1 face="serif">For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or
the next date on which the rate of interest is adjusted. Rate shown is rate as of August 31, 2006.</FONT>
<br>

<SUP><FONT size=1 face="serif">8</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;529,375,931. The net unrealized appreciation on a tax basis is &#36;41,096,817, consisting of &#36;43,650,075 gross unrealized
appreciation and &#36;2,553,258 gross unrealized depreciation.</FONT><br>
<br>

<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">PCRB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Pollution Control
          Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">PSF</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Public School Fund
          Guaranteed</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RAA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Radian Asset Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ETM</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Escrowed to Maturity</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FRWD</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Floating Rate Weekly
          Demand</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">TA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Tax Allocation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General ObligationXLCA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">25</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

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

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=4% align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;153.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">California&#151;153.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
            </div></TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">6,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Benicia Unified Sch. Dist. GO, Ser. B, Zero Coupon, 8/01/23, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,033,420</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">California St. GO, 5.00%, 6/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,186,560</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">California St. Univ. RB, Ser. C, 5.00%, 11/01/38, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,050,130</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ceres Unified Sch. Dist. GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">3,055</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/30, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 34.887</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">805,054</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">3,180</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 32.868</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">789,053</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">3,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 30.966</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">770,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">3,440</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/33, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 29.174</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">755,871</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">3,575</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 27.782</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">748,069</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">3,275</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/35, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 26.186</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">645,928</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">6,500 </FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dept. of Wtr. Res. Pwr. Sply. RB, Ser. A, 5.25%, 5/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,107,425</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">2,385</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Edl. Facs. Auth. RB, Scripps Coll. Proj., 5.00%, 8/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,461,201</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Infrastructure &amp; Econ. Dev. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">2,300 </FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Bay Area Toll Brdgs. Proj, Ser. A, 5.00%, 1/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,564,270</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">4,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,727,790</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">2,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kaweah Delta Hlth. Care Dist. RB, 6.00%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,821,702</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Long Beach Unified Sch. Dist. GO, Ser. D, 5.00%, 8/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,068,360</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 7/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,162,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/41, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,162,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Los Angeles Unified Sch. Dist. GO, Ser. E, 5.125%, 1/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,265,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Los Angeles Wstwtr. Sys. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 6/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,232,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">6,025</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 6/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,240,092</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">1,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Murrieta Valley Univ. Sch. Dist. Pub. Fin. Auth. ST, Ser. A, 4.75%, 9/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,115,026</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">No. California Pwr. Agcy. Pub. Pwr. RB, Hydroelec. Proj. 1, Ser. A, 5.00%, 7/01/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/08 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,134,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">2,500 </FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">No. Orange Cnty. Cmnty. Coll. Dist. GO, Ser. A, 5.00%, 8/01/12, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,702,025</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=1 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;700</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Springs Univ. Sch. Dist. GO, Election 2004, Ser. A, 4.50%, 8/01/35, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/14 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">701,638</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pub. Wks. Brd. Dept. of Gen. Svcs. RB, Ser. A, 5.00%, 12/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,206,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Riverside Unified Sch. Dist. GO, Ser. A, 5.00%, 2/01/27, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,225,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">5,295</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Diego Cnty. Wtr. Auth. COP, Ser. A, 5.00%, 5/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,507,171</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">4,805</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Diego Redev. Agcy. TA, Ctr. City Proj., Ser. A, 5.00%, 9/01/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,991,146</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Diego Univ. Fndtn. Aux. Org. RB, Ser. A, 5.00%, 3/01/37, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,111,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=1 face="serif">20,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy. Toll Rd. RB, Ser. A, Zero Coupon, 1/15/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,419,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Jose Fin. Auth. RB, Civic Ctr. Proj., Ser. B, 5.00%, 6/01/37, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,158,940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=1 face="serif">11,125</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Santa Rosa Wstwtr. RB, Ser. B, Zero Coupon, 9/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,248,526</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tustin Unified Sch. Dist. ST, Cmnty. Facs. Dist. 97-1 Proj., Ser. A, 5.00%, 9/01/38, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,090,630</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">West Valley-Mission Cmnty. Coll. Dist. GO, Election 2004 A, 4.75%, 8/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,071,340</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Westlands Wtr. Dist. COP, 5.00%, 9/01/34, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,140,560</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;117,056,606)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">123,422,897</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">26</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=11% align=center nowrap>&nbsp;</TD>
        <TD width=9% align=center nowrap>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=59% align=left nowrap>&nbsp;

        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=6>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;3.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">2,400</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio (cost &#36;2,400,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,400,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;156.4% (cost &#36;119,456,606</FONT></B><B><SUP><FONT size=1 face="serif">4</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 125,822,897</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities &#151;1.4%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,105,269</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.8)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(46,510,144)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; &nbsp;&nbsp;80,418,022</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;119,457,123. The net unrealized appreciation on a tax basis is &#36;6,365,774, consisting of &#36;6,365,774 gross unrealized
appreciation and &#36;0 gross unrealized depreciation.</FONT><br>

<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 91.4% of the Trust&#146;s managed assets. The Trust
had the following insurance concentrations:<br></FONT>
<br>

<TABLE border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD align=left width=12% nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=right width=31% nowrap>
<FONT size=1 face="serif">21.6%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD align=left width=12% nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=right width=31% nowrap>
<FONT size=1 face="serif">20.9%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD align=left width=12% nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=right width=31% nowrap>
<FONT size=1 face="serif">7.1%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD align=left width=12% nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=right width=31% nowrap>
<FONT size=1 face="serif">39.9%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD align=left width=12% nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=right width=31% nowrap>
<FONT size=1 face="serif">1.9%</FONT>&nbsp;
        </TD>
</TR>
</TABLE><BR>
<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Certificate of
          Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">TA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Tax Allocation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">27</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=52% align=left nowrap>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;153.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

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

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">California&#151;146.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Anaheim Pub. Fin. Auth. RB, Pub. Impvt. Proj., Ser. C, Zero Coupon, 9/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,480,050</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,175</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">City of Chula Vista Indl. Dev. RB, San Diego Gas &amp; Elec. Proj., 5.00%, 12/01/27, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,212,671</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Edl. Facs. Auth. RB, Univ. of San Diego Proj., Ser. A, 5.25%, 10/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,211,880</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,845</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Foothill/Eastn. Transp. Corridor Agcy. RB, Toll Road Proj., 5.75%, 1/15/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,993,225</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,239,460</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.75%, 6/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,126,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.50%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,762,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,300</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.625%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,446,276</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,270</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Facs. Fin. Auth. RB, Insured Hlth. Facs. Valleycare Proj., Ser. A, 5.375%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,454,624</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Infrastructure &amp; Econ. Dev. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Asian Museum Fndtn. of San Francisco Proj., 5.25%, 6/01/07, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,068,460</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,100</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Bay Area Toll Brdgs. Proj, Ser. A, 5.00%, 1/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,456,190</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">J. David Gladstone Inst. Proj., 5.25%, 10/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,875,663</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,677,170</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,745</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kaweah Delta Hlth. Care Dist. RB, 6.00%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,893,796</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lathrop Fin. Auth. RB, Wtr. Sply. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">655</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.90%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">691,176</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,180</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.00%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,248,593</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Live Oak Unified Sch. Dist. Cap. Apprec. Election GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">705</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/29, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/18 @ 55.976</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">218,472</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">795</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/30, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/18 @ 52.942</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">232,196</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">830</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/31, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/18 @ 50.064</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">230,308</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">865</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/32, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/18 @ 47.332</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">226,397</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">905</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/33, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/18 @ 44.74</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">223,372</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">945</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/34, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/18 @ 42.283</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Los Angeles Regl. Arpt. Impvt. Corp. Lease RB, American Airlines, Inc. Proj., AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 7.50%, 12/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,107,050</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">680</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.50%, 12/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">752,794</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Multi-Fam. Hsg. RB, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,195</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">San Lucas Apts. Proj., Ser. 5, 5.95%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,288,068</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,365</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Westgate Courtyard Apts. Proj., Ser. 3, 5.80%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,466,127</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Murrieta Valley Univ. Sch. Dist. Pub. Fin. Auth. ST, Ser. A, 4.75%, 9/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">760,245</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,400</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty. Cmnty. Facs. Dist. ST, Ladera Ranch Proj., Ser. A, 6.00%, 8/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,640,936</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Springs Mobile Home Park RB, Sahara Mobile Home Park Proj., 5.75%, 5/15/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,167,430</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Springs Univ. Sch. Dist. GO, Election 2004, Ser. A, 4.50%, 8/01/35, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/14 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,007,020</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">530</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Poll. Ctrl. Sld. Wst. Mgmt. RB, Central Valley Wst. Svc. Proj., Ser. A-2, 5.40%, 4/01/25, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">559,563</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy. Cmnty. Facs. Dist. ST, Mission Bay South Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,647,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">15,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Santa Ana Unified Sch. Dist. COP, Zero Coupon, 4/01/29, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,280,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Santa Clara Valley Wtr. Dist. Wtr. Util. Sys. RB, Ser. A, 5.125%, 6/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/10 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,577,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Statewide Cmnty. Dev. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Daughters of Charity Hlth. Proj., Ser. A, 5.25%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,565,505</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Permanente Proj., Ser. A, 5.50%, 11/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,276,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sutter Hlth. Oblig. Grp. Proj., Ser. B, 5.625%, 8/15/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,477,110</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Torrance Hosp. RB, Torrance Mem. Med. Ctr. Proj., Ser. A, 5.50%, 6/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,571,115</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">80,335,152</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">28</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=11% align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=47% align=left nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=14% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;7.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">&#36; 3,500</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,964,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;153.8% (cost &#36;77,131,904</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">84,300,127</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;0.9%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">485,360</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(54.7)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
      <div align="right"><FONT size=1 face="serif">(29,984,196)</FONT></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">54,801,291</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 7.2% of its net assets, with a current market value of &#36;3,964,975, in securities restricted as to resale.<br>
</FONT>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;77,123,980. The net unrealized appreciation on a tax basis is &#36;7,176,147, consisting of &#36;7,184,070 gross unrealized
appreciation and &#36;7,923 gross unrealized depreciation.</FONT><br>
<br>

<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Mininum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Certificate of
          Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">29</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="10%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="9%" align=center nowrap>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="55%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="10%" align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width="6%">&nbsp;
        </TD>
        <TD width="5%" align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

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

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

          <div align="right"></div></TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;155.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">California&#151;151.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Anaheim Pub. Fin. Auth. RB, Pub. Impvt. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;15,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, Zero Coupon, 9/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 4,020,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="right"><FONT size=1 face="serif">10,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, Zero Coupon, 9/01/36, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,432,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">8,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">California GO, 5.50%, 11/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,677,520</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">5,020</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">City of Chula Vista Indl. Dev. RB, San Diego Gas &amp; Elec. Proj., 5.00%, 12/01/27, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,180,941</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">6,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corona Norco Unified Sch. Dist. ST, Cmnty. Facs. Dist. No. 98-1 Proj., 5.10%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,206,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">6,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dept. of Wtr. Res. Pwr. Sply. RB, Ser. A, 5.375%, 5/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,598,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Foothill/Eastn. Transp. Corridor Agcy. Toll Rd. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">6,550</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/10 @ 30.966</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,679,682</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">15,470</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,442,636</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">4,890</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,660,351</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">2,920</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/45, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,020,039</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">2,900</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,247,217</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="right"><FONT size=1 face="serif">11,100</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.75%, 6/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">12,508,812</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">5,650</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.50%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,244,041</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.625%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,337,560</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Infrastructure &amp; Econ. Dev. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">7,600</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Bay Area Toll Brdgs. Proj, Ser. A, 5.00%, 1/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,473,240</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,735</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Hosp. Asst. LLC Proj., Ser. A, 5.55%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/11 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,845,329</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">2,500</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,626,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">La Quinta Redev. Agcy. TA, Redev. Proj. Area No. 1, 5.125%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,245,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Pwr. Sys. Proj., 5.00%, 7/01/35, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,574,055</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">5,500</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. Wks. Proj., Ser. A, 5.125%, 7/01/41, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,678,365</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,785</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Los Angeles Regl. Arpt. Impvt. Corp. Lease RB, American Airlines, Inc. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.50%, 12/01/24, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,976,084</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">3,500</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mobilehome Park Fin. Auth. RB, Palomar Estates East &amp; West Proj., Ser. A, 5.25%, 3/15/34, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,636,395</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,720</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Murrieta Valley Univ. Sch. Dist. Pub. Fin. Auth. ST, Ser. A, 4.75%, 9/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,743,495</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Oxnard Impvt. Bond Dist. No. 1 SA, 1 Rice Ave. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,910</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 9/02/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/07 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,949,480</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,905</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.70%, 9/02/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/07 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,919,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">2,700</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Springs Univ. Sch. Dist. GO, Election 2004, Ser. A, 4.50%, 8/01/35, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/14 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,706,318</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,180</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Poll. Ctrl. Sld. Wst. Mgmt. RB, Central Valley Wst. Svc. Proj., Ser. A-2, 5.40%, 4/01/25, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,245,820</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Poway Unified Sch. Dist. ST, Cmnty. Facs. Dist. No. 6 Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 9/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,530,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,700</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.60%, 9/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,735,003</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">2,470</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Rohnert Park Fin. Auth. RB, Rancho Feliz Mobile Home Park Proj., Ser. A, 5.625%, 9/15/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,578,087</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sacramento City Fin. Auth. Cap. Impvt. RB, Ser. A, 5.00%, 12/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,193,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">6,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Bernardino Cnty. Cmnty. Facs. ST, 5.90%, 9/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,365,340</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">8,665</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Diego Unified Sch. Dist. GO, Ser. D, 5.25%, 7/01/23, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,430,639</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy. Cmnty. Facs. Dist. ST, Mission Bay South Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,295,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="right"><FONT size=1 face="serif">30,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy. RB, Toll Rd. Proj., Ser. A, Zero Coupon, 1/15/34, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,283,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Santa Clarita Cmnty. Facs. Dist. ST, Valencia Town Ctr. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,640</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.80%, 11/15/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,687,281</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.85%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,543,170</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">2,685</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Santa Rosa Wstwtr. RB, Ser. B, Zero Coupon, 9/01/25, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,132,265</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">2,200</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">So. Tahoe Joint Pwr. Fin. Auth. RB, So. Tahoe Redev. Proj. 1-A, 5.45%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,276,802</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Statewide Cmnty. Dev. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Permanente Proj., Ser. A, 5.50%, 11/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,276,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">7,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mem. Hlth. Svcs. Proj., Ser. A, 5.50%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,406,280</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">8,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sutter Hlth. Oblig Corp. Proj., Ser. B, 5.50%, 8/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,520,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,600</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tobacco Sec. Auth. of So. California Tobacco Settlement RB, Ser. A, 5.625%, 6/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,764,720</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tustin Unified Sch. Dist. ST, Cmnty. Facs. Dist. 97-1 Proj., Ser. B, 5.60%, 9/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,033,720</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Univ. of California RB, Ser. A, 5.00%, 5/15/33, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,073,480</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,170</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Val Verde Unified Sch. Dist. ST, 6.25%, 10/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,232,443</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vernon Elec. Sys. RB, Malburg Generating Station Proj., 5.50%, 4/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,062,060</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

 <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">West Valley-Mission Cmnty. Coll. Dist. GO, Election 2004 A, 4.75%, 8/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,023,780</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">190,321,490</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">30</FONT></P>

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




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=11% align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=7% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=49% align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;3.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 500</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 535,095</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,098,760</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,575,165</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,073,091</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,282,111</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;177,853,370)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">194,603,601</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">900</FONT>&nbsp;&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio (cost &#36;900,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">900,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;155.7% (cost &#36;178,753,370</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 195,503,601</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.6%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,997,980</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.3)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(71,976,567)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 125,525,014</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT><br>


<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is collateralized by Municipal or U.S. Treasury obligations.</FONT>
<br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 3.4% of its net assets, with a current market value of &#36;4,282,110, in securities restricted as to resale.<br></FONT>

<br>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;178,731,086. The net unrealized appreciation on a tax basis is &#36;16,772,515, consisting of &#36;16,794,793 gross unrealized
appreciation and &#36;22,278 gross unrealized depreciation.</FONT><br>
<br>

<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ETM</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Escrowed to Maturity</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">TA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Tax Allocation</font>&nbsp; </td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">31</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=54% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
          <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=4% align=left nowrap>&nbsp;

        </TD>
        <TD width=4% align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;153.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Florida&#151;146.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Brd. of Ed.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">GO, Ser. A, 5.00%, 6/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,434,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,640</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Lottery RB, Ser. C, 5.00%, 1/01/22, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,132,480</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Capital Trust Agcy. Multi-Fam. RB, American Oppty. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.875%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">975,590</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Ba1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">980</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.25%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">950,188</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,835</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Colonial Cntry. Club Cmnty. Dev. Dist. SA, 6.40%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,092,328</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dept. of Transp. GO, 5.00%, 7/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,315,980</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,695</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gainesville Util. Sys. RB, Ser. A, 5.00%, 10/01/33, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,062,364</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Highlands Cnty. Hlth. Facs. Auth. RB, Adventist/Sunbelt Hosp. Proj., Ser. A, 6.00%, 11/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,498,325</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,580</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hillsborough Cnty. Sch. Brd. COP, Ser. A, 5.00%, 7/01/25, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/10 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,837,417</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Jacksonville RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,865</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cap. Impvt., Ser. A, 5.00%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,969,487</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Excise Tax, Ser. B, 5.00%, 10/01/26, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,361,280</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sales Tax, 5.00%, 10/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,930,825</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Transp., 5.00%, 10/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,834,685</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">JEA RB, Wtr. &amp; Swr. Sys. Proj., Ser. A, 4.75%, 10/01/41, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,016,280</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,480</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Julington Creek Plantation Cmnty. Dev. SA, 5.00%, 5/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,548,021</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lake Cnty. Sch. Brd. COP, Ser. A, 5.00%, 7/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,373,770</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Miami Dade Cnty. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 10/01/39, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/15 @ 28.762</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,837,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 10/01/40, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/15 @ 27.307</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,744,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">26,935</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 10/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/08 @ 28.079</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,172,790</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,975</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sales Tax RB, Ser. B, 5.125%, 1/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,389,301</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sch. Brd. COP, Ser. A, 5.00%, 8/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,077,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Tourist Dev. Tax RB, 5.125%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,745,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Osceola Cnty. Sch. Brd. COP, Ser. A, 5.25%, 6/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,272,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Bay Util. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,015</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 10/01/28, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,433,997</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,570</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 10/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,704,309</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Beach Cnty. Sch. Brd. COP, Ser. D, 5.00%, 8/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,532,212</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pinellas Cnty. Hlth. Fac. Auth. RB, Baycare Hlth. Sys. Proj., 5.50%, 5/15/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,491,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pinellas Cnty. Swr. RB, 5.00%, 10/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,907,265</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Polk Cnty. Util. Sys. RB, 5.00%, 10/01/29, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,233,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">825</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Port St. Lucie Util. RB, 5.125%, 9/01/11, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">879,236</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,945</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sarasota Cnty. Util. Sys. RB, Ser. C, 5.25%, 10/01/22, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,151,386</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">St. Petersburg Pub. Util. RB, Ser. A, 5.00%, 10/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/09 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,612,875</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tampa Wtr. &amp; Swr. RB, 4.625%, 10/01/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">505,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tohopekaliga Wtr. Auth. RB, Ser. B, 5.00%, 10/01/23, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,052,840</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,070</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vlg. Cmnty. Dev. Dist. No. 5 SA, Ser. A, 6.50%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,363,040</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vlg. Ctr. Cmnty. Dev. Dist. RB, Ser. A, 5.00%, 11/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">10,379,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">194,820,051</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;7.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,405</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,718,186</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;195,425,385)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">204,538,237</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">32</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=6% align=center nowrap>&nbsp;</TD>
        <TD width=7% align=center nowrap>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=69% align=left nowrap>&nbsp;

        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">2,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio (cost &#36;2,200,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,200,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;155.3% (cost &#36;197,625,385</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 206,738,237</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.8%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,390,344</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.1)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(76,022,175)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 133,106,406</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT><br>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;197,625,316. The net unrealized appreciation on a tax basis is &#36;9,112,921, consisting of &#36;9,149,459 gross unrealized
appreciation and &#36;36,538 gross unrealized depreciation.</FONT><br>

<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 83.2% of the Trust&#146;s managed assets. The Trust
had the following insurance concentrations:</FONT><br>
<br>

<TABLE border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 16.9%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 9.6%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 24.2%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 31.4%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 1.1%</FONT>&nbsp;
        </TD>
</TR>
</TABLE><BR>
<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Certificate of
          Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">33</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=56% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;153.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Florida&#151;142.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>      <div align="right"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
    </div></TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Bay Cnty. Sales Tax RB, 5.125%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,314,688</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Boynton Beach Multi-Fam. RB, Clipper Cove Apts. Proj., 5.30%, 1/01/23, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,030,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Capital Trust Agcy. Multi-Fam. RB, American Oppty. Proj., Ser. A, 5.875%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">975,590</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,625</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Colonial Cntry. Club Cmnty. Dev. Dist. SA, 6.40%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,734,037</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">735</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Gateway Svcs. Cmnty. Dev. Dist. SA, Stoneybrook Proj., 5.50%, 7/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">738,506</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Greater Orlando Aviation Auth. RB, Orlando Arpt. Facs. Proj., Ser. A, 5.125%, 10/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,192,757</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,900</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Highlands Cnty. Hlth. Facs. Auth. RB, Adventist/Sunbelt Hosp. Proj., Ser. A, 6.00%, 11/15/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,475,505</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,810</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hillsborough Cnty. Ind. Dev. Auth. PCRB, Tampa Elec. Co. Proj., 5.50%, 10/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,897,296</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Jacksonville Econ. Dev. Comm. Hlth. Facs. RB, Mayo Clinic Proj., Ser. B, 5.50%, 11/15/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,756,865</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">JEA RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Elec. Sys. Proj., Ser. A, 5.50%, 10/01/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,102,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. &amp; Swr. Sys. Proj., Ser. A, 4.75%, 10/01/41, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,008,140</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,425</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. &amp; Swr. Sys. Proj., Ser. A, 5.375%, 10/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/07 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,474,639</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lakeland Hosp. Sys. RB, Lakeland Regl. Hlth. Sys. Proj., 5.50%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,194,820</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">890</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Madison Cnty. RB, First Mtg. Twin Oaks Proj., Ser. A, 6.00%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">918,836</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,690,140</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Miami Dade Cnty. SO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 10/01/26, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/08 @ 37.301</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,924,890</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 10/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/08 @ 29.688</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,818,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,410</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 10/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/08 @ 26.494</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,357,856</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mun. Loan Council RB, Ser. A, 5.125%, 5/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,319,281</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">340</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Hlth. Care Orlando Lutheran Proj., 5.375%, 7/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">339,266</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">305</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Hlth. Care Orlando Lutheran Proj., 5.70%, 7/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">308,236</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Orlando Regl. Hlth. Care Proj., 5.75%, 12/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,559,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,350</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Orange Cnty. Tourist Dev. Tax RB, 5.125%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,529,560</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,105</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Osceola Cnty. Tourist Dev. Tax RB, Ser. A, 5.00%, 10/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,230,038</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,630</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Bay Util. RB, Zero Coupon, 10/01/28, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,296,491</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Palm Beach Cnty. Sch. Brd. COP, Ser. C, 5.00%, 8/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,103,590</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Port St. Lucie Util. RB, 5.125%, 9/01/11, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,598,610</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">So. Broward Hosp. Dist. RB, 5.60%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,163,680</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,765</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Stevens Plantation Impvt. Proj. RB, 6.375%, 5/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,818,232</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,780</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sumter Cnty. Indl. Dev. Auth. RB, No. Sumter Util. Co. LLC Proj., 6.80%, 10/01/32, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/09 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,896,009</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,550</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vlg. Cmnty. Dev. Dist. No. 5 SA, Ser. A, 6.50%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,661,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Volusia Cnty Edl. Fac. Auth. RB, Embry Riddle Aeronautical Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.20%, 10/15/26, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,317,438</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,610</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.20%, 10/15/33, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,695,845</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">76,443,141</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">34</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=11% align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=49% align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=19% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;6.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;3,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,398,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;5.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,565</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pub. Bldgs. Auth. Gov&#146;t. Facs. RB, Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,768,507</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;153.6% (cost &#36;76,613,913</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">82,610,198</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.8%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">966,078</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(55.4)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(29,777,895)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">53,798,381</FONT>&nbsp;
        </TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT><br>


<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 6.3% of its net assets, with a current market value of &#36;3,398,550, in securities restricted as to resale.<br>
</FONT>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;76,563,514. The net unrealized appreciation on a tax basis is &#36;6,046,684, consisting of &#36;6,103,808 gross unrealized
appreciation and &#36;57,124 gross unrealized depreciation.</FONT></P>
<P align="justify">&nbsp;</P>
<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">PCRB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Pollution Control
          Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RAA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Radian Asset Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Certificate of
          Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Obligation</font>&nbsp; </td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">35</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="11%" align=left nowrap>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="6%" align=center nowrap>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="50%" align=left nowrap>&nbsp;

        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="12%" align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="5%" align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;152.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Maryland&#151;120.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Annapolis SO, Park Place Proj., Ser. A, 5.35%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">510,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,870</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Anne Arundel Cnty. Econ. Dev. RB, Cmnty. Coll. Proj., 5.25%, 9/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,066,624</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Baltimore Cnty. GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Met 67th Dist., 5.00%, 6/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,116,180</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Met 68th Dist., 5.00%, 8/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,104,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Baltimore ST, Harborview Lot No. 2 Proj., 6.50%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,067,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Baltimore Wstwtr. Proj. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/42, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,085,080</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">3,500</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.20%, 7/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,712,205</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Frederick Cnty. ST, Urbana Cmnty. Dev. Auth. Proj., 6.625%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/07 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,030,290</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brd. of Child Care Proj., 5.375%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,122,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,990</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Carroll Cnty. Gen. Hosp. Proj., 6.00%, 7/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,123,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Johns Hopkins Univ. Proj., Ser. B, 5.00%, 7/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,055,860</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loyola Coll. Issue Proj., 5.00%, 10/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/09 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,047,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Union Hosp. of Cecil Cnty. Proj., 5.625%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,110,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Univ. of Maryland Med. Sys. Proj., 5.25%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,068,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Indl. Dev. Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,905</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Nat. Aquarium Baltimore Fac. Proj., Ser. B, 5.20%, 11/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,003,031</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Our Lady of Good Counsel Sch. Proj., Ser. A, 6.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,068,420</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Montgomery Cnty. Lease RB, Metrorail Garage Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="right"><FONT size=1 face="serif">500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">524,065</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,435</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,504,813</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Prince Georges Cnty. SO, 5.20%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,520,535</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">St. Marys Coll. Academic &amp; Auxil. Fees RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 9/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,054,190</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,047,380</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Transp. Auth. Arpt. Pkg. RB, Baltimore/Wash Intl. Arpt. Proj., Ser. B,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 3/01/24, AMBAC, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,085,740</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">39,028,803</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;7.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,265,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;24.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.50%, 5/15/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,060,320</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,060</FONT>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Elec. Pwr. Auth. RB, Ser. HH, 5.25%, 7/01/29, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,180,737</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hwy. &amp; Transp. Auth. RB, Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,169,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pub. Bldgs. Auth. Gov&#146;t. Facs. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <div align="right"><FONT size=1 face="serif">1,100</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.375%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,194,413</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="right"><FONT size=1 face="serif">350</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.375%, 7/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">366,964</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,972,014</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;46,064,560)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">49,266,517</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">36</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=6% align=center nowrap>&nbsp;</TD>
        <TD width=6% align=center nowrap>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=67% align=left nowrap>&nbsp;

        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD colspan=6>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio (cost &#36;250,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;153.1% (cost &#36;46,314,560</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 49,516,517</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.6%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">847,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(55.7)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(18,010,354)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 32,353,663</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 7.0% of its net assets, with a current market value of &#36;2,265,700, in securities restricted as to resale.<br>
</FONT>


<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;46,308,236. The net unrealized appreciation on a tax basis is &#36;3,208,281, consisting of &#36;3,214,603 gross unrealized
appreciation and &#36;6,322 gross unrealized depreciation.</FONT></P>
<P align="justify">&nbsp;</P>
<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">37</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=56% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
            </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;151.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;6.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,265,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New Jersey&#151;125.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">City of Vineland GO, MBIA, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.30%, 5/15/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,049,270</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.375%, 5/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,569,315</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cigarette Tax, 5.75%, 6/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,134,140</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,335</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines, Inc. Proj., 7.00%, 11/15/30, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,435,965</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fellowship Vlg. Proj., Ser. A, 5.50%, 1/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/08 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,037,420</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">First Mtg. Lions Gate Proj., Ser. A, 5.75%, 1/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">155,025</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">265</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">First Mtg. Lions Gate Proj., Ser. A, 5.875%, 1/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">273,684</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,720</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Victoria Hlth. Proj., Ser. A, 5.20%, 12/20/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/11 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,847,968</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winchester Proj., Ser. A, 5.80%, 11/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,662,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wst. Mgmt., Inc. Proj., Ser. A, 5.30%, 6/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,049,710</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Econ. Dev. Auth. SA, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,713,005</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ. Proj., Ser. C, 5.50%, 7/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">534,775</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ. Proj., Ser. C, 6.00%, 7/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,105,810</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ. Proj., Ser. D, 6.00%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,089,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">630</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Georgian Court Coll. Proj., Ser. C, 6.50%, 7/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">700,503</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Montclair St. Univ. Proj., Ser. F, 5.00%, 7/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">790,973</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Garden St. Pres. Trust Open Space &amp; Farmland Presvtn. RB, Ser. B, Zero Coupon, 11/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,522,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hlth. Care Fac. Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Atlantic City Med. Ctr. Proj., 5.75%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,119,260</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Catholic Hlth. East. Proj., Ser. A, 5.375%, 11/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,103,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kennedy Hlth. Sys. Proj., 5.625%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,115,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">So. Jersey Hosp. Proj., 6.00%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,654,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hsg. &amp; Mtg. Fin. Agcy. Multi-Fam. Hsg. RB, Ser. A, 5.65%, 5/01/40, AMBAC, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/07 @ 101.5</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,304,270</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Middlesex Cnty. Impvt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,568,575</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 125, 5.00%, 4/15/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,575,825</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 126, 5.25%, 5/15/37, FGIC, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,367,427</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Contl./Eastern LaGuardia Proj., 9.125%, 12/01/15, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">131,788</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB, 6.125%, 6/01/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,261,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Univ. of Med. &amp; Dentistry RB, Ser. A, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,042,310</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">46,916,738</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;19.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Elec. Pwr. Auth. RB, Ser. 2, 5.25%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,348,010</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">2,100 </FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hwy. &amp; Transp. Auth. RB, Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,278,059</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pub. Bldgs. Auth. Gov&#146;t. Facs. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,685 </FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,818,688</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">615</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">639,305</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,084,062</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;52,067,025)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">56,266,500</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">38</FONT></P>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="justify">
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=7% align=center nowrap>&nbsp;</TD>
        <TD width=5% align=center nowrap>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
      </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=66% align=left nowrap>&nbsp;

        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
          <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">350</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio (cost &#36;350,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 350,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;151.9% (cost &#36;52,417,025</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 56,616,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.4%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">876,636</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(54.3)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(20,230,402)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 37,262,734</FONT>&nbsp;
        </TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 6.1% of its net assets, with a current market value of &#36;2,265,700, in securities restricted as to resale.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;52,394,273. The net unrealized appreciation on a tax basis is &#36;4,222,227, consisting of &#36;4,244,979 gross unrealized
appreciation and &#36;22,752 gross unrealized depreciation.</FONT><br>
<br>

<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
  </table>
</div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">39</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=54% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap colspan=2>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 <center>
   <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;151.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New York&#151;138.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
      </div></TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Convention Ctr. Dev. RB, Hotel Unit Fee Secured, 5.00%, 11/15/44, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,205,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dorm. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brooklyn Law Sch. Proj., Ser. B, 5.125%, 7/01/30, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,292,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Hosp. Lutheran Med. Proj., 5.00%, 8/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,275,380</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Insured Fit Student Hsg. Corp. Proj., 5.125%, 7/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,652,625</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Iona Coll. Proj., 5.00%, 7/01/27, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,312,407</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Joachim &amp; Ann Residence Proj., 5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,106,110</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Memorial Sloan Kettering Ctr. Proj., Ser. 1, Zero Coupon, 7/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,472,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York &amp; Presbyterian Hosp. Proj., 5.00%, 8/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/08 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,095,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York Univ. Proj., Ser. 2, 5.00%, 7/01/41, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,186,270</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sch. Dist. Fin. Proj., Ser. A, 5.00%, 4/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,080,540</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sch. Dist. Fin. Proj., Ser. D, 5.00%, 10/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,656,170</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">St. Barnabas Proj., Ser. A, 5.00%, 2/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,256,480</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winthrop Univ. Hosp. Assoc. Proj., Ser. A, 5.25%, 7/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,121,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Herkimer Cnty. Indl. Dev. Agcy. Civic Fac. RB, Coll. Fndtn., Inc. Student Hsg. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,037,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Met. Transp. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,085</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 11/15/25, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,136,049</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,470</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 11/15/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">8,802,786</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Ser. A, 5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,336,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ded. Tax Fund, Ser. A, 5.00%, 11/15/11, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,335,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,387,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,660</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Transp., Ser. E, 5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,839,098</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB, Lycee De Francais Proj., Ser. A, 5.375%, 6/01/23, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,591,475</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth. Wtr. &amp; Swr. Sys. RB, Ser. D, 5.00%, 6/15/39, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,651,270</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Transl. Fin. Auth. RB, Ser. B, 5.00%, 5/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,254,280</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Trust Cultural Recs. RB, American Museum of Natural History Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 7/01/44, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,203,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,320</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III RB, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,505,389</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Sales Tax Asset Receivable Corp. RB, Ser. A, 5.00%, 10/15/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,301,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Triborough Brdg. &amp; Tunl. Auth. RB, Ser. E, 5.00%, 11/15/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">10,442,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">6,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">TSASC, Inc. Tobacco Settlement RB, Ser. 1, 5.75%, 7/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">6,652,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">137,191,219</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;13.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">7,853,080</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Indl. Fin. Auth. Med. &amp; Env. Ctrl. Facs. RB, Polytecnic Univ. Proj., Ser. A, 5.00%, 8/01/32, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,060,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">12,913,980</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;143,265,705)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">150,105,199</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;3.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New York&#151;3.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-1+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York St. Loc Gov&#146;t. Asst. RB, 3.40%, 9/06/06, FSA, FRWD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,000,000</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">40</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=8% align=center nowrap>&nbsp;</TD>
        <TD width=4% align=center nowrap>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=68% align=left nowrap>&nbsp;

        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Money Market Fund&#151;0.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 900,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost &#36;3,900,000)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,900,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;155.2% (cost &#36;147,165,705</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 154,005,199</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.3%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,280,631</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(56.5)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(56,031,136)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;&nbsp;&nbsp; 99,254,694</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. </FONT><br>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is collateralized by Municipal or U.S. Treasury obligations.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or
the next date on which the rate of interest is adjusted. Rate shown is rate as of August 31, 2006.</FONT><br>

<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;147,175,642. The net unrealized appreciation on a tax basis is &#36;6,829,557, consisting of &#36;6,829,557 gross unrealized
appreciation and &#36;0 gross unrealized depreciation.</FONT><br>

<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 85.9% of the Trust&#146;s managed assets. The Trust
had the following insurance concentrations:</FONT><br>
<br>

<TABLE border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">ACA</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 5.0%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 34.8%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 11.3%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 7.7%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 20.9%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">XLCA</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 5.6%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=44% nowrap>
<FONT size=1 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD align=left width=47% nowrap>
<FONT size=1 face="serif">&#151; 0.6%</FONT>&nbsp;
        </TD>
</TR>
</TABLE><BR>
<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">American Capital Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">Financial Security Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">American Municipal Bond
          Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">Municipal Bond Insurance
          Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ETM</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">Escrowed to Maturity</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">Financial Guaranty Insurance
          Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">XL Capital Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FRWD</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151;</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">Floating Rate Weekly Demand</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
    </tr>
  </table>
</div>
<P align="justify"><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">41</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=11% align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=7% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=50% align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=14% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;153.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;6.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 2,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,832,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New York&#151;115.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 7.00%, 5/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">200,368</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 7.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">129,021</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dorm. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,750</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">City Univ. Proj., Ser. A, 5.25%, 7/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,946,460</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Iona Coll. Proj., 5.125%, 7/01/32, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,631,325</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">970</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Memorial Sloan Kettering Ctr.Proj., Ser. 1, 5.00%, 7/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,015,154</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mt. Sinai NYU Hlth. Proj., 5.50%, 7/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/08 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">508,605</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Willow Towers, Inc. Proj., 5.40%, 2/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,669,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dutchess Cnty. Ind. Dev. Agcy. Civic Facs. RB, Vassar Coll. Proj., 5.35%, 9/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,126,320</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Env. Facs. Corp. RB, Mun. Wtr. Proj., Ser. D, 5.125%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,902,157</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">385</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liberty Dev. Corp. RB, Nat. Sports Museum Proj., Ser. A, 6.125%, 2/15/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">396,504</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Met. Transp. Auth. Ded. Tax Fund RB, Ser. A, 5.125%, 11/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,138,090</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,980</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mtg. Agcy. RB, Ser. 101, 5.40%, 4/01/32, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,063,559</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City GO, Ser. D, 5.375%, 6/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,179,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Hlth. &amp; Hosp. Corp. Hlth. Sys. RB, Ser. A, 5.375%, 2/15/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,141,129</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Hsg. Dev. Corp. Multi-Fam. Hsg. RB, Ser. A, 5.50%, 11/01/34, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,574,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">American Airlines, JFK Intl. Arpt. Proj., 7.625%, 8/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,438,238</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,159,960</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth. RB, Ser. A, 5.25%, 6/15/33, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,631,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,445</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III RB, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,525,689</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 126, 5.25%, 5/15/37, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,893,522</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Contl./Eastn. LaGuardia Proj., 9.125%, 12/01/15, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,635,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Suffolk Cnty. Indl. Dev. Agcy. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">260</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Jeffersons Ferry Proj., 5.00%, 11/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">264,732</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Keyspan Port Jefferson Proj., 5.25%, 6/01/27, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">520,075</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">TSASC, Inc. Tobacco Settlement RB, Ser. 1, 5.75%, 7/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,326,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Urban Dev. Corp. RB, Ser. A, 5.25%, 3/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,404,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">50,421,833</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;31.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,771,545</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Elec. Pwr. Auth. RB, Ser. 2, 5.25%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,087,120</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hwy. &amp; Transp. Auth. RB, Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,169,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pub. Bldgs. Auth. Gov&#146;t. Facs. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,980</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,137,093</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">720</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">748,454</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pub. Impvt. GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">925</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">988,122</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,825</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,865,077</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">13,766,991</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;153.9% (cost &#36;62,320,457</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">67,020,949</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.7%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">724,852</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(55.6)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(24,204,309)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">43,541,492</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">42</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH) (continued)</FONT></B></P>
<div style="border-bottom:1px solid #000000">&nbsp;</div>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 6.5% of its net assets, with a current market value of &#36;2,832,125, in securities restricted as to resale.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;62,312,749. The net unrealized appreciation on a tax basis is &#36;4,708,200, consisting of &#36;4,710,157 gross unrealized
appreciation and &#36;1,957 gross unrealized depreciation.</FONT><br>
<br>

<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font> </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font> </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font> </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font> </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font> </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font> </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">XLCA</font> </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; XL Capital Assurance</font> </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">GO</font> </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font> </td>
      <td>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
    </tr>
  </table>
</div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">43</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=56% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=4% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;156.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;5.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">535,095</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,098,760</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,575,165</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,073,090</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,282,110</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New York&#151;146.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">345</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 7.00%, 5/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">345,635</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">220</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 7.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">218,343</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,720</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Clarence Indl. Dev. Agcy. Civic Fac. RB, Bristol Vlg. Proj., 6.00%, 1/20/44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,897,040</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dorm. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brooklyn Law Sch. Proj., Ser. B, 5.125%, 7/01/30, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,646,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kateri Residence Proj., 5.00%, 7/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,069,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Memorial Sloan Kettering Ctr. Proj., Ser. 1, 5.00%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,168,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,695</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Memorial Sloan Kettering Ctr. Proj., Ser. 1, 5.00%, 7/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,773,902</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mount St. Mary Coll. Proj., 5.00%, 7/01/32, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,072,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mt. Sinai NYU Hlth. Proj., 5.50%, 7/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/08 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">762,908</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,425</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York Univ. Proj., 5.00%, 7/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,509,778</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">St. Barnabas Proj., Ser. A, 5.00%, 2/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,591,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dutchess Cnty. Ind. Dev. Agcy. Civic Facs. RB, Vassar Coll. Proj., 5.35%, 9/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,252,640</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Energy Res. &amp; Dev. Auth. Facs. RB, Consolidated Edison Co. Proj., 4.70%, 6/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,502,915</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">625</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Essex Cnty. Indl. Dev. Agcy. Sld. Wst. Disp. RB, Intl. Paper Co. Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 10/01/26, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">642,475</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Geneva Indl. Dev. Agcy. Civic Fac. RB, Hobart &amp; Williams Smith Proj., Ser. A, 5.375%, 2/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,445,455</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">385</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Herkimer Cnty. Indl. Dev. Agcy. Civic Fac. RB, Coll. Fndtn., Inc. Student Hsg. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">399,515</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Liberty Dev. Corp. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 10/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">4,518,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">675</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Nat. Sports Museum Proj., Ser. A, 6.125%, 2/15/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">02/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">695,169</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,515</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Long Island Pwr. Auth. Elec. Sys. RB, Ser. A, Zero Coupon, 6/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,364,804</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Met. Transp. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,134,660</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ded. Tax Fund, Ser. A, 5.00%, 11/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,168,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Svc. Contract, Ser. A, 5.125%, 1/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,236,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City GO, Ser. B, 5.75%, 12/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,503,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">American Airlines, JFK Intl. Arpt. Proj., 7.625%, 8/01/25, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,840,944</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,739,940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Eger Harbor Proj., Ser. A, 4.95%, 11/20/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,024,320</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Eger Harbor Proj., Ser. A, 5.875%, 5/20/44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 105</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,125,080</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Liberty Interactive Corp. Proj., 5.00%, 9/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">09/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,003,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Lycee De Francais Proj., Ser. A, 5.375%, 6/01/23, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,554,885</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 6/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,224,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.00%, 6/15/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,042,340</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Trans. Auth. Met. Transp. Auth. Triborough Brdg. &amp; Tunl. Auth. COP, Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 1/01/10, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,309,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York City Trans. Fin. Auth. RB, Ser. B, 5.00%, 11/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">5,206,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,535</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III RB, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,676,554</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">New York Convention Ctr. Dev. RB, 5.00%, 11/15/35, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,146,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,675</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ RB, Contl./Eastn. LaGuardia Proj., 9.125%, 12/01/15, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,725,531</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">St. Urban Dev. Corp. St. Personal Income Tax RB, Ser. B, 5.00%, 3/15/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,094,660</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Suffolk Cnty. Indl. Dev. Agcy. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">450</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Jeffersons Ferry Proj., 5.00%, 11/01/28, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">458,190</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Keyspan Port Jefferson Proj., 5.25%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,600,375</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">44</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=11% align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=49% align=left nowrap>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=12% align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
          <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">New York&#151;(cont&#146;d)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Triborough Brdg. &amp; Tunl. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;850</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT size=1 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 1/01/12</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">906,253</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT size=1 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 1/01/32</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">154,362</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">9,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">TSASC, Inc. Tobacco Settlement RB, Ser. 1, 5.75%, 7/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">9,978,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">111,733,688</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;4.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=1 face="serif">1,400</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,446,620</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hwy. &amp; Transp. Auth. RB, Ser. D, 5.375%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,182,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,629,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;113,406,236)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">119,644,998</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">50</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio (cost &#36;50,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">50,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;156.7% (cost &#36;113,456,236</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
    </div></TD>
    <TD align=right nowrap><FONT size=1 face="serif"> 119,694,998</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.8%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,351,922</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(58.5)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(44,653,669)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">76,393,251</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>
<SUP><FONT size=1 face=serif>3</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 5.6% of its net assets, with a current market value of &#36;4,282,110, in securities restricted as to resale.</FONT><br>


<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;113,451,500. The net unrealized appreciation on a tax basis is &#36;6,243,498, consisting of &#36;6,247,365 gross unrealized
appreciation and &#36;3,867 gross unrealized depreciation.</FONT><br>
<br>

<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RAA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Radian Asset Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Certificate of
          Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
      <td align=left nowrap>&nbsp; </td>
    </tr>
  </table>
</div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">45</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2006</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="10%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="7%" align=center nowrap>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="55%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="13%" align=center nowrap>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="5%" align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">(unaudited)</FONT></B>&nbsp;
        </TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;150.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Multi-State&#151;6.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,699,275</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Puerto Rico&#151;5.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,390</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.375%, 5/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,428,253</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Virginia&#151;137.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,465</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Alexandria Redev. &amp; Hsg. Auth. RB, 3001 Park Ctr. Apts. Proj., Ser. A, 6.375%, 4/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/08 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,417,827</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">2,150</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Arlington Cnty. Ind. Dev. Auth. Hosp. Fac. RB, Virginia Hosp. Ctr. Arlington Hlth. Sys. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"> &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/11</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,316,732</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Arlington Cnty. Pub. Impvt. GO, 5.00%, 2/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,583,505</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Celebrate No. Cmnty. Dev. Auth. SA, Ser. B, 6.75%, 3/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/14 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,590,090</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Coll. Bldg. Auth. Edl. Facs. RB, Washington &amp; Lee Univ. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 1/01/26, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">571,065</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 1/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,153,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Danville Ind. Dev. Auth. Hosp. RB, Danville Regl. Med. Ctr. Proj., 5.25%, 10/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,685,340</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">990</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dulles Town Ctr. Cmnty. Dev. Auth. SA, Dulles Town Ctr. Proj., 6.25%, 3/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">03/08 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,023,878</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,205</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fairfax Cnty. Wtr. Auth. RB, 5.00%, 4/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,258,478</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hampton GO, 5.00%, 4/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">04/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,064,180</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Henrico Cnty. Econ. Dev. Auth. RB, Bon Secours Hlth. Sys., Inc. Proj., Ser. A, 5.60%, 11/15/30 .</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,585,710</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hsg. Dev. Auth., Comnwlth. Mtg. RB, Ser. H, 5.375%, 7/01/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,111,090</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,300</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Isle Wight Cnty. Indl. Dev. Auth. RB, International Paper Co. Proj., Ser. A, 5.70%, 11/01/27, AMT</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">11/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,354,067</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Met. Arpts. Auth. Arpt. Sys. RB, Ser. A, 5.25%, 10/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,572,105</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Norfolk Arpt. Auth. RB, Ser. A, 5.125%, 7/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,558,545</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Peninsula Ports Auth. Baptist Homes RB, Ser. C, 5.40%, 12/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">12/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,013,610</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pocahontas Pkwy. Assoc. Toll Rd. RB, Ser. B, Zero Coupon, 8/15/08, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">2,116,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,275</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Prince William Cnty. RB, 5.00%, 12/01/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,339,030</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Res. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Infrastructure, Ser. A, 5.125%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">668,922</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. &amp; Swr. Sys., Frederick Cnty. San. Auth. Proj., 5.20%, 10/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,590,645</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">1,250</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Richmond Met. Auth. Expwy. RB, 5.25%, 7/15/22, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">1,405,725</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Richmond Pub. Util. RB, 5.00%, 1/15/33, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">3,103,740</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB, 5.50%, 6/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">517,210</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">34,601,584</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;34,983,057)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">37,729,112</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">46</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=8% align=center nowrap>&nbsp;</TD>
        <TD width=6% align=center nowrap>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=64% align=left nowrap>&nbsp;

        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
          <B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD style="border-bottom:1px solid #000000;">&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <center>
          <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">AIM Tax Free Cash Reserve Portfolio (cost &#36;100,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Total Investments&#151;150.7% (cost &#36;35,083,057</FONT></B><B><SUP><FONT size=1 face="serif">7</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">&#36; 37,829,112</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;3.2%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">800,657</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(53.9)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(13,532,780)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<B><FONT size=1 face="serif">Net Assets&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36; 25,096,989</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the highest of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s ratings.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2006, the Trust held 6.8% of its net assets, with a current market value of &#36;1,699,275, in securities restricted as to resale.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT>
<br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT><br>

<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">Security is collateralized by Municipal or U.S. Treasury obligations.</FONT>
<br>

<SUP><FONT size=1 face="serif">7</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;35,013,925. The net unrealized appreciation on a tax basis is &#36;2,815,187, consisting of &#36;2,935,119 gross unrealized
appreciation and &#36;119,932 gross unrealized depreciation.</FONT><br>
<br>

<div style="border:1px solid #000000; padding:10px">
  <center>
    <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b>
  </center>
  <table width="97%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">AMT</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Subject to Alternative
          Minimum Tax</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">ETM</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Escrowed to Maturity</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left nowrap> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td align=left nowrap> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
  </table>
</div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">47</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000"> <b><font face="serif">STATEMENTS
      OF ASSETS AND LIABILITIES</font></b><br>
    <b><font face="serif">August 31, 2006</font></b></div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
   <B><FONT size=2 face="serif">Municipal</FONT></B>
    </center></TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BYM)</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BBK)</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BLE)</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BCK)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Assets</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investments at value</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">632,609,725</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">257,663,932</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">570,472,748</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">125,822,897</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investments in affiliates</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">64,273</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">27,875</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">58,106</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,995</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Cash</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">516,525</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">549,646</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">546,769</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">545,209</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Receivable from investments sold</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">217,635</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">629,282</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Interest receivable</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,422,222</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,779,463</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,807,410</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,309,782</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Other assets</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17,057</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9,281</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,524</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10,557</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">639,629,802</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">261,247,832</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">578,520,839</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">127,699,440</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Liabilities</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Payable to custodian</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Payable for investments purchased</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,285,716</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,990,053</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Unrealized depreciation on forward starting swaps</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,192,156</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">423,364</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">983,955</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">258,054</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Collateral received from broker</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">100,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends payable &#151; common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,598,438</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">881,425</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,920,142</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">306,017</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment advisory fee payable</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">187,942</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">86,005</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">191,778</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">37,482</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Deferred Trustees&#146;fees</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">64,273</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">27,875</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">58,106</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,995</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Payable to affiliates</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,064</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,561</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,224</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,978</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Other accrued expenses</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">152,084</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">99,788</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">138,457</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">54,748</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,216,957</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,814,734</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10,300,715</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">771,274</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Preferred Shares at Redemption Value</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;25,000 liquidation value per share, including dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">payable</FONT><SUP><FONT size=2 face="serif">2,3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">229,074,736</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">90,538,232</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">205,612,581</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">46,510,144</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">407,338,109</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">166,894,866</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
 <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">362,607,543</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">80,418,022</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Composition of Net Assets Applicable to</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common Shareholders:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Par value</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">26,204</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,205</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,927</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,276</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Paid-in capital in excess of par</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">371,940,567</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">144,901,309</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">325,597,620</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">74,807,848</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Undistributed net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,315,035</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,514,483</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,421,627</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">310,034</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accumulated net realized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">362,741</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">707,476</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(5,526,588</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(813,373</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net unrealized appreciation</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">33,693,562</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18,761,393</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">40,091,957</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,108,237</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders,</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">August 31, 2006</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">407,338,109</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">166,894,866</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">362,607,543</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">80,418,022</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value per common share</FONT><SUP><FONT size=2 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;15.54</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">&nbsp;
</TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;16.35</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;15.82</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;15.24</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">1</FONT></SUP><FONT size=2 face="serif">Investments at cost</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">597,724,007</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">238,479,175</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">529,396,836</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">119,456,606</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">2</FONT></SUP><FONT size=2 face="serif">Preferred shares outstanding</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,159</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,620</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,222</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,860</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">3</FONT></SUP><FONT size=2 face="serif">Par value per share</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">4</FONT></SUP><FONT size=2 face="serif">Common shares outstanding</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">26,203,900</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,204,627</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,927,077</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,276,156</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">48</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000">&nbsp;</div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2" align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Florida</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Florida</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Maryland</FONT></B>
      </center></TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New Jersey</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BZA)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BCL)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BAF)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BIE)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BZM)</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BLJ)</FONT></B>
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  </TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">84,300,127</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">195,503,601</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">206,738,237</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">82,610,198</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">49,516,517</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">56,616,500</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,492</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,865</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,121</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,253</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,366</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,286</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">533,887</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">537,347</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">124,289</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">517,033</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">530,909</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">985,732</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,555,441</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,845,558</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,283,178</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">612,002</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">698,148</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,275</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,778</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11,017</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,272</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">273</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">316</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">85,307,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">198,612,572</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">210,150,280</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">84,037,190</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">50,659,191</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">57,860,159</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,256</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">153,445</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">417,659</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">358,190</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">119,266</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">75,687</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">105,841</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">268,103</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">522,998</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">506,574</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">258,046</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">144,421</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">179,266</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,034</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">66,660</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">61,829</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">24,737</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,906</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">17,008</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,492</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,865</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,121</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,253</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,366</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,286</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,458</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,758</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,900</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,483</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,210</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">829</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">42,351</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">80,051</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">68,085</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">44,129</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">45,584</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">49,793</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">522,139</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,110,991</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,021,699</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">460,914</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">295,174</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">367,023</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">29,984,196</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">71,976,567</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">76,022,175</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">29,777,895</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18,010,354</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">20,230,402</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">54,801,291</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">125,525,014</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">133,106,406</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">53,798,381</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">32,353,663</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">37,262,734</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,366</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,985</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,734</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,316</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,024</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,281</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">47,691,148</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">113,257,811</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">123,914,893</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">46,967,851</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">28,641,761</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">32,294,836</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">809,715</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">493,877</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">682,745</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,020,513</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">571,337</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">725,060</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(717,716</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(4,567,231</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(254,628</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(70,318</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,271</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">146,923</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7,014,778</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16,332,572</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,754,662</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,877,019</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,126,270</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,093,634</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">54,801,291</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">125,525,014</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">133,106,406</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">53,798,381</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">32,353,663</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">37,262,734</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;16.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;15.72</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;15.24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;16.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;15.98</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;16.33</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=21>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">77,131,904</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">178,753,370</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">197,625,385</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">76,613,913</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">46,314,560</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">52,417,025</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,199</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,878</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,040</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,191</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">720</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">809</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,365,759</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,984,696</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,734,048</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,316,443</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,024,110</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,281,270</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">49</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000"> <b><font face="serif">STATEMENTS
      OF ASSETS AND LIABILITIES (continued)</font></b><br>
    <b><font face="serif">August 31, 2006</font></b></div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
      </center></TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Virginia</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BSE)</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BQH)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BFY)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BHV)</FONT></B>
      </center></TD>
  </TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Assets</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investments at value</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">154,005,199</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">67,020,949</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">119,694,998</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">37,829,112</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investments in affiliates</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,281</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,498</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,038</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,641</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Cash</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">511,120</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">236,182</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">510,817</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">517,417</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Interest receivable</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,605,816</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">853,792</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,421,884</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">507,937</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Other assets</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10,738</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,186</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,516</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">211</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">156,144,154</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">68,131,607</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">121,642,253</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">38,866,318</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Liabilities</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Unrealized depreciation on forward starting swaps</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">267,846</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">94,488</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">180,295</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">65,174</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Collateral received from broker</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends payable &#151; common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">375,246</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">209,558</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">292,556</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">111,205</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment advisory fee payable</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">45,940</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,065</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">40,925</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,443</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Deferred Trustees&#146; fees</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,281</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,498</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,038</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,641</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Payable to affiliates</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,419</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,801</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,257</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Other accrued expenses</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">58,011</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">46,778</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">64,718</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">35,829</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">858,324</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">385,806</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">595,333</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">236,549</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Preferred Shares at Redemption Value</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;25,000 liquidation value per share, including dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">payable</FONT><SUP><FONT size=2 face="serif">2,3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">56,031,136</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24,204,309</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">44,653,669</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13,532,780</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">99,254,694</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">43,541,492</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">76,393,251</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">25,096,989</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Composition of Net Assets Applicable to</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common Shareholders:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Par value</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,470</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,718</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,938</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,535</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Paid-in capital in excess of par</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">91,773,953</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">38,498,892</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">70,007,203</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">21,730,224</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Undistributed net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">442,039</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">691,759</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">380,563</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">611,639</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accumulated net realized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">460,584</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(257,881</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(57,920</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">72,710</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net unrealized appreciation</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,571,648</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,606,004</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,058,467</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,680,881</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders,</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">August 31, 2006</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">99,254,694</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">43,541,492</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">76,393,251</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">25,096,989</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value per common share</FONT><SUP><FONT size=2 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;15.34</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;16.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;15.47</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;</div>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;16.35</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">1</FONT></SUP><FONT size=2 face="serif">Investments at cost</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">147,165,705</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">62,320,457</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">113,456,236</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">35,083,057</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">2</FONT></SUP><FONT size=2 face="serif">Preferred shares outstanding</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,240</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">968</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,786</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">541</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">3</FONT></SUP><FONT size=2 face="serif">Par value per share</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<SUP><FONT size=2 face="serif">4</FONT></SUP><FONT size=2 face="serif">Common shares outstanding</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,469,766</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,718,046</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,937,652</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,535,387</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">50</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000"> <b><font face="serif">STATEMENTS
      OF OPERATIONS</font></b><br>
    <b><font face="serif">For the year ended August 31, 2006</font></b></div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>        <center>
            <B><FONT size=2 face="serif">Insured</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>        <center>
            <B><FONT size=2 face="serif">Insured</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
            <B><FONT size=2 face="serif">(BYM)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BBK)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
            <B><FONT size=2 face="serif">(BLE)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BCK)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Investment Income</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Interest income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">30,338,576</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,816,143</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">30,439,553</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,937,778</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Income from affiliates</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,597</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,484</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">30,344,173</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13,818,627</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">30,444,793</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,938,678</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Expenses</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investment advisory</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,458,834</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,652,478</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,077,700</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">689,575</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Transfer agent</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">17,965</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,765</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,865</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,965</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Custodian</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">109,536</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">75,546</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">112,717</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">36,609</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reports to shareholders</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">115,401</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">28,504</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">121,050</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,310</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Directors/Trustees</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">40,511</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,002</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">36,154</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,308</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Registration</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,099</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,056</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,501</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19,998</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Independent accountants</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">52,042</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">38,947</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">47,891</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">39,374</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Legal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">82,946</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">34,432</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">73,923</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">17,854</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Insurance</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">40,912</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,512</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">36,333</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,133</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Auction agent</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">594,498</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">239,977</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">548,697</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">124,091</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred Trustees&#146; fees</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,597</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,484</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,240</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">900</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Miscellaneous</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">68,275</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">41,777</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">57,449</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">27,484</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses excluding interest expense and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">excise tax</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,606,616</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,187,480</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,146,520</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,008,601</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Interest expense</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">28,682</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,820</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">24,929</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,558</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Excise tax</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">72,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">45,301</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,707,800</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,241,601</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,171,449</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,012,159</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees waived by Advisor</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,257,758</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(762,682</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(839,373</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(250,754</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(18,286</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(19,166</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(19,827</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(16,044</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less excise tax reimbursed</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(72,502</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(45,301</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net expenses</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,359,254</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,414,452</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,312,249</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">745,361</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26,984,919</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12,404,175</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">27,132,544</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,193,317</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Realized and Unrealized Gain (Loss)</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss) on:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,893,674</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,810,046</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,969,538</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,006,360</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,816,445</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,082,233</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,838,808</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">88,329</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,922,771</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,892,279</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7,808,346</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,094,689</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/depreciation on:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(5,712,247</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,211,119</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(4,603,200</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,238,301</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures and swaps</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">466,910</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">175,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">402,060</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">95,962</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(5,245,337</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,036,069</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(4,201,140</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,142,339</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,322,566</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,856,210</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,607,206</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(47,650</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Preferred Shareholders from:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,755,122</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,574,142</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,317,513</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,289,460</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(231,342</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(6,755,122</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,805,484</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(6,317,513</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,289,460</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Increase in Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders Resulting from</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Operations</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">17,907,231</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">11,454,901</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">24,422,237</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">3,856,207</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">51</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000"> <b><font face="serif">STATEMENTS
      OF OPERATIONS (continued)</font></b><br>
    <b><font face="serif">For the year ended August 31, 2006</font></b></div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Florida</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Insured</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Florida</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Income</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Trust II</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
          <B><FONT size=2 face="serif">(BZA)</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
          <B><FONT size=2 face="serif">(BCL)</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BAF)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
          <B><FONT size=2 face="serif">(BIE)</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Investment Income</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Interest income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,367,947</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,840,683</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,070,829</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,396,608</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Income from affiliates</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,046</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,458</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,597</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">645</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,368,993</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9,842,141</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10,072,426</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,397,253</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Expenses</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investment advisory</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">542,951</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,068,935</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,138,725</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">539,521</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Transfer agent</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,665</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,065</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,365</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,465</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Custodian</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,919</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">60,021</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">59,998</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,643</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reports to shareholders</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,192</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">27,773</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">31,619</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,787</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Directors/Trustees</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,089</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,352</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,250</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,089</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Registration</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19,983</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,300</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,013</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19,983</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Independent accountants</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">38,838</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">38,418</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">41,547</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">37,535</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Legal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,964</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">30,990</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">31,902</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,416</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Insurance</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,419</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,608</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,422</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,380</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Auction agent</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">80,022</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">197,186</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">198,085</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">79,523</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred Trustees&#146; fees</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,046</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,458</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,597</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">645</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Miscellaneous</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25,001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">30,478</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">31,893</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25,003</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses excluding interest expense</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">and excise tax</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">777,089</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,504,584</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,603,416</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">782,990</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Interest expense</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,819</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,025</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Excise tax</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">777,089</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,513,403</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,613,441</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">782,990</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees waived by Advisor</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(250,593</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(291,528</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(414,082</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(249,010</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(14,494</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(16,523</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(18,763</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(11,968</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less excise tax reimbursed</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net expenses</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">512,002</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,205,352</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,180,596</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">522,012</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,856,991</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,636,789</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,891,830</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,875,241</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Realized and Unrealized Gain (Loss)</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss) on:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(167,685</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(268,254</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(98,227</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(48,567</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">746,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,020,796</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,743,242</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">591,157</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">579,065</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,752,542</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,645,015</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">542,590</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/depreciation on:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(107,699</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(680,397</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,365,654</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(761,762</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures and swaps</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">59,490</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">155,356</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">141,460</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">51,419</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(48,209</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(525,041</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,224,194</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(710,343</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">530,856</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,227,501</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(579,179</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(167,753</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Preferred Shareholders from:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(876,737</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,983,073</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,277,559</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(906,591</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(876,737</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,983,073</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,277,559</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(906,591</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Increase in Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders Resulting from</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Operations</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">3,511,110</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">7,881,217</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">6,035,092</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2,800,897</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">52</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000">&nbsp;</div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Maryland</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New Jersey</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Insured</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Virginia</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>      <center>
          <B><FONT size=2 face="serif">Municipal</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
            <B><FONT size=2 face="serif">(BZM)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
          <B><FONT size=2 face="serif">(BLJ)</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
          <B><FONT size=2 face="serif">(BSE)</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
          <B><FONT size=2 face="serif">(BQH)</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
          <B><FONT size=2 face="serif">(BFY)</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">       <center>
          <B><FONT size=2 face="serif">(BHV)</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,524,592</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,041,332</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,361,329</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,533,152</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,977,116</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,973,356</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,065</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,211</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,010</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">957</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">956</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,525,657</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,042,543</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7,362,335</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,534,162</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,978,073</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,974,312</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">325,637</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">369,725</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">845,454</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">436,994</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">657,303</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">248,911</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,965</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,965</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,265</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,565</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,165</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,965</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,404</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">26,158</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">37,273</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,993</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">40,551</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,170</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,232</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,560</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,953</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,715</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,323</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,910</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,432</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,432</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,673</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,651</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,308</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,432</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,201</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,402</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,042</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19,983</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,599</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">883</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">41,263</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">42,317</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">40,113</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">40,405</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">37,810</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,547</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,319</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,538</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19,067</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,885</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,886</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,731</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,246</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,684</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,966</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,361</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,736</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,479</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">50,038</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">55,622</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">147,822</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">65,569</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">120,319</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">38,840</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,065</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,211</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,006</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,010</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">957</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">956</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23,491</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22,833</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26,494</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23,900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">27,186</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23,027</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">525,293</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">576,447</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,204,128</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">670,031</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">964,143</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">415,851</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,484</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7,174</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9,635</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">525,293</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">583,621</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,217,247</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">670,031</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">964,143</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">415,851</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(150,294</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(170,642</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(307,438</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(201,690</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(179,264</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(114,882</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(18,479</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(18,233</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(18,200</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(13,568</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(20,181</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(17,245</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(7,174</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(9,635</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">356,520</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">387,572</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">881,974</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">454,773</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">764,698</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">283,724</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,169,137</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,654,971</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,480,361</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,079,389</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,213,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,690,588</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(268,366</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(91,609</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(26,603</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">50,406</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">364,521</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">526,034</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,306,720</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">492,811</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">866,847</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">321,736</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">364,521</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">526,070</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,038,354</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">401,202</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">840,244</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">372,142</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(554,457</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(188,959</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,230,718</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(524,477</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(173,472</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(362,009</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">29,677</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">44,001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">107,869</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">46,464</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">71,024</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">27,511</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(524,780</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(144,958</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,122,849</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(478,013</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(102,448</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(334,498</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(160,259</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">381,112</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(84,495</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(76,811</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">737,796</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">37,644</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(533,685</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(548,600</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,540,963</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(688,573</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,240,545</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(396,092</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(37,909</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(533,685</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(586,509</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,540,963</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(688,573</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,240,545</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(396,092</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">1,475,193</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2,449,574</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">4,854,903</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2,314,005</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">4,710,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">1,332,140</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">53</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000"> <b><font face="serif">STATEMENTS
      OF CHANGES IN NET ASSETS</font></b><br>
    <b><font face="serif">For the years ended August 31, 2006 and 2005</font></b></div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Insured Municipal Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
          <center>
            <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BYM)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BBK)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Increase in Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Operations:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">26,984,919</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">26,962,373</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,404,175</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,271,182</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,922,771</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,009,314</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,892,279</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">874,223</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/depreciation</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(5,245,337</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,819,858</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,036,069</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,756,697</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders from:</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,755,122</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(4,321,472</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,574,142</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,719,239</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gains</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(231,342</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase in net assets applicable to common</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">shareholders resulting from operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">17,907,231</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">50,470,073</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11,454,901</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24,182,863</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders from:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(19,628,929</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(24,518,210</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(10,542,723</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(10,495,566</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(926,334</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(19,628,929</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(24,518,210</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(11,469,057</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(10,495,566</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">419,066</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">423,563</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,045,811</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">284,282</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total increase (decrease)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,302,632</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">26,375,426</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,031,655</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13,971,579</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Beginning of year</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">408,640,741</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">382,265,315</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">165,863,211</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">151,891,632</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">End of year</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">407,338,109</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">408,640,741</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">166,894,866</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">165,863,211</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">End of year undistributed net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,315,035</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">714,167</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,514,483</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,229,200</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">54</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000">&nbsp;</div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">California Insured</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
          <center>
            <B><FONT size=2 face="serif">California Municipal</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
          <center>
            <B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BLE)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BCK)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BZA)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">27,132,544</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">27,426,522</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,193,317</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,195,140</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,856,991</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,789,700</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,808,346</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,457,128</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,094,689</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,050,542</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">579,065</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">752,518</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(4,201,140</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">30,064,319</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,142,339</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,790,878</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(48,209</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,289,483</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,317,513</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
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        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,950,332</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
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        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,289,460</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(800,568</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(876,737</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(508,138</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24,422,237</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">54,997,637</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,856,207</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">11,134,908</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,511,110</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,323,563</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(22,977,915</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
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        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(22,895,741</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,761,809</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(4,743,934</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,209,548</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,203,270</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(22,977,915</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(22,895,741</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,761,809</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(4,743,934</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,209,548</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,203,270</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,143,077</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">148,442</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">34,661</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">74,722</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">234,330</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,587,399</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">32,250,338</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">129,059</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,465,696</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">535,892</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,120,293</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">359,020,144</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">326,769,806</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">80,288,963</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">73,823,267</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">54,265,399</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">49,145,106</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">362,607,543</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">359,020,144</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">80,418,022</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">80,288,963</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">54,801,291</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">54,265,399</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,421,627</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,596,423</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">310,034</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">167,986</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">809,715</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,039,009</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">55</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000"> <b><font face="serif">STATEMENTS
      OF CHANGES IN NET ASSETS (continued)</font></b><br>
    <b><font face="serif">For the years ended August 31, 2006 and 2005</font></b></div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Florida Insured</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
          <center>
            <B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BCL)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BAF)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Increase in Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Operations:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,636,789</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,708,704</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,891,830</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,867,352</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,752,542</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,524,025</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,645,015</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(681,521</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/depreciation</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(525,041</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,483,507</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,224,194</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,055,515</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders from:</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,983,073</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,167,105</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,277,559</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,374,732</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gains</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase in net assets applicable to common</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">shareholders resulting from operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7,881,217</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">21,501,081</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,035,092</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15,866,614</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders from:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,275,960</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(7,533,548</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(6,227,177</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(7,850,329</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(6,275,960</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(7,533,548</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(6,227,177</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(7,850,329</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">77,965</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">149,885</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total increase (decrease)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,605,257</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13,967,533</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(114,120</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,166,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Beginning of year</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">123,919,757</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">109,952,224</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">133,220,526</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">125,054,356</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">End of year</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">125,525,014</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">123,919,757</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">133,106,406</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">133,220,526</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">End of year undistributed net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">493,877</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">116,121</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">682,745</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">295,651</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">56</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000">&nbsp;</div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="6" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Florida</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Maryland</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New Jersey</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>      <center>
              <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BIE)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BZM)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BLJ)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,875,241</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,829,071</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,169,137</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,160,791</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,654,971</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,631,055</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">542,590</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(167,030</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">364,521</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,626</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">526,070</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(117,411</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(710,343</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,559,463</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(524,780</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,631,626</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(144,958</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,499,235</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(906,591</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(535,210</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(533,685</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(332,992</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(548,600</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(347,892</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(37,909</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,800,897</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,686,294</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,475,193</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,475,051</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,449,574</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,664,987</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,093,699</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(3,090,102</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,729,913</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,725,808</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,145,616</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(2,140,066</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(145,350</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,093,699</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,090,102</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,729,913</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,725,808</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,290,966</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,140,066</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">101,681</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10,494</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">116,586</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">27,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">176,459</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">18,610</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(191,121</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,606,686</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(138,134</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,777,063</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">335,067</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,543,531</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">53,989,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">51,382,816</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">32,491,797</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">30,714,734</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">36,927,667</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">33,384,136</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">53,798,381</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">53,989,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">32,353,663</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">32,491,797</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">37,262,734</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">36,927,667</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,020,513</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,145,612</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">571,337</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">665,798</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">725,060</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">764,561</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">57</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<div style="border-bottom:1px solid #000000"> <b><font face="serif">STATEMENTS
      OF CHANGES IN NET ASSETS (continued)</font></b><br>
    <b><font face="serif">For the years ended August 31, 2006 and 2005</font></b></div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New York Insured</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>        <center>
          <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BSE)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BQH)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Increase in Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Operations:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,480,361</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,460,542</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,079,389</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,039,131</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,038,354</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">662,348</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">401,202</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(150,481</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/depreciation</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1,122,849</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,857,505</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(478,013</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,723,892</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends from net investment income to</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preferred shareholders:</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,540,963</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(919,843</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(688,573</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(410,012</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase in net assets applicable to common</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">shareholders resulting from operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,854,903</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13,060,552</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,314,005</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,202,530</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Dividends from net investment income</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">to Common Shareholders</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(4,612,545</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(5,802,703</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,505,339</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,498,924</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">158,868</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">335,680</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">272,447</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total increase</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">401,226</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">7,593,529</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">81,113</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,703,606</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Beginning of year</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">98,853,468</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">91,259,939</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">43,460,379</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">40,756,773</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">End of year</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">99,254,694</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">98,853,468</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">43,541,492</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">43,460,379</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">End of year undistributed (distributions in</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">excess of) net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">442,039</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">115,186</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">691,759</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">806,282</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">58</FONT></P>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<div style="border-bottom:1px solid #000000">&nbsp;</div>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=center nowrap colspan=5>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap colspan=5>
<B><FONT size=2 face="serif">New York</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap colspan=5>
<B><FONT size=2 face="serif">Virginia</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BFY)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="6" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(BHV)</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,213,375</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,124,510</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,690,588</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,676,382</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">840,244</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">800,866</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">372,142</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(109,878</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(102,448</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,452,913</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(334,498</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,335,369</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,240,545</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(723,738</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(396,092</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(243,614</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,710,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9,654,551</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,332,140</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,658,259</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(3,510,658</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(4,398,872</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,331,262</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1,325,313</FONT>
        </TD>
        <TD align=left valign=middle>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">34,135</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">130,321</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">106,220</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,199,968</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,289,814</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">131,199</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,439,166</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">75,193,283</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">69,903,469</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">24,965,790</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">23,526,624</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">76,393,251</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">75,193,283</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">25,096,989</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">24,965,790</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">380,563</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(81,609</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">611,639</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">648,328</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">59</FONT></P>

<HR noshade width="100%" size=4>

<P align="center" STYLE="page-break-before:always"><PAGE>

<P><B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P> <B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="54%" align=left nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="2%" align=left nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="2%" align=left nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="2%" align=left nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="11%" align=center><B><FONT size=1 face="serif">For the period</FONT></B> </TD>
    <TD width="3%" align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center><B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2006</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2005</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2004</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=center style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">August 31, 2003</FONT></B> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap><div align="left"><B><FONT size=2 face="serif">&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>PERFORMANCE:</FONT></B> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, beginning of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">15.61</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.62</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">13.64</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.33</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Investment operations:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.03</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.03</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.06</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.83</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.07</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.94</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.62</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.26</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.17</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.08</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.07</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net increase from investment operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.68</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.93</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.92</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.14</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.75</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.94</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.94</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.70</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.10</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total capital charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.13</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.54</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.61</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.62</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.64</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Market price, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.65</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.43</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.97</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.51</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">0.07</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">17.69</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">10.57</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(5.39</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap><div align="left"><B><FONT size=2 face="serif">&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.84</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.83</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.84</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.77</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.84</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.83</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.84</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.79</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.18</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.16</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.10</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.75</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.83</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.30</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.95</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.69</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.09</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.57</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.55</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income available to common shareholders</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.06</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.74</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.73</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.40</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">399,904</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">394,876</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">380,007</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">372,269</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Portfolio turnover</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">60</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">57</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">57</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">46</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">407,338</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">408,641</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">382,265</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">356,438</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">228,975</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">228,975</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">228,975</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">228,975</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">69,485</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">69,622</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">66,739</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">63,919</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.<br>
</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.<br>
</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.<br>
</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.<br>
</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT>
<P> <FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s shares.</FONT></P>
<p> </p>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">60</FONT></P>

<HR noshade width="100%" size=4>

<P align="center" STYLE="page-break-before:always">

<PAGE>

<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
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        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">For the period</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
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        <TD align=center>
<B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
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        </TD>
</TR>
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        <TD colspan="14" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=1 face="serif">through</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
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<TR valign="bottom">
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        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2005</FONT></B>
      </center></TD>
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          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right nowrap colspan=2 style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2004</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
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        <TD>
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          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2003</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">August 31, 2002</FONT></B>
        </TD>
        <TD align=left >&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>
        </TD>
        <TD>&nbsp;
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        <TD align=left nowrap>&nbsp;

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        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>
        </TD>
        <TD>&nbsp;
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</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.33</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.21</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.21</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.28</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.31</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.18</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.36</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.74</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.74</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.52</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.25</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.17</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase from investment operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.40</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.91</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.43</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.80</FONT>
        </TD>
        <TD >&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.02</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.25</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.25</FONT>
        </TD>
        <TD>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total capital charges</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">16.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">16.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market price, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">17.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">17.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.66</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.90</FONT>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">11.55</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">25.75</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.87</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(1.20</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.86</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.87</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.88</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.88</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.37</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.37</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.41</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.32</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.58</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.73</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.28</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.66</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.35</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.57</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.55</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.67</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.01</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.65</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.73</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.99</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.82</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">163,727</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">158,814</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">152,200</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">148,670</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">144,196</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Portfolio turnover</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">85</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">70</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">65</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">166,895</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">165,863</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">151,892</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">142,951</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">149,253</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">71,114</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">70,824</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">66,963</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">64,491</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">66,233</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT><br>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT>

<SUP><FONT size=1 face="serif"><br>
5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">61</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=46% align=left nowrap>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=0%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=0%>&nbsp;
        </TD>
        <TD width=0%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=0%>&nbsp;
        </TD>
        <TD width=1% align=left nowrap>&nbsp;

        </TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=1 face="serif">For the period</FONT></B>
      </center></TD>
        <TD width=5% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=1 face="serif">July 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="15" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=1 face="serif">through</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right nowrap colspan=2 style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2004</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2003</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="3%" align=left nowrap>&nbsp;

        </TD>
        <TD width="9%" align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left ><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.03</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.18</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.38</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.06</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.07</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income .</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.41</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total capital charges</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.82</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market price, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">17.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.73</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">16.66</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">20.95</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.15</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(6.00</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">0.00</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.94</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.65</FONT></TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.94</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.65</FONT>
        </TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.80</FONT>
        </TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.66</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.00</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.37</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8.15</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.82</FONT></TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.78</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.61</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.69</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<SUP><FONT size=2 face="serif">&#151;</FONT></SUP></TD>
        <TD align=left nowrap><sup><font size=2 face="serif">%5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.88</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.85</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.76</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.46</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.82</FONT>
        </TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">354,032</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">342,827</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><div align="left"><font size=2 face="serif">&#36;</font>
    </div></TD>
        <TD align=right nowrap><font size=2 face="serif">325,680</font> </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">318,014</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">307,165</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Portfolio turnover</FONT>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">49</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">64</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">118</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">362,608</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">359,020</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><div align="left"><font size=2 face="serif">&#36;</font>
    </div></TD>
        <TD align=right nowrap><font size=2 face="serif">326,770</font> </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">302,337</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">323,483</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><div align="left"><font size=2 face="serif">&#36;</font>
    </div></TD>
        <TD align=right nowrap><font size=2 face="serif">205,550</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">69,110</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,672</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap><div align="left"><font size=2 face="serif">&#36;</font>
    </div></TD>
        <TD align=right nowrap><font size=2 face="serif">64,747</font></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">61,774</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT><br>
<br>

<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">62</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>
<B><FONT size=1 face="serif">For the period</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="10" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=1 face="serif">through</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2004</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">August 31, 2003</FONT></B>
        </TD>
        <TD align=left >&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <FONT size=2 face="serif">&#36;</FONT>
    </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.33</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.79</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.15</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.73</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.42</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.71</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.71</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total capital charges</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market price, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">16.08</FONT>
        </TD>
        <TD align=left >&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(4.53</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">22.24</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.97</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(8.98</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.96</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.28</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.30</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.32</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.58</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.72</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.69</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.63</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.04</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.95</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.68</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.72</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.19</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">78,877</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">77,283</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">73,679</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">74,302</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Portfolio turnover</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">41</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">80,418</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">80,289</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">73,823</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,910</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,241</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,170</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">64,691</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">62,052</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>

<hr align="left" noshade width="100" size="1" color=black>

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">63</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>
<B><FONT size=1 face="serif">For the period</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="14" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center>
      <center>
        <B><FONT size=1 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right nowrap colspan=2 style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2004</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center>
      <center>
        <B><FONT size=1 face="serif">2003</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">August 31, 2002</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">16.19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.67</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.87</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.13</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.28</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.17</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.21</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.63</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">Net realized gains</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.48</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.99</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total capital charges</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">16.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">16.19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;</TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font>
</TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.67</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.87</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market price, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">18.05</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">16.33</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">17.30</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">25.31</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.80</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(2.92</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(1.23</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.96</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.45</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.55</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.53</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.20</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.30</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.87</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.99</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.75</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.64</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.58</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.56</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.32</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.38</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.41</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">53,556</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">51,898</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">48,928</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">49,107</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">47,390</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Portfolio turnover</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">54,801</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">54,265</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">49,145</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">45,940</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">49,834</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">70,714</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">70,263</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">65,990</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">63,318</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">66,569</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR><hr align="left" noshade width="100" size="1">

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">64</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">For the period</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>
<B><FONT size=1 face="serif">July 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="14" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </center> </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=1 face="serif">through</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2004</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2003</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">August 31, 2002</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>

        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">12.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.42</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.09</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.09</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.02</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.16</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.75</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(1.51</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.10</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income .</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2.69</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.98</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.58</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total capital charges</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.72</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">12.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.42</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market price, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.01</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">11.09</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.21</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(6.94</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">0.07</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><B><FONT size=2 face="serif">&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.01</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.05</FONT></TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.05</FONT></TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.24</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.30</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.23</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.06</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.46</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.97</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.38</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.62</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.58</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.63</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<SUP><FONT size=2 face="serif">&#151;</FONT></SUP>
        </TD>
        <TD align=left nowrap><sup><font size=2 face="serif">%5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.44</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.46</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.39</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.75</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">122,402</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">116,754</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">109,252</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">110,286</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">105,895</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Portfolio turnover</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">85</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">125,525</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">123,920</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">109,952</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">101,738</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">112,576</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,625</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,063</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">63,209</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">60,353</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR><hr align="left" noshade width="100" size="1">


<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</FONT><br>

<FONT size=1 face="serif"><br>
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's shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">65</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="53%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="6%" align=left nowrap>&nbsp;

        </TD>
        <TD width="3%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="6%" align=left nowrap>&nbsp;

        </TD>
        <TD width="2%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="6%" align=left nowrap>&nbsp;

        </TD>
        <TD width="3%" align=left nowrap>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="10%" align=center>
<B><FONT size=1 face="serif">For the period</FONT></B>
        </TD>
        <TD width="3%" align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="10" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=1 face="serif">through</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2006</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2005</FONT></B>
      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <center>
    </center></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=1 face="serif">2004</FONT></B>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">August 31, 2003</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">PER COMMON SHARE</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">OPERATING PERFORMANCE:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">15.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">13.74</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14.33</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Investment operations:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.96</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.64</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.47</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>

 <div align="left"><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>Net investment income</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.26</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.16</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>Net realized gains</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net increase from investment operations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.69</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.82</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.71</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total dividends and distributions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.71</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Total capital charges</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(0.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net asset value, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.74</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Market price, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.88</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.30</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(4.48</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">15.03</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">14.82</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(7.78</FONT>
        </TD>
        <TD align=left valign="middle">
<FONT size=2 face="serif">)%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.87</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.23</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.22</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.79</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.85</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7.13</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.39</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred share dividends</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.74</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.52</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.05</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.79</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6.61</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5.85</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">131,041</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">129,413</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">125,315</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">124,543</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Portfolio turnover</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">50</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">133,106</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">133,221</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">125,054</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">119,778</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,792</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,826</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">66,137</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap> <FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">64,404</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE><hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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's shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">66</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center nowrap><B><FONT size=1 face="serif">For the period</FONT></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align=center><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD colspan="13" align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2006</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2005</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap colspan=2 style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2004</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2003</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=center style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, beginning of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">16.31</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">15.53</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.52</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.90</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.33</FONT><SUP></SUP> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><sup><font size=2 face="serif">2</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Investment operations:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.17</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.16</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.16</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.14</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.26</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.06</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.71</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.88</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.43</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.68</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Net investment income</FONT> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.27</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.16</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.08</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap><div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Net realized gains</FONT> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net increase from investment operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.84</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.71</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.96</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.61</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.92</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.92</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.23</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.06</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total dividends and distributions</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.95</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.98</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.23</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total capital charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.12</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.22</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.31</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.53</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.52</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.90</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Market price, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.70</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.95</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.17</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.55</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.92</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">10.97</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">19.59</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">11.82</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(2.90</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">1.03</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.98</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.00</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.05</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.00</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.05</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.47</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.49</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.50</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.53</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.28</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.24</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.62</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.36</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.70</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.01</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.53</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.59</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.49</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income available to common shareholders</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.58</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.23</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.09</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.95</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.87</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">53,228</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">52,870</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">50,422</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">49,915</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">46,792</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Portfolio turnover</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">6</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">2</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">10</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">19</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD align=left nowrap><font size=2 face="serif">%</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">53,798</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">53,990</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">51,383</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">48,042</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">49,284</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">29,775</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">29,775</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">29,775</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">29,775</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">29,775</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">70,173</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">70,343</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">68,147</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">65,340</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">66,383</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<hr align="left" noshade width="100" size="1" color=black>

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT><br>

<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">67</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
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    <TD align=left nowrap>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center nowrap><B><FONT size=1 face="serif">For the period</FONT></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
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    <TD align=center><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2006</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2005</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2004</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2003</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=center style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>PERFORMANCE:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, beginning of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">16.11</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">15.24</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.36</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.76</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.33</FONT><SUP></SUP> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><sup><font size=2 face="serif">2</font></sup></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Investment operations:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.07</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.07</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.06</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.07</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.25</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.08</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.83</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.76</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.45</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.53</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>Net investment income</FONT> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.26</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.17</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.08</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.10</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap><div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>Net realized gains</FONT> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net increase from investment operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.73</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.73</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.74</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.51</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.75</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.86</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.86</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.86</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.84</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.21</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.04</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total dividends and distributions</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.86</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.86</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.86</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.88</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.21</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total capital charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.11</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.98</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.11</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.24</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.36</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.76</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Market price, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">17.45</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.96</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.99</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.90</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.95</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.26</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">12.53</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.31</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(1.32</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">1.10</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.11</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.11</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.18</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.17</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.13</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.19</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.64</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.60</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.67</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.63</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.76</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.82</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.05</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.18</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.30</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.66</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.05</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.64</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income available to common shareholders</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.10</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.77</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.51</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.76</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">32,098</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">31,676</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">30,350</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">30,069</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">28,153</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Portfolio turnover</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap><font size=2 face="serif">%</font> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">14</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">32,354</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">32,492</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">30,715</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">28,923</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">29,705</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">18,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">18,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">18,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">18,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">18,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">69,950</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">70,138</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">67,662</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">65,172</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">66,259</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<hr align="left" noshade width="100" size="1" color=black>

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust'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><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>


<FONT size=1 face="serif"><br>
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's shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">68</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center nowrap><B><FONT size=1 face="serif">For the period</FONT></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD colspan="13" align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2006</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2005</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2004</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2003</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=center style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, beginning of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">16.26</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.71</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">13.77</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.58</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.33</FONT><SUP></SUP> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><sup><font size=2 face="serif">2</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Investment operations:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.16</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.16</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.16</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.15</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.25</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.18</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.48</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.84</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.85</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.37</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.24</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.07</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap><div align="left">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net increase from investment operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.08</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">2.49</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.93</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.20</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.60</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.95</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.94</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.94</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.23</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.06</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.05</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.06</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total dividends and distributions</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(1.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.94</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.99</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.99</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.23</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total capital charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.12</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.33</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.26</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.71</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.77</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.58</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Market price, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">18.30</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.98</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.91</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.64</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.65</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">21.74</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">22.22</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">9.32</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(0.10</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(0.75</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.06</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.08</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.14</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.14</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.11</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.10</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.14</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.59</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.57</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.63</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.62</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.57</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.24</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.44</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.94</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.29</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.50</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.98</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.49</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.60</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.45</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income available to common shareholders</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.74</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.46</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.44</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.34</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.84</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">36,656</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">35,375</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">33,214</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">32,652</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">31,611</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Portfolio turnover</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap><font size=2 face="serif">%</font> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD><div align="left"></div></TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">20</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">20</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">17</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">37,263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">36,928</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">33,384</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">31,226</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">32,981</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">20,225</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">20,225</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">20,225</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">20,225</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">20,225</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">71,067</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">70,649</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">66,266</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">63,602</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">65,771</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<hr align="left" noshade width="100" size="1" color=black>

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT><br>

<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">69</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center nowrap><B><FONT size=1 face="serif">For the period</FONT></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center><B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2006</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2005</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2004</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=center style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">August 31, 2003</FONT></B> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, beginning of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">15.30</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.18</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">13.45</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.33</FONT><SUP></SUP> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><sup><font size=2 face="serif">2</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Investment operations:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.00</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.00</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.01</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.75</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.16</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.69</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.75</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.24</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.14</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.07</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.07</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.75</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">2.02</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.63</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.07</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.71</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.90</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.90</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.67</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.11</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total capital charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.14</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.34</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.30</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.18</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.45</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Market price, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.70</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.35</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.08</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.28</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">0.73</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.92</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.04</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(7.13</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.90</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.92</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.87</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.92</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.95</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.91</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.25</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.25</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.27</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.22</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.63</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.77</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.14</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.35</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.58</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.96</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.52</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.55</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income available to common shareholders</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.05</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.81</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.62</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.80</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">97,719</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">95,400</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">91,808</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">90,967</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Portfolio turnover</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">9</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">21</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">11</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">80</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">99,255</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">98,853</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">91,260</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">86,431</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">56,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">56,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">56,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">56,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">69,324</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">69,138</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">65,744</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">63,587</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<hr align="left" noshade width="100" size="1" color=black>

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT>
<br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">70</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center nowrap><B><FONT size=1 face="serif">For the period</FONT></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap><center>
    </center></TD>
    <TD align=right nowrap><center>
        <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2006</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2005</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2004</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2003</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=center style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, beginning of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">16.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">15.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.15</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.83</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.33</FONT></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><sup><font size=2 face="serif">2</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Investment operations:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.13</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.13</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.13</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.25</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.95</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.81</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.71</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.62</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.25</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.07</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net increase from investment operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.86</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.93</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.87</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.31</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.85</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.92</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.23</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.06</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total dividends and distributions</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.93</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.98</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.23</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total capital charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.01</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.12</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.02</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.15</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.83</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Market price, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.81</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.85</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.97</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.35</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.50</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">12.39</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">20.83</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">11.83</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(1.26</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(1.78</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.06</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.06</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.11</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.09</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.08</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.56</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.56</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.60</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.60</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.16</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.20</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.57</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.57</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.24</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.60</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.97</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.48</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.62</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.50</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income available to common shareholders</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.56</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.23</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.09</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.95</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.74</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">43,030</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">42,217</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">40,396</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">40,072</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">38,183</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Portfolio turnover</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">3</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD><div align="left"></div></TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">16</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">7</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">43,541</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">43,460</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">40,757</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">38,207</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">40,062</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">24,200</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">24,200</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">24,200</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">24,200</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">24,200</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">69,985</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">69,899</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">67,108</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">64,473</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">66,390</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<br>
<hr align="left" noshade width="100" size="1" color=black>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT><br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">71</FONT></P>

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<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B></P>
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    <TD align=center nowrap><B><FONT size=1 face="serif">For the period</FONT></B> </TD>
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    <TD align=center nowrap><B><FONT size=1 face="serif">July 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
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    <TD colspan="14" align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
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        <B><FONT size=1 face="serif">through</FONT></B>
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        <B><FONT size=1 face="serif">2006</FONT></B>
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        <B><FONT size=1 face="serif">2005</FONT></B>
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        <B><FONT size=1 face="serif">2004</FONT></B>
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        <B><FONT size=1 face="serif">2003</FONT></B>
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    <TD align=center style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
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    <TD align=left nowrap><B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B> </TD>
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    <TD align=right nowrap><div align="left"><B><FONT size=2 face="serif">&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>PERFORMANCE:</FONT></B> </div></TD>
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    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, beginning of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">15.23</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.16</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">13.36</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">14.47</font> </TD>
    <TD align=left nowrap style="border-bottom:-px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><font size=2 face="serif">&#36;</font></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.33</FONT><SUP></SUP> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><sup><font size=2 face="serif">2</font></sup> </TD>
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    <TD align=left nowrap><FONT size=2 face="serif">Investment operations:</FONT> </TD>
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    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.06</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.04</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.04</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">0.98</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.02</FONT> </TD>
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    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT> </TD>
    <TD>&nbsp;</TD>
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    <TD align=right nowrap><FONT size=2 face="serif">0.14</FONT> </TD>
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    <TD align=right nowrap><FONT size=2 face="serif">1.07</FONT> </TD>
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    <TD align=right nowrap><FONT size=2 face="serif">0.79</FONT> </TD>
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    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">(0.94</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
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    <TD align=right nowrap><FONT size=2 face="serif">0.15</FONT> </TD>
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    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income .</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.25</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.15</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.08</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.10</FONT> </TD>
    <TD align=left nowrap style="border-bottom:-px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
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    <TD align=left nowrap><FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.95</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.96</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.75</FONT> </TD>
    <TD align=left nowrap style="border-bottom:-px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.06</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.17</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
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    <TD align=left nowrap><FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.71</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.89</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.95</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.94</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
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    <TD align=left nowrap><FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT> </TD>
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    <TD align=left nowrap>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD colspan="2" align=left nowrap>&nbsp;</TD>
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    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
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    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.11</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total capital charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:-px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.11</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.47</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.23</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.16</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">13.36</font></TD>
    <TD align=left nowrap style="border-bottom:-px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.47</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Market price, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.38</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.02</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">13.70</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">13.12</font></TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.10</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">7.97</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">8.91</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">11.82</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(6.93</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">0.67</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap><div align="left"><B><FONT size=2 face="serif">&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>&nbsp; &nbsp;<FONT size=2 face="serif"></FONT>COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.04</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.07</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">1.00</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.43</FONT> </TD>
    <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.05</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.05</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.08</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">1.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.43</FONT> </TD>
    <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.29</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.30</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.32</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">1.27</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.58</FONT> </TD>
    <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.96</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.04</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.36</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">6.95</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.77</FONT> </TD>
    <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.66</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.99</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.59</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">0.68</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><SUP><FONT size=2 face="serif">&#151;</FONT></SUP></TD>
    <TD align=left nowrap><sup><font size=2 face="serif">%5,6</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income available to common shareholders</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.30</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.05</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.77</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=right nowrap><FONT size=2 face="serif">6.27</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.77</FONT> </TD>
    <TD align=left nowrap><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT> </TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">74,860</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">72,767</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">70,018</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">69,863</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">64,673</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Portfolio turnover</FONT> </TD>
    <TD><div align="left"></div></TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">22</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">27</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">14</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">40</font></TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap><font size=2 face="serif">%</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT> </TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">76,393</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">75,193</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">69,903</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">65,953</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">70,276</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT> </TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">44,650</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">44,650</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">44,650</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">44,650</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT> </TD>
    <TD><div align="left"></div></TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">67,775</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">67,113</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">64,144</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">61,930</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<hr align="left" noshade width="100" size="1" color=black><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT>

<SUP><FONT size=1 face="serif"><br>
2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT>
<br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT>
<br>

<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT><br>
<br>

<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">72</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P align="justify">
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center nowrap><B><FONT size=1 face="serif">For the period</FONT></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2006</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2005</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap colspan=2 style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2004</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><center>
    </center></TD>
    <TD><center>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
    </center></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=1 face="serif">2003</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=center style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, beginning of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">16.34</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">15.47</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.46</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.90</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">14.33</FONT><SUP></SUP> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><sup><font size=2 face="serif">2</font></sup> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Investment operations:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.10</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.10</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.09</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.09</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.27</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.04</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.80</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.86</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.44</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.65</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.26</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.16</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.07</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.08</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.03</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net increase from investment operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.88</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.74</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">1.88</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.55</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">0.89</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Dividends and distributions to common shareholders from:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.87</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.87</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.87</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.85</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.21</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.10</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total dividends and distributions</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.87</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.87</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.87</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.95</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.21</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.02</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.04</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.09</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Total capital charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">&#151;</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.04</FONT> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(0.11</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net asset value, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.35</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">16.34</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.47</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.46</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.90</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Market price, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">18.45</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">17.30</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.34</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">14.40</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">15.20</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px double #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">12.23</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">19.07</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">12.79</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">0.94</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">2.81</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.18</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.25</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.17</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.22</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.20</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.26</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.17</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.12</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.68</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.67</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.73</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.64</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.83</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.90</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.15</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7.23</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.70</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred share dividends</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.60</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1.00</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.47</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.53</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.54</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net investment income available to common shareholders</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.23</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.90</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.68</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6.70</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5.16</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">24,769</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">24,303</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><font size=2 face="serif">23,273</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">22,896</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">21,321</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Portfolio turnover</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">5</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">5</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">14</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div align="left"></div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">18</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">8</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net assets applicable to common shareholders, end of period (000) .</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">25,097</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">24,966</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
    <TD align=right nowrap><font size=2 face="serif">23,527</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">21,944</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">22,545</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">13,525</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">13,525</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
    <TD align=right nowrap><font size=2 face="serif">13,525</font> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">13,525</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">13,525</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">71,404</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">71,158</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
    <TD align=right nowrap><font size=2 face="serif">68,490</font></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right nowrap><FONT size=2 face="serif">65,562</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">66,674</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE><hr align="left" noshade width="100" size="1" color=black>

<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT><br>

<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT><br>

<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common
shareholders.</FONT><br>

<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT><br>

<FONT size=1 face="serif"><br>
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 shares.</FONT>
<p></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">73</FONT></P>

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<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=4 face="serif">NOTES TO FINANCIAL STATEMENTS</FONT></B></P>
<P align="justify">
<B><FONT face="serif">Note 1. Organization </FONT></B><BR>
<B><FONT face="serif">&amp; Accounting Policies</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (&#147;Insured Municipal&#148;), BlackRock California Insured Municipal Income Trust (&#147;California Insured&#148;), BlackRock Florida Insured Municipal Income Trust (&#147;Florida
Insured&#148;), BlackRock New York Insured Municipal Income Trust (&#147;New York Insured&#148;) (collectively the &#147;Insured Trusts&#148;),
BlackRock Municipal Bond Trust (&#147;Municipal Bond&#148;), BlackRock California Municipal Bond Trust (&#147;California Bond&#148;), BlackRock Florida Municipal Bond Trust (&#147;Florida Bond&#148;), BlackRock Maryland
Municipal Bond Trust (&#147;Maryland Bond&#148;), BlackRock New Jersey Municipal Bond Trust (&#147;New Jersey Bond&#148;), BlackRock New York Municipal Bond Trust (&#147;New York Bond&#148;), BlackRock Virginia Municipal Bond Trust (&#147;Virginia
Bond&#148;) (collectively the &#147;Bond Trusts&#148;), BlackRock Municipal Income Trust II (&#147;Municipal Income II&#148;), BlackRock California Municipal Income Trust II (&#147;California Income II&#148;) and BlackRock New York Municipal Income
Trust II (&#147;New York Income II&#148;) (collectively the &#147;Income II Trusts&#148;) (all, collectively the &#147;Trusts&#148;) are organized as Delaware statutory trusts. Insured Municipal, Municipal Bond and Municipal Income II are registered
as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;). California Insured, California Bond, California Income II, Florida Insured, Florida Bond, Maryland Bond, New
Jersey Bond, New York Insured, New York Bond, New York Income II and Virginia Bond are registered as non-diversified, closed-end management investment companies under the 1940 Act.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Under the Trusts&#146; organizational documents, their officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. In
addition, in the normal course of business, the Trusts enter into contracts with their vendors and others that provide for general indemnifications. The Trusts&#146; maximum exposure under these arrangements are unknown as this would involve future
claims that may be made against the Trusts. However, based on experience, the Trusts consider the risk of loss from such claims to be remote.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">The following is a summary of significant accounting policies followed by the Trusts.</FONT></P>
<P align="justify">
<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. Swap quotations are provided by dealers selected under supervision of the Board. 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 per share.
Any investments or other assets for which such current market quotations are not readily available are valued at fair value (&#147;Fair Value Assets&#148;) as determined in good faith under procedures established by, and under the general
supervision and responsibility of, each Trust&#146;s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The
valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current
sale of that asset in an arm&#146;s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (&#147;FAS 157&#148;), was issued and is effective for fiscal years beginning after November 15,
2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the implication of FAS 157. At this time, its impact on the Trusts&#146;
financial statements have not been determined.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Investment Transactions and Investment Income: </FONT></B><FONT size=2 face="serif">Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of
the specific identification method, generally first-in, first-out, for both financial reporting and federal income tax purposes. Each Trust also records interest income on an accrual basis and amortizes premium and/or accretes discount on securities
purchased using the interest method.</FONT></P>
<P align="justify">
<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 align="justify">
&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 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 align="justify">
<B><FONT size=2 face="serif">Forward Starting Swaps: </FONT></B><FONT size=2 face="serif">Forward starting swaps are an agreement for an interest rate swap asset or liability to be created or sold in the future. Interest rate swaps are an agreement
in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a
floating rate. The Trusts generally intend to close each forward starting swap before the accrual date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward starting swap.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by &#147;marking-to-market&#148; daily based upon quotations from market makers to
reflect the market value of the swap. When the swap is terminated, a Trust will record 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, if
any.</FONT></P>
<P align="center">
<FONT size=2 face="serif">74</FONT></P>

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<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Entering into these agreements involves, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks
involve the possibility that there will be no liquid market for these agreements, that the counter-party to the agreement may default on its obligation to perform and that there may be unfavorable changes in the fluctuation of interest and/or
exchange rates. However, the Advisor of the Trusts monitor swaps and do not anticipate non-performance by any counterparty.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Segregation: </FONT></B><FONT size=2 face="serif">In cases in which the 1940 Act, 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, forward starting swaps 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 align="justify">
<B><FONT size=2 face="serif">Federal Income Taxes</FONT></B><FONT size=2 face="serif">: It is each Trust&#146;s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net
income and net realized capital gains, if any, to shareholders. Therefore, no federal income tax provisions have been recorded.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On July 13, 2006, the Financial Accounting Standards Board (&#147;FASB&#148;) released FASB Interpretation No. 48 (&#147;FIN 48&#148;) &#147;Accounting for Uncertainty in Income Taxes&#148;.
FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Trusts&#146; tax
returns to determine whether the tax positions are &#147;more-likely-than-not&#148; of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense
in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable; a reduction of deferred tax asset; an increase in deferred tax liability; or a combination thereof. Adoption of FIN 48
is required for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact on the financial statements has not yet been determined.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Dividends and Distributions: </FONT></B><FONT size=2 face="serif">Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains
and other sources, if necessary. Net long-term capital gains, if any, in excess of loss car-ryforwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Dividends and distributions to preferred shareholders are accrued and
determined as described in Note 5.</FONT></P>
<P align="justify">
<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 including investment and swap valuations 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 and such differences may be material.</FONT></P>
<P align="justify">
<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
(&#147;Independent Trustees&#148;) are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock
closed-end trusts selected by the Independent Trustees. These amounts are shown on the Statement of Assets and Liabilities as &#147;Investments in Affiliates.&#148; This has the same economic effect for the Independent Trustees as if the Independent
Trustees had invested the deferred amounts in such Trusts.</FONT></P>
<P align="justify">
&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 Independent Trustees in order to match its deferred compensation obligations.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Other: </FONT></B><FONT size=2 face="serif">Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally prorated to the Trusts on the basis of
relative net assets of all the BlackRock Closed-End Funds.</FONT></P>
<P align="justify">
<B><FONT face="serif">Note 2. Agreements</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the &#147;Advisor&#148;), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc. (&#147;BFM&#148;), a
wholly</FONT></P>
<P align="justify">
<FONT size=2 face="serif">owned subsidiary of BlackRock, Inc., serves as sub-advisor to each Trust. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The investment management agreement covers both
investment advisory and administration services.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust&#146;s investment advisory fee paid to the Advisor is computed weekly, accrued daily and payable monthly based on an annual rate, 0.55% for the Insured Trusts and Income II Trusts
and 0.65% for the Bond Trusts, of each Trust&#146;s average weekly managed assets. &#147;Managed assets&#148; means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of
accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses of each Trust. With respect to the Insured Trusts, the waiver, as a
percentage of managed assets, is as follows: 0.20% for the first 5 years of each Trust&#146;s operations, 0.15% in year 6, 0.10% in year 7, and 0.05% in year 8. With respect to the Bond Trusts, the waiver, as a percentage of managed assets, is as
follows: 0.30% for the first 5 years of each Trust&#146;s operations, 0.25% in year 6, 0.20% in year 7, 0.15% in year 8, 0.10% in year 9 and 0.05% in year 10. With respect to the Income II Trusts, the waiver, as a percentage of managed assets, is as
follows: 0.15% for the first 5 years of each Trust&#146;s operations, 0.10% in year 6 through year 7, 0.05% in year 8 through year 10.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">The Advisor pays BFM fees for its sub-advisory services.</FONT></P>
<P align="justify">
&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</FONT></P>
<P align="center">
<FONT size=2 face="serif">75</FONT></P>

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<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<FONT size=2 face="serif">Trust bears all other costs and expenses, which include reimbursements to the Advisor for costs of employees that provide pricing, secondary market support, and compliance services to each Trust. For the year ended August
31, 2006, the Trusts reimbursed the Advisor the following amounts, which are included in miscellaneous expenses in the Statement of Operations:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=9% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=23% align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD colspan="2">
      <center>
        <div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">Amount</font></b> </div>
      </center></TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD width=8% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=13% align=left nowrap>&nbsp;</TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD width=10% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Amount</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="9%" align=right nowrap>
<FONT size=2 face="serif">&#36;24,419</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;3,103</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,636</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,956</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,659</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,299</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,855</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,500</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,103</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,000</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,118</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,555</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,169</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,489</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the terms of the custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees. These
credits are shown on the Statement of Operations as &#147;fees paid indirectly.&#148;</FONT></P>
<P align="justify">
<B><FONT face="serif">Note 3. Portfolio</FONT></B><BR>
<B><FONT face="serif">Securities</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the year ended August 31, 2006 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=6% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=11% align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD width=0%>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap style="border-bottom:1px solid #000000;">

 <center>
   <B><FONT size=2 face="serif">Purchases</FONT></B>
    </center></TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sales</FONT></B>
        </TD>
        <TD align=center nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD width=11% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Purchases</FONT></B>
      </center></TD>
        <TD align=right nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD width=12% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Sales</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=10% align=right nowrap>
<FONT size=2 face="serif">&#36;371,231,068</FONT>
        </TD>
        <TD width=6% align=right nowrap>&nbsp;</TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=right nowrap>
<FONT size=2 face="serif">&#36;401,858,615</FONT>
        </TD>
        <TD width=6% align=right nowrap>&nbsp;</TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right nowrap>
<FONT size=2 face="serif">&#36;5,247,214</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;4,798,504</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">214,224,207</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">212,372,728</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,500,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">384,058,891</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">374,870,536</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,000</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">24,384,899</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,806,861</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,437,259</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,349,422</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,281,480</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,559,549</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,680,885</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,179,683</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">34,466,818</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">33,676,787</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">26,395,441</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,479,489</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,252,756</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,264,847</FONT>
        </TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,979,480</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,085,050</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">There were no purchases or sales of U.S. government securities for the year ended August 31, 2006.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">Details of open forward starting swap agreements at August 31, 2006 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Notional</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Unrealized</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>
      </center></TD>
        <TD align=left nowrap>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Fixed</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Counter</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Effective</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Termination </FONT></B>
      </center></TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD colspan=2 align=right nowrap><center>
            <b><font size=2 face="serif">Appreciation</font></b>
    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000</FONT></B><b><font size=2 face="serif">)</font></b>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B></B>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Rate</FONT></B><B><SUP><FONT size=2 face="serif">(a)</FONT></SUP></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Party</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Floating Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Date</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Date</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap colspan=2 style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(Depreciation)</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.266</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">JP Morgan</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11/03/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4/03/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(451,795</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,300</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.180</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(274,832</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.258</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/07</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/37</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(138,585</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.263</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/31</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(326,944</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
    </div></TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"><div align="right"><font size=2 face="serif">(1,192,156</font></div></TD>
        <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.266</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">JP Morgan</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11/03/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4/03/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(158,128</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.180</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(98,594</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.258</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/07</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/37</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(50,395</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.263</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/31</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(116,247</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(423,364</FONT>
        </TD>
        <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,250</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.266</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">JP Morgan</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11/03/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4/03/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(367,083</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,700</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.180</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(230,464</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.258</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/07</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/37</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(117,588</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,500</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.263</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/31</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(268,820</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(983,955</FONT>
        </TD>
        <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,250</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.266</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">JP Morgan</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11/03/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4/03/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(96,006</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,800</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.180</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(59,157</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,600</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.258</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/07</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/37</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(30,237</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.263</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/31</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(72,654</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(258,054</FONT>
        </TD>
        <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">76</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=2 face="serif">Notional</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=2 face="serif">Unrealized</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <B><FONT size=2 face="serif">Amount</FONT></B>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><B><FONT size=2 face="serif">Fixed</FONT></B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><B><FONT size=2 face="serif">Counter</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><B><FONT size=2 face="serif">Effective</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><B><FONT size=2 face="serif">Termination </FONT></B> </TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><center>
        <b><font size=2 face="serif">Appreciation</font></b>
    </center></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><B><FONT size=2 face="serif">Trust</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=2 face="serif">(000</FONT></B><b><font size=2 face="serif">)</font></b>
    </center></TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><B></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><B><FONT size=2 face="serif">Rate</FONT></B><B><SUP><FONT size=2 face="serif">(a)</FONT></SUP></B> </TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap style="border-bottom:1px solid #000000;"><B><FONT size=2 face="serif">Party</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Floating Rate</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap style="border-bottom:1px solid #000000;"><B><FONT size=2 face="serif">Date</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Date</FONT></B> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap colspan=2 style="border-bottom:1px solid #000000;"><center>
        <B><FONT size=2 face="serif">(Depreciation)</FONT></B>
    </center></TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">California</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,500</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(56,475</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Bond</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,900</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(35,740</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,100</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(17,638</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(43,592</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(153,445</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">California</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">7,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(158,127</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Income II</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7,900</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(97,362</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5,900</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(49,555</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7,750</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(112,615</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(417,659</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Florida</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">6,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(135,538</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Insured</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6,700</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(82,573</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(41,996</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6,750</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(98,083</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(358,190</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Florida</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(45,179</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Bond</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,200</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(27,114</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,700</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(14,279</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,250</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(32,694</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(119,266</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Maryland</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,250</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(28,237</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Bond</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,400</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(17,254</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(8,399</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,500</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(21,797</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(75,687</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">New Jersey</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,750</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(39,532</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Bond</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(24,648</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,500</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(12,599</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(29,062</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(105,841</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">New York</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">4,500</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(101,654</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Insured</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(61,621</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3,800</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(31,917</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">5,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(72,654</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(267,846</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">New York</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,500</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(33,884</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Bond</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,900</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(23,416</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,400</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(11,759</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,750</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(25,429</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(94,488</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">New York</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">3,000</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.266</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">JP Morgan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">11/03/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4/03/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(67,769</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD height="20" align=left nowrap><FONT size=2 face="serif">Income II</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3,300</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.180</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9/14/26</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(40,670</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">2,500</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.258</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/07</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3/20/37</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(20,998</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3,500</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4.263</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT size=2 face="serif">Citigroup</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/06</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">12/27/31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT size=2 face="serif">(50,858</FONT> </TD>
    <TD align=left nowrap style="border-bottom:0px solid #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">&#36;</font> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000;"><FONT size=2 face="serif">(180,295</FONT> </TD>
    <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;"><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">77</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Notional</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>      <center>
    <B><FONT size=2 face="serif">Unrealized</FONT></B>    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">Fixed</FONT></B>
      </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Counter</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Effective</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Terminationn</FONT></B>
      </center></TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>&nbsp;</TD>
        <TD align=right nowrap>   <center>
    <b><font size=2 face="serif"> Appreciation</font></b>    </center></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(000</FONT></B><b><font size=2 face="serif">)</font></b>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Rate</FONT></B><B><SUP><FONT size=2 face="serif">(a)</FONT></SUP></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Party</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Floating Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Date</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Date</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap colspan=2 style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">(Depreciation)</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.266</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">JP Morgan</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11/03/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4/03/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(22,590</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,300</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.180</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9/14/26</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(16,022</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,000</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.258</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/07</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3/20/37</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(8,399</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,250</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.263</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">Citigroup</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">1-week BMA Municipal Swap Index</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/06</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12/27/31</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(18,163</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(65,174</FONT>
        </TD>
        <TD align=left valign="middle" nowrap style="border-bottom:0px double #000000;">
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<SUP><FONT size=2 face="serif">(a)</FONT></SUP><FONT size=2 face="serif">Trust will pay fixed interest rate and receive floating interest rate beginning on the effective date. </FONT></P>
<P align="justify"><FONT size=2 face="serif">BMA&#151;Bond Market Association.</FONT></P>
<P align="justify">
<B><FONT face="serif">Note 4. Income Tax</FONT></B><BR>
<B><FONT face="serif">Information</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">The tax character of distributions paid during the years ended August 31, 2006 and 2005 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="22%" align=left nowrap>&nbsp;

        </TD>
        <TD width="20%">&nbsp;
        </TD>
        <TD colspan="10" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Year ended August 31, 2006</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="1%" align=left nowrap>&nbsp;

        </TD>
        <TD width="13%" align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Tax-exempt</FONT></B>
      </center></TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="8%">&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Long-term</FONT></B>
      </center></TD>
        <TD width="8%">&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="12%" colspan="2" align=left nowrap>

 <center>
   <B><FONT size=2 face="serif">Total</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Distributions Paid From:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

 <center>
   <B><FONT size=2 face="serif">Income</FONT></B>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Capital Gains</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Distributions</FONT></B>
      </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left">
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;26,384,051</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="1%" align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
        <TD width="12%" align=right nowrap><font size=2 face="serif">&#151;</font> </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left">
      </div></TD>
    <TD align=right nowrap><font size=2 face="serif">&#36;26,384,051</font></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,118,892</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">1,155,649</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">14,274,541</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">29,295,428</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">29,295,428</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,051,269</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">5,051,269</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,086,285</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">4,086,285</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,259,033</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">8,259,033</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,504,736</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">8,504,736</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,000,290</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">4,000,290</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,263,598</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">2,263,598</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,694,470</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">183,005</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">2,877,475</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,153,508</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">6,153,508</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,193,912</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">3,193,912</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,751,203</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">4,751,203</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,727,354</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">1,727,354</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="10" align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Year ended August 31, 2005</FONT></B>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Tax-exempt</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Long-term</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>

 <center>
   <B><FONT size=2 face="serif">Total</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Distributions Paid From:</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

 <center>
   <B><FONT size=2 face="serif">Income</FONT></B>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Capital Gains</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Distributions</FONT></B>
      </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">28,839,682</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>  </div></TD>
        <TD align=right nowrap><font size=2 face="serif">&#151;</font></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#36;28,839,682</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,214,805</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">12,214,805</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">26,846,073</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">26,846,073</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,544,502</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">5,544,502</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,711,408</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">3,711,408</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,700,653</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">8,700,653</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,225,061</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">9,225,061</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,625,312</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">3,625,312</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,058,800</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">2,058,800</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,487,958</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">2,487,958</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,722,546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">6,722,546</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,908,936</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">2,908,936</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,122,610</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">5,122,610</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,568,927</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right nowrap>
<FONT size=2 face="serif">1,568,927</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<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="justify">
<FONT size=2 face="serif">As of August 31, 2006, the components of distributable earnings on a tax basis were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Undistributed</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Undistributed</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Undistributed</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
      <center>
        <B><FONT size=2 face="serif">Tax-exempt</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Ordinary</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Long-term</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Unrealized Net</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

 <center>
   <B><FONT size=2 face="serif">Income</FONT></B>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Income</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Capital Gains</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Appreciation</FONT></B>
      </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,055,287</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">472,264</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,377,279</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">33,651,484</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,448,936</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">725,035</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">18,729,038</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,404,523</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">40,054,756</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">637,707</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,096,725</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,092,581</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,009,210</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,038,023</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">16,337,991</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,229,547</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,736,610</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,242,308</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,916,165</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">733,154</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,273</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,119,228</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">901,263</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">58,790</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">88,133</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,102,100</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">859,239</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">470,984</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,550,430</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">910,417</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,601,214</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">685,090</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,050,165</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">673,133</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">72,710</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,738,372</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year-end (the Bond Trusts have a tax year-end of October 31st, the Insured
Trusts have a tax year-end of September 30 and the Income II Trusts have a tax year-end of June 30th). These amounts may be used to offset future realized capital gains, if any:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="16%" align=left nowrap>&nbsp;

        </TD>
        <TD width="10%">&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD align=left nowrap colspan=2>
      <center>
        <B><FONT size=2 face="serif">Capital Loss</FONT></B>
      </center></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="7%" align=left nowrap>&nbsp;

        </TD>
        <TD width="6%">&nbsp;
        </TD>
        <TD width="16%" align=left nowrap>&nbsp;

        </TD>
        <TD width="8%">&nbsp;
        </TD>
        <TD align=left nowrap colspan=2>
      <center>
        <B><FONT size=2 face="serif">Capital Loss</FONT></B>
      </center></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="7%" align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;
</TD>
        <TD colspan=2 align=left nowrap style="border-bottom:1px solid #000000;"><center>
          <b><font size=2 face="serif">Carryforward<br>
    Amount</font></b>     </center></TD>
        <TD align=left nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><b><font size=2 face="serif"> Expires</font></b></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left nowrap style="border-bottom:1px solid #000000;"><center>
        <b><font size=2 face="serif">Carryforward <br>
        Amount</font></b>
    </center></TD>
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;"><b><font size=2 face="serif">Expires</font></b></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap colspan=2>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="4%" align=left nowrap style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp;
 <div align="left"><FONT size=2 face="serif">&#36;</FONT>
    </div></TD>
        <TD width="8%" align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">100,796</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2012</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="1%" align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD width="8%" align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">1,331,546</font></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2013</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap colspan=2>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">5,770,550</font></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2013</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">215,418</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2012</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap colspan=2>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;
 <div align="left"><FONT size=2 face="serif">&#36;</FONT>
    </div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">8,282</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2012</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">91,148</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2012</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <div align="left"></div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,371,749</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2013</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">1,380,031</font></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap colspan=2>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">103</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2012</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">140,352</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2013</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">140,455</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap colspan=2>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;"> <div align="left"><FONT size=2 face="serif">&#36;</FONT>
    </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">789,872</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2012</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,163,822</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2012</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">

          <div align="left"></div></TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,357,448</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2013</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap colspan=2>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">59,598</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2013</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;"><font size=2 face="serif">4,522,711</font></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right nowrap style="border-bottom:3px double #000000;">
<FONT size=2 face="serif">55,551</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">2012</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
&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="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Reclassification of Capital Accounts: </FONT></B><FONT size=2 face="serif">In order to present undistributed (distribution in excess of) net investment income (&#147;UNII&#148;) and
accumulated net realized gain (&#147;Accumulated Gain&#148;) more closely to its tax character, the following accounts for each Trust were increased (decreased):</FONT></P>
<TABLE width="75%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=3% align=left nowrap>&nbsp;

        </TD>
        <TD width=14% align=left nowrap>&nbsp;

        </TD>
        <TD width=3% align=left nowrap>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=13% align=left nowrap>&nbsp;

        </TD>
        <TD width=17% align=center nowrap>
<B><FONT size=2 face="serif">Accumulated</FONT></B>
        </TD>
        <TD width=4% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=12% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=28% align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">UNII</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Gain</FONT></B>
      </center></TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;(2,027</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;2,027</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(11,912</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,912</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(50</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">50</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(256</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">256</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">77</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">(77</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<B><FONT face="serif">Note 5. Capital</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">There are an unlimited number of &#36;0.001 par value common shares of beneficial interest authorized for each Trust. Each Trust may classify or reclassify any unissued common shares into one or more series of
Auction Market Preferred Shares (&#147;preferred shares&#148;).</FONT></P>
<P align="center">
<FONT size=2 face="serif">79</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the years ended August 31, 2006 and 2005, the following Trusts issued additional shares under their respective dividend reinvestment plan:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=17% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=18% align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD width=23%>&nbsp;
        </TD>
        <TD width=16% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2006</FONT></B>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=17% align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">27,142</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">27,424</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">64,035</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">17,537</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">136,465</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,540</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,293</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,078</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">14,609</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,166</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,058</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,311</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">649</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,206</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,750</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,753</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,151</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">10,476</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,751</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">17,055</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,384</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,680</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,691</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of August 31, 2006, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of &#36;25,000 per share
plus any accumulated unpaid dividends.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left width=16% nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Series</FONT></B>
      </center></TD>
        <TD width=9%>
          <center>
    </center></TD>
        <TD align=left width=5% nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>
      </center></TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=center width=5% nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>
      </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">3,053</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">1,439</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">3,053</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">1,439</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">3,053</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">3,040</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">1,810</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">1,191</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">1,810</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">720</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">2,055</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">809</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">2,056</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">2,240</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">2,055</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">968</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">2,056</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">1,786</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">1,860</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">541</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left width=16% nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=right width=5% nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>
<FONT size=2 face="serif">1,199</FONT>
        </TD>
        <TD width=12%>&nbsp;
        </TD>
        <TD align=left width=16% nowrap>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>&nbsp;

        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD align=left width=5% nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The dividend ranges and average on the preferred shares for
each of the Trusts for the year ended August 31, 2006 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Series</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Low</FONT></B>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">High</FONT></B>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Average</FONT></B>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Series</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Low</FONT></B>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">High</FONT></B>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Average</FONT></B>
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.20</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.97</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.90</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.80</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.78</FONT>
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.27</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.80</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.94</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.81</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.65</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.76</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.04</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.97</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.96</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.01</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.23</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.80</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.08</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.80</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.97</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.07</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.38</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.50</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.15</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.00</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.71</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.98</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.48</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.75</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.09</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.90</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.86</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.91</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.25</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.95</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.09</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.00</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.61</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.76</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.19</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.00</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.08</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.03</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.96</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.86</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.00</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.00</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.10</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.97</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.63</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.80</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.83</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.78</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.16</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3.80</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.93</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1.89</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4.01</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2.94</FONT>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE><BR>
<P align="justify">
&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 align="justify">
&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/Articles Supplementary, are not satisfied.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However,
holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the
holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trust&#146;s subclassification as a
closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company.</FONT></P>
<P align="center">
<FONT size=2 face="serif">80</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">Note 6. Dividends </FONT></B><FONT size=2 face="serif">Subsequent to August 31, 2006, the Board of each Trust declared dividends from undistributed earnings per common share payable October 2, 2006, to shareholders of record on
September 15, 2006. The per share common dividends declared were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=17% align=center nowrap>
<B><FONT size=2 face="serif">Common Dividend</FONT></B>
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>&nbsp;

        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=2% align=left nowrap>&nbsp;

        </TD>
        <TD width=18% align=center nowrap>
<B><FONT size=2 face="serif">Common Dividend</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=12% align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width=11% align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Per Share</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD width="10%" align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD width="8%" align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Per Share</FONT></B>
      </center></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;0.061000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;0.077808</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.086375</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.071350</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.083750</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.078582</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.058000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.058000</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.079656</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.077099</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.065500</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.059250</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.058000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">0.072428</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<FONT size=2 face="serif">The dividends declared on preferred shares for the period September 1, 2006 to September 30, 2006 for each of the Trusts were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Dividends</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Dividends</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Declared</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Series</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Declared</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;194,354</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">&#36;85,059</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">240,180</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">105,191</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">194,049</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">200,974</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">119,496</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">76,403</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">149,524</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">51,506</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">132,897</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">50,967</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">135,819</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">158,368</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">138,219</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">57,538</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">168,983</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">98,462</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">103,565</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">47,978</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">&nbsp;&nbsp;67,947</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">
<B><FONT face="serif">Note 7. Concentration Risk</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">The Trusts concentrate their investments in securities issued by state agencies, other governmental entities and U.S. Territories. The Trusts are more susceptible to adverse financial, social, environmental, economic, regulatory and political factors that may affect these states, which could seriously affect the ability of these states and their municipal subdivisions to meet continuing obligations for principal and interest
payments and therefore could impact the value of the Trusts&#146; investments and net asset value per share, than if the Trusts were not concentrated in securities issued by state agencies, other governmental entities and U.S.
Territories.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value
may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Portfolios of Investments.</FONT></P>
<P align="justify">
<B><FONT face="serif">Note 8. Subsequent Event</FONT></B></P>
<P align="justify">
<FONT size=2 face="serif">On September 29, 2006, Merrill Lynch contributed its investment management business, Merrill Lynch Investment Managers (&#147;MLIM&#148;), to BlackRock, to form a new asset management company. The new company operates under the BlackRock name and is governed by a board of directors with a majority of independent members. Merrill Lynch will own no more than 49.8% of the capital stock of the new company on a fully diluted
basis and it will own no more than 45% of the new company&#146;s common stock on a diluted basis. The PNC Financial Services Group, Inc. (&#147;PNC&#148;) owns approximately 34% of the new company&#146;s common stock. Prior to September 29, 2006 PNC
was an indirect majority shareholder of BlackRock.</FONT></P>
<P align="center">
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<P align="justify">
<B><FONT face="serif">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></B><hr size="2" noshade>
<P align="justify"><B></B></P>
<P align="justify">
<FONT size=2 face="serif">To the Trustees and Shareholders of:</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock Insured Municipal Income Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock Municipal Bond Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock Municipal Income Trust II</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock California Municipal Bond Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock California Municipal Income Trust II</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock New York Municipal Bond Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock New York Municipal Income Trust II</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(collectively the &#147;Trusts&#148;)</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We have audited the accompanying statements of assets and liabilities of the Trusts, including the portfolio of investments, as of August 31, 2006, and the related statements of operations for
the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the
responsibility of the Trusts&#146; management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform audits of their internal control over financial reporting.
Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Trusts&#146; internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures include confirmation of the securities owned as of August 31, 2006, by correspondence with the custodian
and brokers. We believe that our audits provide a reasonable basis for our opinion.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each Trust as of August 31, 2006, the
results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles
generally accepted in the United States of America.</FONT></P>
<IMG src="c44289_n-csrx84x1.jpg" border=0>

<br>
<FONT size=2 face="serif">/s/ Deloitte &amp; Touche LLP</FONT>
<P align="justify"><FONT size=2 face="serif">  Boston, Massachusetts</FONT><BR>
  <FONT size=2 face="serif">October 24, 2006</FONT></P>
<P align="center">
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<B><FONT face="serif">DIVIDEND REINVESTMENT PLANS</FONT></B></P>
<hr size="2" noshade>
<P align="justify">
&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 to participate in the Plan will receive all distributions in cash paid by check and mailed
directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After a Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants&#146; accounts, depending upon the circumstances
described below, either (i) through receipt of unissued but authorized shares from the Trust (&#147;newly issued shares&#148;) or (ii) by purchase of outstanding shares on the open market, on the Trust&#146;s primary exchange or elsewhere
(&#147;open-market purchases&#148;). If, on the dividend payment date, the net asset value per share (&#147;NAV&#148;) is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein
as &#147;market premium&#148;), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant&#146;s account will be determined by dividing
the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment
date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as &#147;market discount&#148;), the Plan Agent will invest the dividend amount
in shares acquired on behalf of the participants in open-market purchases. </FONT></P>
<P align="justify">
&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 align="justify">
&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 align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include
a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a &#36;2.50 sales fee and a &#36;0.15 per share sold brokerage commission. All correspondence concerning the Plan should
be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM. </FONT></P>
<P align="center">
<B><FONT face="serif">INVESTMENT MANAGEMENT AGREEMENTS</FONT></B>
<hr size="2" noshade>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Under the 1940 Act, the continuation of each Trust&#146;s investment management and sub-advisory agreements is required to be approved annually by the Boards, including the Board members who
are not &#147;interested persons&#148; of the Trusts or the Advisors as defined in the 1940 Act (&#147;the Independent Trustees&#148;). At a meeting held on May 23, 2006, the Boards of each Trust, including the Independent Trustees, met to consider
the annual continuation of each Trust&#146;s agreements (the &#147;Current Agreements&#148;). The Boards first considered the annual continuation of each Current Agreement without considering the impending Transaction (as defined below) between
BlackRock, Inc. (&#147;BlackRock&#148;) and Merrill Lynch &amp; Co., Inc. (&#147;Merrill Lynch&#148;) because the Current Agreements needed to be re-approved whether or not the Transaction closes. Accordingly, it was appropriate to review each of
the Current Agreements without considering the impending Transaction, and then to separately consider the impact of the Transaction on the Current Agreements.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">At the meeting on May 23, 2006, the Board of each Trust, including the Independent Trustees, unanimously approved the continuance of each current investment management agreement and current
sub-advisory agreement for each Trust and then approved a new management agreement and a new sub advisory agreement for each Trust.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Information Received by the Boards</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">To assist each Board in its evaluation of the Current Agreements, the Independent Trustees received information from BlackRock on or about April 22, 2006 which detailed, among other things: the
organization, business lines and capabilities of the Advisors (defined below), including the responsibilities of various departments and key personnel and biographical information relating to key personnel; financial statements for BlackRock, Inc.,
The PNC Financial Services Group, Inc. and each Trust; the advisory and/or administrative fees paid by each Trust to BlackRock Advisors, Inc. and BlackRock Financial Management, Inc. (collectively the &#147;Advisors&#148;) including comparisons,
compiled by an independent third party, with the management fees of funds with similar investment objectives (&#147;Peers&#148;); the profitability of BlackRock and certain industry profitability analyses for advisors to registered investment
companies; the expenses of BlackRock in providing the various services; non-investment advisory reimbursements and &#147;fallout&#148; benefits to BlackRock; the expenses of each Trust, including comparisons of the respective Trust&#146;s expense
ratios (both before and after any fee waivers) with the expense ratios of its Peers; and each Trust&#146;s performance for the past one- and three-year periods, as well as each Trust&#146;s performance compared to its Peers. This information
supplemented the information received by each Board throughout the year regarding each Trust&#146;s performance, expense ratios, portfolio composition, trade execution and compliance.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In addition to the foregoing materials, independent legal counsel to the Independent Trustees provided a legal memorandum outlining, among other things, the duties of the Boards under the 1940
Act, as well as the general principles of relevant law in reviewing and approving advi-</FONT></P>
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<P align="justify">
<FONT size=2 face="serif">sory contracts, the requirements of the 1940 Act in such matters, an advisor&#146;s fiduciary duty with respect to advisory agreements and compensation, and the standards used by courts in determining whether investment
company boards of directors have fulfilled their duties and factors to be considered by the boards in voting on advisory agreements.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Independent Trustees reviewed this information and discussed it with independent counsel in executive session prior to the Board meeting. At the Board meeting on May 23, 2006, BlackRock
made a presentation to and responded to additional questions from the Boards. After the presentations and after additional discussion the Boards considered each Current Agreement and, in consultation with independent counsel, reviewed the factors
set out in judicial decisions and Securities and Exchange Commission (&#147;SEC&#148;) statements relating to the renewal of the Current Agreements.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Matters Considered by the Boards</FONT></B><BR>
<BR>
<I><FONT size=2 face="serif">The Current Agreements</FONT></I></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In connection with their deliberations with respect to the Current Agreements, the Boards considered all factors they believed relevant with respect to each Trust, including the following: the
nature, extent and quality of the services to be provided by the Advisors; the investment performance of each Trust; the costs of the services to be provided and profits to be realized by the Advisors and their affiliates from their relationship
with the Trusts; the extent to which economies of scale would be realized as the BlackRock closed-end fund complex grows; and whether BlackRock realizes other benefits from its relationship with the Trusts.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Nature and Quality of Investment Advisory and Sub-Advisory Services. </FONT></I><FONT size=2 face="serif">In evaluating the nature, extent and quality of the Advisors&#146; services, the
Boards reviewed information concerning the types of services that the Advisors provide and are expected to provide to each Trust, narrative and statistical information concerning each Trust&#146;s performance record and how such performance compares
to each Trust&#146;s Peers, information describing BlackRock&#146;s organization and its various departments, the experience and responsibilities of key personnel and available resources. The Boards noted the willingness of the personnel of
BlackRock to engage in open, candid discussions with the Boards. The Boards further considered the quality of the Advisors&#146; investment process in making portfolio management decisions. Given the Boards&#146; experience with BlackRock, the
Boards noted that they were familiar with and continue to have a good understanding of the organization, operations and personnel of BlackRock. The Boards also noted that the formation of Portfolio Review Committees and a Compliance Committee had
helped the Boards to continue to improve their understanding of BlackRock&#146;s organization, operations and personnel.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In addition to advisory services, the Independent Trustees considered the quality of the administrative or non-investment advisory services provided to the Trusts. In this regard, the Advisors
provide each Trust with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Trusts) and officers and other personnel as are necessary for the operations of the respective Trust. In
addition to investment management services, the Advisors and their affiliates provide each Trust with services such as: preparing shareholder reports and communications, including annual and semi-annual financial statements and Trust websites;
communications with analysts to support secondary market trading; assisting with daily accounting and pricing; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers;
administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal and compliance support (such as helping to prepare proxy statements and responding to regulatory inquiries); and performing other Trust
administrative tasks necessary for the operation of the respective Trust (such as tax reporting and fulfilling regulatory filing requirements). The Boards considered the Advisors&#146; policies and procedures for assuring compliance with applicable
laws and regulations.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Investment Performance of the Trusts. </FONT></I><FONT size=2 face="serif">As previously noted, the Boards received performance information regarding each Trust and its Peers. Among other
things, the Boards received materials reflecting each Trust&#146;s historic performance and each Trust&#146;s performance compared to its Peers. More specifically, each Trust&#146;s one- and three-year total returns (the periods applicable to each
Trust) were evaluated relative to its respective Peers (including the performance of individual Peers as well as the Peers&#146; average performance).</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards reviewed a narrative analysis of the third-party Peer rankings that was prepared by BlackRock at the Boards&#146; request. The summary placed the Peer rankings into context by
analyzing various factors that affect these comparisons. The Boards noted that each Trust had performed better or equal to the median of its Peers and benchmarks in each of the past one- and three-year periods.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After considering this information, the Boards concluded that the performance of each Trust, in light of and after considering the other facts and circumstances applicable to each Trust,
supports a conclusion that each Trust&#146;s Current Agreement should be renewed.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Fees and Expenses. </FONT></I><FONT size=2 face="serif">In evaluating the management fees and expenses that a Trust is expected to bear, the Boards considered each Trust&#146;s current
management fee structure and the Trust&#146;s expected expense ratios in absolute terms as well as relative to the fees and expense ratios of applicable Peers. In reviewing fees, the Boards, among other things, reviewed comparisons of each
Trust&#146;s gross management fees before and after any fee waivers and total expense ratios after any applicable waivers with those of the applicable Peers. The Boards also reviewed a narrative analysis of the Peer rankings that was prepared by an
independent third party and summarized by BlackRock at the request of the Boards. This summary placed the rankings into context by analyzing various factors that affect these comparisons.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards noted that, seven of the 14 Trusts pay fees lower than or equal to the median fees paid by their Peers in each of (i) contractual management fees payable by a Trust prior to any fee
waivers (&#147;contractual management fees&#148;), (ii) actual management fees paid by a Trust after taking into consideration fee waivers (&#147;actual management fees&#148;) and (iii) total expenses. The remaining seven Trusts are worse than the
median of their Peers in at least one of (a) contractual management fees, (b) actual management fees or (c) total expenses. The Board noted the following reasons why these seven Trusts have contractual or actual management fees or total expenses
higher than the median of their Peers:</FONT></P>
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<UL>
<LI>
<P align="justify"><I><FONT size=2 face="serif">De minimis. </FONT></I><FONT size=2 face="serif">The Boards of BCK and BFY noted that these Trusts pay actual management fees and/or incur total expenses that are no</FONT> <FONT size=2 face="serif">more than 4 bps (no more than 6%) higher than the median of their respective Peers. Nevertheless, these two Trusts have contractual man-</FONT> <FONT size=2 face="serif">agement fees that are lower than or equal to the median of their
peers. In addition, BFY incurs total expenses that are lower than or equal</FONT> <FONT size=2 face="serif">to the median. BIE and BBK pay actual management fees and/or incur total expenses that are lower than the median of their Peers, and</FONT>
<FONT size=2 face="serif">have contractual management fees no more than five basis points higher than their Peers.</FONT></P></LI>
<LI>
<P align="justify"><I><FONT size=2 face="serif">Fee Waivers. </FONT></I><FONT size=2 face="serif">The Boards of BZM, BLJ and BHV noted that these three Trusts have contractual fees that are higher than the median of</FONT> <FONT size=2 face="serif">their respective peers. Nevertheless, these Trusts pay actual management fees and incur total expenses that are better than or equal to the</FONT> <FONT size=2 face="serif">median, as they have a fee waiver structure in place through as
late as 2012.</FONT></P></LI>
</UL>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards also compared the management fees charged to the Trusts by the Advisors to the management fees the Advisors charge other types of clients (such as open-end investment companies and
separately managed institutional accounts). With respect to open-end investment companies, the management fees charged to the Trusts generally were higher than those charged to the open-end investment companies. The Boards also noted that the
Advisors provide the Trusts with certain services not provided to open-end funds, such as leverage management in connection with the issuance of preferred shares, stock exchange listing compliance requirements, rating agency compliance with respect
to the leverage employed by the Trusts and secondary market support and other services not provided to the Trusts, such as monitoring of subscriptions and redemptions. With respect to separately managed institutional accounts, the management fees
for such accounts were generally lower than those charged to the comparable Trusts. The Boards noted, however, the various services that are provided and the costs incurred by the Advisors in managing and operating the Trusts. For instance, the
Advisors and their affiliates provide numerous services to the Trusts that are not provided to institutional accounts including, but not limited to: preparing shareholder reports and communications, including annual and semi-annual financial
statements; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings;
income monitoring; expense budgeting; preparing proxy statements; and performing other Trust administrative tasks necessary for the operation of the respective Trust (such as tax reporting and fulfilling regulatory filing requirements). Further, the
Boards noted the increased compliance requirements for the Trusts in light of new SEC regulations and other legislation. These services are generally not required to the same extent, if at all, for separate accounts.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In connection with the Boards&#146; consideration of this information, the Boards reviewed the considerable investment management experience of the Advisors and considered the high level of
investment management, administrative and other services provided by the Advisors. In light of these factors and the other facts and circumstances applicable to each Trust, the Boards concluded that the fees paid and expenses incurred by each Trust
under its Current Agreements supports a conclusion that each Trust&#146;s Current Agreements should be renewed.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Profitability. </FONT></I><FONT size=2 face="serif">The Directors also considered BlackRock&#146;s profitability in conjunction with their review of fees. The Directors reviewed
BlackRock&#146;s revenues, expenses and profitability margins on a before and after-tax basis. In reviewing profitability, the Directors recognized that one of the most difficult issues in determining profitability is establishing a method of
allocating expenses. The Directors also reviewed BlackRock&#146;s assumptions and methodology of allocating expenses, noting the inherent limitations in allocating costs among various advisory products. The Boards also recognized that individual
fund or product line profitability of other advisors is generally not publicly available.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards recognized that profitability may be affected by numerous factors including, among other things, the types of funds managed, expense allocations and business mix, and therefore
comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Boards considered BlackRock&#146;s pre-tax profit margin compared to the pre-tax profitability of various publicly-traded investment management companies
and/or investment management companies that publicly disclose some or all of their financial results. The comparison indicated that BlackRock&#146;s pre-tax profitability was in the second quartile of the fifteen companies compared (including
BlackRock), with the most profitable quartile being ranked first and the least profitable quartile being ranked fourth.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In evaluating the reasonableness of the Advisors&#146; compensation, the Boards also considered any other revenues paid to the Advisors, including partial reimbursements paid to the Advisors
for certain non-investment advisory services. The Boards noted that these payments were less than the Advisors&#146; costs for providing these services. The Boards also considered indirect benefits that the Advisors and their affiliates are expected
to receive that are attributable to their management of the Trusts.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In reviewing each Trust&#146;s fees and expenses, the Boards examined the potential benefits of economies of scale, and whether any economies of scale should be reflected in the Trusts&#146;
fee structures, for example through the use of breakpoints. In this connection, the Boards reviewed information provided by BlackRock, noting that most closed-end fund complexes do not have fund-level breakpoints, as closed-end funds generally do
not experience substantial growth after their initial public offering and each fund is managed independently consistent with its own investment objectives. The information also revealed that only one closed-end fund complex used a complex-level
breakpoint structure for advisory fees, and that this complex generally is homogeneous with regard to the types of funds managed and is about three times as large as the Trusts&#146; complex.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards concluded that BlackRock&#146;s profitability, in light of all the other facts and circumstances applicable to each Trust, supports a conclusion that each Trust&#146;s Current
Agreements should be renewed.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Other Benefits. </FONT></I><FONT size=2 face="serif">In evaluating fees, the Boards also considered indirect benefits or profits the Advisors or their affiliates may receive as a result of
their relationships with the Trusts. The Directors, including the Independent Trustees, considered the intangible benefits that accrue to the Advisors and their affiliates by virtue of their relationships with the Trusts, including potential
benefits accruing to the Advisors and their affiliates as a result of participating in offerings of the Trusts&#146; shares, potentially stronger relationships with members of the broker-dealer community, increased name recognition of the Advisors
and their affiliates, enhanced sales of other investment funds and products sponsored</FONT></P>
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<P align="justify">
<FONT size=2 face="serif">by the Advisors and their affiliates and increased assets under management which may increase the benefits realized by the Advisors from soft dollar arrangements with broker-dealers. The Boards also considered the
unquantifiable nature of these potential benefits.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Miscellaneous. </FONT></I><FONT size=2 face="serif">During the Boards&#146; deliberations in connection with the Current Agreements, the Boards were aware that the Advisor pays compensation,
out of its own assets, to the lead underwriter and to certain qualifying underwriters of many of its closed-end funds, and to employees of the Advisors&#146; affiliates that participated in the offering of such funds. The Boards considered whether
the management fee met applicable standards in light of the services provided by the Advisors, without regard to whether the Advisors ultimately pay any portion of the anticipated compensation to the underwriters.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Conclusion with respect to the Current Agreements. </FONT></I><FONT size=2 face="serif">In reviewing the Current Agreements without considering the impending Transaction, the Directors did
not identify any single factor discussed above as all-important or controlling. The Directors, including the Independent Trustees, unanimously determined that each of the factors described above, in light of all the other factors and all of the
facts and circumstances applicable to each respective Trust, was acceptable for each Trust and supported the Directors&#146; conclusion that the terms of each Current Agreement were fair and reasonable, that the respective Trust&#146;s fees are
reasonable in light of the services provided to the respective Trust, and that each Current Agreement should be approved.</FONT></P>
<P align="justify">
<I><FONT size=2 face="serif">The Transaction</FONT></I></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On September 29, 2006, Merrill Lynch contributed its investment management business, Merrill Lynch Investment Managers (&#147;MLIM&#148;), to BlackRock, one of the largest publicly traded
investment management firms in the United States, to form a new asset management company that is one of the world&#146;s preeminent, diversified global money management organizations with approximately &#36;1 trillion in assets under management (the
&#147;Transaction&#148;). The new company operates under the BlackRock name and is governed by a board of directors with a majority of independent members. The new company offers a full range of equity, fixed income, cash management and alternative
investment products with strong representation in both retail and institutional channels, in the U.S. and in non-U.S. markets. It has over 4,500 employees in 18 countries and a major presence in most key markets, including the United States, the
United Kingdom, Asia, Australia, the Middle East and Europe. Merrill Lynch will own no more than 49.8% of the capital stock of the new company on a fully diluted basis and it will own no more than 45% of the new company&#146;s common stock on a
diluted basis. The PNC Financial Services Group, Inc. (&#147;PNC&#148;), owns approximately 34% of the new company&#146;s common stock.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Although BlackRock has informed the Boards that it does not believe the Transaction caused an assignment of the Current Agreements under the 1940 Act, it is possible that the Transaction could
be determined to be such an assignment, which would result in the automatic termination of each Current Agreement. Due to this uncertainty, each Trust submitted its post-Transaction management agreements and sub-advisory agreements (collectively the
&#147;New Agreements&#148;) to shareholders to prevent any potential disruption in the Advisors&#146; ability to continue to provide services to the Trusts after completion of the Transaction. The New Agreements will be effective upon the completion
of the Transaction or, if the Transaction is not completed, at such time as the Boards determine.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Consequences of the Transaction. </FONT></I><FONT size=2 face="serif">On February 23, 2006, April 21, 2006 and May 23, 2006, members of BlackRock management made presentations on the
Transaction to the Boards and the Boards discussed with management and amongst themselves management&#146;s general plans and intentions regarding the Trusts, including the preservation, strengthening and growth of BlackRock&#146;s business and its
combination with MLIM&#146;s business. The Boards also inquired about the plans for and anticipated roles and responsibilities of certain BlackRock employees and officers after the Transaction. The Independent Trustees also met in executive session
to discuss the Transaction. After these meetings, BlackRock continued to update the Boards with respect to its plans to integrate the operations of BlackRock and MLIM and the potential impact of those plans on the Trusts as those plans were further
developed.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After considering and approving the Current Agreements, the Boards (including the Independent Trustees) then considered the information received at these meetings and the consequences of the
Transaction to each Trust, including, among other things:</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(i) that BlackRock, MLIM and their investment advisory subsidiaries are experienced and respected asset management firms, and that BlackRock advised the Boards that in connection with the
closing of the Transaction, it intends to take steps to combine the investment management operations of BlackRock and MLIM, which, among other things, may involve sharing common systems and procedures, employees (including portfolio managers),
investment and trading platforms, and other resources. Furthermore, it is expected that these combination processes will result in changes to portfolio managers or portfolio management teams for each of the Trusts, subject to Board consent and
appropriate notice to shareholders;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii) that BlackRock advised the Boards that following the Transaction, there is not expected to be any diminution in the nature, quality and extent of services provided to the Trusts and their
shareholders by the Advisors, including compliance services;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iii) that BlackRock advised the Boards that it has no present intention to alter the expense waivers and reimbursements currently in effect for certain of the Trusts;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iv) the experience, expertise, resources and performance of MLIM that will be contributed to BlackRock after the closing of the Transaction and their anticipated impact on BlackRock&#146;s
ability to manage the Trusts;</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(v) that BlackRock and MLIM would derive benefits from the Transaction and that as a result, they have a financial interest in the matters that were being considered;</FONT></P>
<P align="justify">
<FONT size=2 face="serif">(vi) the potential effects of regulatory restrictions on the Trusts as a result of Merrill Lynch&#146;s equity stake in BlackRock after the Transaction; (vii) the fact that each Trust&#146;s aggregate investment advisory
and sub-advisory fees will not increase by virtue of the New Agreements; (viii) the terms of the New Agreements, including the differences from the Current Agreements;</FONT></P>
<P align="center">
<FONT size=2 face="serif">86</FONT></P>

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<P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">(ix) that the Trusts would not bear the costs of obtaining shareholder approval of the New Agreements; and</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(x) that BlackRock and Merrill Lynch have agreed to conduct their respective businesses (and use reasonable best efforts to cause their respective affiliates to conduct their respective
businesses) to enable the conditions of Section 15(f) to be true in relation to any registered investment companies advised by MLIM and registered under the 1940 Act and have agreed to the same conduct in relation to the BlackRock registered
investment companies to the extent it is determined the Transaction is an assignment under the 1940 Act.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Nature and Quality of Investment Advisory and Sub-Advisory Services. </FONT></I><FONT size=2 face="serif">The Boards considered the expected impact of the Transaction on the operations,
facilities, organization and personnel of the Advisors, the potential implications of regulatory restrictions on the Trusts following the Transaction and the ability of the Advisors to perform their duties after the Transaction. The Boards
considered that the services to be provided and the standard of care under the New Agreements are the same as under the Current Agreements. The Boards also considered statements by management of BlackRock that, in connection with integrating the
operations of the Advisors and MLIM, the objective was to preserve the best of both organizations in order to enhance BlackRock&#146;s ability to provide investment advisory services following completion of the Transaction.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards noted that it is impossible to predict with certainty the impact of the Transaction on the nature, quality and extent of the services provided by the Advisors to the Trusts, but
concluded based on the information currently available and in light of all of the current facts and circumstances that the Transaction is likely to provide the Advisors with additional resources with which to serve the Trusts and was not expected to
adversely affect the nature, quality and extent of the services to be provided to the Trusts and their shareholders by the Advisors and was not expected to materially adversely affect the ability of the Advisors to provide those services.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Boards considered that, following completion of the Transaction, a team primarily comprised of MLIM professionals will manage the portfolios of the Trusts. BlackRock informed the Boards of
this proposal at the May 23rd meetings of the Boards and discussed with the Boards the reasons for this proposed change. BlackRock also provided additional information to the Boards with respect to this change at the August 23rd meetings of the
Boards. The Boards were informed that the following team members generally would oversee investment policies for the Trusts. This team is one of the largest managers of municipal debt with approximately &#36;67.5 billion in assets under management
as of March 31, 2006, including 31 closed-end investment companies with &#36;16.2 billion in assets, &#36;8 billion in retail separate accounts and nine open-end mutual funds with &#36;4.1 billion in assets.</FONT></P>
<UL>
<LI>
<P align="justify"><B><FONT size=2 face="serif">Robert A. DiMella. </FONT></B><FONT size=2 face="serif">Mr. DiMella has been a Managing Director of MLIM since 2004 and was a Director from 2002 to 2004. He has</FONT> <FONT size=2 face="serif">been a
portfolio manager with MLIM since 1993.</FONT></P></LI>
<LI>
<P align="justify"><B><FONT size=2 face="serif">William R. Bock. </FONT></B><FONT size=2 face="serif">Mr. Bock has been a Director of MLIM since 2005, and was a Vice President from 1989 to 2005. Mr. Bock has been</FONT> <FONT size=2 face="serif">a
portfolio manager with MLIM since 1989.</FONT></P></LI>
<LI>
<P align="justify"><B><FONT size=2 face="serif">Timothy T. Browse. </FONT></B><FONT size=2 face="serif">Mr. Browse has been a Vice President (Municipal Tax-Exempt Fund Management) of and portfolio manager with</FONT> <FONT size=2 face="serif">MLIM
since 2004. He was also Vice President, Portfolio Manager and team leader of the Municipal Investments Team with Lord Abbett</FONT> <FONT size=2 face="serif">&amp; Co. from 2000 to 2003.</FONT></P></LI>
<LI>
<P align="justify"><B><FONT size=2 face="serif">Theodore R. Jaeckel, Jr., CFA. </FONT></B><FONT size=2 face="serif">Mr. Jaeckel has been a Director (Municipal Tax-Exempt Fund Management) of MLIM since 1997. Mr.</FONT> <FONT size=2 face="serif">Jaeckel has been a portfolio manager with MLIM since 1990.</FONT></P></LI>
<LI>
<P align="justify"><B><FONT size=2 face="serif">Walter O&#146;Connor. </FONT></B><FONT size=2 face="serif">Mr. O&#146;Connor has been a Managing Director of MLIM since 2003, was a Director of MLIM from 1998 to 2003 and</FONT> <FONT size=2 face="serif">was a Vice President of MLIM from 1992 to 1998. He has been a portfolio manager with MLIM since 1991.</FONT></P></LI>
<LI>
<P align="justify"><B><FONT size=2 face="serif">Robert D. Sneeden. </FONT></B><FONT size=2 face="serif">Mr. Sneeden has been a Vice President of MLIM since 1998 and was an Assistant Vice President from 1994 to 1998.</FONT> <FONT size=2 face="serif">Mr. Sneeden has been a portfolio manager with MLIM since 1994.</FONT></P></LI>
</UL>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Investment Performance of the Trusts. </FONT></I><FONT size=2 face="serif">The Boards examined MLIM&#146;s investment performance with respect to its closed-end funds. The Boards noted the
Advisors&#146; and MLIM&#146;s considerable investment management experience and capabilities. The Boards considered this information together with the level of services expected to be provided to the Trusts. Although the Boards noted that it is
impossible to predict the effect, if any, that consummation of the Transaction would have on the future performance of the Trusts, the Boards concluded that the information currently available, in light of all of the current facts and circumstances,
supported approving the New Agreements.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Fees. </FONT></I><FONT size=2 face="serif">The Boards noted that the fees payable by the Trusts under the New Agreements are identical to the fees payable under the Current Agreements. The
Boards also considered the fees paid by the MLIM closed-end funds. In light of (i) the Boards&#146; approval of the fees paid by each Trust pursuant to the Current Agreements earlier at the May 23rd meeting, (ii) the fact that the Transaction would
cause no change to the fees paid by any Trust and (iii) the Boards&#146; earlier conclusion with respect to the services expected to be provided to the Trusts under the New Agreements, the Boards concluded that the fee structure under the New
Agreements was reasonable.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Profitability. </FONT></I><FONT size=2 face="serif">Management of the Advisors stated to the Boards that, following the Transaction, the current intention is to continue to determine
profitability and report profitability to the Boards in the same way as they did prior to the Transaction, subject to management&#146;s desire to preserve the best practices of MLIM. Management of the Advisors stated that any changes in the methods
used to determine profitability and report profitability to the Boards would be discussed with the Boards. The Boards considered the potential for increased economies of scale as a result of the Transaction and whether any economies of scale should
be reflected in the Trusts&#146; fee structures. The Boards also considered that the process of integrating the operations of the Advisors and MLIM was in the early stages and that considerable expense would be incurred in connection with
integrating such operations, all of which made it difficult to conclude that economies of scale would be real-</FONT></P>
<P align="center">
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<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<FONT size=2 face="serif">ized as a result of the Transaction. In light of the foregoing, the Boards concluded that, at this time, no changes were necessary to the fee structure of the Trusts as a result of the Transaction.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Other Benefits. </FONT></I><FONT size=2 face="serif">In evaluating ancillary benefits to be received by the Advisors and their affiliates under the New Agreements, the Boards considered
whether the Transaction would have an impact on the ancillary benefits received by the Advisors by virtue of the Current Agreements. Based on its review of the materials provided, including materials received in connection with its approval of the
continuance of each Current Agreement earlier at the May 23rd meeting of the Boards and its discussions with the Advisors, the Boards noted that such benefits were difficult to quantify with certainty at this time and indicated that it would
continue to evaluate them going forward.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size=2 face="serif">Conclusion with respect to the New Agreements. </FONT></I><FONT size=2 face="serif">The Boards did not identify any single consequence of the Transaction discussed above as all-important or
controlling. The Boards, including a majority of the Independent Trustees, unanimously approved each New Agreement and unanimously recommend its approval by shareholders of each respective Trust in order to assure continuity of investment advisory
services to the Trusts after the Transaction.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Shareholder Meeting</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">At the shareholder meeting for each Trust held on August 23, 2006, the shareholders of each Trust approved the New Agreements for each Trust. Appendix E to the proxy statement used in
connection with the shareholder meetings incorrectly stated the management fee to be paid by BBK, BZA, BIE, BZM, BLJ, BQH and BHV as 0.55% of the average weekly value of those Trust&#146;s managed assets. After the shareholder meetings, the Board of
each of these Trusts took additional action to ensure that the Board and the shareholders approved the same agreements, in the form approved by shareholders at their meeting.</FONT></P>
<P align="center">
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<P align="center">
<B><FONT face="serif">ADDITIONAL INFORMATION (Unaudited)</FONT></B></P>
<hr size="2" noshade>
<P align="justify">
<B><FONT size=2 face="serif">60 Day Notice</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We are required by the Internal Revenue Code to advise you within 60 days of a Trust&#146;s tax year-end as to the Federal tax status of dividends paid by the Trusts during such tax year.
Accordingly, during the tax year ended September 30, 2006, all dividends paid by the Insured Trusts (the only Trusts with September 30th tax year-ends) were federally tax-exempt interest dividends.</FONT></P>
<P align="justify">
<B><FONT size=2 face="serif">Shareholder Meetings</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Joint Annual Meeting of Shareholders was held on August 23, 2006 for shareholders of record as of June 5, 2006, to approve a new Investment Management Agreement and Sub-Advisory Agreement
for each of the following Trusts:</FONT></P>
<P align="justify">
<FONT size=2 face="serif">Elected the Management Agreement as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes For</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Against</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,721,139</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">738,812</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">962,405</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,162,659</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">262,754</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">310,790</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,668,716</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">677,638</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">626,484</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,400,208</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">114,550</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">258,000</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,711,596</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">42,782</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">162,013</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,238,339</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">208,237</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">243,148</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,407,251</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">220,891</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">272,682</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,619,305</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">74,213</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">104,992</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,035,614</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">47,451</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">69,372</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,240,600</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">68,704</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">56,262</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,917,473</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">229,446</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">273,377</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,392,006</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">50,315</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">109,549</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,335,364</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">172,158</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">216,650</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">826,161</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">21,632</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">20,809</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap colspan=5>
 &nbsp; &nbsp;<FONT size=2 face="serif">Elected the Sub-Advisory Agreement as follows:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes For</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Against</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">12,754,203</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">739,867</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">925,679</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,115,677</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">297,697</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">321,589</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">11,647,557</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">692,466</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">631,575</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,421,639</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">103,080</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">246,799</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,708,681</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">39,575</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">166,895</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,222,232</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">209,888</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">256,364</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,436,078</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">222,134</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">241,372</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,611,612</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">78,303</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">107,355</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,034,093</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">49,498</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">67,606</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,222,345</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">83,294</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">58,687</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,912,687</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">236,561</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">269,808</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,380,100</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">52,868</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">117,662</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,318,934</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">183,601</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">220,397</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">822,019</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">23,065</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,278</FONT>
        </TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">89</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Joint Annual Meeting of Shareholders was held on May 23, 2006 for shareholders of record as of February 28, 2006, to elect a certain number of Trustees for each of the following Trusts to
three year terms expiring in 2009:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap colspan=3>
 &nbsp; &nbsp;<FONT size=2 face="serif">Elected the Class I Trustees as follows:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=4 style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Richard E. Cavanagh</FONT></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=3 style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">R. Glenn Hubbard</FONT></B>
      </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000;">      <center>
          <B><FONT size=2 face="serif">Votes For</FONT></B>
    </center></TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes For</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>      <div align="right"><FONT size=2 face="serif">24,229,021</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">663,469</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">24,220,524</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">671,966</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">9,826,817</FONT></div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">133,804</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">9,823,172</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">137,449</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>      <div align="right"><FONT size=2 face="serif">22,286,952</FONT>
        </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">256,632</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">22,282,600</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">260,984</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">5,172,541</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">22,396</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">5,169,208</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">25,729</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">3,223,868</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">23,117</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,220,468</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">26,517</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">7,656,595</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">58,614</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,655,262</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">59,947</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">7,464,457</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">114,363</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">7,471,055</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">107,765</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">3,009,079</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">50,454</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">3,007,679</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">51,854</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">1,995,868</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">15,552</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,995,868</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">15,552</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">2,232,564</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">21,595</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,232,564</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">21,595</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">6,221,357</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">106,428</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">6,219,059</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">108,726</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">2,670,734</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">12,193</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">2,669,900</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">13,027</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">4,787,668</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">94,111</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">4,787,668</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">94,111</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="right"><FONT size=2 face="serif">1,458,860</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">65,552</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">1,458,860</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">65,552</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap colspan=3>
 &nbsp; &nbsp;<FONT size=2 face="serif">Elected the Class II Trustees as follows:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap colspan=4 style="border-bottom:1px solid #000000;">
      <center>
        <B><FONT size=2 face="serif">Kathleen F. Feldstein</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes For</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Votes Withheld</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Insured Municipal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">9,020</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">25</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">3,238</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">7,513</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">131</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">1,569</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">0</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">955</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">0</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">California Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2,115</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">0</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">3,030</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Florida Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">1,171</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">0</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Maryland Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">689</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">805</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Insured</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">2,088</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">18</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">796</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
      <center>
        <FONT size=2 face="serif">13</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New York Income II</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">1,648</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">135</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Virginia Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">526</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="justify">&nbsp;</P>
<hr align="left" noshade width="100" size="1">

<P align="justify"><FONT size=1 face="serif"><sup><font size=1 face="serif">1 </font></sup><font size=1 face="serif">Vote</font>d on by holders of preferred shares only.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its chief executive officer certification regarding compliance with the NYSE&#146;s listing standards
and each Trust listed for trading on the American Stock Exchange (AMEX) has filed with the AMEX its corporate governance certification regarding compliance with the AMEX&#146;s listing standards. All of the Trusts have filed with the Securities and
Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts&#146; share are not continuously offered, which means that the Statement of
Additional Information of each Trust has not been updated after completion of such Trust&#146;s offering and the information contained in each Trust&#146;s Statement of Additional Information may have become outdated.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the period, there were no material changes in any Trust&#146;s investment objective or policies or to any Trust&#146;s charters or by-laws that were not approved by the shareholders or
in the principle risk factors associated with investment in the Trusts.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock&#146;s website, which can be accessed at http://www1.blackrock.com.
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 align="justify">
&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-Director and Vice Chairman of the Advisor and the Sub-Advisor, Henry Gabbay, Anne Ackerley, Bartholomew Battista, Vincent Tritto and Brian Kindelan-Managing Directors of the Advisor and the Sub-Advisor,
James Kong-Managing Director of the Sub-Advisor.</FONT></P>
<P align="center">
<FONT size=2 face="serif">90</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT size=2 face="serif">Important Information Regarding the BlackRock Closed-End Funds Annual Investor Update</FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The </FONT><I><FONT size=2 face="serif">Annual Investor Update </FONT></I><FONT size=2 face="serif">(&#147;Update&#148;) is available on the Internet and may be accessed through
BlackRock&#146;s website at http://www1.black-rock.com. The Update provides information on the fixed income markets and summaries of BlackRock closed-end funds&#146; investment objectives and strategies. It also contains recent news regarding the
BlackRock closed-end funds.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Historically, BlackRock provided this information in materials mailed with the Funds&#146; annual report. However, we believe that making this information available through BlackRock&#146;s
website allows us to communicate more fully and efficiently with the Funds&#146; shareholders.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">If you would like to receive a hard copy of the BlackRock Closed-End Funds </FONT><I><FONT size=2 face="serif">Annual Investor Update</FONT></I><FONT size=2 face="serif">, please call (800) 699-1BFM. </FONT></P>
<P align="center">
<FONT size=2 face="serif">91</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">SECTION 19 NOTICES</FONT></B></P>
<hr noshade>

<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Set forth below is a summary of distributions which required each Trust, if any, to notify shareholders of the type of distributions paid pursuant to Section 19 of the Investment Company Act of
1940. Section 19 requires each Trust to accompany dividend payments with a notice if any part of that payment is from a source other than accumulated net investment income, not including profits or losses from the sale of securities or other
properties. These notices are not for tax reporting purposes and were provided only for informational purposes in order to comply with the requirements of Section 19. In January 2007, after the completion of each Trust&#146;s tax year, shareholders
will receive a Form 1099-DIV which will reflect the amount of income, capital gain and return of capital paid by the Trust taxable in calendar year 2006 and reportable on your 2006 federal and other income tax returns.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Distributions</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Net</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">from proceeds</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Date of</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Total</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">Investment</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">from the sale of</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Trust</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Distribution</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Distributions</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:1px solid #000000;"><center>
          <B><FONT size=2 face="serif">Income</FONT></B>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">securities</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">Municipal Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">July 2006</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.17725</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.08638</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.09087</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">New Jersey Bond</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">July 2006</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.14234</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.07858</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=2 face="serif">&#36;0.06376</FONT>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">92</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">DIRECTORS/TRUSTEES INFORMATION (Unaudited)</FONT></B></P>
<hr noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Events or transactions by</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Number of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">reason of which the Trustee</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=1 face="serif">Term of office</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">portfolios over-</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Other Directorships</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">is an interested person as</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=1 face="serif">Current positions</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left nowrap>
      <center>
        <FONT size=1 face="serif">and length of time</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center nowrap>
      <center>
        <FONT size=1 face="serif">Principal occupations</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center nowrap>
      <center>
        <FONT size=1 face="serif">seen within the</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">held outside the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">defined in Section 2(a)</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">Name, address, age</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <center>
        <FONT size=1 face="serif">held with the Trusts</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center nowrap>
      <center>
        <FONT size=1 face="serif">served</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center nowrap>
      <center>
        <FONT size=1 face="serif">during the past five years</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center nowrap>
      <center>
        <FONT size=1 face="serif">fund complex</FONT><SUP><FONT size=1 face="serif">1</FONT></SUP>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">fund complex</FONT><SUP><FONT size=1 face="serif">1</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">(19) of the 1940 Act</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=13><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=13>
<B><FONT size=1 face="serif">Interested Directors/Trustees</FONT></B><B><SUP><FONT size=1 face="serif">2</FONT></SUP></B>
        </TD>
</TR>
<TR>
        <TD colspan=13><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Ralph L.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chairman of the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">/since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Director since 1999 and President of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">67</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Member of the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT size=1 face="serif">Director and President of</FONT>
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Schlosstein</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Board</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">inception</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BlackRock, Inc. since its formation</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Visiting Board of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">the Advisor.</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">BlackRock, Inc.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">in 1998 and of BlackRock, Inc.&#146;s</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Overseers of the John</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">40 East 52nd Street</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">predecessor entities since 1988.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">F. Kennedy School of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">New York, NY</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Member of the Management</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Government at</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">10022</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Committee and Investment Strategy</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Harvard University, a</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=1 face="serif">Age: 55</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Group of BlackRock, Inc. Formerly,</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">member of the board</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Managing Director of Lehman</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">of the Financial</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Brothers, Inc. and Co-head of its</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Institutions Center of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mortgage and Savings Institutions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">The Wharton School</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Group. Chairman and President of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">of the University of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">the BlackRock Liquidity Funds and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Pennsylvania, a</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Director of several of BlackRock&#146;s</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">trustee of the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">alternative investment vehicles.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">American Museum of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Natural History, a</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">trustee of Trinity</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">School in New York</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">City, a member of the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Board of Advisors of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Marujupu LLC, and a</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">trustee of New</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Visions for Public</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Education of The</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Public Theater in New</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">York City and the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">James Baird</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Foundation. Formerly,</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">a director of Pulte</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corporation, the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">nation&#146;s largest home-</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">builder, a Trustee of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Denison University</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">and a member of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fannie Mae&#146;s</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=1 face="serif">Advisory Council.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Robert S. Kapito</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">President and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">/since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Vice Chairman of BlackRock, Inc.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">57</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chairman of the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Director and Vice</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">BlackRock, Inc.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">August 22,</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Head of the Portfolio Management</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Hope and Heroes</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT size=1 face="serif">Chairman of the Advisor.</FONT>
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">40 East 52nd Street</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">2002</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Group. Also a member of the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Children&#146;s Cancer</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">New York, NY</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Management Committee, the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fund. President of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">10022</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Investment Strategy Group, the Fixed</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">the Board of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=1 face="serif">Age: 49</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Income and Global Operating</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Directors of the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Committees and the Equity</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Periwinkle National</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Investment Strategy Group.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Theatre for Young</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Responsible for the portfolio man-</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Audiences.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">agement of the Fixed Income,</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Domestic Equity and International</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Equity, Liquidity, and Alternative</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Investment Groups of BlackRock.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
  <TD colspan=13><hr noshade>
  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">93</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">DIRECTORS/TRUSTEES INFORMATION (Unaudited) (Continued)</FONT></B></P>
<hr noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Number of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">portfolios overseen</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <center>
        <FONT size=1 face="serif">Current positions held</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Term of office and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Principal occupations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">within the fund</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Other Directorships held</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Name, address, age</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=1 face="serif">with the Trusts</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">length of time served</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">during the past five years</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">complex</FONT><SUP><FONT size=1 face="serif">1</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">outside the fund complex</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=11><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=11>
<B><FONT size=1 face="serif">Independent Trustees</FONT></B>
        </TD>
</TR>
<TR>
        <TD colspan=11><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Andrew F. Brimmer</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Lead Trustee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">/since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">President of Brimmer &amp; Company, Inc., a</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">57</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Former Director of</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">P.O. Box 4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Audit Committee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">inception</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Washington, D.C.-based economic and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">CarrAmerica Realty</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">New York, NY</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chairman</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">financial consulting firm, also Wilmer D.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corporation and Borg-</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">10163-4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Barrett Professor of Economics, University</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Warner Automotive,</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<div align="left"><font size=1 face="serif">Age:</font>&nbsp;<FONT size=1 face="serif">80</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">of Massachusetts &#150; Amherst. Formerly</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Airborne Express,</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">member of the Board of Governors of the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">BankAmerica</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Federal Reserve System. Former</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corporation (Bank of</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Chairman, District of Columbia Financial</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">America), BellSouth</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Control Board.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corporation, College</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Retirement Equities Fund</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">(Trustee), Commodity</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Exchange, Inc. (Public</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Governor), Connecticut</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mutual Life Insurance</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Company, E.I. du Pont de</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Nemours &amp; Company,</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Equitable Life Assurance</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Society of the United</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">States, Gannett Company,</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mercedes-Benz of North</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">America, MNC Financial</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corporation (American</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Security Bank), NCM</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Capital Management,</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Navistar International</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Corporation, PHH Corp.</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">and UAL Corporation</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=1 face="serif">(United Airlines).</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=11><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Richard E. Cavanagh</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">/since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">President and Chief Executive Officer of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">57</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustee: Aircraft Finance</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">P.O. Box 4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Audit Committee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">inception</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">The Conference Board, Inc., a leading</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trust (AFT) and</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">New York, NY</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Member</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">global business research organization, from</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chairman of the Board of</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">10163-4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">1995-present. Former Executive Dean of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustees, Educational</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap> <FONT size=1 face="serif">Age: 60</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">the John F. Kennedy School of Government</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Testing Service (ETS).</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">at Harvard University from 1988-1995.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Director, Arch</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Acting Director, Harvard Center for</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Chemicals, Fremont</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Business and Government (1991-1993).</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Group and The Guardian</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Formerly Partner (principal) of McKinsey</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Life Insurance Company</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">&amp; Company, Inc. (1980-1988). Former</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">of America.</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Executive Director of Federal Cash</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Management, White House Office of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Management and Budget (1977-1979). Co-</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">author, THE WINNING PERFORMANCE</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">(best selling management book published in</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=11 style="border-bottom:0px solid #000000;">
<FONT size=1 face="serif">13 national editions).</FONT>
        </TD>
</TR>
<TR>
  <TD colspan=11><hr noshade>
  </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Kent Dixon</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">/since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Consultant/Investor. Former President and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">57</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Former Director of ISFA</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">P.O. Box 4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Audit Committee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">inception</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Chief Executive Officer of Empire Federal</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">(the owner of INVEST, a</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">New York, NY</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Member</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Savings Bank of America and Banc PLUS</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">national securities broker-</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">10163-4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Savings Association, former Chairman of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">age service designed for</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Age: 69</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">the Board, President and Chief Executive</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">banks and thrift</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
 &nbsp;<FONT size=1 face="serif">Officer of Northeast Savings.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">institutions).</FONT>
        </TD>
</TR>
<TR>
  <TD colspan=11><hr noshade>
  </TD>
</TR>
<TR>
        <TD colspan=11>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Frank J. Fabozzi</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">/since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Consultant. Editor of THE JOURNAL OF</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">57</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Director, Guardian</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">P.O. Box 4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Audit Committee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">inception</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">PORTFOLIO MANAGEMENT and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Mutual Funds Group (18</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">New York, NY</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Member</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">Adjunct Professor of Finance at the School</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">portfolios).</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">10163-4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">of Management at Yale University. Author</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Age: 58</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">and editor of several books on fixed</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
 &nbsp;<FONT size=1 face="serif">income portfolio management.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR>
  <TD colspan=11><hr noshade>
  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">94</FONT></P>

<HR noshade width="100%" size=4>




<P STYLE="page-break-before:always"></P><PAGE>


<P align="justify">
<B><FONT face="serif">DIRECTORS/TRUSTEES INFORMATION (Unaudited) (Continued)</FONT></B></P>
<hr noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Number of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">portfolios</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">overseen</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">within</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Current positions</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Term of office and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">Principal occupations</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">the fund</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">Other Directorships held</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Name, address, age</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">held with the Trusts</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">length of time served</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">during the past five years</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">complex</FONT><SUP><FONT size=1 face="serif">1</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right nowrap>
<FONT size=1 face="serif">outside the fund complex</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=11><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=11>
<B><FONT size=1 face="serif">Independent Trustees (continued)</FONT></B>
        </TD>
</TR>
<TR>
        <TD colspan=11><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Kathleen F. Feldstein</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">/since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">President of Economics Studies, Inc., a</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">57</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Director of BellSouth Inc.</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">P.O. Box 4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">January 19, 2005</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Belmont, MA-based private economic</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">and McClatchy Company;</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">New York, NY</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">consulting firm, since 1987; Chair, Board</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustee of the Museum of</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">10163-4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">of Trustees, McLean Hospital in Belmont,</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Fine Arts, Boston, and of the</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=1 face="serif">Age: 65</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">MA.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Committee for Economic</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Development; Corporation</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Member, Partners HealthCare</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">and Sherrill House; Member</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">of the Visiting Committee of</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">the Harvard University Art</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Museums and of the</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Advisory Board to the</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">International School of</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Business at Brandeis</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap style="border-bottom:0px solid #000000;">
<FONT size=1 face="serif">University.</FONT>
        </TD>
</TR>
<TR>
        <TD colspan=11><hr noshade>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">R. Glenn Hubbard</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Trustee</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">/since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Dean of Columbia Business School since</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT size=1 face="serif">57</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Director of ADP, R.H.</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">P.O. Box 4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">November 16, 2004</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">July 1, 2004. Columbia faculty member</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Donnelly, Duke Realty, KKR</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">New York, NY</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">since 1988. Co-director of Columbia</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Financial Corporation, and</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">10163-4546</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Business School&#146;s Entrepreneurship Program</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ripplewood Holdings, the</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
      <div align="left"><FONT size=1 face="serif">Age: 48</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">1994-1997. Visiting professor at the John F.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Council on Competitiveness,</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Kennedy School of Government at Harvard</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">the American Council on</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">and the Harvard Business School, as well as</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Capital Formation, the Tax</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">the University of Chicago. Visiting scholar at</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Foundation and the Center</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">the American Enterprise Institute in</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">for Addiction and Substance</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Washington and member of International</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Abuse. Trustee of Fifth</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Advisory Board of the MBA Program of</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Avenue Presbyterian Church</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Ben-Gurion University. Deputy assistant sec-</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">of New York.</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">retary of the U.S. Treasury Department for</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Tax Policy 1991-1993. Chairman of the U.S.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">Council of Economic Advisers under the</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=1 face="serif">President of the United States 2001&#150;2003.</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="11" align=left nowrap><hr noshade></TD>
  </TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD width=100%>
<P align="justify"><FONT size=2 face="serif">The Fund Complex means two or more registered investments companies that: (1) hold themselves out to investors as related companies for pur- poses of investment and investor services; or (2) have a common
investment advisor or have an investment advisor that is an affiliated person of the investment advisor of any of the other registered investment companies.</FONT></P>
        </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD width=100%>
<P align="justify"><FONT size=2 face="serif">Interested Director/Trustee as defined by Section 2(a)(19) of the Investment Company Act of 1940.</FONT></P>
        </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD width=100%>
<P align="justify"><FONT size=2 face="serif">Director/Trustee since inception; appointed Chairman of the Board on August 22, 2002.</FONT></P>
        </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">4</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD width=100%>
<P align="justify"><FONT size=2 face="serif">The Board is classified into three classes of which one class is elected annually. Each Director/Trustee serves a three-year term concurrent with the class from which they are elected.</FONT></P>
        </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp; &nbsp; &nbsp;       </TD>
        <TD width=100%>
<P align="justify"><FONT size=2 face="serif">The Board of each Trust has determined that each Trust has three Audit Committee financial experts serving on its Audit Committee, Dr. Brimmer, Mr. Dixon and Mr. Fabozzi, each of whom are independent for
the purpose of the definition of Audit Committee financial expert as applicable to the Trusts.</FONT></P>
        </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">95</FONT></P>

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<P align="center" STYLE="page-break-before:always"></P>
<center>
  <PAGE>


</center>
<P align="center">
<B><FONT size=2 face="serif">[THIS</FONT></B><FONT size=2 face="serif"> </FONT><B><FONT size=2 face="serif">PAGE INTENTIONALLY</FONT></B><FONT size=2 face="serif"> </FONT><B><FONT size=2 face="serif">LEFT</FONT></B><FONT size=2 face="serif">
</FONT><B><FONT size=2 face="serif">BLANK]</FONT></B></P>

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<P STYLE="page-break-before:always"></P><PAGE>


<P align="center">
<FONT size=6 face="serif">BlackRock Closed-End Funds</FONT></P>
<P align="justify">&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="55%" valign=top nowrap> <FONT face="serif">Trustees<br>
&nbsp;&nbsp;&nbsp;&nbsp;Ralph L. Schlosstein, </FONT><I><FONT size=2 face="serif">Chairman</FONT></I><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Andrew F. Brimmer, </FONT><I><FONT size=2 face="serif">Lead Trustee</FONT></I><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Richard E. Cavanagh</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Kent Dixon</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Frank J. Fabozzi</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Kathleen F. Feldstein</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">R. Glenn Hubbard</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Robert S. Kapito</FONT><BR>
      <FONT face="serif">Officers</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Robert S. Kapito, </FONT><I><FONT size=2 face="serif">President</FONT></I><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Henry Gabbay, </FONT><I><FONT size=2 face="serif">Treasurer</FONT></I><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Bartholomew Battista, </FONT><I><FONT size=2 face="serif">Chief Compliance Officer</FONT></I><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Anne Ackerley, </FONT><I><FONT size=2 face="serif">Vice President</FONT></I><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">James Kong, </FONT><I><FONT size=2 face="serif">Assistant Treasurer</FONT></I><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Vincent B. Tritto, </FONT><I><FONT size=2 face="serif">Secretary</FONT></I><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Brian P. Kindelan, </FONT><I><FONT size=2 face="serif">Assistant Secretary</FONT></I><BR>
      <FONT face="serif">Investment Advisor</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">100 Bellevue Parkway</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Wilmington, DE 19809</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">(800) 227-7BFM</FONT><BR>
      <FONT face="serif">Sub-Advisor</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">BlackRock Financial Management, Inc.</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">40 East 52nd Street</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">New York, NY 10022</FONT><BR>
      <FONT face="serif">Accounting Agent and Custodian</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">State Street Bank and Trust Company</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">2 Avenue De Lafayette</FONT><BR>
      <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Boston, MA 02111</FONT><BR>
      <BR>
      <hr align="left" noshade width="100" size="1">
      <font size=1 face="serif">&nbsp;</font><FONT size=1 face="serif"><sup><font size=1 face="serif">1</font></sup> For the Insured Trusts and Bond Trusts.</FONT><BR>
      <SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">For the Income II Trusts.</FONT></TD>
    <TD width=45%><P align="justify"><FONT face="serif">Transfer Agent</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Computershare Trust Company, N.A.</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">250 Royall Street</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Canton, MA 02021</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">(800) 699-1BFM</FONT><BR>
        <FONT face="serif">Auction Agent</FONT><SUP><FONT face="serif">1</FONT></SUP><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Bank of New York</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">101 Barclay Street, 7 West</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">New York, NY 10286</FONT><BR>
        <FONT face="serif">Auction Agent</FONT><SUP><FONT face="serif">2</FONT></SUP><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Deutsche Bank Trust Company Americas</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">60 Wall Street, 27th Floor</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">New York, NY 10286</FONT><BR>
        <FONT face="serif">Independent Registered Public Accounting Firm</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Deloitte &amp; Touche LLP</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">200 Berkeley Street</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Boston, MA 02116</FONT><BR>
        <FONT face="serif">Legal Counsel</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Skadden, Arps, Slate, Meagher &amp; Flom LLP</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Four Times Square</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">New York, NY 10036</FONT><BR>
        <FONT face="serif">Legal Counsel &#150; Independent Trustees </FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">Debevoise &amp; Plimpton LLP</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">919 Third Avenue</FONT><BR>
        <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">New York, NY 10022</FONT><BR>
        <BR>
        <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This report is for shareholder information. This is not a prospetus intended for use in the purchase or sale of Trust shares.
        dated and are subject to change.</FONT><BR>
        <BR>
        <FONT size=2 face="serif">BlackRock Closed-End Funds<br>
c/o BlackRock Advisors, Inc.<br>
100 Bellevue Parkway<br>
Wilmington, DE 19809<br>
(800) 227-7BFM</FONT></P></TD>
  </TR>
</TABLE>
<P align="justify"><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 align="justify">
<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 align="justify">
<FONT size=2 face="serif">Information on how proxies relating to the Trusts&#146; voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available, upon request, by calling (800) 699-1BFM or on
the website of the Commission at http://www.sec.gov.</FONT></P>
<P align="justify">
<FONT size=2 face="serif">The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust&#146;s Form N-Q will be available on the
Commission&#146;s website at http://www.sec.gov. Each Trust&#146;s Form N-Q, may be reviewed and copied at the Commission&#146;s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be
obtained by calling (800) SEC-0330. Each Trust&#146;s Form N-Q may also be obtained upon request without charge by calling (800) 699-1BFM.</FONT></P>

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<p style="page-break-before:always"></p>
<page>
<p align="justify">
<table width="100%"  border="0">
  <tr>
    <td><font size=2 face="sans-serif">This report is for shareholder information. This is not a prospectus intended for</font><br>
      <font size=2 face="sans-serif">use in the purchase or sale of Trust shares. Statements and other information</font><br>
      <font size=2 face="sans-serif">contained in this report are as dated and are subject to change.</font> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="69%"><font size=2 face="sans-serif">CEF-ANN-4</font> </td>
    <td width="31%"><div align="right"><img src="c44289_n-csrx100x1.jpg" border=0></div></td>
  </tr>
</table>
<BR>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT face="serif">Item 2. Code of Ethics.</FONT></B></P>
<P align="left"><FONT face="serif">The Registrant has adopted a code of ethics, as of the end of the period covered by this report, that applies to the Registrant&#146;s principal executive officer, principal financial officer and principal accounting officer, or
  persons performing similar functions. A copy of the code of ethics is
available without charge at www.blackrock.com. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 3. Audit Committee Financial Expert.</FONT></B></P>
<P align="left"><FONT face="serif">The Registrant&#146;s Board of Trustees has determined that it has three audit committee financial experts serving on its audit committee, each of whom is an &#147;independent&#148; Trustee:  Dr. Andrew F. Brimmer, Mr. Kent Dixon and Mr. Frank
  Fabozzi.  Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an &#147;expert&#148; for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of
  1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities
  that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 4. Principal Accountant Fees and Services. </FONT></B></P>
<P align="left">
<FONT face="serif">(a) </FONT><U><FONT face="serif">Audit Fees</FONT></U><FONT face="serif">.  The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the
Registrant&#146;s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were &#36;15,000 for the fiscal year ended August 31,
2006 and &#36;10,600 for the fiscal year ended August 31, 2005. </FONT></P>
<P align="left">
<FONT face="serif">(b) </FONT><U><FONT face="serif">Audit-Related Fees</FONT></U><FONT face="serif">. The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably
related to the performance of the audit of the Registrant&#146;s financial statements and are not reported above in Item 4(a) were &#36;2,000 for the fiscal year ended August 31, 2006 and &#36;1,900 for the fiscal year ended August 31, 2005.  The
nature of the service includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. </FONT></P>
<P align="left">
<FONT face="serif">(c) </FONT><U><FONT face="serif">Tax Fees</FONT></U><FONT face="serif">.  The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice
and tax planning were &#36;8,000 for the fiscal year ended August 31, 2006 and &#36;7,700 for the fiscal year ended August 31, 2005. The nature of the services was federal, state and local income and excise tax return preparation and related advice
and planning and miscellaneous tax advice. </FONT></P>

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<P align="left">
<FONT face="serif">(d) </FONT><U><FONT face="serif">All Other Fees</FONT></U><FONT face="serif">.  The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services
reported above in Items 4(a) through (c) were &#36;0 for the fiscal year ended August 31, 2006 and &#36;200 for the fiscal year ended August 31, 2005. The nature of the service includes a review of compliance
procedures and provides an attestation regarding such review.</FONT><FONT face="serif"> </FONT></P>
<P align="left">
<FONT face="serif">(e) </FONT><U><FONT face="serif">Audit Committee Pre-Approval Policies and Procedures</FONT></U><FONT face="serif">. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(1) The Registrant has polices and procedures (the &#147;Policy&#148;) for the pre-approval by the Registrant&#146;s Audit Committee of Audit, Audit-Related, Tax and Other Services (as each is defined in the Policy)
provided by the Trust&#146;s independent auditor (the &#147;Independent Auditor&#148;) to the Registrant and other &#147;Covered Entities&#148; (as defined below). The term of any such pre-approval is 12 months from the date of pre-approval, unless the Audit Committee
specifically provides for a different period. The amount of any such pre-approval is set forth in the appendices to the Policy (the &#147;Service Pre-Approval Documents&#148;). At its first meeting of each calendar year, the Audit Committee will review and
re-approve the Policy and approve or re-approve the Service Pre-Approval Documents for that year, together with any changes deemed necessary or desirable by the Audit Committee. The Audit Committee may, from time to time, modify the nature of the
services pre-approved, the aggregate level of fees pre-approved or both.</FONT><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">For the purposes of the Policy, &#147;Covered Services&#148; means (A) all engagements for audit and non-audit services to be provided by the Independent Auditor to the Trust and (B) all engagements for
non-audit services related directly to the operations and financial reporting or the Trust to be provided by the Independent Auditor to any Covered Entity, &#147;Covered Entities&#148; means (1) the Advisor or (2) any entity controlling, controlled by or
under common control with the Advisor that provides ongoing services to the Trust.</FONT><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In the intervals between the scheduled meetings of the Audit Committee, the Audit Committee delegates pre-approval authority under this Policy to the Chairman of the Audit Committee (the &#147;Chairman&#148;).
The Chairman shall report any pre-approval decisions under this Policy to the Audit Committee at its next scheduled meeting. At each scheduled meeting, the Audit Committee will review with the Independent Auditor the Covered Services pre-approved by
the Chairman pursuant to delegated authority, if any, and the fees related thereto. Based on these reviews, the Audit Committee can modify, at its discretion, the pre-approval originally granted by the Chairman pursuant to delegated authority. This
modification can be to the nature of services pre-approved, the aggregate level of fees approved, or both.  Pre-approval of Covered Services by the Chairman pursuant to delegated authority is expected to be the exception rather than the rule and the
Audit Committee may modify or withdraw this delegated authority at any time the Audit Committee determines that it is appropriate to do so. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the Audit Committee and set forth in the Service
Pre-Approval Documents.  Any increase in pre-approved fee levels will require specific pre-approval by the Audit Committee (or the Chairman pursuant to delegated authority). </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The terms and fees of the annual Audit services engagement for the Trust are subject to the specific pre-approval of the Audit Committee. The Audit Committee (or the Chairman pursuant to delegated
authority) will approve, if necessary, any changes in</FONT></P>

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<P align="left">
<FONT face="serif">terms, conditions or fees resulting from changes in audit scope, Trust structure or other matters. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In addition to the annual Audit services engagement specifically approved by the Audit Committee, any other Audit services for the Trust not listed in the Service Pre-Approval Document for the
respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority). </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Audit-Related services are assurance and related services that are not required for the audit, but are reasonably related to the performance of the audit or review of the financial statements of the
Registrant and, to the extent they are Covered Services, the other Covered Entities (as defined in the Joint Audit Committee Charter) or that are traditionally performed by the Independent Auditor.  Audit-Related services that are Covered Services
and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority). </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Audit Committee believes that the Independent Auditor can provide Tax services to the Covered Entities such as tax compliance, tax planning and tax advice without impairing the auditor&#146;s
independence. However, the Audit Committee will not permit the retention of the Independent Auditor in connection with a transaction initially recommended by the Independent Auditor, the sole business purpose of which may be tax avoidance and the
tax treatment of which may not be supported in the Internal Revenue Code and related regulations. Tax services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically
pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority). </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">All Other services that are covered and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant
to delegated authority). </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Requests or applications to provide Covered Services that require approval by the Audit Committee (or the Chairman pursuant to delegated authority) must be submitted to the Audit Committee or the
Chairman, as the case may be, by both the Independent Auditor and the Chief Financial Officer of the respective Covered Entity, and must include a joint statement as to whether, in their view, (a) the request or application is consistent with the
rules of the Securities and Exchange Commission (&#147;SEC&#148;) on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC.  A request or application submitted to the Chairman between scheduled meetings of
the Audit Committee should include a discussion as to why approval is being sought prior to the next regularly scheduled meeting of the Audit Committee. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> (2) None of the services described in each of Items 4(b) through (d) were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. </FONT></P>
<P align="left">
<FONT face="serif">(f) Not applicable. </FONT></P>
<P align="left">
<FONT face="serif">(g)  The aggregate non-audit fees billed by the Registrant&#146;s accountant for services rendered to the Registrant, the Advisor (except for any sub-advisor whose role is primarily portfolio management and is subcontracted with
or overseen by another </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<FONT face="serif">investment advisor) or any entity controlling, controlled by, or under common control with the Advisor that provides ongoing services to the Registrant for each of the last two fiscal years were &#36;286,200 for the fiscal year
ended August 31, 2006 and &#36;286,200 for the fiscal year ended August 31, 2005. </FONT></P>
<P align="left">
<FONT face="serif">(h) The Registrant&#146;s Audit Committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the Registrant&#146;s investment advisor (not including any sub-advisor whose role
is primarily portfolio management and is subcontracted with or overseen by another investment advisor) and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the Registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant&#146;s independence. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 5. Audit Committee of Listed Registrants.</FONT></B><FONT face="serif"> </FONT></P>
<P align="left">
<FONT face="serif">The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The Audit Committee of the Registrant is comprised of:  Dr. Andrew F.
Brimmer; Richard E. Cavanagh; Kent Dixon and Frank Fabozzi. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 6. Schedule of Investments. </FONT></B></P>
<P align="left">
<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 align="left">
<B><FONT face="serif">Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. </FONT></B></P>
<P align="left">
<FONT face="serif">The Registrant has delegated the voting of proxies relating to its voting securities to its investment advisor, BlackRock Advisors, LLC (the &#147;Advisor&#148;) and its sub-advisor, BlackRock Financial Management, Inc. (the
&#147;Sub-Advisor&#148;). The Proxy Voting Policies and Procedures of the Advisor and Sub-Advisor (the &#147;Proxy Voting Policies&#148;) are attached as an Exhibit 99.PROXYPOL hereto. </FONT></P>
<P>
<B><FONT face="serif">Item 8. Portfolio Managers of Closed-End Management Investment Companies </FONT></B></P>
<P>
<FONT face="serif">(a)(1) The Registrant is managed by a team of investment professionals comprised of Michael A. Kalinoski, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, and Walter O&#146;Connor, Managing Director
at BlackRock. Each is a member of BlackRock&#146;s municipal tax-exempt management group. Mr. Jaeckel and Mr. O&#146;Connor are responsible for setting the Fund&#146;s overall investment strategy and overseeing the management of the Fund. Mr. Kalinoski is the
Fund&#146;s lead portfolio manager and is responsible for the day-to-day management of the Fund&#146;s portfolio and the selection of its investments. Messrs. Jaeckel and O&#146;Connor have been members of the Fund&#146;s management team since 2006 and Mr. Kalinoski
has been the Fund&#146;s portfolio manager since 2006. </FONT></P>
<P>
<FONT face="serif">Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of Merrill Lynch Investment Managers, L.P. (&#147;MLIM&#148;) from 2005 to 2006 and a Director of MLIM from
1997 to 2005. He has been a portfolio manager with BlackRock or MLIM since 1991.</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P>
<FONT face="serif">Mr. O&#146;Connor joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to 2002. He has been a portfolio
manager with BlackRock or MLIM since 1991. </FONT></P>
<P>
<FONT face="serif">Mr. Kalinoski joined BlackRock in 2006. Prior to joining BlackRock, he was a Director (Municipal Tax-Exempt Fund Management) of MLIM since 2006 and was a Vice President of MLIM from 1999 to 2006. He has been a portfolio manager
with BlackRock or MLIM since 1999. </FONT></P>
<P>
<FONT face="serif">(a)(2) As of October 2, 2006, Michael Kalinoski managed or was a member of the management team for the following client accounts: </FONT></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=20% align=left>
<FONT face="serif">Type of Account</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=13% align=center>
<FONT face="serif">Number of</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=18% align=left>
      <center>
        <FONT face="serif">Assets of</FONT>&nbsp;
            </center></TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=12% align=left nowrap>
      <div align="left"><FONT face="serif">Number of</FONT>&nbsp;
            </div></TD>
        <TD width=6% nowrap>
          <div align="left"></div></TD>
        <TD width=13% align=center nowrap>
      <div align="left"><FONT face="serif">Assets Subject to</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">Accounts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <FONT face="serif">Accounts</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">Accounts Subject</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">a Performance</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">to a Performance</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=left nowrap>
      <div align="left"><FONT face="serif">Fee</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="left"><FONT face="serif">Fee</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Registered</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT face="serif">&#36;</FONT><FONT face="serif">3,687,442,076</FONT>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Companies</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Pooled Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT face="serif">0</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Vehicles Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Than Registered</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Companies</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Other Accounts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT face="serif">0</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT face="serif">As of October 2, 2006, Ted Jaeckel managed or was a member of the management team for the following client accounts: </FONT></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=18% align=left>
<FONT face="serif">Type of Account</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=13% align=center>
<FONT face="serif">Number of</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=19% align=right>
      <center>
        <FONT face="serif">Assets of</FONT>&nbsp;
            </center></TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=12% align=left nowrap>
      <div align="left"><FONT face="serif">Number of</FONT>&nbsp;
            </div></TD>
        <TD width=6% nowrap>
          <div align="left"></div></TD>
        <TD width=13% align=center nowrap>
      <div align="left"><FONT face="serif">Assets Subject</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">Accounts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT face="serif">Accounts</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">Accounts Subject</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=left nowrap>
      <div align="left"><FONT face="serif">to a</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">to a Performance</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">Performance Fee</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="left"><FONT face="serif">Fee</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Registered</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">83</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT face="serif">&#36;23,867,919,518</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Companies</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Pooled</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT face="serif">0</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Vehicles Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Than Registered</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Companies</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Other Accounts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT face="serif">0</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P>
<FONT face="serif">As of October 2, 2006, Walter O&#146;Connor managed or was a member of the management team for the following client accounts: </FONT></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=18% align=left>
<FONT face="serif">Type of Account</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=13% align=center>
<FONT face="serif">Number of</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=19% align=right>
      <center>
        <FONT face="serif">Assets of</FONT>&nbsp;
            </center></TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=12% align=left nowrap>
      <div align="left"><FONT face="serif">Number of</FONT>&nbsp;
            </div></TD>
        <TD width=8% nowrap>
          <div align="left"></div></TD>
        <TD width=13% align=center nowrap>
      <div align="left"><FONT face="serif">Assets Subject</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">Accounts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT face="serif">Accounts</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">Accounts Subject</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=left nowrap>
      <div align="left"><FONT face="serif">to a</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">to a Performance</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=center nowrap>
      <div align="left"><FONT face="serif">Performance Fee</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="left"><FONT face="serif">Fee</FONT>&nbsp;
            </div></TD>
        <TD nowrap>
          <div align="left"></div></TD>
        <TD align=left nowrap>

          <div align="left"></div></TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Registered</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">83</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT face="serif">&#36;23,867,919,518</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Companies</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Pooled</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT face="serif">0</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Vehicles Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Than Registered</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Companies</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Other Accounts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT face="serif">0</FONT>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT face="serif">0</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account
over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to
ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Registrant, and BlackRock may, consistent with applicable law, make
investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may
be the same as or different from those made to the Registrant. In addition, BlackRock, its affiliates and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends
to the Registrant. BlackRock, or any of its affiliates, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Registrant by BlackRock with respect to the same
securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock&#146;s (or its affiliates&#146;) officers, directors or employees are directors or officers, or companies
as to which BlackRock or any of its affiliates or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Each portfolio manager also may manage accounts whose
investment strategies may at times be opposed to the strategy utilized for the Registrant. In this connection, it should be noted that the portfolio management team may manage certain accounts that are subject to performance fees. In addition, the
portfolio management team may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred.
Additional</FONT></P>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<FONT face="serif">portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated
in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to
allocate investments in a manner that is consistent with the particular investment discipline and client base. </FONT></P>
<P align="left">
<FONT face="serif">(a)(3) The elements of total compensation for portfolio managers on BlackRock&#146;s
municipal team include a fixed base salary, annual
performance-based cash and stock compensation (cash and stock bonus) and
other benefits.  BlackRock has balanced these components of pay to provide these
portfolio  managers with a powerful incentive to achieve  consistently  superior
investment  performance.  By design,  compensation  levels  for these  portfolio
managers  fluctuate--both up and down--with the relative investment  performance
of the portfolios that they manage.
</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="serif">Base compensation</FONT></I><FONT face="serif">. Like that of many asset management firms, base salaries represent a relatively small portion of a portfolio manager&#146;s total compensation. This
approach serves to enhance the motivational value of the performance-based (and therefore variable) compensation elements of the compensation program.</FONT><FONT size=2 face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="serif">Performance-Based Compensation.</FONT></I><I><FONT size=2 face="serif"> </FONT></I><FONT face="serif"> BlackRock believes that the best interests of investors are served by recruiting and retaining
exceptional asset management talent and managing their compensation within a consistent and disciplined framework that emphasizes pay for performance in the context of an intensely competitive market for talent. To that end, BlackRock and its
affiliates portfolio manager incentive compensation is based on a formulaic compensation program.
BlackRock&#146;s formulaic portfolio manager compensation program includes: investment performance relative
to the Long Bond (22+) component of the Lehman Brothers Municipal Bond Index, the
Lehman Brothers Municipal Bond Index, the 10-year United States Treasury note, certain customized indices
and fund industry peer groups. Portfolio managers
are compensated based on the pre-tax performance of the products they manage. If a portfolio manager&#146;s tenure is less than 5
years, performance periods will reflect time in position. Portfolio managers are compensated based on products they manage. A discretionary element of portfolio manager compensation may include consideration of: financial results, expense control,
profit margins, strategic planning and implementation, quality of client service, market share, corporate reputation, capital allocation, compliance and risk control, leadership, workforce diversity, supervision, technology and innovation. BlackRock
and its affiliates also consider the extent to which individuals exemplify and foster BlackRock&#146;s principles of client focus, respect for the individual, </FONT></P>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<FONT face="serif">teamwork, responsible citizenship and integrity. All factors are considered collectively by BlackRock management. </FONT></P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">Cash Bonus</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Performance-based compensation is distributed to portfolio managers in a combination of cash and stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total
compensation for portfolio managers. </FONT></P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">Stock Bonus</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">A portion of the dollar value of the total annual performance-based bonus is paid in restricted shares of BlackRock stock. Paying a portion of annual bonuses in stock puts compensation earned by a
portfolio manager for a given year &#147;at risk&#148; based on the company&#146;s ability to sustain and improve its performance over future periods. The ultimate value of stock bonuses is dependent on future BlackRock stock price performance. As such, the stock
bonus aligns each portfolio manager&#146;s financial interests with those of the BlackRock shareholders and encourages a balance between short-term goals and long-term strategic objectives. Management strongly believes that providing a significant
portion of competitive performance-based compensation in stock is in the best interests of investors and shareholders. This approach ensures that portfolio managers participate as shareholders in both the &#147;downside risk&#148; and &#147;upside opportunity&#148; of
the company&#146;s performance. Portfolio managers therefore have a direct incentive to protect BlackRock&#146;s reputation for integrity. </FONT></P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">Other Compensation Programs</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Portfolio managers who meet relative investment performance and financial management objectives during a performance year are eligible to participate in a deferred cash program. Awards under this
program are in the form of deferred cash that may be benchmarked to a menu of BlackRock mutual funds (including their own fund) during a five-year vesting period. The deferred cash program aligns the interests of participating portfolio managers
with the investment results of BlackRock products and promotes continuity of successful portfolio management teams. </FONT></P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">Other Benefits</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Portfolio managers are also eligible to participate in broad-based plans offered generally to employees of BlackRock and its affiliates, including broad-based retirement, 401(k), health, and other
employee benefit plans. </FONT></P>
<P align="left">
<FONT face="serif">(a)(4) As of August 31, 2006, the end of the Registrant&#146;s most recently completed fiscal year, the dollar range of securities beneficially owned by each portfolio manager in the Registrant is shown below: </FONT></P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">Michael Kalinoski: None</FONT></P>

<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">Ted Jaeckel: None <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Walter O&#146;Connor: None</FONT></P>
<P align="left">
<FONT face="serif">(b) Not applicable.</FONT></P>
<P align="left">
<B><FONT face="serif">Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers. </FONT></B></P>
<P align="left">
<FONT face="serif">Not applicable. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 10. Submission of Matters to a Vote of Security Holders. </FONT></B></P>
<P align="left">
<FONT face="serif">The Registrant&#146;s Nominating Committee will consider nominees to the Board of Trustees recommended by shareholders when a vacancy becomes available.  Shareholders who wish to recommend a nominee should send nominations which
include biographical information and sets forth the qualifications of the proposed nominee to the Registrant&#146;s Secretary. There have been no material changes to these procedures. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 11. Controls and Procedures.</FONT></B><FONT face="serif"> </FONT></P>
<P align="left">
<FONT face="serif">(a) The Registrant&#146;s principal executive and principal financial officers have evaluated the Registrant&#146;s disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the
Registrant&#146;s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods
and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant&#146;s management, including its principle executive and principle financial officers, as appropriate to allow
timely decisions regarding required disclosure. </FONT></P>
<P align="left">
<FONT face="serif">(b) There were no changes in the Registrant&#146;s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a -3(d)) that occurred during the Registrant&#146;s last fiscal half-year that have
materially affected, or are reasonably likely to materially affect, the Registrant&#146;s internal control over financial reporting. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 12. Exhibits.</FONT></B><FONT face="serif"> </FONT></P>
<P align="left">
<FONT face="serif">(a) (1) Not applicable. </FONT></P>
<P align="left">
<FONT face="serif">(a) (2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached as EX-99.CERT. </FONT></P>
<P align="left">
<FONT face="serif">(a) (3) Not applicable. </FONT></P>
<P align="left">
<FONT face="serif">(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT. </FONT></P>
<P align="left">
<FONT face="serif">Proxy Voting Policies attached as EX-99.PROXYPOL. </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">SIGNATURES</FONT></B></P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif"> Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</FONT></P>
<P align="left">
<FONT face="serif">(Registrant) <u>&nbsp; &nbsp; &nbsp; BlackRock Virginia Municipal Bond Trust&nbsp; &nbsp; &nbsp; &nbsp;</u><BR>
</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="6%"><font face="serif">By:</font></td>
    <td width="94%"><FONT face="serif">/s/ Henry Gabbay</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><HR align="left" width="30%" size=1 noshade></td>
  </tr>
  <tr>
    <td><font face="serif">Name: </font></td>
    <td><font face="serif">Henry Gabbay </font></td>
  </tr>
  <tr>
    <td><font face="serif">Title:</font></td>
    <td><font face="serif">Treasurer </font></td>
  </tr>
  <tr>
    <td><font face="serif">Date:</font></td>
    <td><font face="serif"> November 3, 2006</font></td>
  </tr>
</table>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates
indicated. </FONT></P>
<P align="left">&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="6%"><font face="serif">By:</font></td>
    <td width="94%"><FONT face="serif">/s/ Robert S. Kapito</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><HR align="left" width="30%" size=1 noshade></td>
  </tr>
  <tr>
    <td><font face="serif">Name: </font></td>
    <td><FONT face="serif">Robert S. Kapito</FONT></td>
  </tr>
  <tr>
    <td><font face="serif">Title:</font></td>
    <td><FONT face="serif">Principal Executive Officer</FONT></td>
  </tr>
  <tr>
    <td><font face="serif">Date:</font></td>
    <td><font face="serif"> November 3, 2006</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="6%"><font face="serif">By:</font></td>
    <td width="94%"><FONT face="serif">/s/ Henry Gabbay</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><HR align="left" width="30%" size=1 noshade></td>
  </tr>
  <tr>
    <td><font face="serif">Name: </font></td>
    <td><font face="serif">Henry Gabbay </font></td>
  </tr>
  <tr>
    <td><font face="serif">Title:</font></td>
    <td><FONT face="serif">Principal Financial Officer</FONT></td>
  </tr>
  <tr>
    <td><font face="serif">Date:</font></td>
    <td><font face="serif"> November 3, 2006</font></td>
  </tr>
</table>
<P align="left">&nbsp;</P>
<HR noshade width="100%" size=4>


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E44`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110!__V3\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>7
<FILENAME>c44638_ex99cert.htm
<TEXT>
<html>
<head>
<title>Untitled Document</title>
</head>

<body>
<P align="left"><B><FONT face="serif">EX-99.CERT</FONT></B></P>
<P align="left"> <B><FONT face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER</FONT></B></P>
<P align="left"> <B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P align="left"> <FONT face="serif">I, Robert Kapito, certify that:</FONT></P>
<P align="left"> <FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock Virginia Municipal Bond Trust; </FONT></P>
<P align="left"> <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 align="left"> <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 align="left"> <FONT face="serif">4. The Registrant&#146;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 align="left"> <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 align="left"> <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 align="left"> <FONT face="serif">c)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">Evaluated the effectiveness of the Registrant&#146;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 align="left"> <FONT face="serif">d) Disclosed in this report any change in the Registrant&#146;s internal control over financial reporting that occurred during the Registrant&#146;s second fiscal half-year of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant&#146;s internal control over financial reporting; and </FONT></P>
<P align="left"> <FONT face="serif">5. The Registrant&#146;s other certifying officer(s) and I have disclosed to the Registrant&#146;s auditors and the audit committee of the Registrant&#146;s board of directors (or persons performing the equivalent functions): </FONT></P>
<P align="left"> <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&#146;s ability to record, process, summarize, and report financial information; and </FONT></P>
<P align="left"> <FONT face="serif">b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant&#146;s internal controls. </FONT></P>
<P align="left"> <FONT face="serif"><br>
Date: November 3, 2006</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=50% align=center>&nbsp;</TD>
    <TD width=50% align=center> <FONT face="serif">/s/ Robert S. Kapito</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center>&nbsp;</TD>
    <TD align=center><HR noshade width="50%" size=1></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center>&nbsp;</TD>
    <TD align=center><FONT face="serif">Robert S. Kapito</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center>&nbsp;</TD>
    <TD align=center> <FONT face="serif">Principal Executive Officer</FONT> </TD>
  </TR>
</TABLE>
<BR>
<HR noshade width="100%" size=4>
<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="left"> <B><FONT face="serif">EX-99.CERT</FONT></B></P>
<P align="left"> <B><FONT face="serif">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER</FONT></B></P>
<P align="left"> <B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P align="left"> <FONT face="serif">I, Henry Gabbay, certify that:</FONT></P>
<P align="left"> <FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock Virginia Municipal Bond Trust; </FONT></P>
<P align="left"> <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 align="left"> <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 align="left"> <FONT face="serif">4. The Registrant&#146;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 align="left"> <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 align="left"> <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 align="left"> <FONT face="serif">c)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">Evaluated the effectiveness of the Registrant&#146;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 align="left"> <FONT face="serif">d) Disclosed in this report any change in the Registrant&#146;s internal control over financial reporting that occurred during the Registrant&#146;s second fiscal half-year of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant&#146;s internal control over financial reporting; and </FONT></P>
<P align="left"> <FONT face="serif">5. The Registrant&#146;s other certifying officer(s) and I have disclosed to the Registrant&#146;s auditors and the audit committee of the Registrant&#146;s board of directors (or persons performing the equivalent functions): </FONT></P>
<P align="left"> <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&#146;s ability to record, process, summarize, and report financial information; and </FONT></P>
<P align="left"> <FONT face="serif">b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant&#146;s internal controls. </FONT></P>
<P align="left"> <FONT face="serif"><br>
  Date: November 3, 2006<BR>
  </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=50% align=center>&nbsp;</TD>
    <TD width=50% align=center> <FONT face="serif">/s/ Henry Gabbay</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center>&nbsp;</TD>
    <TD align=center><HR noshade width="50%" size=1></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center>&nbsp;</TD>
    <TD align=center><FONT face="serif">Henry Gabbay</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center>&nbsp;</TD>
    <TD align=center> <FONT face="serif">Principal Financial Officer</FONT> </TD>
  </TR>
</TABLE>
<BR>
<HR noshade width="100%" size=4>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906CERT
<SEQUENCE>8
<FILENAME>c44638_ex99-906cert.htm
<TEXT>
<html>
<head>
<title>Untitled Document</title>
</head>

<body>
<P align="left"><B><U><FONT face="serif">SECTION 906 CERTIFICATION</FONT></U></B></P>
<P align="left"> <FONT face="serif">Pursuant to 18 U.S.C. &#167; 1350, the undersigned officers of BlackRock Virginia Municipal Bond Trust (the &#147;Company&#148;), hereby certifies, to the best of their knowledge,
that the Company&#146;s Report on Form N-CSR for the period ended August 31, 2006, (the &#147;Report&#148;) 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 align="left">&nbsp;</P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="14%"><font face="serif">Dated:</font> </TD>
    <TD width="86%"><font face="serif">November 3, 2006</font> </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD><hr noshade size=1></TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT face="serif">/s/ Robert S. Kapito</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><hr noshade size=1></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT face="serif">Name:</FONT> </TD>
    <TD align=left> <FONT face="serif">Robert S. Kapito</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT face="serif">Title:</FONT> </TD>
    <TD align=left> <FONT face="serif">Principal Executive Officer</FONT> </TD>
  </TR>
  <TR>
    <TD>&nbsp;
    </TD>
    <TD>&nbsp;
    </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT face="serif">/s/ Henry Gabbay</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left><hr noshade size=1></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT face="serif">Name:</FONT> </TD>
    <TD align=left> <FONT face="serif">Henry Gabbay</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT face="serif">Title:</FONT> </TD>
    <TD align=left> <FONT face="serif">Principal Financial Officer</FONT> </TD>
  </TR>
</TABLE>
<BR>
<HR noshade width="100%" size=4>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.PROXYPOL
<SEQUENCE>9
<FILENAME>c44638_ex99proxypol.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center"><FONT size=6 face="serif">Proxy Voting Policies and Procedures</FONT></P>
<P align="center">&nbsp;</P>
<P align="center">
<FONT size=5 face="serif">For BlackRock Advisors, LLC <br>
</FONT><FONT size=5 face="serif">And Its Affiliated SEC Registered Investment Advisers</FONT></P>
<P align="center">
<FONT size=5 face="serif">September 30, 2006</FONT></P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=5 face="serif">Proxy Voting Policies and Procedures </FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">  <FONT face="serif"></FONT>These Proxy Voting Policies and Procedures (&#147;Policy&#148;) for BlackRock Advisors, LLC and its affiliated U.S. registered investment advisers</FONT><SUP><FONT face="serif">1</FONT></SUP><FONT face="serif">
(&#147;BlackRock&#148;) reflect our duty as a fiduciary under the Investment Advisers Act of 1940 (the &#147;Advisers Act&#148;) to vote proxies in the best interests of our clients.  BlackRock serves as the investment manager for investment
companies, other commingled investment vehicles and/or separate accounts of institutional and other clients. The right to vote proxies for securities held in such accounts belongs to BlackRock&#146;s clients. Certain clients of BlackRock have
retained the right to vote such proxies in general or in specific circumstances.</FONT><SUP><FONT face="serif">2</FONT></SUP><FONT face="serif"> Other clients, however, have delegated to BlackRock the right to vote proxies for securities held in
their accounts as part of BlackRock&#146;s authority to manage, acquire and dispose of account assets.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">When BlackRock votes proxies for a client that has delegated to BlackRock proxy voting authority, BlackRock acts as the client&#146;s agent. Under the Advisers Act, an investment adviser is a
fiduciary that owes each of its clients a duty of care and loyalty with respect to all services the adviser undertakes on the client&#146;s behalf, including proxy voting. BlackRock is therefore subject to a fiduciary duty to vote proxies in a
manner BlackRock believes is consistent with the client&#146;s best interests,</FONT><SUP><FONT face="serif">3</FONT></SUP><FONT face="serif"> whether or not the client&#146;s proxy voting is subject to the fiduciary standards of the Employee
Retirement Income Security Act of 1974 (&#147;ERISA&#148;).</FONT><SUP><FONT face="serif">4</FONT></SUP><FONT face="serif"> When voting proxies for client accounts (including investment companies), BlackRock&#146;s primary objective is to make
voting decisions solely in the best interests of clients and ERISA clients&#146; plan beneficiaries and participants. In fulfilling its obligations to clients, BlackRock will seek to act in a manner that it believes is most likely to enhance the
economic value of the underlying securities held in client accounts.</FONT><SUP><FONT face="serif">5</FONT></SUP><FONT face="serif"> It is imperative that BlackRock considers the interests of its clients, and not the interests of BlackRock, when
voting proxies and that real (or perceived) material conflicts that may arise between BlackRock&#146;s interest and those of BlackRock&#146;s clients are properly addressed and resolved.</FONT></P>
<hr align="left" noshade width="140" size="1">

<SUP><FONT size=2 face="serif">1</FONT></SUP><FONT size=2 face="serif"> The Policy does not apply to BlackRock Asset Management U.K. Limited and BlackRock Investment Managers International Limited, which are U.S. registered investment advisers based
in the United Kingdom. </FONT><p></P>
<P>
<SUP><FONT size=2 face="serif">2</FONT></SUP><FONT size=2 face="serif"> In certain situations, a client may direct BlackRock to vote in accordance with the client&#146;s proxy voting policies. In these situations, BlackRock will seek to comply with
such policies to the extent it would not be inconsistent with other BlackRock legal responsibilities. </FONT></P>
<P>
<SUP><FONT size=2 face="serif">3</FONT></SUP><FONT size=2 face="serif">  Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins, President, Ram Trust Services (February 12, 2002) (Section 206 of the Investment Advisers Act imposes a
fiduciary responsibility to vote proxies fairly and in the best interests of clients); SEC Release No. IA-2106 (February 3, 2003). </FONT></P>
<P>
<SUP><FONT size=2 face="serif">4 </FONT></SUP><FONT size=2 face="serif">DOL Interpretative Bulletin of Sections 402, 403 and 404 of ERISA at 29 C.F.R. 2509.94 -2 </FONT></P>
<P>
<SUP><FONT size=2 face="serif">5</FONT></SUP><FONT size=2 face="serif"> Other considerations, such as social, labor, environmental or other policies, may be of interest to particular clients. While BlackRock is cognizant of the importance of such
considerations, when voting proxies it will generally take such matters into account only to the extent that they have a direct bearing on the economic value of the underlying securities. To the extent that a BlackRock client desires to pursue a
particular social, labor, environmental or other agenda through the proxy votes made for its securities held through BlackRock as investment adviser, BlackRock encourages the client to consider retaining direct proxy voting authority or to appoint
independently a special proxy voting fiduciary other than BlackRock. </FONT></P>
<P align="center">
<FONT size=2 face="sans-serif">1</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 face="serif">Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires, among other things, that an investment adviser that exercises voting authority over clients&#146; proxy voting adopt policies
and procedures reasonably designed to ensure that the adviser votes proxies in the best interests of clients, discloses to its clients information about those policies and procedures and also discloses to clients how they may obtain information on
how the adviser has voted their proxies. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In light of such fiduciary duties, the requirements of Rule 206(4)-6, and given the complexity of the issues that may be raised in connection with proxy votes, BlackRock has adopted these policies and
procedures.  BlackRock&#146;s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the &#147;Committee&#148;), addresses proxy voting issues on behalf of BlackRock and its clients.</FONT><SUP><FONT face="serif">6
</FONT></SUP><FONT face="serif">The Committee is comprised of senior members of BlackRock&#146;s Portfolio Management Group and advised by BlackRock&#146;s Legal and Compliance Department. </FONT></P>
<P>&nbsp;</P>
<hr align="left" noshade width="140" size="1">

<SUP><FONT size=2 face="serif">6</FONT></SUP><FONT size=2 face="serif"> Subject to the Proxy Voting Policies of Merrill Lynch Bank &amp; Trust Company FSB, the Committee may also function jointly as the Proxy Voting Committee for Merrill Lynch Bank
&amp; Trust Company FSB trust accounts managed by personnel dually-employed by BlackRock. </FONT><p></P>
<P align="center">
<FONT size=2 face="sans-serif">2</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<U><FONT size=5 face="serif">I.Scope of Committee Responsibilities</FONT></U><FONT size=5 face="serif"> </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif"> The Committee shall have the responsibility for determining how to address proxy votes made on behalf of all BlackRock clients, except for clients who have retained the right to vote their own proxies, either generally or on any
specific matter. In so doing, the Committee shall seek to ensure that proxy votes are made in the best interests of clients, and that proxy votes are determined in a manner free from unwarranted or inappropriate influences. The Committee shall also
oversee the overall administration of proxy voting for BlackRock accounts.</FONT><SUP><FONT face="serif">7</FONT></SUP></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Committee shall establish BlackRock&#146;s proxy voting guidelines, with such advice, participation and research as the Committee deems appropriate from portfolio managers, proxy voting services
or other knowledgeable interested parties. As it is anticipated that there will not necessarily be a &#147;right&#148; way to vote proxies on any given issue applicable to all facts and circumstances, the Committee shall also be responsible for
determining how the proxy voting guidelines will be applied to specific proxy votes, in light of each issuer&#146;s unique structure, management, strategic options and, in certain circumstances, probable economic and other anticipated consequences
of alternative actions. In so doing, the Committee may determine to vote a particular proxy in a manner contrary to its generally stated guidelines.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Committee may determine that the subject matter of certain proxy issues are not suitable for general voting guidelines and requires a case-by-case determination, in which case the Committee may
elect not to adopt a specific voting guideline applicable to such issues. BlackRock believes that certain proxy voting issues &#150; such as approval of mergers and other significant corporate transactions &#150; require investment analysis akin to
investment decisions, and are therefore not suitable for general guidelines. The Committee may elect to adopt a common BlackRock position on certain proxy votes that are akin to investment decisions, or determine to permit portfolio managers to make
individual decisions on how best to maximize economic value for the accounts for which they are responsible (similar to normal buy/sell investment decisions made by such portfolio managers).</FONT><SUP><FONT face="serif">8</FONT></SUP><FONT
face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">While it is expected that BlackRock, as a fiduciary, will generally seek to vote proxies over which BlackRock exercises voting authority in a uniform manner for all BlackRock clients, the Committee,
in conjunction with the portfolio manager of an account, may determine that the specific circumstances of such account require that such account&#146;s proxies be voted differently due to such account&#146;s investment objective or other factors
that differentiate it from other accounts. In addition, on proxy votes that are akin to investment decisions, BlackRock believes portfolio managers may from time to time</FONT></P>
<P>&nbsp;</P>
<hr align="left" noshade width="140" size="1">

<SUP><FONT size=2 face="serif">7</FONT></SUP><FONT size=2 face="serif"> The Committee may delegate day-to-day administrative responsibilities to other BlackRock personnel and/or outside service providers, as appropriate.</FONT><p></P>
<P>
<SUP><FONT size=2 face="serif">8</FONT></SUP><FONT size=2 face="serif"> The Committee will normally defer to portfolio managers on proxy votes that are akin to investment decisions </FONT><I><FONT size=2 face="serif">except for</FONT></I><FONT
size=2 face="serif"> proxy votes that involve a material conflict of interest, in which case it will determine, in its discretion, the appropriate voting process so as to address such conflict.</FONT></P>
<P align="center">
<FONT size=2 face="sans-serif">3</FONT></P>

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<P>
<FONT face="serif">legitimately reach differing but equally valid views, as fiduciaries for BlackRock&#146;s clients, on how best to maximize economic value in respect of a particular investment. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Committee will also be responsible for ensuring the maintenance of records of each proxy vote, as required by Advisers Act Rule 204-2.</FONT><SUP><FONT face="serif">9</FONT></SUP><FONT
face="serif"> All records will be maintained in accordance with applicable law. Except as may be required by applicable legal requirements, or as otherwise set forth herein, the Committee&#146;s determinations and records shall be treated as
proprietary, nonpublic and confidential. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Committee shall be assisted by other BlackRock personnel, as may be appropriate. In particular, the Committee has delegated to the BlackRock Operations Department responsibility for monitoring
corporate actions and ensuring that proxy votes are submitted in a timely fashion. The Operations Department shall ensure that proxy voting issues are promptly brought to the Committee&#146;s attention and that the Committee&#146;s proxy voting
decisions are appropriately disseminated and implemented. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">To assist BlackRock in voting proxies, the Committee may retain the services of a firm providing such services. BlackRock has currently retained Institutional Shareholder Services (&#147;ISS&#148;) in
that role. ISS is an independent adviser that specializes in providing a variety of fiduciary-level proxy-related services to institutional investment managers, plan sponsors, custodians, consultants, and other institutional investors. The services
provided to BlackRock may include, but are not limited to, in-depth research, voting recommendations (which the Committee is not obligated to follow), vote execution, and recordkeeping.</FONT></P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<hr align="left" noshade width="140" size="1">

<SUP><FONT size=2 face="serif">9</FONT></SUP><FONT size=2 face="serif">  The Committee may delegate the actual maintenance of such records to an outside service provider. Currently, the Committee has delegated the maintenance of such records to
Institutional Shareholder Services. </FONT><p></P>
<P align="center">
<FONT size=2 face="sans-serif">4</FONT></P>

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<P>
<FONT size=5 face="serif">II.&nbsp;</FONT><FONT size=5 face="sans-serif"> </FONT><U><FONT size=5 face="serif">Special Circumstances</FONT></U></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U><FONT face="serif">Routine Consents</FONT></U></B><FONT face="serif">. BlackRock may be asked from time to time to consent to an amendment to, or grant a waiver under, a loan agreement, partnership agreement,
indenture or other governing document of a specific financial instrument held by BlackRock clients.  BlackRock will generally treat such requests for consents not as &#147;proxies&#148; subject to these Proxy Voting Policies and Procedures but as
investment matters to be dealt with by the responsible BlackRock investment professionals would, provided that such consents (i) do not relate to the election of a board of directors or appointment of auditors of a public company, and (ii) either
(A) would not otherwise materially affect the structure, management or control of a public company, or (B) relate to a company in which BlackRock clients hold only interests in bank loans or debt securities and are consistent with customary
standards and practices for such instruments.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U><FONT face="serif">Securities on Loan</FONT></U></B><FONT face="serif">. Registered investment companies that are advised by BlackRock as well as certain of our advisory clients may participate in securities
lending programs.  Under most securities lending arrangements, securities on loan may not be voted by the lender (unless the loan is recalled). BlackRock believes that each client has the right to determine whether participating in a securities
lending program enhances returns, to contract with the securities lending agent of its choice and to structure a securities lending program, through its lending agent, that balances any tension between loaning and voting securities in a matter that
satisfies such client. If client has decided to participate in a securities lending program, BlackRock will therefore defer to the client&#146;s determination and not attempt to seek recalls solely for the purpose of voting routine proxies as this
could impact the returns received from securities lending and make the client a less desirable lender in a marketplace. Where a client retains a lending agent that is unaffiliated with BlackRock, BlackRock will generally not seek to vote proxies
relating to securities on loan because BlackRock does not have a contractual right to recall such loaned securities for the purpose of voting proxies. Where BlackRock or an affiliate acts as the lending agent, BlackRock will also generally not seek
to recall loaned securities for proxy voting purposes, unless the portfolio manager responsible for the account or the Committee determines that voting the proxy is in the client&#146;s best interest and requests that the security be recalled.
</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U><FONT face="serif">Voting Proxies for Non-US Companies</FONT></U></B><FONT face="serif">. While the proxy voting process is well established in the United States, voting proxies of non-US companies frequently
involves logistical issues which can affect BlackRock&#146;s ability to vote such proxies, as well as the desirability of voting such proxies. These issues include (but are not limited to): (i) untimely notice of shareholder meetings, (ii)
restrictions on a foreigner&#146;s ability to exercise votes, (iii) requirements to vote proxies in person, (iv) &#147;shareblocking&#148; (requirements that investors who exercise their voting rights surrender the right to dispose of their holdings
for some specified period in proximity to the shareholder meeting), (v) potential difficulties in translating the proxy, and (vi) requirements to provide local agents with unrestricted powers of attorney to facilitate voting instructions.
</FONT></P>
<P align="center">
<FONT size=2 face="sans-serif">5</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As a consequence, BlackRock votes proxies of non-US companies only on a &#147;best-efforts&#148; basis. In addition, the Committee may determine that it is generally in the best interests of BlackRock
clients </FONT><B><FONT face="serif">not</FONT></B><FONT face="serif"> to vote proxies of companies in certain countries if the Committee determines that the costs (including but not limited to opportunity costs associated with shareblocking
constraints) associated with exercising a vote generally are expected to outweigh the benefit the client will derive by voting on the issuer&#146;s proposal. If the Committee so determines in the case of a particular country, the Committee (upon
advice from BlackRock portfolio managers) may override such determination with respect to a particular issuer&#146;s shareholder meeting if the Committee believes the benefits of seeking to exercise a vote at such meeting outweighs the costs, in
which case BlackRock will seek to vote on a best-efforts basis. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U><FONT face="serif">Securities Sold After Record Date</FONT></U></B><FONT face="serif">.  With respect to votes in connection with securities held on a particular record date but sold from a client account prior to
the holding of the related meeting, BlackRock may take no action on proposals to be voted on in such meeting. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U><FONT face="serif">Conflicts of Interest.</FONT></U></B><FONT face="serif"> From time to time, BlackRock may be required to vote proxies in respect of an issuer that is an affiliate of BlackRock (a &#147;BlackRock
Affiliate&#148;), or a money management or other client of BlackRock (a &#147;BlackRock Client&#148;).</FONT><SUP><FONT face="serif">10 </FONT></SUP><FONT face="serif">In such event, provided that the Committee is aware of the real or potential
conflict, the following procedures apply: </FONT></P>
<UL>
<LI>
<FONT face="serif">The Committee intends to adhere to the voting guidelines set forth herein for</FONT> <FONT face="serif">all proxy issues including matters involving BlackRock Affiliates and</FONT> <FONT face="serif">BlackRock Clients. The
Committee may, in its discretion for the purposes of</FONT> <FONT face="serif">ensuring that an independent determination is reached, retain an independent</FONT> <FONT face="serif">fiduciary to advise the Committee on how to vote or to cast votes
on behalf of</FONT> <FONT face="serif">BlackRock&#146;s clients; and<br>
<br>
</FONT></LI>
<LI>
<FONT face="serif">if the Committee determines not to retain an independent fiduciary, or does</FONT> <FONT face="serif">not desire to follow the advice of such independent fiduciary, the Committee</FONT> <FONT face="serif">shall determine how to
vote the proxy after consulting with the BlackRock</FONT> <FONT face="serif">Legal and Compliance Department and concluding that the vote cast is in the</FONT> <FONT face="serif">client&#146;s best interest notwithstanding the conflict.</FONT></LI>
</UL>
<P>&nbsp;</P>
<hr align="left" noshade width="140" size="1">
<SUP><FONT size=2 face="serif">10</FONT></SUP><FONT size=2 face="serif"> Such issuers may include investment companies for which BlackRock provides investment advisory, administrative and/or other services.</FONT><p></P>
<P align="center">
<FONT size=2 face="sans-serif">6</FONT></P>

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<P>
<FONT size=5 face="serif">III.&nbsp; </FONT><U><FONT size=5 face="serif">Voting Guidelines</FONT></U></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Committee has determined that it is appropriate and in the best interests of BlackRock&#146;s clients to adopt the following voting guidelines, which represent the Committee&#146;s usual voting
position on certain recurring proxy issues that are not expected to involve unusual circumstances. With respect to any particular proxy issue, however, the Committee may elect to vote differently than a voting guideline if the Committee determines
that doing so is, in the Committee&#146;s judgment, in the best interest of its clients. The guidelines may be reviewed at any time upon the request of any Committee member and may be amended or deleted upon the vote of a majority of voting
Committee members present at a Committee meeting for which there is a quorum. </FONT></P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="sans-serif">7</FONT></P>

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=4 face="serif">A. &nbsp;&nbsp;Boards of Directors</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These proposals concern those issues submitted to shareholders relating to the composition of the Board of Directors of companies other than investment companies. As a general matter, the Committee
believes that a company&#146;s Board of Directors (rather than shareholders) is most likely to have access to important, nonpublic information regarding a company&#146;s business and prospects, and is therefore best-positioned to set corporate
policy and oversee management. The Committee therefore believes that the foundation of good corporate governance is the election of qualified, independent corporate directors who are likely to diligently represent the interests of shareholders and
oversee management of the corporation in a manner that will seek to maximize shareholder value over time. In individual cases, the Committee may look at a Director nominee&#146;s history of representing shareholder interests as a director of other
companies, or other factors to the extent the Committee deems relevant. </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">The Committee&#146;s general policy is to vote:</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
  <TD nowrap><B><FONT size=2 face="serif">#</FONT></B><BR></TD>
  <TD colspan=2> <B><FONT size=2 face="serif">VOTE and DESCRIPTION</FONT></B></TD>
</TR>
<TR align="left" valign="top">
  <TD nowrap>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">A.1</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR nominees for director of United States companies in uncontested elections, </FONT><I><FONT size=2 face="serif">except for </FONT></I><FONT size=2 face="serif">nominees who</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD width="4%" align="center" nowrap>
<LI></LI> 	</TD>
	<TD width="92%">
<FONT size=2 face="serif">have missed at least two meetings and, as a result, attended less than 75% of meetings of the Board of Directors and its committees the previous year, unless the nominee missed the meeting(s) due to illness or company
business</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">voted to implement or renew a &#147;dead-hand&#148; poison pill</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">ignored a shareholder proposal that was approved by either a majority of the shares outstanding in any year or by the majority of votes cast for two consecutive years</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">failed to act on takeover offers where the majority of the shareholders have tendered their shares</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">are corporate insiders who serve on the audit, compensation or nominating committees or on a full Board that does not have such committees composed exclusively of independent directors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">on a case-by-case basis, have served as directors of other companies with allegedly poor corporate governance</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">sit on more than six boards of public companies</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.2</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR nominees for directors of non-U.S. companies in uncontested elections, </FONT><I><FONT size=2 face="serif">except for </FONT></I><FONT size=2 face="serif">nominees from whom the Committee determines to withhold votes
due to the nominees&#146; poor records of representing shareholder interests, on a case-by-case basis</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.3</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals to declassify Boards of Directors, except where there exists a legitimate purpose for classifying boards</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.4</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST proposals to classify Boards of Directors, except where there exists a legitimate purpose for classifying boards</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">8</FONT></P>

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<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">A.</FONT><font size=2 face="serif">5</font> </TD>
	<TD width="96%" colspan=2>
<FONT size=2 face="serif"> AGAINST proposals supporting cumulative voting</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.6</FONT> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals eliminating cumulative voting</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.7</FONT> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals supporting confidential voting</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.</FONT><font size=2 face="serif">8</font> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals seeking election of supervisory board members</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.9</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST shareholder proposals seeking additional representation of women and/or minorities generally (i.e., not specific individuals) to a Board of Directors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.</FONT><font size=2 face="serif">10</font> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST shareholder proposals for term limits for directors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.</FONT><font size=2 face="serif">11</font> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR shareholder proposals to establish a mandatory retirement age for directors who attain the age of 72 or older</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.12</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST shareholder proposals requiring directors to own a minimum amount of company stock</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.</FONT><font size=2 face="serif">13</font> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals requiring a majority of independent directors on a Board of Directors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.14</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals to allow a Board of Directors to delegate powers to a committee or committees</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR>
<TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.15</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals to require audit, compensation and/or nominating committees of a Board of Directors to consist </FONT><I><FONT size=2 face="serif">exclusively </FONT></I><FONT size=2 face="serif">of independent
directors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.16</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST shareholder proposals seeking to prohibit a single person from occupying the roles of chairman and chief executive officer</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.</FONT><font size=2 face="serif">17</font> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals to elect account inspectors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.18</FONT> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals to fix the membership of a Board of Directors at a specified size</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.19</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals permitting shareholder ability to nominate directors directly</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.</FONT><font size=2 face="serif">20</font> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST proposals to eliminate shareholder ability to nominate directors directly</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.</FONT><font size=2 face="serif">21</font> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals permitting shareholder ability to remove directors directly</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">A.22</FONT> </TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST proposals to eliminate shareholder ability to remove directors directly</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">9</FONT></P>

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=4 face="serif">B. &nbsp;&nbsp;Auditors</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These proposals concern those issues submitted to shareholders related to the selection of auditors. As a general matter, the Committee believes that corporate auditors have a responsibility to
represent the interests of shareholders and provide an independent view on the propriety of financial reporting decisions of corporate management. While the Committee will generally defer to a corporation&#146;s choice of auditor, in individual
cases, the Committee may look at an auditors&#146; history of representing shareholder interests as auditor of other companies, to the extent the Committee deems relevant. </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">The Committee&#146;s general policy is to vote:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">B.1</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR approval of independent auditors, </FONT><I><FONT size=2 face="serif">except for</FONT></I>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD width="4%" align="center" nowrap>
<LI></LI> 	</TD>
	<TD width="92%">
<FONT size=2 face="serif">auditors that have a financial interest in, or material association with, the company they are auditing, and are therefore believed by the Committee not to be independent</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">auditors who have rendered an opinion to any company which in the Committee&#146;s opinion is either not consistent with best accounting practices or not indicative of the company&#146;s financial situation</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">on a case-by-case basis, auditors who in the Committee&#146;s opinion provide a significant amount of non-audit services to the company</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">B.2</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals seeking authorization to fix the remuneration of auditors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">B.3</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR approving internal statutory auditors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">B.4</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals for audit firm rotation, </FONT><I><FONT size=2 face="serif">except for </FONT></I><FONT size=2 face="serif">proposals that would require rotation after a period of less than 5 years</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">10</FONT></P>

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=4 face="serif">C. &nbsp;&nbsp;Compensation and Benefits</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These proposals concern those issues submitted to shareholders related to management compensation and employee benefits. As a general matter, the Committee favors disclosure of a company&#146;s
compensation and benefit policies and opposes excessive compensation, but believes that compensation matters are normally best determined by a corporation&#146;s board of directors, rather than shareholders. Proposals to &#147;micro-manage&#148; a
company&#146;s compensation practices or to set arbitrary restrictions on compensation or benefits will therefore generally not be supported.</FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif"> </FONT><FONT size=2 face="serif">The Committee&#146;s general policy is to vote: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">C.1</FONT></TD>
	<TD width="96%">
<FONT size=2 face="serif"> IN ACCORDANCE WITH THE RECOMMENDATION OF ISS on compensation plans if the ISS recommendation is based </FONT><U><FONT size=2 face="serif">solely </FONT></U><FONT size=2 face="serif">on whether or not the company&#146;s
plan satisfies the allowable cap as calculated by ISS. If the recommendation of ISS is based on factors other than whether the plan satisfies the allowable cap the Committee will analyze the particular proposed plan. This policy applies to
amendments of plans as well as to initial approvals.</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.2</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals to eliminate retirement benefits for outside directors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.3</FONT></TD>
	<TD>
<FONT size=2 face="serif"> AGAINST proposals to establish retirement benefits for outside directors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.4</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals approving the remuneration of directors or of supervisory board members</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.5</FONT></TD>
	<TD>
<FONT size=2 face="serif"> AGAINST proposals to reprice stock options</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.6</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals to approve employee stock purchase plans that apply to all employees. This policy applies to proposals to amend ESPPs if the plan as amended applies to all employees.</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.7</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals to pay retirement bonuses to directors of Japanese companies unless the directors have served less than three years</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.8</FONT></TD>
	<TD>
<FONT size=2 face="serif"> AGAINST proposals seeking to pay outside directors only in stock</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.9</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals seeking further disclosure of executive pay or requiring companies to report on their supplemental executive retirement benefits</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.10</FONT></TD>
	<TD>
<FONT size=2 face="serif"> AGAINST proposals to ban all future stock or stock option grants to executives</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.11</FONT></TD>
	<TD>
<FONT size=2 face="serif"> AGAINST option plans or grants that apply to directors or employees of &#147;related companies&#148; without adequate disclosure of the corporate relationship and justification of the option policy</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">C.</FONT><font size=2 face="serif">12</font></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals to exclude pension plan income in the calculation of earnings used in determining executive bonuses/compensation</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">11</FONT></P>

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=4 face="serif">D.&nbsp;&nbsp; Capital Structure</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These proposals relate to various requests, principally from management, for approval of amendments that would alter the capital structure of a company, such as an increase in authorized shares. As a
general matter, the Committee will support requests that it believes enhance the rights of common shareholders and oppose requests that appear to be unreasonably dilutive.</FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif"> </FONT><FONT size=2 face="serif">The Committee&#146;s general policy is to vote: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">D.1</FONT></TD>
	<TD width="96%">
<FONT size=2 face="serif"> AGAINST proposals seeking authorization to issue shares without preemptive rights except for issuances up to 10% of a non-US company&#146;s total outstanding capital</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">D.2</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR management proposals seeking preemptive rights or seeking authorization to issue shares with preemptive rights</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">D.3</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR management proposals approving share repurchase programs</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">D.4</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR management proposals to split a company&#146;s stock</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">D.5</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR management proposals to denominate or authorize denomination of securities or other obligations or assets in Euros</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">D.6</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals requiring a company to expense stock options (unless the company has already publicly committed to do so by a certain date).</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">12</FONT></P>

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=4 face="serif">E.&nbsp;&nbsp; Corporate Charter and By-Laws </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These proposals relate to various requests for approval of amendments to a corporation&#146;s charter or by-laws, principally for the purpose of adopting or redeeming &#147;poison pills&#148;. As a
general matter, the Committee opposes poison pill provisions. </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif"> </FONT><FONT size=2 face="serif">The Committee&#146;s general policy is to vote: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">E.1</FONT></TD>
	<TD width="96%">
<FONT size=2 face="serif"> AGAINST proposals seeking to adopt a poison pill</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">E.2</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals seeking to redeem a poison pill</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">E.3</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals seeking to have poison pills submitted to shareholders for ratification</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">E.4</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR management proposals to change the company&#146;s name</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">13</FONT></P>

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=4 face="serif">F.&nbsp;&nbsp; Corporate Meetings</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These are routine proposals relating to various requests regarding the formalities of corporate meetings. </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif"> </FONT><FONT size=2 face="serif">The Committee&#146;s general policy is to vote: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">F.1</FONT></TD>
	<TD width="96%">
<FONT size=2 face="serif"> AGAINST proposals that seek authority to act on &#147;any other business that may arise&#148;</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.2</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals designating two shareholders to keep minutes of the meeting</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.3</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals concerning accepting or approving financial statements and statutory reports</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.4</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals approving the discharge of management and the supervisory board</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.5</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals approving the allocation of income and the dividend</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.6</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals seeking authorization to file required documents/other formalities</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.7</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals to authorize the corporate board to ratify and execute approved resolutions</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.8</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals appointing inspectors of elections</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.9</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals electing a chair of the meeting</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.10</FONT></TD>
	<TD>
<FONT size=2 face="serif"> FOR proposals to permit &#147;virtual&#148; shareholder meetings over the Internet</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">F.11</FONT></TD>
	<TD>
<FONT size=2 face="serif"> AGAINST proposals to require rotating sites for shareholder meetings</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=2>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">14</FONT></P>

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=4 face="serif">G.&nbsp;&nbsp; Investment Companies</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These proposals relate to proxy issues that are associated solely with holdings of shares of investment companies, including, but not limited to, investment companies for which BlackRock provides
investment advisory, administrative and/or other services. As with other types of companies, the Committee believes that a fund&#146;s Board of Directors (rather than its shareholders) is best-positioned to set fund policy and oversee management.
However, the Committee opposes granting Boards of Directors authority over certain matters, such as changes to a fund&#146;s investment objective, that the Investment Company Act of 1940 envisions will be approved directly by shareholders.
</FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">The Committee&#146;s general policy is to vote:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">G.1</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR nominees for director of mutual funds in uncontested elections, </FONT><I><FONT size=2 face="serif">except for </FONT></I><FONT size=2 face="serif">nominees who</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD width="4%" align="center" nowrap>
<LI></LI> 	</TD>
	<TD width="92%">
<FONT size=2 face="serif">have missed at least two meetings and, as a result, attended less than 75% of meetings of the Board of Directors and its committees the previous year, unless the nominee missed the meeting due to illness or fund
business</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">ignore a shareholder proposal that was approved by either a majority of the shares outstanding in any year or by the majority of votes cast for two consecutive years</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">are interested directors who serve on the audit or nominating committees or on a full Board that does not have such committees composed exclusively of independent directors</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">on a case-by-case basis, have served as directors of companies with allegedly poor corporate governance</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">G.2</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR the establishment of new series or classes of shares</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">G.3</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST proposals to change a fund&#146;s investment objective to nonfundamental</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">G.4</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR proposals to establish a master-feeder structure or authorizing the Board to approve a master-feeder structure without a further shareholder vote</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">G.5</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST a shareholder proposal for the establishment of a director ownership requirement</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">G.6</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> FOR classified boards of closed-end investment companies</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">15</FONT></P>

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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=4 face="serif">H.&nbsp;&nbsp; Environmental and Social Issues </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These are shareholder proposals to limit corporate conduct in some manner that relates to the shareholder&#146;s environmental or social concerns. The Committee generally believes that annual
shareholder meetings are inappropriate forums for the discussion of larger social issues, and opposes shareholder resolutions &#147;micromanaging&#148; corporate conduct or requesting release of information that would not help a shareholder evaluate
an investment in the corporation as an economic matter. While the Committee is generally supportive of proposals to require corporate disclosure of matters that seem relevant and material to the economic interests of shareholders, the Committee is
generally not supportive of proposals to require disclosure of corporate matters for other purposes. </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">The Committee&#146;s general policy is to vote: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="left" valign="top">
	<TD width="4%" nowrap>
<FONT size=2 face="serif">H.1</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST proposals seeking to have companies adopt international codes of conduct</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">H.2</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST proposals seeking to have companies provide non-required reports on:</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD width="4%" align="center" nowrap>
<LI></LI> 	</TD>
	<TD width="92%">
<FONT size=2 face="serif">environmental liabilities;</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">bank lending policies;</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">corporate political contributions or activities;</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">alcohol advertising and efforts to discourage drinking by minors;</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">costs and risk of doing business in any individual country;</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
<TD>&nbsp;</TD>
<TD align="center" nowrap>
<LI></LI> 	</TD>
	<TD>
<FONT size=2 face="serif">involvement in nuclear defense systems</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">H.3</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST proposals requesting reports on Maquiladora operations or on CERES principles</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR><TR align="left" valign="top">
	<TD nowrap>
<FONT size=2 face="serif">H.4</FONT></TD>
	<TD colspan=2>
<FONT size=2 face="serif"> AGAINST proposals seeking implementation of the CERES principles</FONT>	</TD>
</TR>
<TR align="left" valign="top"><TD colspan=3>&nbsp;</TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">16</FONT></P>

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<P align="center">
<U><FONT size=5 face="serif">Notice to Clients</FONT></U></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif"> </FONT><FONT face="serif">BlackRock will make records of any proxy vote it has made on behalf of a client available to such client upon request.</FONT><SUP><FONT face="serif">11</FONT></SUP><FONT face="serif"> BlackRock
will use its best efforts to treat proxy votes of clients as confidential, except as it may decide to best serve its clients&#146; interests or as may be necessary to effect such votes or as may be required by law.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">BlackRock encourage clients with an interest in particular proxy voting issues to make their views known to BlackRock, provided that, in the absence of specific written direction from a client on how
to vote that client&#146;s proxies, BlackRock reserves the right to vote any proxy in a manner it deems in the best interests of its clients, as it determines in its sole discretion.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">These policies are as of the date indicated on the cover hereof. The Committee may subsequently amend these policies at any time, without notice.</FONT></P>
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<SUP><FONT size=2 face="serif">11</FONT></SUP><FONT size=2 face="serif"> Such request may be made to the client&#146;s portfolio or relationship manager or addressed in writing to Secretary, BlackRock Equity Investment Policy Oversight Committee,
Legal and Compliance Department, BlackRock Inc., 40 East 52</FONT><SUP><FONT size=2 face="serif">nd</FONT></SUP><FONT size=2 face="serif"> Street, New York, New York 10022. </FONT><p></P>
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<FONT size=2 face="sans-serif">17</FONT></P>

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