0000891092-14-008828.txt : 20141124 0000891092-14-008828.hdr.sgml : 20141124 20141124163940 ACCESSION NUMBER: 0000891092-14-008828 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140930 FILED AS OF DATE: 20141124 DATE AS OF CHANGE: 20141124 EFFECTIVENESS DATE: 20141124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK MUNICIPAL BOND FUND, INC. CENTRAL INDEX KEY: 0000225635 IRS NUMBER: 132896246 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-02688 FILM NUMBER: 141246769 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 800-441-7762 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH MUNICIPAL BOND FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ONE LIBERTY MUNICIPAL BOND FUND INC DATE OF NAME CHANGE: 19780622 0000225635 S000002334 BlackRock National Municipal Fund C000006118 Investor A C000006119 Investor B C000006120 Investor C1 C000006121 Institutional C000038033 Investor C C000100249 Service Shares C000100250 BlackRock Shares 0000225635 S000002335 BlackRock Short-Term Municipal Fund C000006122 Investor A1 C000006124 Investor C C000006125 Institutional C000038034 Investor A C000038035 BlackRock C000038044 Service 0000225635 S000011867 BlackRock High Yield Municipal Fund C000032425 Investor A C000032427 Investor C C000032428 Institutional N-Q 1 e61543nq.htm FORM N-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

 

Investment Company Act file number: 811-02688

 

Name of Fund: BlackRock Municipal Bond Fund, Inc.

BlackRock High Yield Municipal Fund

BlackRock National Municipal Fund

BlackRock Short-Term Municipal Fund

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

Registrant’s telephone number, including area code: (800) 441-7762

 

Date of fiscal year end: 06/30/2015

 

Date of reporting period: 09/30/2014

 

Item 1 – Schedule of Investments

 
 
Schedule of Investments September 30, 2014 (Unaudited) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Alabama — 1.6%
City of Phenix Alabama IDB, Refunding RB, Meadwestvaco Coated Board Project, Series A, AMT, 4.13%, 5/15/35 $ 1,750 $ 1,630,878
County of Jefferson Alabama, RB, Limited Obligation School, Series A, 4.75%, 1/01/25   2,180   2,148,564
County of Jefferson Alabama Sewer, Refunding RB:        
  Senior Lien, Series A (AGM), 5.00%, 10/01/44   365   387,539
  Senior Lien, Series A (AGM), 5.25%, 10/01/48   1,010   1,095,254
  Sub-Lien, Series D, 7.00%, 10/01/51   2,355   2,824,446
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40   710   827,377
  
    8,914,058
Alaska — 1.0%
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:        
  4.63%, 6/01/23   980   975,717
  5.00%, 6/01/32   1,500   1,174,365
  5.00%, 6/01/46   4,120   3,073,603
  
    5,223,685
Arizona — 1.1%
City of Phoenix Arizona IDA, ERB, Eagle College Prep Project, Series A, 5.00%, 7/01/43   1,445   1,284,070
City of Phoenix Arizona IDA, RB:        
  Great Hearts Academies - Veritas Project, 6.40%, 7/01/47   415   436,186
  Legacy Traditional Schools, Series A, 6.50%, 7/01/34 (a)   465   516,378
  Legacy Traditional Schools, Series A, 6.75%, 7/01/44 (a)   810   908,634
City of Phoenix Arizona IDA, Refunding RB, America West Airlines, Inc. Project, AMT, 6.30%, 10/01/14 (b)   1,000   1,000,160
County of Maricopa Arizona IDA, RB, Arizona Charter Schools Project, Series A, 6.75%, 7/01/29   70   66,065
               

 

Municipal Bonds Par
(000)		   Value
Arizona (concluded)
Florence Town Inc., IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses, 6.00%, 7/01/43 $ 1,375 $ 1,453,416
University Medical Center Corp. Arizona, RB, 6.25%, 7/01/29   180   208,924
  
    5,873,833
Arkansas — 0.2%
County of Benton Arkansas Public Facilities Board, RB, BCCSO Project, Series A, 6.00%, 6/01/40   750   824,573
California — 7.4%
California Health Facilities Financing Authority, RB:        
  St. Joseph Health System, Series A, 5.75%, 7/01/39   1,000   1,166,970
  Sutter Health, Series B, 6.00%, 8/15/42   1,000   1,197,960
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39   265   301,846
California HFA, RB, S/F, Home Mortgage, Series I, AMT, 4.80%, 8/01/36   1,500   1,504,905
California Municipal Finance Authority (a)(c):        
  5.50%, 8/01/34   310   309,975
  6.00%, 8/01/44   655   655,419
  6.13%, 8/01/49   570   569,789
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT (a):        
  5.00%, 7/01/37   775   822,198
  5.00%, 11/21/45   3,100   3,275,057
California School Finance Authority, RB, Value Schools:        
  6.65%, 7/01/33   295   318,712
  6.90%, 7/01/43   650   707,766
California Statewide Communities Development Authority, RB, Series A:        
  American Baptist Homes of the West, 5.00%, 10/01/43   1,000   1,067,200
  Sutter Health, 6.00%, 8/15/42   400   479,184
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 1
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
California (continued)
California Statewide Communities Development Authority, Refunding RB, American Baptist Homes of the West, 6.25%, 10/01/39 $ 2,575 $ 2,888,609
California Statewide Financing Authority, RB, Tobacco Settlement:        
  Series A, 6.00%, 5/01/43   2,500   2,460,225
  Series B, 6.00%, 5/01/43   3,485   3,472,489
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34   500   588,540
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:        
  6.50%, 5/01/36   310   381,678
  6.50%, 5/01/42   760   927,527
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40   240   281,678
County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 6/01/48   2,115   2,389,400
County of San Marcos California Unified School District, GO, CAB, Election of 2010, Series B, 0.00%, 8/01/51 (d)   4,425   736,586
Golden State Tobacco Securitization Corp., Refunding RB, 5.75%, 6/01/47   7,490   5,963,912
Lammersville School District Community Facilities District, Special Tax Bonds, District No. 2002, Mountain House, 5.13%, 9/01/35   325   332,524
State of California, GO, Various Purpose, 5.00%, 4/01/43   5,000   5,570,800
Successor Agency to the San Francisco City & County Redevelopment Agency, Special Tax Bonds, Community Facilities District No. 6 (Mission Bay South Public Improvements), Series C, CAB, 0.00%, 8/01/43 (d)   3,000   575,220
Temecula Public Financing Authority, Refunding, Special Tax Bonds, Harveston, Sub-Series B, 5.10%, 9/01/36   165   166,472
               

 

Municipal Bonds Par
(000)		   Value
California (concluded)
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 6/01/25 $ 1,280 $ 1,259,315
  
    40,371,956
Colorado — 1.6%
Colorado Educational & Cultural Facilities Authority, RB, Littleton Preparatory Charter School Project:        
  5.00%, 12/01/33   450   450,567
  5.00%, 12/01/42   545   525,037
Denver Convention Center Hotel Authority, Refunding RB, Senior (Syncora), 5.00%, 12/01/30   1,175   1,207,736
Denver Health & Hospital Authority, RB, Series A:        
  5.00%, 12/01/39   900   964,899
  5.25%, 12/01/45   1,350   1,468,665
Plaza Metropolitan District No. 1 Colorado, Refunding, Tax Allocation Bonds, Public Improvement Fee, Tax Increment, 5.00%, 12/01/40   425   436,152
Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project:        
  6.00%, 1/15/34   1,500   1,681,605
  6.00%, 1/15/41   1,000   1,115,540
Tallyn's Reach Metropolitan District No. 3, GO, Refunding, Limited Tax, 5.13%, 11/01/38   1,035   1,056,569
  
    8,906,770
Connecticut — 0.5%
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, 6.25%, 1/01/31   2,505   2,498,888
Delaware — 0.5%
Delaware State EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45   2,775   2,942,333
District of Columbia — 1.4%
District of Columbia, RB, Methodist Home District of Columbia, Series A:        
  7.38%, 1/01/30   310   310,729
  7.50%, 1/01/39   500   500,870
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 2
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
District of Columbia (concluded)
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed:        
  6.50%, 5/15/33 $ 2,520 $ 2,898,454
  6.75%, 5/15/40   385   383,564
Metropolitan Washington Airports Authority, Refunding RB:        
  CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/30 (d)   3,005   1,484,891
  Dulles Toll Road, 1st Senior Lien, Series A, 5.00%, 10/01/39   185   198,599
  Dulles Toll Road, 1st Senior Lien, Series A, 5.25%, 10/01/44   1,610   1,753,692
  
    7,530,799
Florida — 6.2%
Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 5/01/43   1,465   1,485,759
Capital Trust Agency Inc, RB:        
  8.25%, 1/01/44   445   474,539
  8.25%, 1/01/49   950   1,011,750
County of Alachua Florida Health Facilities Authority, RB, East Ridge Retirement Village, Inc. Project, 6.25%, 11/15/44   2,000   2,139,160
County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.13%, 5/15/44 (a)   1,490   1,623,206
County of Hillsborough Florida IDA, RB:        
  National Gypsum Co., Series B, AMT, 7.13%, 4/01/30   1,500   1,501,785
  Tampa General Hospital Project, 5.25%, 10/01/41   895   942,784
County of Martin Florida IDA, Refunding RB, Indiantown Cogeneration, L.P. Project, AMT, 4.20%, 12/15/25   1,750   1,779,680
County of Palm Beach Florida Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/33   1,500   1,610,970
County of Palm Beach Florida Health Facilities Authority, Refunding RB, 7.50%, 6/01/49   1,000   1,122,130
               

 

Municipal Bonds Par
(000)		   Value
Florida (continued)
Greater Orlando Aviation Authority Florida, Refunding RB, Special Purpose, Jetblue Airways Corp. Project, AMT, 5.00%, 11/15/36 $ 2,000 $ 1,954,080
Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 5/01/43   1,475   1,495,901
Highland Meadows Community Development District Florida, Special Assessment Bonds, Series A, 5.50%, 5/01/36 (e)(f)   490   194,687
Jacksonville Economic Development Commission, RB, Gerdau Ameristeel U.S. Inc., AMT, 5.30%, 5/01/37   3,300   3,300,429
Lakewood Ranch Stewardship District, Refunding, Special Assessment Bonds, Lakewood Center & New Sector Projects, 8.00%, 5/01/40   515   658,263
Martin County Health Facilities Authority, RB, 5.50%, 11/15/42   1,000   1,086,980
Miami Beach Health Facilities Authority, Refunding RB, 5.00%, 11/15/44   460   496,377
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40   1,450   1,758,038
Midtown Miami Community Development District, Refunding, Special Assessment Bonds, Series A:        
  5.00%, 5/01/29   1,750   1,829,432
  5.00%, 5/01/37   900   923,337
Pine Island Community Development District, RB, 5.30%, 11/01/10 (e)(f)   1,355   760,060
Santa Rosa Bay Bridge Authority, RB, 6.25%, 7/01/28 (e)(f)   449   188,559
Tolomato Community Development District, Refunding, Special Assessment Bonds:        
  Series A2, 0.00%, 5/01/39 (g)   40   29,295
  Series A3, 0.00%, 5/01/40 (g)   90   53,707
  Series A4, 0.00%, 5/01/40 (g)   50   22,086
  Series A1, 6.65%, 5/01/40   140   142,831
Tolomato Community Development District, Convertible CAB (e)(f):        
  Series 1, 6.65%, 5/01/40   5   5,129
  Series 2, 6.65%, 5/01/40   330   195,112
  Series 3, 6.65%, 5/01/40   105   1
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 3
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Florida (concluded)
Viera East Community Development District, Refunding, Special Assessment Bonds, 5.00%, 5/01/26 $ 640 $ 641,715
Village Community Development District No. 9, Special Assessment Bonds:        
  7.00%, 5/01/41   1,560   1,920,922
  5.50%, 5/01/42   560   609,510
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43   1,855   1,879,931
  
    33,838,145
Georgia — 0.4%
County of Clayton Georgia, Tax Allocation Bonds, Ellenwood Project, 7.50%, 7/01/33   125   131,334
County of Clayton Georgia Development Authority, Refunding RB, Delta Air Lines, Inc. Project, Series A, 8.75%, 6/01/29   635   792,435
County of Gainesville & Hall Georgia Development Authority, Refunding RB, Acts Retirement Life Community, Series A-2, 6.63%, 11/15/39   220   245,806
Private Colleges & Universities Authority, RB, 5.00%, 4/01/44 (c)   1,075   1,159,291
  
    2,328,866
Guam — 1.6%
Guam Government Waterworks Authority, RB, Water & Wastewater System:        
  5.25%, 7/01/33   910   1,014,586
  5.50%, 7/01/43   1,520   1,716,825
Guam Government Waterworks Authority, Refunding RB, Water & Wastewater System, 6.00%, 7/01/15 (b)   735   767,046
Territory of Guam, GO, Series A:        
  6.00%, 11/15/19   100   110,006
  6.75%, 11/15/29   1,650   1,851,861
               

 

Municipal Bonds Par
(000)		   Value
Guam (concluded)
Territory of Guam, GO, Series A (concluded):        
  7.00%, 11/15/39 $ 2,660 $ 3,011,306
  
    8,471,630
Idaho — 0.0%
County of Power Idaho Industrial Development Corp., RB, FMC Corp. Project, AMT, 6.45%, 8/01/32   265   265,472
Illinois — 6.5%
City of Chicago Illinois, GO, Refunding, Series A, 5.00%, 1/01/36   3,000   3,062,160
City of Chicago Illinois, GO, Series A, 5.25%, 1/01/35   4,500   4,629,960
City of Chicago Illinois Board of Education, GO, Series A, 5.25%, 12/01/41   7,300   7,519,073
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42   3,040   3,291,834
Illinois Finance Authority, RB, Lake Forest College, Series A, 6.00%, 10/01/48   1,700   1,836,578
Illinois Finance Authority, Refunding RB:        
  Central Dupage Health, Series B, 5.50%, 11/01/39   1,400   1,579,410
  Friendship Village of Schaumburg, 7.13%, 2/15/39   1,000   1,061,060
  Lutheran Home & Services Obligated Group, 5.63%, 5/15/42   2,805   2,916,190
  Rogers Park Montessori School Project, Series 2014, 6.00%, 2/01/34   335   341,924
   6.13%, 2/01/45   790   795,783
  Roosevelt University Project, 6.50%, 4/01/44   830   901,687
  Swedish Covenant, Series A, 6.00%, 8/15/38   1,000   1,097,340
Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 6/15/44 (d)   3,455   773,920
Quad Cities Regional EDA, Refunding RB, Augustana College, 4.75%, 10/01/32   675   700,009
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28   390   457,142
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 4
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Illinois (concluded)
State of Illinois, GO:        
  5.00%, 2/01/39 $ 500 $ 517,700
  Series A, 5.00%, 4/01/35   1,460   1,522,634
  Series A, 5.00%, 4/01/38   2,190   2,265,095
  
    35,269,499
Indiana — 1.4%
City of Carmel Indiana, RB, Barrington Carmel Project, Series A:        
  7.13%, 11/15/42   1,500   1,625,160
  7.13%, 11/15/47   1,500   1,620,135
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:        
  6.75%, 1/01/34   525   594,631
  7.00%, 1/01/44   1,270   1,441,081
Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges East End Crossing Project, Series A, AMT:        
  5.00%, 7/01/44   370   390,498
  5.00%, 7/01/48   1,230   1,292,902
Indiana Finance Authority, Refunding RB, Marquette Project, 5.00%, 3/01/39   725   750,397
  
    7,714,804
Iowa — 3.4%
Iowa Finance Authority, Refunding RB:        
  Development, Care Initiatives Project, Series A, 5.00%, 7/01/19   500   517,490
  Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22   3,295   3,480,673
  Sunrise Retirement Community Project, 5.50%, 9/01/37   890   877,415
  Sunrise Retirement Community Project, 5.75%, 9/01/43   1,385   1,393,227
Iowa Student Loan Liquidity Corp., Refunding RB, AMT, Senior Series A-1, 5.00%, 12/01/21   3,900   4,231,383
Iowa Tobacco Settlement Authority, Refunding RB:        
  Asset-Backed, CAB, Series B, 5.60%, 6/01/34   1,200   1,060,692
  Asset-Backed, Series C, 5.50%, 6/01/42   2,000   1,671,720
               

 

Municipal Bonds Par
(000)		   Value
Iowa (concluded)
Iowa Tobacco Settlement Authority, Refunding RB (concluded):        
  Asset-Backed, Series C, 5.63%, 6/01/46 $ 3,345 $ 2,798,293
  Series C, 5.38%, 6/01/38   3,075   2,536,445
  
    18,567,338
Kentucky — 0.7%
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/24 (d)   250   176,297
Kentucky Public Transportation Infrastructure Authority, RB, 6.00%, 7/01/53   3,000   3,429,540
  
    3,605,837
Louisiana — 1.6%
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-2, 6.50%, 11/01/35   1,630   1,878,542
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 5/01/41   645   721,439
Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37   1,905   2,006,517
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 5/15/35   3,910   4,176,858
  
    8,783,356
Maine — 0.2%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/41   1,075   1,188,714
Maryland — 1.0%
City of Gaithersburg Maryland, Refunding RB, Asbury Maryland Obligation, Series B, 6.00%, 1/01/23   750   843,420
County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 7/01/43   1,910   2,108,029
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 5
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Maryland (concluded)
County of Howard Maryland, Refunding RB, Vantage House Facility, Series A, 5.25%, 4/01/33 $ 500 $ 478,610
Maryland EDC, RB:        
  Term Project, Series B, 5.75%, 6/01/35   1,500   1,609,860
  Transportation Facilities Project, Series A, 5.75%, 6/01/35   265   284,408
  
    5,324,327
Massachusetts — 1.4%
Massachusetts Development Finance Agency, RB:        
  Foxborough Regional Charter School, Series A, 7.00%, 7/01/42   350   395,965
  Linden Ponds, Inc. Facility, Series A-1, 6.25%, 11/15/39   353   286,163
  Linden Ponds, Inc. Facility, Series A-2, 5.50%, 11/15/46   19   13,090
  Linden Ponds, Inc. Facility, Series B, 0.00%, 11/15/56 (d)   94   412
  North Hill Communities Issue, Series A, 6.50%, 11/15/43   1,480   1,546,082
Massachusetts Development Finance Agency, Refunding RB:        
  Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42   3,000   3,074,460
  Seven Hills Foundation & Affiliates (Radian), 5.00%, 9/01/35   1,500   1,505,955
  Tufts Medical Center, Series I, 6.75%, 1/01/36   510   602,009
  
    7,424,136
Michigan — 1.7%
City of Detroit Michigan, GO, Taxable Capital Improvement, Limited Tax (e)(f):        
  Series A-1, 5.00%, 4/01/16   350   98,035
  Series A-2, 8.00%, 4/01/15   1,715   480,371
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39   1,660   1,771,950
               

 

Municipal Bonds Par
(000)		   Value
Michigan (concluded)
County of Monroe Michigan Hospital Finance Authority, Refunding RB, Mercy Memorial Hospital Corp. Obligation, 5.50%, 6/01/35 $ 1,565 $ 1,613,703
Kentwood EDC, Refunding RB, Limited Obligation, Holland Home, 5.63%, 11/15/41   1,000   1,026,880
Michigan Finance Authority, RB, Senior Lien:        
  C-1, 5.00%, 7/01/44   800   837,072
  Series 2014 C-2, AMT, 5.00%, 7/01/44   350   358,330
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (b)   915   1,173,936
State of Michigan Hospital Finance Authority, Refunding RB, Henry Ford Health, 5.75%, 11/15/39   1,710   1,877,221
  
    9,237,498
Minnesota — 0.1%
St. Paul Housing & Redevelopment Authority, RB, Nova Classical Academy, Series A, 6.63%, 9/01/42   500   557,600
Missouri — 0.9%
City of Kansas Missouri, Tax Allocation Bonds, Kansas City MainCor Project, Series A, 5.25%, 3/01/18 (h)   400   435,456
Kirkwood IDA Missouri, RB, Aberdeen Heights, Series A, 8.25%, 5/15/39   435   500,320
Lees Summit Industrial Development Authority, RB, 5.25%, 8/15/39   1,890   1,904,364
Poplar Bluff Regional Transportation Development District, RB, 4.75%, 12/01/42   2,200   2,244,660
  
    5,084,800
Nebraska — 0.2%
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42   780   833,563
Nevada — 0.3%
County of Clark Nevada, RB, Southwest Gas Corp. Project, Series A, AMT (NPFGC), 4.75%, 9/01/36   20   20,196
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 6
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Nevada (concluded)
County of Clark Nevada, Refunding, Special Assessment, Special Improvement District No. 142, Mountain's Edge:        
  4.00%, 8/01/22 $ 815 $ 828,138
  4.00%, 8/01/23   510   510,796
  
    1,359,130
New Hampshire — 0.1%
New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 8/01/38   435   496,687
New Jersey — 4.0%
County of Gloucester New Jersey Pollution Control Financing Authority, Refunding RB, AMT, 5.00%, 12/01/24   1,500   1,662,465
New Jersey EDA, RB:        
  AMT, Series A, 10.50%, 6/01/32 (a)(e)(f)   1,660   911,639
  Continental Airlines, Inc. Project, AMT, 5.13%, 9/15/23   1,965   2,082,192
  Continental Airlines, Inc. Project, AMT, 5.25%, 9/15/29   840   879,337
  Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31   3,000   3,615,180
  Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43   1,360   1,487,378
  Team Academy Charter School Project, 6.00%, 10/01/43   970   1,085,876
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Joseph's Healthcare System, 6.63%, 7/01/38   725   789,989
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A:        
  4.50%, 6/01/23   5,885   5,806,965
               

 

Municipal Bonds Par
(000)		   Value
New Jersey (concluded)
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A (concluded):        
  5.00%, 6/01/29 $ 3,730 $ 3,193,365
  
    21,514,386
New Mexico — 0.3%
New Mexico Hospital Equipment Loan Council, Refunding RB, Gerald Champion Regional Medical Center Project, 5.50%, 7/01/42   2,030   1,885,667
New York — 9.0%
Build New York City Resource Corp., RB, South Bronx Charter School for International Cultures and the Arts Project, Series A, 5.00%, 4/15/43   2,750   2,684,577
City of New York New York Industrial Development Agency, ARB, AMT:        
  American Airlines, Inc., JFK International Airport, 8.00%, 8/01/28 (i)   235   258,808
  British Airways PLC Project, 7.63%, 12/01/32   1,500   1,508,070
City of New York New York Industrial Development Agency, RB:        
  JetBlue Airways Corp. Project, AMT, 5.13%, 5/15/30   1,750   1,750,157
  Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/46   2,000   2,046,460
City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series CC, 5.00%, 6/15/47   8,535   9,427,761
County of Chautauqua New York Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42   3,115   3,399,057
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44   1,552   1,704,267
County of Westchester New York Local Development Corp., RB, Pace University, Series A, 5.50%, 5/01/42   2,000   2,207,180
Dutchess County Industrial Development Agency, Refunding RB, 5.00%, 8/01/46   5,000   5,024,600
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 7
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
New York (concluded)
New York Counties Tobacco Trust II, RB, 5.75%, 6/01/43 $ 2,905 $ 2,842,078
New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49   375   422,782
New York State Dormitory Authority, Refunding RB, 5.00%, 9/01/38   2,500   2,472,375
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42   3,895   3,984,351
Onondaga Civic Development Corp., Refunding RB, St. Joseph's Hospital Health Center Project, 5.00%, 7/01/42   1,220   1,226,137
Rensselaer Tobacco Asset Securitization Corp., RB, Asset-Backed, Series A, 5.75%, 6/01/43   2,500   2,490,725
Rockland Tobacco Asset Securitization Corp., RB, Asset-Backed, 5.75%, 8/15/43   690   684,570
TSASC Inc, Refunding RB, 5.00%, 6/01/26   5,000   4,879,650
  
    49,013,605
North Carolina — 0.8%
North Carolina Medical Care Commission, Refunding RB:        
  1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41   3,055   3,429,360
  Carolina Village Project, 6.00%, 4/01/38   1,000   1,055,400
  
    4,484,760
North Dakota — 0.3%
City of Williston North Dakota, RB, Eagle Crest Apartments LLC Project, 7.75%, 9/01/38   1,345   1,413,703
Ohio — 0.7%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed Bonds, Series A-2, 5.75%, 6/01/34   4,460   3,547,127
  
               

 

Municipal Bonds Par
(000)		   Value
Oklahoma — 0.1%
Oklahoma Development Finance Authority, Refunding RB, Inverness Village Community, 6.00%, 1/01/32 $ 695 $ 721,792
Oregon — 1.0%
City of Forest Grove Oregon, Refunding RB, Pacific University Project, Series A:        
  4.50%, 5/01/29   1,000   1,073,680
  5.00%, 5/01/40   1,570   1,709,291
Hospital Facilities Authority of Multnomah County Oregon, Refunding RB:        
  5.40%, 10/01/44   1,145   1,184,720
  5.50%, 10/01/49   1,620   1,672,925
  
    5,640,616
Pennsylvania — 4.4%
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:        
  5.00%, 5/01/35   1,185   1,250,732
  5.00%, 5/01/42   2,730   2,863,306
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/36   3,000   3,180,330
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran, 6.38%, 1/01/39   2,680   2,934,118
County of Lancaster Pennsylvania Hospital Authority, Refunding RB, Brethren Village Project, Series A, 6.50%, 7/01/40   835   871,122
County of Lehigh Pennsylvania General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 7/01/32   2,095   2,117,877
County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 7/01/32   1,345   1,455,357
East Hempfield Township Industrial Development Authority, RB:        
  5.00%, 7/01/34   1,000   1,054,400
  5.00%, 7/01/46   1,750   1,816,938
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 8
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Pennsylvania (concluded)
Pennsylvania Economic Development Financing Authority, RB:        
  National Gypsum Co., Series B, AMT, 6.13%, 11/01/27 $ 2,200 $ 2,200,968
  US Airways Group, Series A, 7.50%, 5/01/20   1,200   1,402,452
Township of East Hempfield IDA, RB, Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania, 5.00%, 7/01/45   2,600   2,691,104
  
    23,838,704
Puerto Rico — 0.6%
Commonwealth of Puerto Rico, GO, Refunding, Series A, 8.00%, 7/01/35   4,000   3,520,080
Rhode Island — 0.3%
Tobacco Settlement Financing Corp., RB, Asset-Backed, Series A, 6.25%, 6/01/42   1,360   1,356,831
South Carolina — 1.1%
State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54 (a)   5,070   5,713,586
Texas — 6.9%
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (e)(f)   750   67,500
Central Texas Regional Mobility Authority, Refunding RB:        
  CAB, 0.00%, 1/01/28 (d)   3,000   1,656,930
  CAB, 0.00%, 1/01/29 (d)   500   262,220
  CAB, 0.00%, 1/01/30 (d)   1,330   660,691
  CAB, 0.00%, 1/01/31 (d)   4,000   1,882,960
  Senior Lien, 5.75%, 1/01/25 (d)   250   278,730
  Senior Lien, 6.25%, 1/01/46   765   878,243
  Sub-Lien, 5.00%, 1/01/42   265   275,979
City of Houston Texas Airport System, RB, Special Facilities, Continental Airlines, Inc., AMT, Series A, 6.63%, 7/15/38   1,110   1,246,619
City of Houston Texas Airport System, Refunding ARB:        
  Senior Lien, Series A, 5.50%, 7/01/39   120   136,134
  United Airlines, Inc. Terminal E Project, AMT, 4.75%, 7/01/24   1,250   1,305,900
               

 

Municipal Bonds Par
(000)		   Value
Texas (continued)
City of Houston Texas Airport System, Refunding ARB (concluded):        
  United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29 $ 1,000 $ 1,032,670
Clifton Higher Education Finance Corp., ERB, Idea Public Schools:        
  5.50%, 8/15/31   255   282,790
  5.75%, 8/15/41   280   313,827
  5.00%, 8/15/42   1,310   1,399,421
Clifton Higher Education Finance Corp., Refunding RB, Uplift Education, Series A, 4.40%, 12/01/47   590   578,855
County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project, 6.20%, 7/01/45   1,320   1,459,960
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding, MRB, Brazos Presbyterian Homes, Inc. Project, Series A:        
  5.00%, 1/01/38   510   509,959
  5.00%, 1/01/43   520   512,985
  5.13%, 1/01/48   1,535   1,507,216
County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 0.00%, 11/15/41 (d)   350   78,666
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29   290   332,650
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Series A:        
  CC Young Memorial Home, 8.00%, 2/15/38   330   368,234
  Senior Living Center Project, 8.25%, 11/15/44   800   767,408
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Northwest Senior Housing, Edgemere Project, Series A, 6.00%, 11/15/36   1,500   1,544,715
County of Travis Texas Health Facilities Development Corp., Refunding RB, 7.13%, 1/01/46   1,920   2,081,395
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 9
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Texas (continued)
Danbury Higher Education Authority, Inc., RB, A.W. Brown Fellowship Charter, Series A (ACA), 5.00%, 8/15/16 (b) $ 355 $ 385,232
Decatur Hospital Authority, Refunding RB:        
  5.00%, 9/01/34   195   201,716
  5.25%, 9/01/44   635   657,822
Houston Higher Education Finance Corp., RB, Cosmos Foundation, Inc., Series A, 6.50%, 5/15/31   1,000   1,197,210
Mesquite Health Facility Development Corp., Refunding RB, 5.13%, 2/15/42   690   692,760
New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project:        
  5.88%, 4/01/36   890   1,003,813
  6.00%, 4/01/45   1,355   1,530,987
North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/37 (d)   725   237,619
North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/31   1,150   1,212,629
Red River Health Facilities Development Corp., First MRB, Project:        
  Eden Home, Inc., 7.25%, 12/15/42   1,330   1,256,916
  Wichita Falls Retirement Foundation, 5.13%, 1/01/41   600   583,290
State of Texas Turnpike Authority, RB, CAB (AMBAC), 0.00%, 8/15/30 (d)   5,200   2,020,616
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:        
  LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40   1,000   1,202,430
  NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39   1,740   2,054,679
               

 

Municipal Bonds Par
(000)		   Value
Texas (concluded)
Town of Flower Mound Texas, Special Assessment Bonds, 6.50%, 9/01/36 $ 1,500 $ 1,545,045
  
    37,205,421
Utah — 0.6%
State of Utah Charter School Finance Authority, RB, Navigator Pointe Academy, Series A, 5.63%, 7/15/40   1,000   1,057,770
State of Utah Charter School Finance Authority, Refunding RB, 6.75%, 10/15/43   2,050   2,184,009
  
    3,241,779
Virginia — 3.8%
County of Fairfax Virginia EDA, Refunding RB:        
  Goodwin House, Inc., 5.13%, 10/01/37   1,800   1,861,920
  Goodwin House, Inc., 5.13%, 10/01/42   1,185   1,221,012
  Vinson Hall LLC, Series A, 5.00%, 12/01/42   970   995,773
  Vinson Hall LLC, Series A, 5.00%, 12/01/47   1,265   1,297,207
County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A:        
  5.00%, 7/01/42   2,000   2,015,180
  Residential Care Facility, 5.00%, 7/01/47   1,015   1,021,811
County of York Virginia EDA, Refunding RB, Series A, 1.88%, 5/01/33 (i)   2,945   3,009,819
Mosaic District Community Development Authority, Special Assessment, Series A:        
  6.63%, 3/01/26   515   589,912
  6.88%, 3/01/36   450   519,012
Virginia Small Business Financing Authority, RB, Senior Lien, AMT:        
  Elizabeth River Crossings OpCo LLC Project, 6.00%, 1/01/37   4,095   4,622,927
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 10
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Virginia (concluded)
Virginia Small Business Financing Authority, RB, Senior Lien, AMT (concluded):        
  Express Lanes LLC, 5.00%, 7/01/34 $ 3,300 $ 3,457,080
  
    20,611,653
Washington — 0.3%
County of King Washington Public Hospital District No. 4, GO, Refunding, Snoqualmie Valley Hospital, 7.00%, 12/01/40   545   586,164
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 9/01/42   1,005   1,042,808
  
    1,628,972
Wisconsin — 1.4%
Public Finance Authority, RB:        
  5.38%, 7/01/34   1,000   1,028,970
  5.63%, 7/01/44   2,000   2,058,040
  Series A, 5.75%, 11/15/44   380   390,093
  Series A, 6.00%, 11/15/49   235   244,945
Public Finance Authority, Refunding RB, Senior Obligated Group, Series B, AMT, 5.00%, 7/01/42   1,500   1,531,785
Wisconsin Health & Educational Facilities Authority, Refunding RB:        
  5.50%, 5/01/34   875   900,567
  5.75%, 5/01/39   1,065   1,094,554
  St. Johns Communities, Inc., Series A, 7.25%, 9/15/29   75   88,399
  St. Johns Communities, Inc., Series A, 7.63%, 9/15/39   145   172,588
  
    7,509,941
  
Total Municipal Bonds — 78.6%   426,286,920
 
 
 
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (j)
California — 0.5%
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44 (b)   480   578,778
               

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (j)		 Par
(000)		   Value
California (concluded)
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40 $ 1,679 $ 1,894,058
  
    2,472,836
Colorado — 1.1%
Colorado Health Facilities Authority, Refunding RB, Sisters of Leavenworth Health System, Series A, 5.00%, 1/01/40   5,595   6,064,029
District of Columbia — 0.2%
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/35 (k)   940   1,095,329
Florida — 0.7%
County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34   3,500   3,952,273
Illinois — 1.2%
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series A (NPFGC), 5.00%, 1/01/33 (k)   3,495   3,668,561
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 8/15/41   2,480   2,859,093
  
    6,527,654
New York — 4.0%
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:        
  Series EE, 5.50%, 6/15/43   3,795   4,481,174
  Series HH, 5.00%, 6/15/31 (k)   3,015   3,414,784
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (k)   1,720   1,984,565
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43   7,725   8,705,071
               


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 11
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (j) Par
(000)		   Value
New York (concluded)
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (k) $ 2,520 $ 2,898,706
  
    21,484,300
Ohio — 0.4%
State of Ohio, Refunding RB, Cleveland Clinic Health System Obligated Group, Series A, 5.50%, 1/01/39   2,010   2,244,519
South Carolina — 0.2%
State of South Carolina Housing Finance & Development Authority, Refunding RB, S/F Housing, Series B-1, 5.50%, 7/01/39   999   1,025,017
Virginia — 0.5%
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40   2,501   2,705,572
Washington — 0.6%
City of Bellingham Washington, RB, Water & Sewer, 5.00%, 8/01/40   2,999   3,310,122
Wisconsin — 0.4%
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health Inc., Obligated Group, Series C, 5.25%, 4/01/39 (k)   2,179   2,367,160
               

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (j)     Value
 
Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts — 9.8% $ 53,248,811
  
Total Long-Term Investments
(Cost — $453,267,548) — 88.4%		   479,535,731
 
 
 
Short-Term Securities (l)     Shares   
 
FFI Institutional Tax-Exempt Fund, 0.03% (m)   89,329,802   89,329,802
  
Total Short-Term Securities
(Cost — $89,329,802) — 16.5%		   89,329,802
  
Total Investments
(Cost — $542,597,350*) — 104.9%		   568,865,533
Other Assets Less Liabilities — 0.4%   2,176,596
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (5.3%)   (28,907,331)
  
Net Assets — 100.0% $ 542,134,798
  
* As of September 30, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
Tax cost $ 513,621,010
  
Gross unrealized appreciation $ 31,633,510
Gross unrealized depreciation   (5,289,819)
  
Net unrealized appreciation $ 26,343,691
  
               


Notes to Schedule of Investments

(a) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b) U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c) When-issued security. Unsettled when-issued transactions were as follows:
   
     

 

Counterparty  Value  Unrealized
Appreciation
Robert W. Baird & Co., Inc.  $1,535,183   $183 
Wells Fargo Securities LLC  $1,159,291   $17,501 

 

(d) Zero-coupon bond.
(e) Non-income producing security.
(f) Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(g) Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
     
     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 12
           
 
 
Schedule of Investments (continued) BlackRock High Yield Municipal Fund
   
(h) Security is collateralized by municipal or U.S. Treasury obligations.
(i) Variable rate security. Rate shown is as of report date.
(j) Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction.
(k)

All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expire on

January 1, 2015 to November 15, 2019 is $8,633,909.

(l) Investments in issuers considered to be an affiliate of the Fund during the period ended September 30, 2014, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
   
     

 

Affiliate  Shares
Held at
June 30, 2014		  Net
Activity		  Shares
Held at
September 30, 2014		  Income
FFI Institutional Tax-Exempt Fund   34,830,577    54,499,225    89,329,802   $     2,645 

 

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

 

Portfolio Abbreviations

   
ACA American Capital Access Holding Ltd.
AGC Assured Guarantee Corp.
AGM Assured Guaranty Municipal Corp.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax (subject to)
ARB Airport Revenue Bonds
CAB Capital Appreciation Bonds
EDA Economic Development Authority
EDC Economic Development Corp.
ERB Education Revenue Bonds
GARB General Airport Revenue Bonds
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
MRB Mortgage Revenue Bonds
NPFGC National Public Finance Guarantee Corp.
PILOT Payment in Lieu of Taxes
Radian Radian Guaranty, Inc.
RB Revenue Bonds
S/F Single-Family
Syncora Syncora Guarantee
     

 

•Financial futures contracts outstanding as of September 30, 2014 were as follows:
Contracts
Sold		 Issue Exchange Expiration Notional
Value		 Unrealized
Appreciation
(359) 10-Year U.S. Treasury Note Chicago Board of Trade December
2014		 USD    44,745,984 $352,888

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 13
           
 
 

Schedule of Investments (continued) BlackRock High Yield Municipal Fund
   
• Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative fianncial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:
   
  • Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Series has the ability to access.
 
  • Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
 
  • Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund's own assumptions used in determining the fair value of investments and derivative financial instruments)
 
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund's policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund's policy regarding valuation of investments and derivative financial instruments, please refer to the Fund's most recent financial statements as contained in its annual report.

The following tables summarize the Fund's investments and derivative financial instruments categorized in the disclosure hierarchy as of September 30, 2014:

 

 
  Level 1   Level 2   Level 3   Total  
 
Assets:    
Investments:  
  Long-Term Investments1   — $ 479,535,731   — $ 479,535,731  
  Short-Term Securities $ 89,329,802   —   —   89,329,802  
Total $ 89,329,802 $ 479,535,731   — $ 568,865,533  
                                 
1 See above Schedule of Investments for values in each sector.

 

 
  Level 1   Level 2   Level 3   Total  
 
Derivative Financial Instruments2  
Assets:  
Interest rate contracts $ 352,888   —   — $ 352,888  
                               
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 14
           
 
 

Schedule of Investments (concluded) BlackRock High Yield Municipal Fund
   

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of September 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
  

 
  Level 1   Level 2   Level 3   Total  
 
Assets:    
  Cash pledged for financial futures contracts $ 491,000   —   — $ 491,000  
Liabilities:    
  Bank overdraft   — $ (6,231)   —   (6,231)  
  TOB trust certificates   —   (28,900,832)   —   (28,900,832)  
Total $ 491,000 $ (28,907,063)   — $ (28,416,063)  
                                   

 

There were no transfers between levels during the period ended September 30, 2014.

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 15
           
 
 
Schedule of Investments September 30, 2014 (Unaudited) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Alabama — 0.9%
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children's Hospital (AGC), 6.00%, 6/01/39 $ 15,955 $ 18,635,600
Courtland IDB Alabama, Refunding RB, International Paper Co., Series B, AMT, 6.25%, 8/01/25   750   750,750
Prattville IDB Alabama, RB, Recovery Zone Facility, Series C, 6.25%, 11/01/33   3,380   3,817,913
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40   15,945   18,581,027
         
    41,785,290
Alaska — 0.2%
Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC):        
  6.00%, 9/01/28   2,000   2,409,060
  6.00%, 9/01/32   5,250   6,265,298
         
    8,674,358
Arizona — 2.9%
City of Phoenix & County of Maricopa Arizona IDA, Refunding RB, S/F, Series A-2, AMT (Fannie Mae), 5.80%, 7/01/40   225   228,886
City of Phoenix Arizona IDA, RB:        
  Candeo School, Inc. Project, 6.88%, 7/01/44   3,440   3,804,365
  Legacy Traditional Schools, Series A, 6.50%, 7/01/34 (a)   2,000   2,220,980
  Legacy Traditional Schools, Series A, 6.75%, 7/01/44 (a)   3,500   3,926,195
County of Maricopa Arizona IDA, RB, Arizona Charter Schools Project, Series A, 6.75%, 7/01/29   2,100   1,981,959
County of Pinal Arizona, RB, Electric District No. 4, 6.00%, 12/01/38   1,200   1,332,900
County of Pinal Arizona IDA, RB, San Manuel Facility Project, AMT, 6.25%, 6/01/26   500   503,280
Salt River Project Agricultural Improvement & Power District, RB, Series A:        
  5.00%, 1/01/37   98,935   103,151,609
           
Municipal Bonds Par
(000)		   Value
Arizona (concluded)
Salt River Project Agricultural Improvement & Power District, RB, Series A (concluded):        
  5.00%, 1/01/38 $ 3,990 $ 4,368,970
Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 1/01/35   13,700   14,317,048
Vistancia Community Facilities District Arizona, GO:        
  6.75%, 7/15/22   2,760   2,767,949
  5.75%, 7/15/24   2,125   2,162,910
         
    140,767,051
California — 16.9%
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series B, 6.25%, 8/01/39   11,525   13,424,550
Anaheim Public Financing Authority, RB, 2nd Lien (BHAC), 5.00%, 10/01/34   10,995   11,033,483
California Health Facilities Financing Authority, RB:        
  Catholic Healthcare West, Series J, 5.63%, 7/01/32   10,000   10,310,800
  Sutter Health, Series A, 5.25%, 11/15/46   10,500   11,313,435
  Sutter Health, Series B, 6.00%, 8/15/42   21,340   25,564,466
California Health Facilities Financing Authority, Refunding RB:        
  Catholic Healthcare West, Series A, 6.00%, 7/01/34   5,110   5,123,337
  Catholic Healthcare West, Series A, 6.00%, 7/01/39   26,655   30,361,111
  Stanford Hospital, Series A-3, 5.50%, 11/15/40   10,645   12,497,017
California Statewide Communities Development Authority, RB, Series A:        
  Kaiser Permanente, 5.00%, 4/01/42   50,000   54,747,000
  Sutter Health, 6.00%, 8/15/42   10,190   12,207,212
California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West:        
  Series B, 5.50%, 7/01/30   2,915   3,234,047
  Series E, 5.50%, 7/01/31   1,920   2,130,701
           

 



     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 1
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
California (continued)
City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39 $ 24,300 $ 28,982,124
City & County of San Francisco California Airports Commission, Refunding ARB, AMT:        
  2nd Series 34E (AGM), 5.75%, 5/01/21   8,220   9,376,307
  2nd Series 34E (AGM), 5.75%, 5/01/23   17,000   19,302,310
  2nd Series A, 5.25%, 5/01/33   2,475   2,809,447
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34   5,850   6,885,918
City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39   40,000   45,021,600
City of Los Angeles California Municipal Improvement Corp., RB, Real Property, Series E:        
  6.00%, 9/01/34   4,890   5,812,890
  6.00%, 9/01/39   9,450   11,184,831
City of San Jose California, Refunding ARB, AMT:        
  Series A (AMBAC), 5.50%, 3/01/32   6,530   7,120,051
  Series A-1, 5.75%, 3/01/34   7,010   7,927,469
  Series A-1, 6.25%, 3/01/34   5,250   6,126,540
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:        
  6.50%, 5/01/36   1,510   1,859,142
  6.50%, 5/01/42   5,130   6,260,806
City of San Juan California Water District, COP, Series A, 6.00%, 2/01/39   10,000   11,707,100
County of Alameda & City of Oakland California, GO, Election of 2012, 6.63%, 8/01/38   3,750   4,633,988
County of Orange California Sanitation District, COP:        
  Series A, 5.00%, 2/01/35   10,000   11,355,200
  Series B (AGM), 5.00%, 2/01/37   25,000   27,123,000
County of Orange California Water District, COP, Refunding:        
  5.00%, 8/15/39   15,000   17,161,950
  5.00%, 8/15/41   7,110   8,120,544
           
Municipal Bonds Par
(000)		   Value
California (continued)
County of Sacramento California, RB, Subordinated & Passenger Facility Charges/Grant, Series C:        
  6.00%, 7/01/39 $ 16,945 $ 19,516,065
  6.00%, 7/01/41   13,280   15,294,974
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33   4,500   5,002,335
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A:        
  6.00%, 3/01/36   12,830   15,511,470
  5.50%, 3/01/41   26,390   30,087,503
Cucamonga Valley Water District, Refunding RB, Series A (AGM), 5.38%, 9/01/35   26,315   31,284,851
Gilroy Public Facilities Financing Authority, Refunding RB, 6.00%, 11/01/33   6,535   8,025,503
Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40   3,500   4,251,275
Metropolitan Water District of Southern California, RB:        
  Series A, 5.00%, 1/01/39   10,000   11,291,000
  Series A, 5.00%, 7/01/37   10,000   11,060,300
  Series B, 5.00%, 7/01/35   13,170   13,987,857
Modesto Irrigation District, COP, Capital Improvements, Series A, 6.00%, 10/01/39   11,755   13,604,179
Port of Oakland California, Refunding RB, Senior Lien, Series P, AMT:        
  5.00%, 5/01/27   12,480   14,207,482
  5.00%, 5/01/31   12,750   14,220,967
South San Francisco Unified School District, GO, Series G, 3.50%, 7/01/18   19,205   21,088,242
State of California, GO, Various Purposes:        
  6.50%, 4/01/33   35,000   42,763,000
  6.00%, 4/01/38   33,925   40,548,178
State of California Public Works Board, LRB:        
  Various Capital Project, Sub-Series I-1, 6.38%, 11/01/34   11,680   14,388,125
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 2
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
California (concluded)
State of California Public Works Board, LRB (concluded):        
  Various Capital Projects, Sub-Series A-1, 6.00%, 3/01/35 $ 14,125 $ 16,812,987
  Various Capital Projects, Sub-Series I-1, 6.13%, 11/01/29   10,000   12,214,300
Tuolumne Wind Project Authority, RB, Tuolumne Co. Project, Series A, 5.88%, 1/01/29   19,355   23,015,418
University of California, RB, Series O, 5.75%, 5/15/34   1,450   1,709,550
         
    810,603,937
Colorado — 0.1%
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33   4,385   5,104,886
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34   1,580   1,813,666
         
    6,918,552
Connecticut — 1.7%
State of Connecticut Health & Educational Facility Authority, RB, Series A, 0.80%, 7/01/48 (b)   30,000   30,071,100
State of Connecticut Health & Educational Facility Authority, Refunding RB, Series B, 0.65%, 7/01/49 (b)   50,000   50,118,500
         
    80,189,600
Delaware — 0.7%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40   31,500   34,975,395
District of Columbia — 1.1%
District of Columbia, RB, Series A, 5.50%, 12/01/30   20,530   24,214,724
District of Columbia Water & Sewer Authority, Refunding RB, Series A:        
  6.00%, 10/01/35   12,630   14,720,265
  5.50%, 10/01/39   7,475   8,462,747
           
Municipal Bonds Par
(000)		   Value
District of Columbia (concluded)
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A, 5.25%, 10/01/44 $ 5,765 $ 6,279,526
         
    53,677,262
Florida — 5.1%
Anthem Park Community Development District, Special Assessment Bonds, 5.80%, 5/01/36 (c)(d)   1,240   1,240,496
City of State Augustine, RB, 5.75%, 10/01/41   1,000   1,152,750
County of Escambia Florida, RB, International Paper Co. Projects, Series B, 6.25%, 11/01/33   7,500   8,471,700
County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37   4,990   5,889,897
County of Hillsborough Florida IDA, RB, National Gypsum Co., AMT:        
  Series A, 7.13%, 4/01/30   6,000   6,046,920
  Series B, 7.13%, 4/01/30   7,750   7,759,222
County of Miami-Dade Florida, GO, Building Better Communities Program:        
  Series B, 6.38%, 7/01/28   9,300   10,938,939
  Series B-1, 5.75%, 7/01/33   2,400   2,748,120
  Series B-1, 6.00%, 7/01/38   30,000   34,646,400
County of Miami-Dade Florida, RB, Seaport, Series A, 5.50%, 10/01/42   5,375   6,114,492
County of Miami-Dade Florida, Refunding ARB, Miami International Airport, Series A, AMT, (AGC):        
  5.50%, 10/01/26   7,000   7,959,770
  5.50%, 10/01/27   5,495   6,185,172
County of Miami-Dade Florida, Refunding RB, Water & Sewer Systems, Series C, 6.00%, 10/01/23   25,000   29,435,250
County of Miami-Dade Florida Seaport Department, RB:        
  Series A, 6.00%, 10/01/38   6,175   7,405,863
  Series B, AMT, 6.25%, 10/01/38   5,000   5,985,650
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 3
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Florida (concluded)
Florida Housing Finance Corp., Refunding RB, S/F Housing, Homeowner Mortgage, Series 1 (Ginnie Mae), AMT, 6.00%, 7/01/39 $ 1,720 $ 1,854,882
Florida Ports Financing Commission, Refunding RB, State Transportation Trust Fund, Series B, AMT, 5.13%, 6/01/27   10,000   11,303,400
Harbor Bay Community Development District Florida, Special Assessment Bonds, Series A, 7.00%, 5/01/33   900   902,943
Highland Meadows Community Development District Florida, Special Assessment Bonds, Series A, 5.50%, 5/01/36 (c)(d)   1,090   433,079
Jacksonville Electric Authority Florida, RB, Sub-Series A, 5.63%, 10/01/32   10,525   11,834,310
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40   14,350   17,398,514
State of Florida, GO, Board of Education, Series A:        
  5.38%, 6/01/33   3,950   4,514,771
  5.50%, 6/01/38   4,790   5,496,094
State of Florida, RB, Board of Education Lottery Revenue, Series A, 5.75%, 7/01/28   3,890   4,573,979
State of Florida Turnpike Authority, RB, Series B, 5.00%, 7/01/40   35,720   41,364,474
Sterling Hill Community Development District, Refunding RB, Special Assessment Bonds, Series B, 5.50%, 11/01/10 (c)(d)   160   102,501
Watergrass Community Development District Florida, Special Assessment Bonds, Series B, 6.96%, 11/01/17   355   336,789
         
    242,096,377
Georgia — 1.8%
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series C, 6.00%, 1/01/30   30,000   36,080,400
County of DeKalb Georgia Hospital Authority, Refunding RB, DeKalb Medical Center, Inc. Project, 6.13%, 9/01/40   2,000   2,175,100
           
Municipal Bonds Par
(000)		   Value
Georgia (concluded)
County of Richmond Georgia Development Authority, RB, Recovery Zone Facility, International Paper Co., Series B, 6.25%, 11/01/33 $ 3,625 $ 4,094,655
County of Rockdale Georgia Development Authority, RB, Visy Paper Project, Series A, AMT, 6.13%, 1/01/34   5,000   5,129,200
Municipal Electric Authority of Georgia, Refunding RB:        
  Project One, Sub-Series D, 6.00%, 1/01/23   10,000   11,733,500
  Series EE (AMBAC), 7.00%, 1/01/25   20,000   27,526,400
         
    86,739,255
Illinois — 6.1%
Bolingbrook Special Service Area No. 1, Special Tax Bonds, Forest City Project, 5.90%, 3/01/27   1,000   1,004,380
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien:        
  Series B-2, AMT (NPFGC), 6.00%, 1/01/27   2,125   2,134,648
  Series B-2, AMT (Syncora), 6.00%, 1/01/29   40,905   41,080,483
  Series C, 6.50%, 1/01/41   24,835   30,038,429
City of Chicago Illinois, Refunding GARB, O'Hare International Airport, Senior Lien, Series C, AMT, 5.50%, 1/01/34   5,380   6,099,790
City of Chicago Illinois Transit Authority, RB, Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 6/01/26   15,000   16,891,650
City of Chicago Illinois Wastewater Transmission, RB, Series A (BHAC), 5.50%, 1/01/38   3,000   3,324,960
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien (AGM), 5.25%, 11/01/33   5,000   5,483,500
Illinois Finance Authority, RB:        
  Advocate Health Care Network, Series D, 6.50%, 11/01/38   7,020   8,154,502
  Carle Foundation, Series A, 6.00%, 8/15/41   6,500   7,467,915
  Carle Foundation, Series A (AGM), 6.00%, 8/15/41   3,675   4,236,761
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 4
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Illinois (concluded)
Illinois Finance Authority, RB (concluded):        
  Community Rehabilitation Providers Facilities, Series A, 6.50%, 7/01/22 $ 735 $ 736,147
  DePaul University, Series A, 6.13%, 10/01/40   11,735   13,777,711
  Memorial Health System, Series A, 5.25%, 7/01/44   8,370   9,033,071
  Rush University Medical Center, Series B, 7.25%, 11/01/30   5,280   6,311,818
  Rush University Medical Center, Series C, 6.38%, 11/01/29   2,860   3,319,802
  University of Chicago, Series B, 6.25%, 7/01/18 (e)   25,035   30,058,523
Illinois Finance Authority, Refunding RB:        
  Central Dupage Health, Series B, 5.50%, 11/01/39   4,205   4,743,871
  Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39   29,905   35,009,185
  OSF Healthcare System, Series A, 7.00%, 11/17/14 (e)   3,335   3,364,815
  OSF Healthcare System, Series A, 7.13%, 11/17/14 (e)   1,970   1,987,927
  OSF Healthcare System, Series A, 6.00%, 5/15/39   11,515   13,029,338
  Roosevelt University Project, 6.50%, 4/01/39   8,000   8,717,120
  Rush University Medical Center Obligation Group, Series A, 7.25%, 11/01/30   6,900   8,248,398
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28   13,865   16,251,998
University of Illinois, RB, Series A, 5.75%, 4/01/38   275   316,478
Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23   10,000   10,015,100
Village of Wheeling Illinois, Tax Allocation Bonds, North Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25   1,215   1,216,361
         
    292,054,681
Municipal Bonds Par
(000)		   Value
Indiana — 3.9%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:        
  6.75%, 1/01/34 $ 3,870 $ 4,383,278
  7.00%, 1/01/44   7,330   8,317,424
Indiana Finance Authority, RB, CWA Authority Project, 1st Lien, Series A, 5.25%, 10/01/38   17,500   19,860,050
Indiana Finance Authority, Refunding RB:        
  Duke Energy Indiana Project, Series B, 6.00%, 8/01/39   11,000   12,608,090
  Parkview Health System, Series A, 5.75%, 5/01/31   1,570   1,771,604
  Trinity Health, Series A, 5.63%, 12/01/38   12,000   13,895,760
  U.S. Steel Corp. Project, 6.00%, 12/01/26   105   114,855
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39   19,620   22,518,463
Indianapolis Local Public Improvement Bond Bank, RB, Pilot Infrastructure Project, Series F, 5.00%, 1/01/35   23,550   25,978,711
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A:        
  5.75%, 1/01/38   12,800   14,429,312
  (AGC), 5.50%, 1/01/38   56,725   63,988,069
         
    187,865,616
Iowa — 1.8%
Iowa Finance Authority, RB, Iowa Health Care Facilities:        
  Genesis Health System, 5.50%, 7/01/33   17,250   19,887,007
  Series A (AGC), 5.63%, 8/15/37   5,600   6,422,024
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22   35,000   36,972,250
Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT:        
  5.40%, 12/01/24   11,735   12,680,254
  5.50%, 12/01/25   7,775   8,418,226
         
    84,379,761
Kansas — 0.0%
Counties of Sedgwick & Shawnee Kansas, RB, AMT (Ginnie Mae), 6.95%, 6/01/29   320   337,507
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 5
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Louisiana — 1.8%
City of New Orleans Louisiana Aviation Board, Refunding GARB, Restructuring, Series A-2 (AGC), 6.00%, 1/01/23 $ 1,370 $ 1,572,390
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project:        
  6.75%, 11/01/32   7,080   7,935,689
  Series A, 6.50%, 8/01/29   11,195   13,082,029
  Series A-1, 6.50%, 11/01/35   17,185   19,805,369
State of Louisiana Gasoline & Fuels Tax, Refunding RB, 2nd Lien, Series B (b):        
  0.58%, 5/01/43   32,000   32,038,080
  0.66%, 5/01/43   10,000   10,040,000
         
    84,473,557
Maine — 0.4%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center:        
  7.50%, 7/01/32   12,365   14,432,799
  6.95%, 7/01/41   2,235   2,499,043
         
    16,931,842
Maryland — 0.8%
Maryland Health & Higher Educational Facilities Authority, RB, University of Maryland Medical System, Series B (NPFGC), 7.00%, 7/01/22   3,785   4,605,474
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/41   11,000   12,177,000
State of Maryland, GO, Series A, 4.15%, 3/01/16 (e)   21,880   23,075,961
         
    39,858,435
Massachusetts — 3.6%
Commonwealth of Massachusetts, GO, 0.34%, 8/01/43 (b)   35,000   34,974,800
Massachusetts Development Finance Agency, RB, Foxborough Regional Charter School, Series A, 7.00%, 7/01/42   1,375   1,555,579
Massachusetts Health & Educational Facilities Authority, RB, Series N, 5.00%, 7/01/17 (e)   31,000   34,736,120
Municipal Bonds Par
(000)		   Value
Massachusetts (concluded)
Massachusetts Health & Educational Facilities Authority, Refunding RB, Harvard University, Series A, 5.50%, 11/15/36 $ 69,710 $ 81,500,052
Massachusetts HFA, RB, M/F Housing, Series B, 7.00%, 12/01/38   4,585   5,074,678
Massachusetts School Building Authority, RB, Series A (AGM), 5.00%, 8/15/15 (e)   10,000   10,423,000
Massachusetts Water Resources Authority, Refunding RB, Series C, 5.25%, 8/01/42   5,000   5,710,350
         
    173,974,579
Michigan — 1.4%
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41   6,485   7,581,289
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38   12,455   14,459,383
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital:        
  Series V, 8.25%, 9/01/18 (e)   18,130   23,260,609
  Series W, 6.00%, 8/01/39   5,145   5,849,659
State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38   7,500   8,779,725
State of Michigan HDA, RB, S/F Housing, Series C, AMT, 5.50%, 12/01/28   1,435   1,527,414
State of Michigan Hospital Finance Authority, Refunding RB, Henry Ford Health, 5.75%, 11/15/39   4,285   4,704,030
         
    66,162,109
Minnesota — 0.6%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services:        
  Series A, 6.75%, 11/15/32   5,940   7,041,989
  Series B (AGC), 6.50%, 11/15/38   17,970   21,197,053
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 6
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Minnesota (concluded)
County of Ramsey Minnesota Housing & Redevelopment Authority, RB, Hanover Townhouses Project, M/F Housing, AMT, 6.00%, 7/01/31 $ 1,110 $ 1,111,598
         
    29,350,640
Mississippi — 0.0%
County of Warren Mississippi, RB, International Paper Co. Project, Series A, 6.50%, 9/01/32   1,500   1,681,170
Missouri — 0.0%
City of St. Louis Missouri, RB, Lambert-St. Louis International Airport, Series A-1, 6.25%, 7/01/29   1,175   1,341,239
Nevada — 2.5%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34   12,925   15,115,012
County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42   51,700   60,783,690
County of Clark Nevada Water Reclamation District, GO, Series B:        
  5.75%, 7/01/34   3,125   3,695,000
  5.75%, 7/01/38   32,685   38,613,732
         
    118,207,434
New Hampshire — 0.4%
New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 8/01/38   15,590   17,800,818
New Jersey — 5.8%
County Cape May New Jersey Industrial Pollution Control Financing Authority, Refunding RB, Atlantic City Electric Co., Series A (NPFGC), 6.80%, 3/01/21   5,000   6,146,900
County of Monmouth New Jersey Improvement Authority, RB, Brookdale Community College Project, 6.00%, 8/01/38   3,600   4,193,100
New Jersey EDA, RB, Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/33   26,500   27,019,400
Municipal Bonds Par
(000)		   Value
New Jersey (concluded)
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series B, AMT, 5.60%, 11/01/34 $ 8,280 $ 9,315,580
New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B (e):        
  7.13%, 6/01/19   2,870   3,661,374
  7.50%, 6/01/19   9,200   11,893,576
New Jersey Health Care Facilities Financing Authority, Refunding RB, AHS Hospital Corp.:        
  6.00%, 7/01/37   1,200   1,424,160
  6.00%, 7/01/41   30,685   36,211,062
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:        
  5.75%, 12/01/27   500   568,890
  5.75%, 12/01/28   450   510,633
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA:        
  6.38%, 10/01/28   630   655,981
  6.50%, 10/01/38   1,035   1,076,462
New Jersey State Turnpike Authority, Refunding RB (b):        
  Series D, 0.57%, 1/01/22   17,000   17,045,220
  Series D, 0.66%, 1/01/23   17,000   17,063,410
  Series D, 0.72%, 1/01/24   15,000   15,059,700
  Series E, 0.57%, 1/01/22   12,000   12,031,920
  Series E, 0.66%, 1/01/23   10,000   10,037,700
New Jersey Transportation Trust Fund Authority, RB:        
  Transportation Program, Series AA, 5.50%, 6/15/39   34,760   39,131,765
  Transportation System, Series A, 5.13%, 6/15/28   5,000   5,554,400
  Transportation System, Series A, 5.13%, 6/15/29   12,875   14,261,637
  Transportation System, Series A, 5.88%, 12/15/38   14,255   16,614,060
  Transportation System, Series B, 5.25%, 6/15/36   25,000   27,469,000
         
    276,945,930
New Mexico — 0.3%
County of Santa Fe New Mexico, RB, (AGM), 6.00%, 2/01/27   250   302,528
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 7
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
New Mexico (concluded)
New Mexico Municipal Energy Acquisition Authority, Refunding RB, Series B, 0.86%, 11/01/39 (b) $ 15,000 $ 15,101,400
         
    15,403,928
New York — 7.1%
City of New York New York, GO:        
  0.62%, 8/01/27 (b)   39,000   39,090,090
  Series E-1, 6.25%, 10/15/28   10,100   12,054,855
City of New York New York Housing Development Corp., RB, M/F Housing, Series M:        
  6.50%, 11/01/28   4,300   4,802,627
  6.88%, 11/01/38   7,785   8,568,327
City of New York New York Municipal Water Finance Authority, Refunding RB:        
  Second General Resolution, Fiscal 2012, Series BB, 5.25%, 6/15/44   9,800   10,969,826
  Water & Sewer System, 2nd General Resolution, Fiscal 2011, Series EE, 5.38%, 6/15/43   7,125   8,348,647
Long Island Power Authority, Refunding RB, Electric System, Series A, 6.00%, 5/01/33   49,450   58,163,584
Metropolitan Transportation Authority, RB:        
  Series A-1, 5.25%, 11/15/39   33,035   37,821,771
  Series C, 6.50%, 11/15/28   22,665   27,540,015
  Series D, 5.25%, 11/15/41   12,700   14,286,230
Metropolitan Transportation Authority, Refunding RB, Sub-Series B (AGM), 0.71%, 11/01/32 (b)   20,000   20,054,600
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42   5,000   5,114,700
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 152nd Series, AMT, 5.75%, 11/01/30   4,695   5,324,553
Sales Tax Asset Receivable Corp., Refunding RB, Series A (AMBAC):        
  5.25%, 10/15/27   13,935   13,964,682
  5.00%, 10/15/32   20,000   20,040,400
Municipal Bonds Par
(000)		   Value
New York (concluded)
State of New York Dormitory Authority, ERB, Series B, 5.75%, 3/15/36 $ 19,270 $ 22,520,271
State of New York Dormitory Authority, RB, Columbia University, 5.00%, 7/01/38   21,400   23,998,174
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.38%, 11/15/38   5,715   6,637,973
         
    339,301,325
North Carolina — 0.1%
County of Columbus North Carolina Industrial Facilities & Pollution Control Financing Authority, RB, International Paper Co. Projects, Series B, 6.25%, 11/01/33   3,000   3,388,680
Ohio — 0.9%
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A:        
  5.75%, 11/15/31   500   598,585
  6.50%, 11/15/37   12,140   14,934,506
  6.00%, 11/15/41   4,400   5,234,724
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.50%, 5/01/34   10,595   12,135,513
State of Ohio, RB, Cleveland Health Clinic, 5.50%, 1/01/34   1,000   1,124,580
State of Ohio, Refunding RB, Cleveland Clinic Health, Series A, 5.50%, 1/01/39   10,195   11,386,286
         
    45,414,194
Oregon — 0.0%
City of Portland Oregon, M/F HRB, Lovejoy Station Apartments Project, AMT (NPFGC), 5.90%, 7/01/23   390   390,889
Pennsylvania — 1.9%
City of Philadelphia Pennsylvania Gas Works, RB, 12th Series B (NPFGC), 7.00%, 5/15/20 (f)   3,110   3,685,039
County of Allegheny Pennsylvania IDA, Refunding RB, Environmental Improvement, U.S. Steel Corp. Project:        
  6.75%, 11/01/24   5,785   6,594,842
  6.75%, 12/01/27   5,000   5,661,200
  6.88%, 5/01/30   5,000   5,722,200
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 8
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Pennsylvania (concluded)
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran, 6.38%, 1/01/39 $ 10,575 $ 11,577,721
County of Dauphin Pennsylvania General Authority, Refunding RB, Pinnacle Health System Project, Series A:        
  6.00%, 6/01/29   12,555   14,631,848
  6.00%, 6/01/36   3,300   3,809,058
County of Lancaster Pennsylvania Hospital Authority, Refunding RB, Brethren Village Project, Series A, 6.25%, 7/01/26   1,160   1,222,512
County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 7/01/32   2,455   2,656,433
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39   3,475   4,067,453
Pennsylvania Turnpike Commission, RB:        
  5.25%, 6/01/39   24,900   27,743,580
  Subordinate, Special Motor License Fund, 6.00%, 12/01/36   1,195   1,412,813
         
    88,784,699
South Carolina — 0.8%
South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM):        
  6.50%, 8/01/39   4,455   5,181,655
  6.25%, 8/01/34   1,525   1,764,882
State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series A:        
  5.50%, 12/01/33   6,465   7,554,288
  5.50%, 1/01/38   2,390   2,725,150
  5.75%, 12/01/43   19,875   23,355,709
         
    40,581,684
Texas — 10.2%
City of Houston Texas Utility System, Refunding RB, Series A, 1st Lien:        
  5.25%, 11/15/30   24,305   28,729,239
  Combined (AGC), 6.00%, 11/15/35   32,350   38,657,927
  Combined (AGC), 5.38%, 11/15/38   5,000   5,706,650
Municipal Bonds Par
(000)		   Value
Texas (continued)
City of San Antonio Texas Water System, Refunding RB, Junior Lien, 0.44%, 5/01/44 (b) $ 23,000 $ 23,135,010
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B:        
  6.38%, 1/01/33   465   533,490
  7.00%, 1/01/43   1,075   1,239,239
  7.00%, 1/01/48   2,625   3,006,754
County of Lamar Texas Consolidated, GO, Series A (ISD/PSF-GTD), 2.00%, 8/15/47 (b)   70,000   71,861,300
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29   9,775   11,212,609
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45   50,000   59,928,000
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Northwest Senior Housing, Edgemere Project, Series A, 6.00%, 11/15/26   2,200   2,289,584
Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/30   6,085   7,212,976
North East Independent School District, GO, (PSF-GTD), 2.00%, 8/01/44 (b)   51,300   52,326,000
North Texas Tollway Authority, RB, Special Projects System, Series A, 6.00%, 9/01/41   4,815   5,872,759
North Texas Tollway Authority, Refunding RB:        
  1st Tier System, 6.00%, 1/01/34   11,490   13,512,929
  1st Tier System, 0.84%, 1/01/50 (b)   15,000   14,999,700
  1st Tier System, Series A, 6.00%, 1/01/28   1,000   1,172,970
  1st Tier System, Series A (NPFGC), 5.75%, 1/01/40   7,720   8,627,023
  1st Tier System, Series B (NPFGC), 5.75%, 1/01/40   9,870   11,029,626
  1st Tier System, Series K-2 (AGC), 6.00%, 1/01/38   2,245   2,603,324
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 9
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
Texas (concluded)
North Texas Tollway Authority, Refunding RB (concluded):        
  2nd Tier System, Series F, 6.13%, 1/01/31 $ 25,615 $ 27,009,993
Port of Bay City Authority Texas, RB, Hoechst Celanese Corp. Project, AMT, 6.50%, 5/01/26   4,000   4,019,200
State of Texas Transportation Commission State Highway Fund, RB, 1st Tier System, Series B, 0.39%, 4/01/32 (b)   36,000   36,094,680
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:        
  LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40   24,695   29,694,009
  NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39   23,000   27,159,550
         
    487,634,541
Utah — 2.4%
City of Salt Lake Utah, Refunding RB, IHC Hospital, Inc., Series A, 8.13%, 5/15/15 (f)   5   5,213
County of Utah Utah, RB:        
  IHC Health Services, Inc., 5.00%, 5/15/43   70,000   77,597,800
  Series A, 5.00%, 5/15/45   31,500   35,995,680
         
    113,598,693
Virginia — 1.4%
City of Winchester Virginia IDA, Refunding RB, Valley Health (BHAC) (AMBAC), 5.25%, 1/01/37   31,970   34,437,764
Virginia HDA, RB, M/F Housing, Rental Housing, Series A, 5.25%, 5/01/41   2,865   3,059,849
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37   28,085   31,705,718
         
    69,203,331
Municipal Bonds Par
(000)		   Value
Washington — 1.3%
City of Seattle Washington Housing Authority, RB, M/F Housing, Newholly Project, AMT, 6.25%, 12/01/35 $ 2,750 $ 2,752,090
Washington Health Care Facilities Authority, RB:        
  Catholic Health Initiatives, Series A, 5.75%, 1/01/45   21,355   24,475,393
  MultiCare Health System, Series B (AGC), 6.00%, 8/15/39   2,000   2,296,560
  Swedish Health Services, Series A, 6.75%, 5/15/21 (e)   16,000   21,143,520
Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36   10,000   11,660,200
         
    62,327,763
Wisconsin — 0.2%
City of Superior Wisconsin, Refunding RB, Midwest Energy Resources, Series E (NPFCG), 6.90%, 8/01/21   7,000   9,038,750
Total Municipal Bonds — 87.1%   4,172,860,872
     
 

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (g)

Arizona — 1.9%
City of Mesa Arizona, RB, Utility System, 5.00%, 7/01/35   30,000   33,254,700
Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A, 5.00%, 1/01/38   54,015   59,144,985
         
    92,399,685
Arkansas — 0.5%
University of Arkansas, RB, Various Facilities, UAMS Campus (NPFGC), 5.00%, 3/01/36   21,290   22,354,926
California — 3.1%
City & County of San Francisco California Public Utilities Commission, Refunding RB, Series A, 5.13%, 11/01/39   23,000   26,435,280
County of Orange California, ARB, Series B, 5.25%, 7/01/34   13,045   14,441,149
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 10
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (g)

 Par
(000)		   Value
California (concluded)
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37 $ 27,500 $ 30,109,200
Metropolitan Water District of Southern California, Refunding RB, Series C, 5.00%, 7/01/35   13,375   15,299,642
San Diego Community College District California, GO, Election of 2006 (AGM), 5.00%, 8/01/32   18,000   19,850,040
San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.38%, 8/01/34   15,000   17,506,200
University of California, RB, General, Series O, 5.25%, 5/15/39   20,695   23,971,180
         
    147,612,691
Florida — 2.8%
City of Tallahassee Florida, RB, Energy System (NPFGC), 5.00%, 10/01/37   10,000   10,940,500
Jacksonville Electric Authority Florida, RB, Sub-Series A, 5.63%, 10/01/32   6,300   7,084,067
State of Florida, GO, Board of Education:        
  Capital Outlay, Series E, 5.00%, 6/01/37   39,730   44,993,430
  Series C, 5.00%, 6/01/37   65,545   72,257,961
         
    135,275,958
Illinois — 0.4%
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 8/15/41   15,600   17,984,616
Indiana — 0.7%
Indiana Finance Authority, RB, Sisters of St. Francis Health, 5.25%, 11/01/39   31,460   34,387,038
Louisiana — 0.3%
State of Louisiana, RB, Series A (AGM), 5.00%, 5/01/31   11,950   12,841,351
Massachusetts — 0.2%
Massachusetts School Building Authority, RB, Series A (AMBAC), 5.00%, 8/15/37   10,000   10,957,500

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (g)

 Par
(000)		   Value
Ohio — 0.4%
County of Hamilton Ohio, Refunding RB, Sub-Series A (AGM), 5.00%, 12/01/32 $ 20,000 $ 21,426,400
Texas — 2.3%
City of Houston Texas, Refunding RB, Combined, 1st Lien, Series A (AGC), 5.38%, 11/15/38   26,160   29,857,193
City of San Antonio Texas, Refunding RB, Electric and Gas Revenue, 5.00%, 2/01/32   28,990   31,366,020
County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Children's Hospital Project, 5.50%, 10/01/39   8,500   9,823,025
Cypress-Fairbanks ISD, GO, Refunding, Schoolhouse (PSF-GTD), 5.00%, 2/15/32   10,000   10,931,500
Dallas Area Rapid Transit, Refunding RB, Senior Lien (AMBAC), 5.00%, 12/01/36   27,860   29,927,391
         
    111,905,129
Washington — 0.6%
Central Puget Sound Regional Transit Authority, RB, Series A:        
  5.00%, 11/01/34   8,500   9,359,520
  5.00%, 11/01/36   15,715   17,288,958
         
    26,648,478

Total Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts — 13.2%

   633,793,772
     
 
U.S. Government Sponsored Agency
Securities
Shares		    
Mortgage-Backed Securities — 0.0%
Ginnie Mae Mortgage-Backed Securities, 6.00%, 11/15/31   — (h) 188
Total Long-Term Investments
(Cost — $4,402,891,883) — 100.3%		   4,806,654,832
 
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 11
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
  (Percentages shown are based on Net Assets)
Short-Term Securities Par
(000)		   Value
California — 2.3%
County of Tulare California, GO, 2.00%, 6/30/15 $ 56,000 $ 56,785,680
State of California, RB, 1.50%, 6/22/15   50,000   50,503,735
         
    107,289,415
Idaho — 1.1%
State of Idaho, GO, 2.00%, 6/30/15   53,000   53,743,590
Massachusetts — 0.2%
Massachusetts State, Industrial Finance Agency, Pollution Control Revenue, Series 1992, 0.25%, 10/03/14   8,800   8,800,000
 
Shares		    
Money Market Funds — 2.0%        
FFI Institutional Tax-Exempt Fund, 0.03%, 12/31/49 (i)(j)   96,385,892   96,384,892
Total Short-Term Securities
(Cost — $266,221,333) — 5.6%		   266,217,897
           
       
Value
Total Investments
(Cost — $4,669,113,216*) — 105.9%		 $ 5,072,872,729
Other Assets Less Liabilities — 0.1%   5,962,402
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (6.0%)   (286,155,773)
         
Net Assets — 100.0% $ 4,792,679,358
* As of September 30, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
Tax cost $ 4,381,383,985
         
Gross unrealized appreciation $ 406,933,572
Gross unrealized depreciation   (1,539,759)
         
Net unrealized appreciation $ 405,393,813
         
           
 


Notes to Schedule of Investments

* As of September 30, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
(a) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b) Variable rate security. Rate shown is as of report date.
(c) Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(d) Non-income producing security.
(e) U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(f) Security is collateralized by municipal or U.S. Treasury obligations.
(g) Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction.
(h) Amount is less than $500.
(i) Investments in issuers considered to be an affiliate of the Fund during the period ended September 30, 2014, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:
   
     

 

 
  Affiliate     Shares
Held at
June 30, 2014 		      Net
Activity		   Shares
Held at
September 30, 2014		   Income  
 
  FFI Institutional Tax-Exempt Fund   94,354,491     2,030,401   96,384,892 $ 9,803  
 
                                           
(j) Represents the current yield as of report date.

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 12
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund

Portfolio Abbreviations

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

 

• Financial futures contracts outstanding as of September 30, 2014 were as follows:

 

Contracts
Sold		 Issue Exchange Expiration Notional
Value		   Unrealized
Appreciation		  
(1,500) 10-Year U.S. Treasury Note Chicago Board of Trade December
2014		 $ 186,960,938 $ 1,427,588  

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 13
           
 
 
Schedule of Investments (continued) BlackRock National Municipal Fund
• Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments . These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:
   
  • Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
 
  • Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
 
  • Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund's own assumptions used in determining the fair value of investments and derivative financial instruments)
 
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund's policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarizes the Fund's investments and derivative financial instruments categorized in the disclosure hierarchy as of September 30, 2014:

 

 
  Level 1 Level 2 Level 3   Total  
 
Assets:    
Investments:  
  Long-Term Investments 1   — $ 4,806,654,832   — $ 4,806,654,832  
  Short-Term Securities $ 96,384,892   169,833,005   —   266,217,897  
Total $ 96,384,892 $ 4,976,487,837   — $ 5,072,872,729  
                     

 

1 See above Schedule of Investments for values in each sector.  
 

 

 
  Level 1 Level 2 Level 3   Total  
 
Derivative Financial Instruments 2  
Assets:  
Interest rate contracts $ 1,427,588   —   — $ 1,427,588  
                   

 

2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
   

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 14
           
 
 
Schedule of Investments (concluded) BlackRock National Municipal Fund
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of September 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
  

 

 
  Level 1 Level 2   Level 3   Total  
 
Assets:    
  Cash pledged for financial futures contracts $ 1,890,000   —   — $ 1,890,000  
Liabilities:    
  Bank overdraft   — $ (10,388)   —   (10,388)  
  TOB trust certificates   —   (286,094,931)   —   (286,094,931)  
Total $ 1,890,000 $ (286,105,319)   — $ (284,215,319)  
                     

 

There were no transfers between levels during the period ended September 30, 2014.

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 15
           
 
 
Schedule of Investments September 30, 2014 (Unaudited) BlackRock Short-Term Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
 
Alabama — 0.9%
Alabama 21st Century Authority, Refunding RB, Series A, 4.00%, 6/01/15 $ 2,000 $ 2,049,380
Alabama Federal Aid Highway Finance Authority, RB, Grant Appreciation, 5.00%, 9/01/16   5,130   5,576,567
         
    7,625,947
 
Alaska — 0.3%
Alaska Student Loan Corp., RB, Senior Series A, AMT, 5.00%, 6/01/16   2,000   2,063,900
 
Arizona — 0.3%
Arizona Health Facilities Authority, Refunding RB, Series D, 5.00%, 1/01/17   1,080   1,184,890
City of Phoenix Civic Improvement Corp., Refunding RB, Transit Excise Tax, Light Rail Project, 5.00%, 7/01/16   1,000   1,080,630
         
    2,265,520
 
California — 7.1%
California Pollution Control Financing Authority, RB, Waste Management Inc. Project, Series A-1 AMT, 1.88%, 4/01/25 (a)   5,000   5,027,750
California School Cash Reserve Program Authority, RB, Series O, 2.00%, 12/31/14   3,000   3,013,020
East Bay Municipal Utility District, Refunding RB, Wastewater System, 0.36%, 6/01/38 (a)   300   299,886
Los Angeles Unified School District, GO, Refunding:        
  Series A, 3.00%, 7/01/16   3,765   3,941,202
  Series A, 5.00%, 7/01/17   18,145   20,347,803
  Series A-1, 5.00%, 7/01/15   6,000   6,220,680
State of California, GO, Refunding:        
  (NPFGC), 5.00%, 9/01/16   1,380   1,503,759
  Various Purpose, 4.00%, 11/01/15   3,430   3,573,751
  Various Purpose, 5.00%, 4/01/16   10,000   10,711,300
           
Municipal Bonds Par
(000)		   Value
 
California (concluded)
State of California, GO, Refunding (concluded):        
  Various Purpose, 5.00%, 9/01/16 $ 3,000 $ 3,269,040
         
    57,908,191
 
Colorado — 0.1%
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series C, 4.00%, 10/01/40 (a)   1,000   1,040,800
 
Connecticut — 5.2%
Connecticut Resources Recovery Authority, Refunding RB, Covanta Southeastern Connecticut Co. Project, Series A, AMT, 4.00%, 11/15/15   2,635   2,750,439
Connecticut State Development Authority, RB, Connecticut Light & Power Co., Series A, Mandatory Put Bonds, AMT, 1.55%, 5/01/31 (a)   13,200   13,272,204
State of Connecticut, GO, Refunding, Series C, 5.00%, 12/15/17   21,065   23,882,865
State of Connecticut, Special Tax Revenue, RB, Transportation Infrastructure, Series A, 5.00%, 11/01/14   2,700   2,711,448
         
    42,616,956
 
Delaware — 2.0%
Delaware River & Bay Authority, Refunding RB, Series C, 5.00%, 1/01/16 (b)   3,670   3,885,503
Delaware Transportation Authority, Refunding RB, Senior, 5.00%, 7/01/15   1,945   2,016,537
University of Delaware, Refunding RB, Series C, 0.70%, 11/01/37 (a)   10,000   10,028,900
         
    15,930,940
 
District of Columbia — 0.5%
Metropolitan Washington Airports Authority, Refunding RB, Series A AMT, 5.00%, 10/01/17   4,000   4,488,560
 
Florida — 5.8%
Citizens Property Insurance Corp., RB, Senior Secured, Series A-1:        
  Coastal Account, 5.00%, 6/01/15   7,745   7,993,847
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 1
           
 
 
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
 
Florida (concluded)
Citizens Property Insurance Corp., RB, Senior Secured, Series A-1 (concluded):        
  Personal Lines & Commercial Lines Account, 5.00%, 6/01/16 $ 10,000 $ 10,736,900
City of Jacksonville Florida, Refunding RB, Series C, 5.00%, 10/01/16   1,280   1,396,659
County of Broward Florida Airport System, ARB, Series Q-1, 5.00%, 10/01/15   1,000   1,047,700
County of Miami-Dade Florida, Refunding ARB, Series A, AMT:        
  4.00%, 10/01/15   2,750   2,853,647
  5.00%, 10/01/16   1,750   1,906,538
Florida State Board of Education, GO, Refunding:        
  Series A, 5.00%, 1/01/15   6,395   6,473,658
  Series B, 5.00%, 6/01/16   8,200   8,840,338
Florida State Department of Environmental Protection, Refunding RB, Everglades Restoration, Series A (AGC), 5.00%, 7/01/16   1,205   1,301,267
Highlands County Health Facilities Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series I, 5.00%, 11/15/16   1,035   1,133,553
State of Florida, GO, Refunding, Department of Transportation, Full Faith and Credit, Right-of-Way Acquisition and Bridge Construction, Series B, 5.00%, 7/01/16   3,375   3,650,839
         
    47,334,946
 
Georgia — 2.6%
City of Atlanta Georgia Department of Aviation, RB, Series B, 5.00%, 1/01/17   7,000   7,703,080
City of Atlanta Georgia Department of Aviation, Refunding RB, Series C AMT, 5.00%, 1/01/17   1,500   1,649,580
           
Municipal Bonds Par
(000)		   Value
 
Georgia (concluded)
Municipal Gas Authority of Georgia, Refunding RB, 4.00%, 10/01/16 $ 10,615 $ 11,364,313
         
    20,716,973
 
Hawaii — 0.2%
State of Hawaii, GO, Refunding, Series DG (AMBAC), 5.00%, 7/01/16   1,290   1,336,904
 
Illinois — 7.4%
City of Chicago Illinois, Refunding GARB, O'Hare International Airport, Senior Lien, Series A, AMT:        
  5.00%, 1/01/16   3,000   3,174,600
  5.00%, 1/01/16   4,500   4,761,900
Illinois Finance Authority, Refunding RB, Hospital Sisters Services, Inc., Series C, 5.00%, 8/15/15   1,000   1,040,790
Regional Transportation Authority, GO, Refunding, ERS, Series B, 0.40%, 6/01/25 (a)   15,000   15,000,000
State of Illinois, GO:        
  2.00%, 5/01/15   14,000   14,123,060
  5.00%, 5/01/16   4,600   4,883,314
  4.00%, 7/01/16   3,000   3,148,980
  4.00%, 2/01/17   2,000   2,121,120
  5.00%, 5/01/17   8,100   8,836,614
State of Illinois, RB, Unemployment Insurance Fund Building Receipts, Series A, 5.00%, 6/15/16   2,500   2,697,350
         
    59,787,728
 
Indiana — 1.3%
Indiana Finance Authority, Refunding RB, Marquette Project, 5.00%, 3/01/16   1,425   1,464,886
Indiana Health Facility Financing Authority, RB, 4.00%, 11/01/27 (a)   8,000   8,710,000
         
    10,174,886
 
Iowa — 0.5%
Iowa Student Loan Liquidity Corp., Refunding RB, Senior Series A-1, AMT, 3.10%, 12/01/14   3,910   3,919,814
 
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 2
           
 
 
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
 
Kentucky — 1.2%
Counties of Louisville & Jefferson Kentucky Metropolitan Government, GO, Refunding Series E, 4.00%, 11/15/16 $ 4,450 $ 4,793,585
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Series A, 5.00%, 7/01/17   4,500   4,975,785
         
    9,769,370
 
Louisiana — 0.4%
Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.00%, 5/15/16   3,000   3,178,770
 
Maryland — 1.1%
Maryland State Transportation Authority, Refunding RB, Baltimore/Washington Thurgood Marshall Airport Project, AMT, 5.00%, 3/01/16   8,315   8,839,926
 
Massachusetts — 2.0%
City of Boston Massachusetts, GO, Refunding, Series B, 4.00%, 2/01/15   6,580   6,666,132
Commonwealth of Massachusetts, GO, Consolidated Loan, Series B, 5.00%, 8/01/15   2,500   2,601,725
Massachusetts Port Authority, RB, Series A, AMT, 5.00%, 7/01/16   1,625   1,753,928
Massachusetts State Educational Financing Authority, RB, AMT:        
  4.00%, 1/01/17   800   851,840
  4.00%, 1/01/18   1,750   1,887,777
Massachusetts Water Pollution Abatement Trust, Refunding RB, 2.00%, 8/01/16   2,600   2,678,910
         
    16,440,312
 
Michigan — 4.4%
Michigan Finance Authority, Refunding RB, Unemployment Obligation Assessment, Series A:        
  5.00%, 7/01/15   7,000   7,256,410
  5.00%, 1/01/16   13,525   14,329,737
State of Michigan Trunk Line, Refunding RB, Series B (AGM), 5.00%, 9/01/15   7,825   8,170,787
           
Municipal Bonds Par
(000)		   Value
 
Michigan (concluded)
State of Michigan Trunk Line Revenue, Refunding RB, 5.00%, 11/15/16 $ 5,200 $ 5,704,452
         
    35,461,386
 
Minnesota — 0.7%
State of Minnesota, GO, Series A, 5.00%, 8/01/16   5,295   5,746,240
 
Missouri  — 0.3%
University of Missouri, Refunding RB, Series A, 4.00%, 11/01/17   2,555   2,814,128
 
Nebraska — 0.1%
Nebraska Public Power District, Refunding RB, General, Series A, 5.00%, 1/01/16   1,000   1,059,630
 
Nevada — 7.8%
County of Clark Nevada, Refunding RB, Motor Vehicle Fuel Tax, 5.00%, 7/01/15   8,000   8,292,400
County of Clark Nevada School District, GO, Refunding:        
  Limited Tax, Series A, 5.00%, 6/15/16   11,000   11,860,530
  Series B, 5.50%, 6/15/16   5,885   6,395,406
  Series B, 5.50%, 6/15/17   13,760   15,552,102
State of Nevada, Refunding RB:        
  5.00%, 12/01/16   5,000   5,500,500
  5.00%, 6/01/17   14,000   15,633,380
         
    63,234,318
 
New Hampshire — 1.5%
State of New Hampshire, GO, Refunding, Series B, 5.00%, 6/01/16   10,000   10,775,900
State of New Hampshire, RB, Federal Highway, GAN, 5.00%, 9/01/16   1,250   1,358,988
         
    12,134,888
 
New Jersey — 10.5%
County of Ocean New Jersey, GO, Refunding, 5.00%, 8/01/16   1,235   1,340,247
New Jersey Building Authority, Refunding RB, Series A, 5.00%, 6/15/15   13,880   14,331,378
New Jersey EDA, RB, School Facilities Construction Notes, Series G (SIFMA Index Notes), 0.62%, 2/01/15 (a)   3,000   3,000,150
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 3
           
 
 
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
 
New Jersey (concluded)
New Jersey EDA, Refunding RB, School Facilities Construction:        
  Series DD-1, 5.00%, 12/15/16 $ 5,075 $ 5,543,676
  Series EE, 5.00%, 9/01/15 (c)   1,650   1,723,606
New Jersey Educational Facilities Authority, RB, 5.00%, 6/01/17   12,910   14,242,054
New Jersey Health Care Facilities Financing Authority, Refunding RB:        
  Barnabas Health, Series A, 5.00%, 7/01/16   1,000   1,070,580
  Meridian Health System, 5.00%, 7/01/17   2,000   2,223,600
New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 4, AMT, 0.90%, 5/01/15   1,690   1,690,693
New Jersey State Turnpike Authority, Refunding RB, Series C, 0.52%, 1/01/17 (a)   8,000   8,004,880
New Jersey Transportation Trust Fund Authority, RB:        
  Series AA, 4.00%, 6/15/16   2,850   3,001,449
  Series B, 5.00%, 6/15/15   1,825   1,884,349
  Transportation System, 5.75%, 6/15/16   6,275   6,793,127
New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System:        
  Series A, 5.00%, 12/15/15   1,640   1,729,331
  Series B (NPFGC), 5.50%, 12/15/15   2,745   2,911,045
State of New Jersey, GO, Refunding, Series O, 5.00%, 8/01/16   2,300   2,485,748
State of New Jersey, GO, Tax-Exempt, Various Purposes, 5.00%, 6/01/16   12,075   12,967,946
         
    84,943,859
 
New Mexico — 0.1%
County of Albuquerque Bernalillo New Mexico Water Utility Authority, Refunding RB, Series B, 5.00%, 7/01/16   1,000   1,081,360
 
New York — 16.0%
City of New York New York, GO, Refunding Series J, 3.00%, 8/01/16   14,210   14,892,222
Metropolitan Transportation Authority, Refunding RB, Series D, 4.00%, 11/15/15   1,400   1,458,940
           
Municipal Bonds Par
(000)		   Value
 
New York (continued)
New York City Transitional Finance Authority, RB, Future Tax Secured:        
  Sub-Series A, 5.00%, 8/01/16 $ 4,880 $ 5,297,435
  Sub-Series C-1, 5.00%, 11/01/15   4,860   5,114,956
  Sub-Series F-1, 5.00%, 5/01/15   2,000   2,056,840
  Sub-Series I, 2.00%, 5/01/15   11,870   11,998,790
New York City Transitional Finance Authority, Refunding RB, Future Tax Secured, Sub-Series A, 5.00%, 11/01/15   5,455   5,741,169
New York State Dormitory Authority, RB:        
  General Purpose, Series A, 5.00%, 3/15/15   5,560   5,683,654
  Series A, 4.00%, 3/15/17   4,000   4,339,560
  Series B, 5.00%, 3/15/17   3,600   3,991,536
New York State Dormitory Authority, Refunding RB, NYU Hospital Center, Series A:        
  5.00%, 7/01/15   1,500   1,555,410
  5.00%, 7/01/16   1,000   1,077,140
New York State HFA, RB, Affordable Housing, Series F (SONYMA), 0.75%, 5/01/15   2,000   2,006,920
New York State Local Government Assistance Corp., Refunding RB, Sub-Lien, Series A, 5.00%, 4/01/15   7,000   7,170,730
New York State Thruway Authority, RB, 2nd General Highway & Bridge Trust Fund Bonds, Series B, 5.00%, 4/01/15   2,150   2,202,159
New York State Thruway Authority, Refunding RB, General, Series I, 5.00%, 1/01/16   500   528,840
New York State Urban Development Corp., RB, Personal Income Tax, Series C, 5.00%, 3/15/17   6,470   7,173,677
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/15   2,680   2,812,124
Port Authority of New York & New Jersey, Refunding RB, AMT:        
  5.00%, 9/01/16   5,000   5,431,200
  5.00%, 9/01/17   3,750   4,202,325
  Consolidated, 177th Series, 4.00%, 7/15/15   10,000   10,301,400
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 4
           
 
 
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
 
New York (concluded)
Sales Tax Asset Receivable Corp., Refunding RB, Series A, 3.00%, 10/15/16 (b) $ 15,475 $ 16,297,187
State of New York, GO, Refunding, Series C, 5.00%, 4/15/16   7,675   8,236,810
         
    129,571,024
 
North Carolina — 1.5%
North Carolina Capital Facilities Finance Agency, Refunding RB, High Point University, 4.00%, 5/01/16   1,770   1,858,040
North Carolina Medical Care Commission, Refunding RB, Healthcare Facilities Revenue, WakeMed, Series A, 4.00%, 10/01/15   730   757,207
North Carolina Municipal Power Agency No. 1, Refunding RB, Catawba Electric, Series A:        
  5.00%, 1/01/16   3,500   3,701,425
  5.25%, 1/01/17   5,000   5,514,650
         
    11,831,322
 
Ohio — 0.5%
City of Cleveland Ohio, Public Power System, Refunding RB, 5.00%, 11/15/15   2,335   2,458,778
State of Ohio, Refunding RB, AMT, 2.25%, 11/01/22 (a)   1,500   1,534,170
         
    3,992,948
 
Oklahoma — 1.7%
County of Cleveland Oklahoma Educational Facilities Authority, LRB:        
  Moore Public Schools Project, 5.00%, 6/01/15   2,050   2,115,436
  Moore Public Schools Project, 5.00%, 6/01/16   845   907,268
  Norman Public Schools Project, 5.00%, 7/01/16   1,000   1,076,960
  Norman Public Schools Project, 5.00%, 7/01/17   1,520   1,693,903
Oklahoma Turnpike Authority, Refunding RB, 2nd Senior Series A, 5.00%, 1/01/15   7,875   7,972,099
         
    13,765,666
 
Pennsylvania — 2.5%
City of Philadelphia Pennsylvania, Refunding ARB, Series A, AMT:        
  5.00%, 6/15/15   2,550   2,636,088
           
Municipal Bonds Par
(000)		   Value
 
Pennsylvania (concluded)
City of Philadelphia Pennsylvania, Refunding ARB, Series A, AMT (concluded):        
  5.00%, 6/15/17 $ 2,000 $ 2,225,720
Pennsylvania Economic Development Financing Authority, RB, Waste Management, Inc. Project, 1.75%, 12/01/33 (a)   4,500   4,573,935
Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, 5.00%, 1/01/16   6,000   6,357,000
Pennsylvania IDA, Refunding RB, Economic Development, 5.00%, 7/01/15   2,500   2,589,825
State Public School Building Authority, RB, School District of Philadelphia Project, 5.00%, 4/01/15   1,710   1,750,749
         
    20,133,317
 
South Carolina — 0.9%
South Carolina Transportation Infrastructure Bank, Refunding RB (AMBAC):        
  Series A, 5.00%, 10/01/15   5,440   5,702,262
  Series B, 5.25%, 10/01/14   2,000   2,000,280
         
    7,702,542
 
Texas — 4.5%
City of Corpus Christi Texas Utility System, Refunding RB, 4.00%, 7/15/17   2,000   2,185,180
City of Dallas Texas ISD, GO, Refunding, (PSF-GTD), 4.00%, 2/15/15   2,200   2,231,680
City Public Service Board of San Antonio, Refunding RB, 5.00%, 2/01/18 (b)   6,000   6,818,520
County of Comal Texas ISD, GO, Refunding, Unlimited Tax, Series A (PSF-GTD), 4.00%, 2/01/16   1,500   1,573,560
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding RB:        
  Memorial Hermann Health System, Series A, 4.00%, 12/01/16   525   563,960
  Methodist Hospital System, Series B, 5.25%, 12/01/14   2,600   2,622,438
Lower Colorado River Authority, Refunding RB, 5.00%, 5/15/16   2,490   2,670,824
           


     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 5
           
 
 
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value
 
Texas (concluded)
Northside Texas ISD, GO, Refunding, 5.00%, 2/15/17 $ 6,910 $ 7,638,038
Texas A&M University System Board of Regents, Refunding RB, 5.00%, 7/01/16   5,005   5,413,158
Texas Public Finance Authority, Refunding RB, 5.00%, 7/01/16   4,350   4,705,525
         
    36,422,883
 
Virginia — 4.4%
Commonwealth of Virginia, GO, Series B, 4.00%, 6/01/16   5,000   5,306,500
Virginia College Building Authority, RB, Series A:        
  21st Century College & Equipment Programs, 5.00%, 2/01/16   11,910   12,660,211
  5.00%, 2/01/17   4,800   5,298,384
Virginia Commonwealth Transportation Board, Refunding RB, Series B, 5.00%, 5/15/16   7,835   8,428,893
Wise County Industrial Development Authority, RB, Series A, 2.38%, 11/01/40 (a)   4,000   4,081,400
         
    35,775,388
 
Wisconsin — 2.3%
State of Wisconsin, Refunding RB, Series 1, 5.00%, 7/01/16   10,000   10,804,400
Wisconsin Health & Educational Facilities Authority, Refunding RB, Series B, 5.13%, 8/15/27 (a)   7,500   8,135,475
         
    18,939,875
 
Total Long-Term Investments
(Cost — $796,673,251) — 98.6%		   800,051,217
 
           
Short-Term Securities Par
(000)		   Value
 
California — 1.2%
State of California, RB, 1.50%, 6/22/15 $ 10,100 $ 10,100,359
 
Illinois — 1.9%
Cook County, GO, Series B, VRDN, 0.29%, 10/01/15 (d)   15,000   15,000,000
 
 
Shares		    
 
Money Market Funds — 0.7%        
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f)   5,335,392   5,335,392
 
Total Short-Term Securities
(Cost — $30,435,751) — 3.8%		   30,435,751
 
Total Investments
(Cost — $827,109,002*) — 102.4%		   830,486,968
Liabilities in Excess of Other Assets — (2.4)%   (19,095,699)
         
Net Assets — 100.0% $ 811,391,269
         
* As of September 30, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
Tax cost $ 827,109,002
         
Gross unrealized appreciation $ 3,600,939
Gross unrealized depreciation   (222,973)
         
Net unrealized appreciation $ 3,377,966
         
           


Notes to Schedule of Investments

* As of September 30, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
(a) Variable rate security. Rate shown is as of report date.
(b) When-issued security. Unsettled when-issued transactions were as follows:
     
 
  Counterparty Value Unrealized
Appreciation/
(Depreciation)		  
 
  Citigroup Global Markets, Inc. $ 3,885,503 $ 9,946  
  J.P.Morgan Securities LLC $ 16,297,187 $ (3,869)  
  Merrill Lynch, Pierce, Fenner & Smith, Inc. $ 6,818,520 $ 18,600  
 
             

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 6
           
 
 
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
(c) Security is collateralized by municipal or U.S. Treasury obligations.
(d) Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.
(e) Investments in issuers considered to be an affiliate of the Fund during the period ended September 30, 2014, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:
     
 
  Affiliate   Shares
Held at
June 30, 2014		   Net
Activity		   Shares
Held at
September 30, 2014		   Income  
 
  FFI Institutional Tax-Exempt Fund   3,454,392   1,881,000   5,335,392 $ 359  
 

 

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

Portfolio Abbreviations

   
AGC Assured Guarantee Corp.
AGM Assured Guaranty Municipal Corp.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax (subject to)
ARB Airport Revenue Bonds
EDA Economic Development Authority
ERS Extendible Reset Securities
GAN Grant Anticipation Notes
GARB General Airport Revenue Bonds
GO General Obligation Bonds
GTD Guaranteed
HFA Housing Finance Agency
IDA Industrial Development Authority
ISD Independent School District
LRB Lease Revenue Bonds
M/F Multi-Family
NPFGC National Public Finance Guarantee Corp.
PSF Public School Fund
RB Revenue Bonds
SIFMA Securities Industry and Financial Markets Association
SONYMA State of New York Mortgage Agency
VRDN Variable Rate Demand Notes
     

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 7
           
 
 
Schedule of Investments (concluded) BlackRock Short-Term Municipal Fund
• Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:
   
  • Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
 
  • Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
 
  • Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund's own assumptions used in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund's policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarizes the Fund's investments categorized in the disclosure hierarchy as of September 30, 2014:

 

 
  Level 1   Level 2   Level 3   Total  
 
Assets:    
Investments:  
  Long-Term Investments 1   — $ 800,051,217   — $ 800,051,217  
  Short-Term Securities $ 5,335,392   25,100,359   —   30,435,751  
Total $ 5,335,392 $ 825,151,576   — $ 830,486,968  
                     
1 See above Schedule of Investments for values in each sector.

 

The Fund may hold liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of September 30, 2014, Bank overdraft at value of $5,991 is categorized as Level 2 within the disclosure hierarchy.

There were no transfers between levels during the period ended September 30, 2014.

 

     
  BLACKROCK MUNICIPAL BOND FUND, INC. September 30, 2014 8
           
 
 

Item 2 – Controls and Procedures
2(a) – The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ″1940 Act″)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) – There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 3 – Exhibits
  Certifications – Attached hereto
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
     
  BlackRock Municipal Bond Fund, Inc.
     
  By: /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Bond Fund, Inc.
     
  Date: November 24, 2014
     
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
     
  By: /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Bond Fund, Inc.
     
  Date: November 24, 2014
     
  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Bond Fund, Inc.
     
  Date: November 24, 2014

 

 
 EX-99.CERT 2 e61543ex99cert.htm CERTIFICATION

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock Municipal Bond Fund, Inc., certify that:

1.                   I have reviewed this report on Form N-Q of BlackRock Municipal Bond Fund, Inc.;

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;

3.                   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.                   The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

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;

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;

c)                   evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d)                   disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.            The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)                   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b)                   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 24, 2014

/s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of
BlackRock Municipal Bond Fund, Inc.

 
 

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Municipal Bond Fund, Inc., certify that:

1.                   I have reviewed this report on Form N-Q of BlackRock Municipal Bond Fund, Inc.;

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;

3.                   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.                   The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

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;

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;

c)                   evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d)                   disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.                   The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)                   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b)                   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 24, 2014

/s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of
BlackRock Municipal Bond Fund, Inc.