-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E4x56XIYl3J5NqaIGAtoRtqPG76IRIgGmWf+Gd3bfunz8YaIK6rxoI/INfKvtelB 1K+Fb7n1Fehjr5Ji/ejjfw== 0000900092-04-000342.txt : 20041129 0000900092-04-000342.hdr.sgml : 20041129 20041129144011 ACCESSION NUMBER: 0000900092-04-000342 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20041129 DATE AS OF CHANGE: 20041129 EFFECTIVENESS DATE: 20041129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH 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: 041171040 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08536 BUSINESS PHONE: 6092822026 FORMER COMPANY: FORMER CONFORMED NAME: ONE LIBERTY MUNICIPAL BOND FUND INC DATE OF NAME CHANGE: 19780622 N-Q 1 munibond.txt MUNICIPAL BOND 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 811-2688 Name of Fund: Merrill Lynch Municipal Bond Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Terry K. Glenn, President, Merrill Lynch Municipal Bond Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 06/30/04 Date of reporting period: 07/01/04 - 09/30/04 Item 1 - Schedule of Investments Merrill Lynch Municipal Bond Fund, Inc. - Limited Maturity Portfolio Schedule of Investments as of September 30, 2004 (in Thousands)
S&P Moody's Face State Ratings Ratings Amount Municipal Bonds Value Alabama - 0.4% AAA Aaa $ 2,400 Birmingham, Alabama, GO, Refunding and Improvement, Series B, 4% due 12/01/2004(c) $ 2,410 Arizona - 4.5% AAA Aaa 4,000 Arizona State University, COP, Refunding, VRDN, 4% due 7/01/2006(b)(d) 4,145 AA- A1 4,000 Central Arizona, Water Conservation District, Contract Revenue Refunding Bonds (Central Arizona 4,157 Project), Series A, 5.40% due 11/01/2005 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Arizona Public Service Company), VRDN (b): BBB Baa1 2,500 Series C, 1.95% due 3/01/2005 2,490 BBB Baa1 3,500 Series D, 1.75% due 3/01/2005 3,493 BBB Baa1 4,000 Series E, 1.75% due 3/01/2005 3,992 AA Aaa 8,640 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Bonds, Junior Lien, 5.90% 9,242 due 7/01/2006(a) Salt River Project, Arizona, Agriculture Improvement and Power District, Electric System Revenue Refunding Bonds (Salt River Project), Series B: AA Aa2 890 7% due 1/01/2005 902 AA Aa2 1,455 7% due 1/01/2005(g) 1,475 Arkansas - 0.2% AAA Aaa 1,500 Little Rock, Arkansas, GO, Refunding (Capital Improvement), 4% due 4/01/2006(e) 1,547
Portfolio Abbreviations To simplify the listings of Merrill Lynch Municipal Bond Fund, Inc. - Limited Maturity Portfolio's portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list below. AMT Alternative Minimum Tax (subject to) BAN Bond Anticipation Notes COP Certificates of Participation EDA Economic Development Authority GO General Obligation Bonds HFA Housing Finance Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds PCR Pollution Control Revenue Bonds VRDN Variable Rate Demand Notes Merrill Lynch Municipal Bond Fund, Inc. - Limited Maturity Portfolio Schedule of Investments as of September 30, 2004 (concluded) (in Thousands)
S&P Moody's Face State Ratings Ratings Amount Municipal Bonds Value California - 2.9% BBB A3 $ 3,165 California Pollution Control Financing Authority, PCR (Southern California Edison Company), VRDN, $ 3,147 Series B, 2% due 3/01/2006(b) BBB+ NR* 2,250 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds (Republic 2,249 Services Inc. Project), AMT, VRDN, 2% due 12/01/2004(b) A A3 10,000 California Statewide Communities Development Authority Revenue Bonds (Kaiser Permanente), 10,118 VRDN, Series C, 3.70% due 6/01/2005(b) AAA Aaa 3,750 Natomas, California, Unified School District, COP (Natomas High School Project), VRDN, 2.50% due 3,753 2/01/2005(b)(c) Colorado - 1.3% Denver, Colorado, City and County Airport Revenue Refunding Bonds, AMT, Series A: AAA Aaa 3,175 5.50% due 11/15/2004(c) 3,190 AAA Aaa 5,000 VRDN, 5.25% due 11/15/2006(b)(f) 5,320 Connecticut - 1.6% Connecticut State, GO, Refunding: AA Aa3 2,700 Series C, 4% due 12/15/2005 2,774 AAA Aaa 5,000 Series D, 5% due 8/01/2005(e) 5,138 AAA Aaa 2,630 Waterbury, Connecticut, GO, Refunding, 4% due 2/01/2005(h) 2,649 Delaware - 1.1% AAA Aaa 3,000 Delaware State, GO, Refunding, Series A, 5% due 7/01/2006 3,165 AAA Aaa 4,125 Delaware State, GO, Series A, 5% due 1/01/2006 4,291 Florida - 2.2% AA+ Aa2 1,000 Florida State Board of Education, Capital Outlay, GO (Public Education), Series B, 5.625% due 6/01/2005 1,026 AAA Aaa 2,500 Florida State Board of Education, Lottery Revenue Bonds, Series B, 5.25% due 7/01/2005(f) 2,567 AAA Aaa 400 Hillsborough County, Florida, Aviation Authority Revenue Refunding Bonds (Tampa International Airport), AMT, Series A, 5% due 10/01/2005(c) 412 AAA Aaa 9,685 Orlando, Florida, Greater Orlando Aviation Authority, Airport Facilities Revenue Refunding Bonds, Series C, 5% due 10/01/2004(d) 9,686 AAA Aaa 500 Tallahassee, Florida, Energy System Revenue Bonds, Series B, 4% due 10/01/2004(e) 500 Georgia - 2.6% NR* Aa2 5,000 Coweta County, Georgia, School District, GO, Sales Tax, 4.50% due 8/01/2005 5,117 AAA Aaa 2,550 Georgia State, GO, Refunding, Series A, 6.25% due 3/01/2006 2,707 AAA Aaa 4,360 Georgia State, GO, Series B, 4.50% due 5/01/2006 4,546 Gwinnett County, Georgia, School District, GO, Refunding: AA+ Aaa 4,000 4% due 2/01/2005 4,032 AA+ Aaa 1,000 4.50% due 2/01/2006 1,036 Hawaii - 0.5% AAA Aa3 3,505 Hawaii State Highway Revenue Refunding Bonds, 3% due 7/01/2005(e) 3,539 Illinois - 3.2% AAA Aaa 17,000 Illinois Development Finance Authority, PCR, Refunding (Commonwealth Edison Company Project), Series A, 4.40% due 12/01/2006(c) 17,778 University of Illinois, COP (Utility Infrastructure Projects), Refunding (c): AAA Aaa 1,065 4% due 8/15/2005 1,086 AAA Aaa 2,000 5% due 8/15/2006 2,112 Indiana - 0.7% BBB+ Baa1 4,300 Indiana State Development Finance Authority, PCR, Refunding (Southern Indiana Gas & Electric), VRDN, AMT, Series C, 5% due 3/01/2006(b)(c) 4,436 Iowa - 1.9% Ankeny, Iowa, GO, BAN: NR* MIG1+ 6,920 Series C, 1.50% due 6/01/2005 6,928 NR* MIG1+ 5,775 Series D, 2% due 12/01/2005 5,778 Kansas - 3.1% SP1+ MIG1+ 20,229 Unified Government of Wyandotte Coounty and Kansas City, Kansas, GO (Municipal Temporary Notes), Series I, 1.35% due 4/01/2005 20,176 Kentucky - 0.8% NR* MIG1+ 5,500 Newport, Kentucky, GO, BAN, 2.41% due 12/01/2004 5,503 Louisiana - 0.6% AAA Aaa 4,000 Orleans Parish, Louisiana, School Board, GO, 7.50% due 9/01/2005(a)(f) 4,213 Maryland - 0.2% A A3 1,050 Maryland State Health and Higher Educational Facilities Authority, Revenue Refunding Bonds (Lifebridge Health), Series A, 4% due 7/01/2006 1,082 Massachusetts - A1+ Baa2 3,000 Massachusetts State Development Finance Agency, 4.8% IDR (The Mead Corporation Project), VRDN, AMT, Series A, 2.25% due 11/01/2033(b) 3,000 Massachusetts State, GO (Consolidated Loan) (a): AAA Aaa 4,700 Series A, 5.25% due 1/01/2006(d) 4,948 AAA Aaa 7,725 Series B, 5.75% due 6/01/2006(f) 8,294 AA Aa2 15,070 New England Education Loan Marketing Corporation, Massachusetts, Student Loan Revenue Refunding Bonds, AMT, Series A, 5.70% due 7/01/2005 15,506 Michigan - 4.9% AAA Aaa 5,000 Detroit, Michigan, Economic Development Corporation, Resource Recovery Revenue Refunding Bonds, AMT, Series A, 3.80% due 5/01/2005(c) 5,060 AAA Aaa 32,750 Huron Valley, Michigan, School District, GO, 6.535%** due 5/01/2006(a)(f) 11,665 Michigan Municipal Bond Authority Revenue Bonds: AA+ Aa1 1,000 (Local Government Loan Program), Series C, 4% due 5/01/2006 1,033 AA+ Aaa 6,890 (Pooled Project), Series B, 5.625% due 4/01/2006(a) 7,414 AA Aa2 3,000 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program), Series III, 5% due 10/15/2004 3,004 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Oakwood Obligated Group): A A2 2,000 5% due 11/01/2005 2,055 A A2 2,000 5% due 11/01/2006 2,091 Minnesota - 2.1% NR* NR* 7,915 Minneapolis, Minnesota, Revenue Bonds (Minneapolis Society of Fine Arts), VRDN, 1.38% due 10/14/2015(b) 7,895 AA+ Aa1 6,000 Minnesota State Housing Finance Agency Revenue Bonds (Residential Housing Finance), VRDN, Series D, 1.40% due 7/01/2005(b) 5,984 Missouri - 2.0% AAA Aaa 3,980 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, AMT, 5% due 4/01/2007(c) 4,230 NR* Aaa 4,000 Kansas City, Missouri, School District, Building Revenue Refunding Bonds, Series A, 5% due 2/01/2006(f) 4,169 NR* MIG1+ 5,000 Missouri State Public Utilities Commission, Interim Construction Notes, 2.75% due 10/01/2005 5,044 New Jersey - 2.0% SP1 MIG2+ 4,680 Jersey City, New Jersey, GO, Refunding (Real Property Tax Appeal), Series A, 2.50% due 1/07/2005 4,685 AAA Aaa 3,000 New Jersey EDA, Market Transition Facility Revenue Refunding Bonds, Senior Lien, Series A, 5% due 3,161 7/01/2006(d) AAA Aaa 5,000 New Jersey State Transit Corporation, COP, 6.50% due 4/01/2007(a)(e) 5,592 New Mexico - 3.9% AAA Aaa 6,645 New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series C, 4% due 6/01/2006(c) 6,878 AA Aa2 5,000 New Mexico State Severance Tax Refunding Bonds, Series A, 5% due 7/01/2005 5,124 AAA Aaa 3,595 Rio Rancho, New Mexico, Water and Wastewater System Revenue Bonds, Series A, 6% due 5/15/2006(a)(e) 3,834 NR* A2 10,000 San Juan County, New Mexico, Gross Receipts Tax Revenue Bonds, Subordinate Series A, 2.50% due 8/15/2005 10,059 New York - 5.0% AA- A3 5,000 Metropolitan Transportation Authority, New York, Service Contract Revenue Bonds, Series B, 5.25% due 7/01/2006 5,281 A A2 7,000 New York City, New York, GO, Refunding, Series G, 5% due 8/01/2005 7,181 SP1+ MIG1+ 16,000 New York State Thruway Authority, General Revenue Bonds, BAN, VRDN, Series A, 2.25% due 10/06/2005(b) 16,091 AAA Aaa 4,000 Suffolk County, New York, IDA, Southwest Sewer System Revenue Refunding Bonds, 4% due 2/01/2006(h) 4,111 North Carolina - AAA Aa1 6,100 North Carolina State, GO, Refunding, 1.8% 4% due 3/01/2007 6,395 AAA Aa1 5,000 North Carolina State, Public School Building, GO, 4.60% due 4/01/2006 5,210 Ohio - 3.3% NR* Aaa 375 Mason, Ohio, COP (Municipal Facilities Project), 3.50% due 12/01/2004(d) 376 BB+ Baa2 4,000 Ohio State Air Quality, Development Authority, Revenue Refunding Bonds (Ohio Edison Project), VRDN, Series B, 2.25% due 6/01/2005(b) 4,001 Ohio State, Highway Capital Improvement, GO: AAA Aa1 5,375 Series C, 4.75% due 5/01/2005 5,473 AAA Aa1 4,850 Series F, 5% due 5/01/2005 4,946 BB+ Baa2 7,000 Ohio State Water Development Authority, Pollution Control Facilities Revenue Refunding Bonds (Ohio Edison Company), VRDN, AMT, Series B, 3.35% due 12/01/2005(b) 6,997 Oklahoma - 4.2% NR* Aaa 630 Midwest City, Oklahoma, Municipal Authority, Capital Improvement Revenue Bonds, 4.55% due 6/01/2005(e)(g) 642 AAA Aaa 3,040 Oklahoma City, Oklahoma, Airport Trust Revenue Refunding Bonds, Junior Lien, AMT, 28th Series, 3,089 4% due 7/01/2005(d) AAA NR* 21,364 Oklahoma County, Oklahoma, HFA, Single Family Revenue Bonds, VRDN, Series D, 1.155% due 1/02/2005(b 21,364 A2 VMIG2 2,500 Oklahoma Development Finance Authority Revenue Bonds (Conoco Project), VRDN, AMT, Series B, 1.87% due 8/01/2037(b) 2,500 Oregon - 2.0% NR* Aa2 10,770 Portland, Oregon, Limited Tax, GO, Refunding, VRDN, Series B, 3% due 12/15/2004(b) 10,803 AA+ Aa3 2,385 Tri-County, Oregon, Metropolitan Transportation District Revenue Bonds, Series A, 5.25% due 8/01/2005 2,455 Pennsylvania - AAA Aaa 9,620 Allegheny County, Pennsylvania, Port Authority, 2.4% Subordinate Lien Special Revenue Transportation Bonds, 5.375% due 6/01/2006(d) 10,177 NR* MIG1+ 3,000 Midway Sewerage Authority, Pennsylvania, Revenue Notes, 2% due 12/01/2005 3,001 AAA Aaa 2,750 Pennsylvania State, GO, Refunding, 5.125% due 9/15/2006(c) 2,922 Rhode Island - AA+ Aa2 2,500 Rhode Island Housing and Mortgage Finance 2.0% Corporation, Homeowner Opportunity Revenue Bonds, AMT, Series 41-C, 3.375% due 11/01/2005 2,535 A+ Aa3 10,000 Rhode Island State Economic Development Corporation, Grant Anticipation Bonds (Rhode Island Department of Transportation), 5% due 6/15/2006 10,513 South Carolina - NR* Aa1 3,565 Beaufort County, South Carolina, School District, 0.7% GO, Refunding, Series C, 5% due 4/01/2007 3,825 AAA Aaa 500 South Carolina State Highway, GO, Series B, 5.25% due 4/01/2005 509 Tennessee - 0.6% NR* Aaa 3,815 Hamilton County, Tennessee, GO, Refunding, 4% due 10/01/2005(f) 3,901 Texas - 10.6% AAA Aaa 3,310 Corpus Christi, Texas, GO (General Improvement), Refunding, Series A, 5% due 3/01/2006(e) 3,456 AAA Aaa 1,000 El Paso, Texas, Airport Revenue Refunding Bonds (El Paso International Airport), AMT, 4% due 8/15/2005(e) 1,018 NR* Aa1 8,180 Gulf Coast Waste Disposal Authority, Texas, PCR (Amoco Oil Company Project), VRDN, 2% due 10/01/2006(b) 8,172 AA Aa3 5,250 Houston, Texas, Independent School District, GO (Public Property Finance Contractual Obligations), 3% due 7/15/2005 5,304 A A1 1,000 Lower Colorado River Authority, Texas, Revenue Refunding Bonds, 5% due 5/15/2005 1,020 A A2 2,750 Lower Colorado River Authority, Texas, Transmission Contract Revenue Refunding Bonds (LCRA Transmission Services Corp. Project), Series C, 5% due 5/15/2005 2,805 Matagorda County, Texas, Navigation District No. 1, PCR, Refunding (Central Power and Light Company Project), VRDN (b): BBB Baa2 5,000 AMT, Series B, 2.35% due 11/01/2004 4,998 BBB Baa2 5,000 Series A, 2.15% due 11/01/2004 4,999 AA+ Aa1 4,000 Texas A & M University, Financing System Revenue Refunding Bonds, 4.65% due 5/15/2006 4,176 AAA Aaa 10,025 Texas Public Finance Authority, Capital Appreciation Building Revenue Refunding Bonds, 2.45%** due 8/01/2006(d)(g) 9,660 AA Aa1 5,750 Texas State, Texas Public Finance Authority, GO, Refunding, Series B, 6% due 10/01/2004(c) 5,751 AAA Aaa 3,000 Texas Water Development Board Revenue Bonds (State Revolving Fund), Senior Lien, Series A, 6% due 7/15/2006 3,215 AAA Aaa 4,950 University of Houston, Texas, University Revenue Refunding Bonds, Series B, 5% due 2/15/2005(e) 5,012 NR* Aaa 10,000 Weatherford, Texas, Independent School District, GO, VRDN, Series A, 2.50% due 8/01/2005(b) 10,026 Virginia - 2.7% BBB NR* 7,000 Amelia County, Virginia, IDA, Solid Waste Disposal Revenue Refunding Bonds (Waste Management Project), VRDN, AMT, 4.90% due 4/01/2005(b) 7,078 BBB+ A3 6,875 Louisa, Virginia, IDA, Solid Waste and Sewer Disposal Revenue Bonds (Virginia Electric and Power Company Project), VRDN, AMT, Series A, 3.15% due 4/01/2007(b) 6,801 AA+ Aa1 3,900 Virginia State Public School Authority, School Financing, GO, Series B, 4% due 8/01/2005 3,975 Washington - 4.5% AA+ Aa1 3,345 King County, Washington, GO, Refunding, 5% due 12/01/2005 3,470 AAA Aa1 2,180 Seattle, Washington, GO, 5% due 8/01/2006 2,302 Seattle, Washington, GO, Refunding and Improvement: AAA Aa1 5,000 4% due 8/01/2005 5,096 AAA Aa1 3,455 4% due 8/01/2006 3,586 AAA Aaa 2,180 Seattle, Washington, GO, Refunding, Series A, 5.25% due 3/01/2005 2,213 AA Aa1 7,195 Washington State, GO, Series B and AT-7, 6.10% due 6/01/2006 7,687 AAA Aaa 5,000 Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project Number 1), Series A, 6% due 7/01/2005(c) 5,160 West Virginia - AAA Aaa 2,230 West Virginia State Building Commission 0.4% Revenue Bonds, Series A, 5.50% due 7/01/2006(d) 2,368 Wisconsin - 3.0% SP1+ NR* 7,500 Racine, Wisconsin, Waterworks System, BAN, 2.125% due 9/01/2005 7,503 AA- Aa3 11,795 Wisconsin State, GO, Series C, 4% due 5/01/2006 12,186 Puerto Rico - 2.9% Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series AA: A Baa1 13,505 5% due 7/01/2005 13,830 A Baa1 5,000 5% due 7/01/2006 5,257 Total Municipal Bonds (Cost - $616,174) - 93.6% 617,054 Shares Held Short-Term Securities Value 46,714 Merrill Lynch Institutional Tax-Exempt Fund (I) $ 46,714 Total Short-Term Securities (Cost - $46,714) - 7.1% 46,714 Total Investments (Cost - $662,888***) - 100.7% 663,768 Liabilities in Excess of Other Assets - (0.7%) (4,859) ------------ Net Assets - 100.0% $ 658,909 ============ (a)Prerefunded. (b)The interest rate is subject to change periodically based upon prevailing market rates. The interest rate shown is the rate in effect at September 30, 2004. (c)AMBAC Insured. (d)MBIA Insured. (e)FSA Insured. (f)FGIC Insured. (g)Escrowed to maturity. (h)XL Capital Insured. (i)Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income Merrill Lynch Institutional Tax-Exempt Fund 29,900 $48 *Not Rated. **Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase by the Fund. ***The cost and unrealized appreciation/depreciation of investments as of September 30, 2004, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 662,846 ============= Gross unrealized appreciation $ 1,942 Gross unrealized depreciation (1,062) ------------- Net unrealized appreciation $ 880 ============= +Highest short-term rating by Moody's Investors Service, Inc.
Merrill Lynch Municipal Bond Fund, Inc. - Insured Portfolio Schedule of Investments as of September 30, 2004 (in Thousands)
S&P Moody's Face State Ratings Ratings Amount Municipal Bonds Value Alabama - 2.2% Alabama Water Pollution Control Authority Revenue Bonds (b): AAA Aaa $ 3,020 5.75% due 8/15/2018 $ 3,401 AAA Aaa 1,585 Revolving Fund Loan, Series A, 6.75% due 8/15/2005(a) 1,655 AAA Aaa 10,000 Lauderdale County and Florence, Alabama, Health Care Authority, Revenue Refunding Bonds 11,226 (Coffee Health Group), Series A, 6% due 7/01/2029(e) AAA Aaa 7,000 University of Alabama, University Revenue Bonds (Birmingham), 6% due 10/01/2020(g) 7,899 Arkansas - 0.6% NR* Aaa 6,060 University of Arkansas, University Revenue Bonds (Various Facility, Fayetteville Campus), 5.50% due 12/01/2021(g) 6,771
Portfolio Abbreviations To simplify the listings of Merrill Lynch Municipal Bond Fund, Inc. - - Insured Portfolio's portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list below. AMT Alternative Minimum Tax (subject to) COP Certificates of Participation DRIVERS Derivative Inverse Tax-Exempt Receipts EDA Economic Development Authority GO General Obligation Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds PCR Pollution Control Revenue Bonds RIB Residual Interest Bonds S/F Single-Family Merrill Lynch Municipal Bond Fund, Inc. - Insured Portfolio Schedule of Investments as of September 30, 2004 (concluded) (in Thousands)
S&P Moody's Face State Ratings Ratings Amount Municipal Bonds Value California - 20.2% AAA Aaa $ 10,000 California Infrastructure and Economic Development Bank Revenue Bonds (Bay Area Toll Bridges), 1st Lien, Series A, 5.25% due 7/01/2021(I) $ 10,869 AAA Aaa 27,250 California Pollution Control Financing Authority, PCR, Refunding (Pacific Gas & Electric), AMT, Series A, 5.35% due 12/01/2016(e) 29,498 AAA Aaa 2,075 California State Department of Veteran Affairs, Home Purpose Revenue Refunding Bonds, Series A, 5.35% due 12/01/2027(b) 2,157 California State, Department of Water Resources, Power Supply Revenue Bonds, Series A: AAA Aaa 12,000 5.375% due 5/01/2017(f) 13,325 AAA Aaa 10,250 5.375% due 5/01/2021(e) 11,177 AAA Aaa 6,385 5.375% due 5/01/2022(e) 6,927 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series B (g): AAA Aaa 23,200 5.375% due 6/01/2028 24,241 AAA Aaa 5,000 5.50% due 6/01/2033 5,370 Industry, California, Urban Development Agency, Tax Allocation Bonds, Series 1-B (e): AAA Aaa 5,645 5% due 5/01/2020 5,965 AAA Aaa 6,000 5% due 5/01/2021 6,283 AAA Aaa 26,085 Los Angeles, California, Community College District, GO, Series A, 5.50% due 8/01/2019(e) 29,315 AAA Aaa 7,830 Los Angeles, California, Community Redevelopment Agency, Community Redevelopment Financing Authority Revenue Bonds (Bunker Hill Project), Series A, 5% due 12/01/2024(i) 8,120 AAA Aaa 5,000 Los Angeles, California, GO, Series A, 5% due 9/01/2019(e) 5,359 Los Angeles, California, Unified School District, GO: AAA Aaa 13,690 (Election of 1997), Series F, 5% due 1/01/2028(g) 14,050 AAA Aaa 13,800 Series A, 5% due 1/01/2028(e) 14,163 AAA Aaa 8,965 Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds, 5.50% due 9/01/2036(b) 9,698 AAA Aaa 6,440 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035(e) 7,004 AAA Aaa 11,685 Rialto, California, Unified School District, GO, Series A, 6.24%** due 6/01/2025(g) 4,043 AAA Aaa 5,075 Sacramento, California, Unified School District, GO (Election of 1999), Series B, 5% due 7/01/2026(g) 5,219 AAA Aaa 8,390 San Joanquin Hills, California, Transporation Corridor Agency, Toll Road Revenue Refunidng Bonds, Series A, 5.28%** due 1/15/2024(e) 3,122 AAA Aaa 3,575 Tahoe Truckee, California, Unified School District, GO (School Facilities Improvement District Number 2), Series A, 5.25% due 8/01/2029(e) 3,766 AAA Aaa 2,000 University of California, Revenue Refunding Bonds, Series A, 5.125% due 5/15/2020(b) 2,157 Colorado - 5.5% AAA Aaa 19,250 Aurora, Colorado, COP,6% due 12/01/2025(b) 21,864 NR* Aaa 31,160 Denver, Colorado, City and County Airport Revenue Refunding Bonds, RIB, Series 153, 9.971% due 11/15/2025(d)(e) 34,421 AAA Aaa 4,000 Logan County, Colorado, Justice Center Finance Corporation, COP, 5.50% due 12/01/2020(e) 4,480 Florida - 2.6% AAA Aaa 5,500 Dade County, Florida, Water and Sewer System Revenue Bonds, 5.25% due 10/01/2026(g) 5,705 NR* Aaa 15,000 Escambia County, Florida, Health Facilities Authority, Health Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95% due 7/01/2020(b) 15,421 AAA Aaa 4,025 Lee County, Florida, IDA, Utility System Revenue Bonds (Bonita Springs Utilities Inc. Project), AMT, 5% due 11/01/2024(g) 4,131 AAA Aaa 2,240 West Coast Regional Water Supply Authority, Florida, Capital Improvement Revenue Bonds, 10.40% 2,935 due 10/01/2010(a)(b) Georgia - 3.4% Georgia Municipal Electric Authority, Power Revenue Bonds, Series Y (b): AAA Aaa 8,510 6.40% due 1/01/2013 10,058 AAA Aaa 490 6.40% due 1/01/2013 (c) 582 AAA Aaa 20,000 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series EE, 7% due 26,694 1/01/2025(b) Hawaii - 1.0% AAA Aaa 10,170 Honolulu, Hawaii, City and County GO, Refunding, Series B, 5% due 7/01/2009(e) 11,187 Illinois - 3.7% Chicago, Illinois, O'Hare International Airport Revenue Bonds, 3rd Lien, AMT, Series B-2: AAA Aaa 3,200 5.75% due 1/01/2023(I) 3,500 AAA Aaa 9,215 5.75% due 1/01/2024(I) 10,049 AAA Aaa 17,690 6% due 1/01/2027(e) 19,594 AAA Aaa 6,800 Illinois State, GO, 5.75% due 5/01/2021(e) 7,298 Indiana - 1.0% AAA Aaa 10,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25% due 6/01/2029(g) 10,510 Kansas - 0.5% AAA Aaa 5,145 Manhattan, Kansas, Hospital Revenue Bonds (Mercy Health Center), 5.50% due 8/15/2020(I) 5,730 Kentucky - 0.2% AAA Aaa 2,490 Knox County, Kentucky,GO, Series B, 5.625% due 6/01/2036(f) 2,738 Maryland - 0.5% AAA Aaa 4,400 Maryland State Health and Higher Educational Facilities Authority Revenue Bonds (University of Maryland Medical System), Series B, 7% due 7/01/2022(g) 5,767 Massachusetts - 3.0% AAA Aaa 4,000 Massachusetts State HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C, 5.60% due 1/01/2045(i) 4,128 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds (g): AAA Aaa 4,750 5.25% due 1/01/2025 5,061 AAA Aaa 10,000 5.25% due 1/01/2026 10,601 AAA Aaa 12,250 5.25% due 1/01/2027 12,986 Michigan - 2.6% AAA Aaa 4,305 Michigan State, HDA, Rental Housing Revenue Refunding Bonds, Series B, 6.15% due 10/01/2015(e) 4,442 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds: AAA Aaa 10,000 (Detroit Edison Company), Series AA, 6.40% due 9/01/2025(e) 10,584 AAA Aaa 13,145 (Detroit Edison Company Project), AMT, Series A, 5.50% due 6/01/2030(f) 13,780 Minnesota - 1.4% NR* Aaa 5,860 Delano, Minnesota, Independent School District Number 879, GO, Series A, 5.875% due 2/01/2025(I) 6,680 Sauk Rapids, Minnesota, Independent School District Number 047, GO, Series A (e): NR* Aaa 3,735 5.65% due 2/01/2020 4,215 NR* Aaa 4,440 5.70% due 2/01/2021 5,023 Mississippi - 1.2% AAA Aaa 1,320 Harrison County, Mississippi, Management District Revenue Refunding Bonds (Wastewater Treatment Facilities), Series A, 8.50% due 2/01/2013(g) 1,786 NR* Aaa 10,000 Mississippi Hospital Equipment and Facilities Authority Revenue Bonds (Forrest County General 11,132 Hospital Project), 6% due 1/01/2030(i) Missouri - 2.2% Kansas City, Missouri, Airport Revenue Refunding and Improvement Bonds, Series A (e): AAA Aaa 12,990 5.50% due 9/01/2013 14,316 AAA Aaa 9,000 5.50% due 9/01/2014 9,919 Nevada - 6.1% Clark County, Nevada, IDR, AMT, Series A: AAA Aaa 10,000 (Power Company Project), 6.70% due 6/01/2022(g) 10,390 AAA Aaa 9,575 (Southwest Gas Corporation Project), 5.25% due 7/01/2034(b) 9,750 AAA Aaa 45,000 Washoe County, Nevada, Water Facility Revenue Bonds (Sierra Pacific Power Company), AMT, 6.65% due 6/01/2017(e) 46,863 New Jersey - 6.5% AAA Aaa 6,810 Cape May County, New Jersey, Industrial Pollution Control Financing Authority, Revenue Refunding Bonds (Atlantic City Electric Company Project), Series A, 6.80% due 3/01/2021(e) 8,910 Garden State Preservation Trust, New Jersey, Open Space and Farmland Preservation Revenue Bonds, Series A (i) (k): AAA Aa3 3,125 5.80% due 11/01/2021 3,444 AAA Aa3 8,310 5.80% due 11/01/2022 9,123 AAA Aa3 4,340 5.80% due 11/01/2023 4,735 AAA Aaa 23,000 Garden State Preservation Trust, New Jersey, Revenue Bonds, Series B, 5.17%** due 11/01/2024 (I) 8,664 AAA Aaa 23,000 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due 7/01/2033(e) 24,274 NR* Aaa 12,500 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds (NUI Corporation), RIB, Series 13,093 371, 10.73% due 10/01/2022(b)(d) New York - 9.4% NR* Aaa 12,075 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, RIB, Series 158, 9.567% due 6/15/2026(d)(e) 13,837 New York City, New York, GO: AAA Aaa 5,155 Refunding, Series G, 5.75% due 2/01/2006(I) 5,478 AAA Aaa 11,500 Series C, 5.625% due 3/15/2018(f) 13,068 AAA Aaa 21,000 Series I, 6% due 4/15/2007(I) 23,118 AAA Aaa 9,190 New York State Dormitory Authority Revenue Bonds (School Districts Financing Program), Series D, 9,827 5.25% due 10/01/2023(e) AAA A3 365 New York State Dormitory Authority, Revenue Refunding Bonds, Series A, 5.75% due 8/15/2022 (e) 400 AAA Aaa 5 Niagara Falls, New York, GO, Public Improvement, 6.90% due 3/01/2024(e) 5 AAA Aaa 34,830 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25% due 37,332 6/01/2022(b) North Carolina - AAA Aaa 3,370 North Carolina HFA, Home Ownership Revenue 0.3% Bonds, AMT, Series 14-A, 5.35% due 1/01/2022(b) 3,511 North Dakota - 0.4% AAA Aa2 4,030 North Dakota State, HFA, Revenue Bonds (Housing Finance Program), Series C, 5.30% due 7/01/2022(b) 4,172 Ohio - 0.1% AAA Aaa 1,075 Ohio State Water Development Authority, Pollution Control Facilities Revenue Bonds (Water Control Loan Fund-Water Quality Series), 5.50% due 6/01/2014(e) 1,185 Oklahoma - 0.7% AAA Aaa 6,385 Oklahoma State IDR, Refunding (Health System), Series A, 6.25% due 8/15/2016(e) 7,312 Oregon - 1.4% AAA Aaa 8,700 Oregon State Department, Administrative Services, COP, Series A, 6.25% due 5/01/2010(a)(b) 10,256 AAA Aaa 3,865 Port of Portland, Oregon, Airport Revenue Refunding Bonds (Portland International Airport), AMT, Series 7-B, 7.10% due 1/01/2012(a)(e) 4,713 Pennsylvania - AAA Aaa 5,000 Pennsylvania HFA, S/F Revenue Bonds, AMT, Series 72A, 3.0% 5.25% due 4/01/2021(e) 5,185 AAA Aaa 8,350 Pennsylvania State, GO, Second Series, 5.25% due 6/01/2015(i) 9,423 AAA Aaa 5,000 Pennsylvania State Turnpike Commission, Turnpike Revenue Refunding Bonds, Series T, 5.50% due 12/01/2013(g) 5,777 AAA Aaa 6,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 12th Series B, 7% due 5/15/2020(c)(e) 7,488 AAA Aaa 4,420 Philadelphia, Pennsylvania, Redevelopment Authority Revenue Bonds (Neighborhood Transformation), Series A, 5.50% due 4/15/2020(g) 4,947 Rhode Island - AAA Aaa 6,815 Rhode Island State Economic Development Corporation, 0.7% Airport Revenue Bonds, Series B, 6% due 7/01/2028(g) 7,653 South Carolina - AAA Aaa 4,200 South Carolina State Public Service Authority, 0.4% Revenue Refunding Bonds, Series A, 6.25% due 1/01/2006(a)(b) 4,511 Texas - 3.8% AAA NR* 17,975 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT, Series 202, 10.163% due 11/01/2028(d)(g) 21,845 El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds, Series A (i): AAA Aaa 4,375 6% due 3/01/2018 5,072 AAA Aaa 4,645 6% due 3/01/2019 5,385 AAA Aaa 3,500 Houston, Texas, Water Conveyance System Contract, COP, Series J, 6.25% due 12/15/2013(b) 4,183 Texas State Department of Housing and Community Affairs, S/F Mortgage Revenue Bonds, AMT, Series A(e)(h): AAA Aaa 2,110 5.45% due 9/01/2023 2,201 AAA Aaa 2,750 5.50% due 3/01/2026 2,838 Utah - 1.6% AAA Aaa 9,535 Utah Transit Authority, Sales Tax and Transportation Revenue Bonds (Salt Lake County Light Rail Transit Project), 5.375% due 12/15/2022(i) 10,310 Utah Water Finance Agency Revenue Bonds (Pooled Loan Financing Program), Series A (b): NR* Aaa 2,515 5.75% due 10/01/2015 2,873 NR* Aaa 3,770 6% due 10/01/2020 4,320 Virginia - 3.2% AAA Aaa 19,755 Fairfax County, Virginia, EDA, Resource Recovery Revenue Refunding Bonds, AMT, Series A, 6.10% due 2/01/2011(b) 22,525 AAA Aaa 13,170 Virginia State HDA, Commonwealth Mortgage Revenue Bonds, Series J, Sub-Series J-1, 5.20% due 7/01/2019(e) 13,396 Washington - 0.7% AAA Aaa 7,225 Chelan County, Washington, Public Utility District Number 001, Consolidated Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45% due 7/01/2037(b) 7,468 West Virginia - 1.2% AAA Aaa 12,250 Pleasants County, West Virginia, PCR, Refunding (Potomac-Pleasants), Series C, 6.15% due 5/01/2015(b) 12,786 Wisconsin - 1.2% AAA Aaa 9,000 Superior, Wisconsin,Limited Obligation Revenue Refunding Bonds (Midwest Energy Resources), Series E, 6.90% due 8/01/2021(g) 11,805 AAA Aa3 1,585 Wisconsin State, GO, AMT, Series B, 6.50% due 5/01/2025(e) 1,626 Puerto Rico - 1.0% Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue Bonds (g): AAA Aaa 2,900 5.25% due 7/01/2017 3,231 AAA Aaa 3,100 5.25% due 7/01/2018 3,434 AAA Aaa 1,750 Series G, 5.25% due 7/01/2017 1,950 AAA Aaa 1,250 Series G, 5.25% due 7/01/2018 1,385 AAA Aaa 1,000 Series G, 5.25% due 7/01/2020 1,099 Total Municipal Bonds (Cost - $960,821) - 93.5% $1,028,273 Shares Held Mutual Funds 300 BlackRock California Insured Municipal 2008 Term Trust, Inc. 4,959 810 BlackRock Insured Municipal 2008 Term Trust, Inc. 13,397 775 BlackRock Insured Municipal Term Trust, Inc. 8,688 Total Mutual Funds (Cost - $27,440) - 2.4% 27,044 Short-Term Securities 52,817 Merrill Lynch Institutional Tax-Exempt Fund (j) 52,817 Total Short-Term Securities (Cost - $52,817) - 4.8% 52,817 Total Investments (Cost - $1,041,078***) - 100.7% 1,108,134 Liabilities in Excess of Other Assets - (0.7%) (7,890) -------------- Net Assets - 100.0% $ 1,100,244 ============== (a)Prerefunded. (b)AMBAC Insured. (c)Escrowed to maturity. (d)The interest rate is subject to change periodically and inversely based upon prevailing market rates. The interest rate shown is the rate in effect at September 30, 2004. (e)MBIA Insured. (f)XL Capital Insured. (g)FGIC Insured. (h)FNMA/GNMA Collateralized. (i)FSA Insured. (j)Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income Merrill Lynch Institutional Tax-Exempt Fund 49,800 $82 (k)When-issued security. *Not Rated. **Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase by the Fund. ***The cost and unrealized appreciation/depreciation of investments as of September 30, 2004, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $1,040,988 ========== Gross unrealized appreciation $ 69,279 Gross unrealized depreciation (2,223) ---------- Net unrealized appreciation $ 67,056 ========== Forward interest rate swaps outstanding as of September 30, 2004 were as follows: (in Thousands) Notional Unrealized Amount Depreciation Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pays a fixed rate of 4.099% Broker, J.P. Morgan Chase Bank Expires November 2018 $11,500 $ (395)
Schedule of Investments as of September 30, 2004 Merrill Lynch Municipal Bond Fund, Inc. - National Portfolio
(in Thousands) S&P Moody's Face State Ratings Ratings Amount Municipal Bonds Value Alabama - 0.5% AAA Aaa $ 3,820 Alabama Incentives Financing Authority, Special Obligation Revenue Refunding Bonds, Series A, 6% due 10/01/2029(c) $ 4,317 BBB Baa2 500 Mobile, Alabama, Industrial Development Board, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.35% due 5/15/2016 539 BBB Baa2 2,500 Selma, Alabama, IDB, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.70% due 2/01/2018 2,729 Alaska - 0.5% AAA Aaa 3,000 Alaska State Housing Financial Corporation, General Mortgage Revenue Refunding, Series A, 6% due 6/01/2027(f) 3,133 AAA Aaa 3,860 Anchorage, Alaska, School, GO, Series B, 5.875% due 12/01/2010 (e)(j) 4,475
Portfolio Abbreviations To simplify the listings of Merrill Lynch Municipal Bond Fund, Inc., - National Portfolio's portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list below. AMT Alternative Minimum Tax (subject to) CARS Complementary Auction Rate Securities COP Certificates of Participation DRIVERS Derivative Inverse Tax-Exempt Receipts EDA Economic Development Authority GO General Obligation Bonds HFA Housing Finance Agency IDA Industrial Development Authority IDB Industrial Development Board IDR Industrial Development Revenue Bonds M/F Multi-Family PCR Pollution Control Revenue Bonds RIB Residual Interest Bonds S/F Single-Family VRDN Variable Rate Demand Notes Schedule of Investments as of September 30, 2004 Merrill Lynch Municipal Bond Fund, Inc. - National Portfolio (concluded)
(in Thousands) S&P Moody's Face State Ratings Ratings Amount Municipal Bonds Value Arizona - 2.7% BBB+ Baa1 $ 4,000 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625% due 7/01/2020 $ 4,410 NR* Aa1 2,000 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT, Senior Series B, 6.60% due 5/01/2010 2,047 AAA NR* 1,000 Glendale, Arizona, Development Authority, Educational Facilities Revenue Refunding Bonds (American Graduate School International), 7.125% due 7/01/2005(a)(j) 1,051 BBB Baa1 1,000 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation), 6.125% due 4/01/2018 1,056 NR* Ba1 2,375 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.75% due 7/01/2029 2,333 BBB+ Baa1 1,625 Maricopa County, Arizona, IDA, Health Facilities Revenue Refunding Bonds (Catholic Healthcare West Project), Series A, 5% due 7/01/2021 1,614 AAA Aaa 1,000 Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds (Metro Gardens-Mesa Ridge Project), Series A, 5.65% due 7/01/2019(f) 1,021 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding, Series A: BBB- Baa3 1,200 (El Paso Electric Company Project), 6.25% due 5/01/2037 1,232 BBB Baa2 1,000 (Public Service Company of New Mexico Project), 6.30% due 12/01/2026 1,052 Peoria, Arizona, Improvement District No. 8401, Special Assessment Bonds No. 8802: BBB+ NR* 430 7.20% due 1/01/2010 440 BBB+ NR* 510 7.20% due 1/01/2013 522 Peoria, Arizona, Improvement District, Special Assessment Bonds No. 8801: BBB+ NR* 190 7.30% due 1/01/2009 194 BBB+ NR* 395 7.30% due 1/01/2011 404 AAA Aaa 2,330 Phoenix, Arizona, Civic Improvement Corporation, Municipal Facilities, Excise Tax Revenue Bonds, 5.75% due 7/01/2016(e) 2,652 NR* Caa2 5,000 Phoenix, Arizona, IDA, Airport Facility Revenue Refunding Bonds (America West Airlines Inc. Project), AMT, 6.30% due 4/01/2023 3,684 NR* Aaa 2,720 Phoenix, Arizona, IDA, Revenue Bonds (Camelback Crossing), 6.20% due 9/20/2020(d) 2,871 BBB- NR* 545 Prescott Valley, Arizona, Improvement District, Special Assessment Bonds (Sewer Collection System Roadway Repair), 7.90% due 1/01/2012 563 AA NR* 3,515 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project), Series A, 6.125% due 7/01/2024(m) 3,955 AAA Aaa 3,180 University of Arizona, COP, Refunding, Series A, 5.50% due 6/01/2018(c) 3,582 AAA Aaa 1,000 University of Arizona, COP (University of Arizona Parking and Student Housing), 5.75% due 6/01/2019(c) 1,116 NR* NR* 3,000 Vistancia, Arizona, Community Facilities District, GO, 6.75% due 7/15/2022 3,084 Arkansas - 0.2% AAA NR* 95 Arkansas State Development Finance Authority, S/F Mortgage Revenue Bonds (Mortgage Backed Securities Program), Series H, 6.15% due 7/01/2016(i) 100 NR* A 250 Arkansas State Student Loan Authority Revenue Bonds, AMT, Sub-Series B, 7.25% due 6/01/2009 279 BBB Baa2 625 Camden, Arkansas, Environmental Improvement Revenue Bonds (International Paper Co. Project), AMT, Series A, 7.625% due 11/01/2018 640 AAA Aaa 200 Jonesboro, Arkansas, Residential Housing and Health Care Facilities Board, Hospital Revenue Refunding Bonds (Saint Bernards Regional Medical Center), Series B, 5.90% due 7/01/2016(c) 216 A+ NR* 250 North Little Rock, Arkansas, Health Facilities Board, Health Care Revenue Bonds (Baptist Health), 5.50% due 7/01/2016 264 BBB NR* 500 Pine Bluff, Arkansas, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.70% due 8/01/2020 544 AAA Aaa 250 University of Central Arkansas, Housing System Revenue Bonds, 6.50% due 1/01/2031(h) 290 California - 11.4% NR* NR* 2,500 Agua Caliente Band of Cahuilla Indians, California, Casino Revenue Bonds, 6% due 7/01/2018 2,582 AAA Aaa 9,145 Alameda County, California, COP (Financing Project), 6% due 9/01/2006(f)(j) 10,003 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage Backed Securities Program), AMT, Class 5 (i)(l) : AAA NR* 700 Series C, 6.75% due 3/01/2029 704 AAA NR* 440 Series D, 6.70% due 5/01/2029 443 AAA NR* 495 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Refunding Bonds (Mortgage Backed Securities Program), AMT, Series A-2, 7% due 9/01/2029(i)(l) 498 BBB+ A2 7,500 California State Department of Water Resources, Power Supply Revenue Bonds, Series A, 5.75% due 5/01/2017 8,459 A A3 2,000 California State, GO, Refunding, 5.75% due 5/01/2030 2,182 A A3 14,100 California State, Various Purpose, GO, 5.50% due 11/01/2033 14,936 A A3 9,880 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 6% due 10/01/2023 10,602 NR* NR* 2,880 Capistrano, California, Unified School District, Community Facility District, Special Tax Bonds (No. 2,948 90-2 Talega), 6% due 9/01/2032 Chula Vista, California, Community Facilities District, Special Tax Bonds (No 06-1, Eastlake Woods Area), Series A: NR* NR* 1,080 6.05% due 9/01/2020 1,144 NR* NR* 2,965 6.15% due 9/01/2026 3,088 Contra Costa County, California, Special Tax Bonds (Community Facilities District Number 2001-01): NR* NR* 1,585 6% due 9/01/2026 1,632 NR* NR* 1,200 6.10% due 9/01/2031 1,238 AAA Aaa 11,300 Desert, California, Community College District, GO, Series A, 5% due 8/01/2029(f) 11,609 NR* NR* 3,100 Elk Grove, California, Poppy Ridge Community Facilities Number 3 Special Tax, Series 1, 6% due 3,155 9/01/2028 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds: BBB Baa3 3,200 Series A-4, 7.80% due 6/01/2042 3,407 BBB Baa3 2,785 Series A-5, 7.875% due 6/01/2042 2,978 Los Angeles, California, Department of Water and Power, Electric Plant Revenue Refunding Bonds: AA- Aaa 5,000 6% due 2/15/2005(j) 5,134 NR* Aa3 5,160 RIB, Series 370, 10.03% due 2/15/2024(g) 5,436 AAA Aaa 10,090 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and Headworks Projects), Series A, 5.25% due 6/01/2034 (e) 10,601 BBB- NR* 2,740 Pomona, California, Public Financing Authority, Revenue Refunding Bonds (Merged Redevelopment Project), Series A1, 5.75% due 2/01/2034 2,809 NR* NR* 1,100 Poway, California, Unified School District, Special Tax Bonds (Community District No. 6), Series A, 6.05% due 9/01/2025 1,130 NR* NR* 2,695 Riverside, California, Improvement Bond Act of 1915, Special Assessment (Riverwalk Assessment District), 6.375% due 9/02/2026 2,804 Roseville, California, Special Tax (Stoneridge Community Facilities Number 1): NR* NR* 1,250 6.20% due 9/01/2021 1,313 NR* NR* 1,125 6% due 9/01/2025 1,158 NR* NR* 2,500 6.30% due 9/01/2031 2,581 Sacramento, California, Special Tax (North Natomas Community Facilities): NR* NR* 2,200 Series 01-03, 6% due 9/01/2028 2,239 NR* NR* 2,270 Series 4-C, 6% due 9/01/2028 2,335 AAA Aaa 10,000 San Diego, California, Public Facilities Financing Authority, Subordinated Water Revenue Refunding Bonds, 5% due 8/01/2032(f) 10,197 San Diego, California, Unified School District, GO (Election of 1998), Series F (h): AAA Aaa 11,520 5% due 7/01/2028 11,851 AAA Aaa 5,000 5% due 7/01/2029 5,136 San Francisco, California, City and County Redevelopment Agency Revenue Bonds (Community Facilities District Number 6-Mission): NR* NR* 5,000 6% due 8/01/2021 5,271 NR* NR* 2,500 GO, Series A, 6% due 8/01/2025 2,595 NR* Aaa 1,075 San Francisco, California, Uptown Parking Corporation, Parking Revenue Bonds (Union Square), 6% due 7/01/2020(f) 1,254 Santa Margarita, California, Water District, Special Tax Refunding Bonds (Community Facilities District No. 99), Series 1: NR* NR* 3,680 6.20% due 9/01/2020 3,873 NR* NR* 3,000 6.25% due 9/01/2029 3,091 Colorado - 2.4% AA Baa2 500 Boulder County, Colorado, Hospital Development Revenue Bonds (Longmont United Hospital Project), 6% due 12/01/2030(m) 551 NR* Aa2 660 Colorado HFA, Revenue Bonds (S/F Program), Series B-3, 6.55% due 10/01/2016 672 Colorado HFA, Revenue Refunding Bonds (S/F Program): NR* Aa2 545 AMT, Senior Series A-2, 7.50% due 4/01/2031 567 AA Aa2 210 AMT, Senior Series B-2, 7.10% due 4/01/2017 218 AAA Aa2 1,415 AMT, Senior Series B-2, 7.25% due 10/01/2031 1,469 NR* Aa2 130 AMT, Senior Series B-3, 6.80% due 11/01/2028 133 AA Aa2 725 AMT, Senior Series C-2, 7.25% due 10/01/2031(b) 754 NR* Aa2 190 Senior Series A-3, 7.35% due 10/01/2030 198 NR* Aa2 1,020 Senior Series C-3, 6.75% due 10/01/2021(b) 1,056 AA Aa2 305 Senior Series C-3, 7.15% due 10/01/2030(b) 311 AA Aa2 2,500 Colorado Health Facilities Authority, Revenue Refunding Bonds (Catholic Health Initiatives), 5.50% due 9/01/2017 2,692 AAA Aaa 550 Colorado Water Resource and Power Development Authority, Small Water Resource Revenue Bonds, Series A, 5.80% due 11/01/2020(e) 623 A A2 2,575 Denver, Colorado, City and County Airport Revenue Bonds, AMT, Series A, 7.50% due 11/15/2023 2,643 Elk Valley, Colorado, Public Improvement Revenue Bonds (Public Improvement Fee): NR* NR* 7,560 Series A, 7.35% due 9/01/2031 7,901 NR* NR* 1,400 Series B, 7% due 9/01/2031 1,438 AAA Aaa 3,685 Larimer County, Colorado, Poudre School District Number R-1, GO, 6% due 12/15/2010(e)(j) 4,297 NR* Aa3 750 Pitkin County, Colorado, GO, Refunding and Improvement Bonds, 6.875% due 12/01/2004(j) 772 NR* NR* 7,700 Plaza Metropolitan District No. 1, Colorado, Tax Allocation Revenue Bonds (Public Improvement Fees), 8% due 12/01/2025 8,040 Connecticut - 2.2% AAA Aaa 1,000 Connecticut State Development Authority, Governmental Lease Revenue Bonds, 6.60% due 6/15/2014(f) 1,024 AA A1 2,000 Connecticut State Development Authority Revenue Bonds (General Fund), Series A, 6.375% due 10/15/2024 2,049 AAA Aaa 1,500 Connecticut State Development Authority, Solid Waste Disposal Facilities Revenue Bonds (Pfizer Inc. Project), AMT, 7% due 7/01/2025 1,586 AAA Aaa 1,250 Connecticut State Development Authority, Water Facility Revenue Bonds (Bridgeport Hydraulic Company), AMT, 6.15% due 4/01/2035(c) 1,371 AAA Aaa 1,200 Connecticut State, HFA, Revenue Refunding Bonds (Housing Mortgage Finance Program), Series C-1, 6.30% due 11/15/2017 1,256 Connecticut State Health and Educational Facilities Authority, Revenue Bonds: AAA Aaa 1,000 (Bridgeport Hospital), Series A, 6.625% due 7/01/2018(f) 1,004 AA NR* 1,500 (Waterbury Hospital Issue), Series C, 5.75% due 7/01/2020(m) 1,638 AA NR* 1,000 (Westover School), Series A, 5.70% due 7/01/2030(m) 1,065 Connecticut State Health and Educational Facilities Authority, Revenue Refunding Bonds: AA NR* 5,025 DRIVERS, Series 215, 11.218% due 6/01/2030(g)(m) 6,543 AA NR* 2,000 (Eastern Connecticut Health Network), Series A, 6.50% due 7/01/2030(m) 2,302 AA NR* 640 (Sacred Heart University), 6.625% due 7/01/2026(m) 697 AA Baa3 5,710 (University of Hartford), Series E, 5.50% due 7/01/2022(m) 6,183 AAA Aaa 1,000 (Yale-New Haven Hospital Issue), Series H, 5.70% due 7/01/2025(f) 1,071 Connecticut State Higher Education, Supplemental Loan Authority Revenue Bonds (Family Education Loan Program), AMT, Series A: NR* Aa3 330 6.40% due 11/15/2014 331 NR* Aaa 1,030 5.50% due 11/15/2020(f) 1,031 NR* NR* 1,000 Connecticut State Regional Learning Educational Service Center Revenue Bonds (Office/Education Center Facility), 7.75% due 2/01/2006(j) 1,092 AA Baa2 860 Waterbury, Connecticut, GO, 6% due 2/01/2009(j)(m) 986 District of AAA NR* 5,000 District of Columbia, GO, Refunding, DRIVERS, Columbia - Series 214, 10.193% due 6/01/2026(f)(g) 6,202 0.4% Florida - 5.9% NR* NR* 1,700 Ballantrae, Florida, Community Development District, Capital Improvement Revenue Bonds, 6% due 5/01/2035 1,708 AA NR* 1,895 Beacon Tradeport Community, Florida, Development District, Special Assessment Revenue Refunding Bonds (Commercial Project), Series A, 5.25% due 5/01/2016 2,056 NR* NR* 2,500 CFM Community Development Distict, Florida, Capital Improvement Revenue Bonds, Series B, 5.875% due 5/01/2014 2,541 NR* Aaa 2,725 Duval County, Florida, School Board, COP, 5.75% due 7/01/2017(h) 3,049 Fiddlers Creek, Florida, Community Development District Number 2, Special Assessment Revenue Bonds: NR* NR* 5,350 Series A, 6.375% due 5/01/2035 5,497 NR* NR* 1,250 Series B, 5.75% due 5/01/2013 1,268 AAA Aaa 6,330 Florida HFA, Revenue Bonds (Antigua Club Apartments), AMT, Series A-1, 7% due 2/01/2035(c) 6,486 NR* NR* 1,100 Heritage Isles Community Development District, Florida, Special Assessment Revenue Refunding Bonds, 5.90% due 11/01/2006 1,102 NR* NR* 5,000 Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum), AMT, Series A, 7.125% due 4/01/2030 5,396 AA- Aa3 9,500 Jacksonville, Florida, Electric Authority, Water and Sewer Revenue Bonds, Series A, 6% due 10/01/2024 9,784 AAA NR* 7,000 Lee County, Florida, Airport Revenue Bonds, RIB, AMT, Series 580X, 9.95% due 10/01/2029(g)(h) 8,705 AAA Aaa 4,500 Lee County, Florida, Transportation Facilities Revenue Bonds, 5.75% due 10/01/2005(f)(j) 4,775 NR* NR* 1,200 Lexington Oaks, Florida, Community Development District, Special Assessment Revenue Bonds, Series A, 6.70% due 5/01/2033 1,253 Mediterra, Florida, South Community Development District, Capital Improvement Revenue Bonds: NR* NR* 1,055 6.85% due 5/01/2031 1,117 NR* NR* 1,765 Series B, 5.50% due 5/01/2010 1,787 NR* NR* 2,500 Middle Village Community Development District, Florida, Special Assessment Bonds, Series A, 6% due 5/01/2035 2,525 NR* NR* 4,195 Midtown Miami, Florida, Community Development District, Special Assessment Revenue Bonds, Series A, 6.25% due 5/01/2037 4,331 NR* Aaa 2,375 Orange County, Florida, HFA, M/F Housing Revenue Bonds, Series A, 6.40% due 1/01/2031(f) 2,481 AAA NR* 185 Orange County, Florida, HFA, Mortgage Revenue Bonds, AMT, Series A, 8.375% due 3/01/2021(b)(d) 185 AAA Aaa 5,000 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50% due 10/01/2020(c) 5,491 NR* NR* 250 Panther Trace, Florida, Community Development District, Special Assessment Revenue Bonds, Series B, 6.50% due 5/01/2009 252 Park Place Community Development District, Florida, Special Assessment Revenue Bonds: NR* NR* 1,000 6.75% due 5/01/2032 1,053 NR* NR* 2,500 6.375% due 5/01/2034 2,562 AAA Aaa 2,000 Saint Lucie, Florida, West Services District, Utility Revenue Refunding Bonds, Senior Lien, 2,325 6% due 10/01/2022(f) NR* NR* 1,000 Sterling Hill, Florida, Community Development District, Capital Improvement Revenue Refunding Bonds, Series B, 5.50% due 11/01/2010 1,015 NR* NR* 1,410 Stoneybrook West, Florida, Community Development District, Special Assessment Revenue Bonds, Series B, 6.45% due 5/01/2010 1,432 NR* NR* 955 Verandah West, Florida, Community Development District, Capital Improvement Revenue Bonds, Series B, 5.25% due 5/01/2008 959 NR* NR* 3,265 Vista Lakes Community, Florida, Development District, Capital Improvement Revenue Bonds, Series B, 5.80% due 5/01/2008 3,284 Georgia - 1.7% NR* NR* 5,000 Atlanta, Georgia, Tax Allocation Revenue Bonds (Atlantic Station Project), 7.90% due 12/01/2024 5,241 Brunswick & Glynn County, Georgia, Development Authority, First Mortgage Revenue Bonds (Coastal Community Retirement Corporation Project), Series A: NR* NR* 2,285 7.125% due 1/01/2025 2,240 NR* NR* 3,305 7.25% due 1/01/2035 3,248 AAA Aaa 5,210 College Park, Georgia, Business and IDA, Revenue Bonds (Civic Center Project), 5.75% due 9/01/2026(c) 5,793 AAA Aaa 3,450 Fulton County, Georgia, Development Authority Revenue Bonds (Morehouse College Project), 5.875% due 12/01/2030(c) 3,888 NR* NR* 2,250 Fulton County, Georgia, Residential Care Facilities Revenue Refunding Bonds (Canterbury Court Project), Series A, 6% due 2/15/2022 2,262 BBB NR* 1,500 Milledgeville-Baldwin County, Georgia, Development Authority Revenue Bonds (Georgia College and State University Foundation), 6% due 9/01/2033 1,587 Hawaii - 0.3% Kuakini, Hawaii, Health System, Special Purpose Revenue Bonds, Series A: BBB Baa1 1,410 6.30% due 7/01/2022 1,462 BBB Baa1 3,000 6.375% due 7/01/2032 3,084 Illinois - 7.3% AAA NR* 10,620 Chicago, Illinois, Board of Education, GO, DRIVERS, Series 199, 9.691% due 12/01/2020(c)(g) 13,330 AAA Aaa 1,400 Chicago, Illinois, GO (Neighborhoods Alive 21 Program), 5.875% due 1/01/2019(e) 1,598 AAA Aaa 26,800 Chicago, Illinois, O'Hare International Airport Revenue Bonds, 3rd Lien, AMT, Series B-2, 6% due 1/01/2029(k) 29,472 CCC Caa2 3,000 Chicago, Illinois, O'Hare International Airport, Special Facility Revenue Refunding Bonds (American 2,310 Airlines Inc. Project), 8.20% due 12/01/2024 Chicago, Illinois, Park District, GO (e): AAA Aaa 2,265 Refunding, Series B, 5.75% due 1/01/2015 2,564 AAA Aaa 1,500 Series A, 5.75% due 1/01/2016 1,698 AAA NR* 840 Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT, Series A, 7.15% due 9/01/2031(i)(l) 843 NR* NR* 2,000 Chicago, Illinois, Special Assessment Bonds (Lake Shore East), 6.75% due 12/01/2032 2,069 AAA Aaa 3,210 Cicero, Illinois, GO, Refunding (Corporate Purpose), 6% due 12/01/2028(f) 3,634 NR* Aaa 7,000 Decatur, Illinois, GO, Refunding, 6% due 3/01/2008(e)(j) 7,843 BBB Baa1 10,000 Hodgkins, Illinois, Environmental Improvement Revenue Bonds (Metro Biosolids Management LLC 10,061 Project), AMT, 6% due 11/01/2023 Illinois Development Finance Authority Revenue Bonds: BBB NR* 3,140 (Community Rehabilitation Providers Facility), Series A, 6.50% due 7/01/2022 3,307 AAA Aaa 660 Series B, 6.40% due 9/01/2031(h) 720 Illinois State, GO, 1st Series (f): AAA Aaa 8,890 5.75% due 12/01/2015 10,176 AAA Aaa 3,745 5.75% due 12/01/2016 4,280 AAA Aaa 4,000 5.75% due 12/01/2017 4,562 AAA Aa3 3,000 Illinois State, Sales Tax Revenue Bonds, 6% due 6/15/2020 3,415 AAA Aaa 2,000 Lake County, Illinois, Forest Preservation District, GO (Land Acquisition and Development), 2,300 5.75% due 12/15/2016 Indiana - 0.5% AAA Aaa 6,000 MSD Warren Township, Indiana, Vision 2005, School Building Corporation Revenue Bonds, First Mortgage, 5.50% due 7/15/2020(e) 6,672 Iowa - 0.7% AAA Aaa 1,000 Iowa City, Iowa, Sewer Revenue Bonds, 5.75% due 7/01/2021(f) 1,059 NR* NR* 6,860 Iowa Finance Authority, Health Care Facilities Revenue Refunding Bonds (Care Initiatives Project), 9.25% due 7/01/2025 8,301 Kansas - 0.8% NR* Aaa 3,580 Sedgwick and Shawnee Counties, Kansas, S/F Revenue Bonds, AMT, Series A-1, 6.95% due 6/01/2029(d) 3,664 A+ NR* 2,500 Witchita, Kansas, Hospital Facilities Revenue Refunding and Improvement Bonds, Series III, 6.25% 2,797 due 11/15/2019 BBB NR* 4,500 Wyandotte County, Kansas, Kansas City Unified Government Revenue Refunding Bonds (General 4,686 Motors Corporation Project), 6% due 6/01/2025 Louisiana - 2.1% AAA Aaa 9,500 Louisiana Local Government, Environmental Facilities, Community Development Authority Revenue Bonds (Capital Projects and Equipment Acquisition), Series A, 6.30% due 7/01/2030(c) 10,855 AAA Aaa 2,900 New Orleans, Louisiana, GO, Refunding, 6.125% due 10/01/2016(c) 3,046 BB- NR* 13,000 Port New Orleans, Louisiana, IDR, Refunding (Continental Grain Company Project), 7.50% due 7/01/2013 13,428 BBB Baa2 2,000 Rapides Finance Authority, Louisiana, Environmental Improvement Revenue Bonds (International Paper Company Project), AMT, Series A, 6.55% due 11/15/2023 2,129 Maine - 1.1% BB Ba2 8,635 Maine Finance Authority, Solid Waste Recycling Facilities Revenue Bonds (Great Northern Paper Project-Bowater), AMT, 7.75% due 10/01/2022 8,645 AA+ NR* 6,045 Maine State Housing Authority, Mortgage Purpose Revenue Bonds, DRIVERS, AMT, Series 170, 10.149% due 11/15/2028(g) 6,528 Maryland - 0.5% AAA NR* 500 Anne Arundel County, Maryland, Special Obligation Revenue Bonds (Arundel Mills Project), 7.10% due 7/01/2009(j) 604 NR* Aa2 1,000 Maryland State Community Development Administration, Department of Housing and Development, Community Housing Revenue Bonds, AMT, Series B, 6.15% due 1/01/2021 1,066 NR* Aa2 1,175 Maryland State Community Development Administration, Department of Housing and Community Development, Residential Revenue Refunding Bonds, Series A, 5.60% due 3/01/2017(b) 1,231 NR* Aaa 1,000 Maryland State Community Development Administration, Department of Housing and Community Development Revenue Bonds (Waters Landing II Apartments), AMT, Series A, 5.875% due 8/01/2033 1,055 NR* NR* 240 Maryland State Economic Development Corporation Revenue Bonds (Health and Mental Hygiene Program), Series A, 7.125% due 3/01/2006 248 A- NR* 1,000 Maryland State Energy Financing Administration, Solid Waste Disposal Revenue Bonds, Limited Obligation (Wheelabrator Water Projects), AMT, 6.45% due 12/01/2016 1,053 Maryland Water Quality Financing Administration, evolving Loan Fund Revenue Bonds, Series A: AA Aa2 300 6.375% due 9/01/2010 301 AA Aa2 465 6.55% due 9/01/2014 467 AAA NR* 500 Prince George's County, Maryland, Housing Authority, gage Revenue Refunding Bonds (Parker Apartments Project), Series A, 7.25% due 11/20/2016(d) 502 AA Aa3 1,000 University of Maryland, System Auxiliary Facility and Tuition Revenue Bonds, Series A, 5.75% due 10/01/2019 1,124 Massachusetts - AAA Aaa 335 Massachusetts Education Loan Authority, Education 1.0% Loan Revenue Bonds, AMT, Issue E, Series A, 7.375% due 1/01/2012(c) 335 AAA Aaa 470 Massachusetts Educational Financing Authority, Education Loan Revenue Refunding Bonds, AMT, Issue E, 5.85% due 7/01/2014(c) 484 BB+ NR* 1,000 Massachusetts State Development Finance Agency, Revenue Refunding Bonds (Eastern Nazarene College), 5.625% due 4/01/2029 860 AAA Aaa 1,705 Massachusetts State, HFA, Housing Revenue Refunding Bonds, Series B, 6.05% due 12/01/2009(f) 1,755 AAA Aaa 550 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 48, 6.35% due 6/01/2026(f) 561 AA Aa2 480 Massachusetts State, HFA, S/F Housing Revenue Refunding Bonds, AMT, Series 40, 6.65% due 12/01/2027 494 AAA Aaa 4,950 Massachusetts State Health and Educational Facilities Authority Revenue Bonds (Medical Center of Central Massachusetts), CARS, Series B, 11.32% due 6/23/2022(c)(g) 6,113 BBB NR* 1,000 Massachusetts State Industrial Finance Agency, Higher Education Revenue Refunding Bonds (Hampshire College Project), 5.625% due 10/01/2007(j) 1,108 AA+ Aaa 130 Massachusetts State Water Pollution Abatement Trust, Water Abatement Revenue Bonds, Series A, 6.375% due 2/01/2015 133 NR* Aaa 1,600 Montachusett, Massachusetts, Regional Vocational Technical School District, GO, 5.95% due 1/15/2020(f) 1,821 Michigan - 1.3% BBB Baa2 7,500 Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25% due 4/15/2027 7,976 BBB Baa2 500 Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75% due 6/01/2016 536 AAA Aaa 1,000 Eastern Michigan University Revenue Refunding Bonds, 6% due 6/01/2024(c) 1,147 BBB- Baa3 3,000 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), 6% due 7/01/2020 3,009 AAA Aaa 615 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding and Improvement Bonds (Bronson Methodist Hospital), Series A, 6.375% due 5/15/2017(f)(j) 633 BB NR* 3,325 Macomb County, Michigan, Hospital Finance Authority, Hospital Revenue Bonds (Mount Clemens General Hospital), Series B, 5.875% due 11/15/2034 3,114 AAA Aaa 1,500 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy Mount Clemens), Series A, 6% due 5/15/2014(f) 1,700 AAA Aaa 1,060 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company), Series AA, 6.40% due 9/01/2025(f) 1,122 Minnesota - 1.1% A Aa3 1,255 Anoka County, Minnesota, Solid Waste Disposal Revenue Bonds (Natural Rural Utilities), AMT, Series A, 6.95% due 12/01/2008 1,264 NR* A1 1,000 Eden Prairie, Minnesota, M/F Housing Revenue Bonds (Rolling Hills Project), Series A, 6.15% due 8/20/2031(d) 1,086 A- NR* 680 Minneapolis, Minnesota, Community Development Agency, Supported Development Revenue Bonds (Common Bond Fund), AMT, Series 2, 6.20% due 6/01/2017 709 Minneapolis, Minnesota, Health Care System Revenue Bonds (Allina Health System), Series A: NR* A3 1,500 5.70% due 11/15/2022 1,586 NR* A3 2,665 5.75% due 11/15/2032 2,779 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, AMT, Sub-Series D (e): AAA Aaa 470 5.75% due 1/01/2012 526 AAA Aaa 470 5.75% due 1/01/2014 521 AAA Aaa 2,060 5.75% due 1/01/2015 2,278 NR* Aa2 1,110 Ramsey County, Minnesota, Housing and Redevelopment Authority, M/F Housing Revenue Bonds(Hanover Townhouses Project), AMT, 6% due 7/01/2031 1,146 NR* Aaa 1,000 Saint Cloud, Minnesota, Health Care Revenue Refunding Bonds (Saint Cloud Hospital Obligation 1,153 Group), Series A, 6.25% due 5/01/2020(h) AAA Aaa 1,000 Saint Francis, Minnesota, Independent School District No. 015, GO, Series A, 6.35% due 2/01/2013(h) 1,057 AA NR* 1,500 Waconia, Minnesota, Health Care Facilities Revenue Bonds (Ridgeview Medical Center Project), 1,662 Series A, 6.125% due 1/01/2029(m) Mississippi - 0.1% BBB Baa2 1,700 Warren County, Mississippi, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series B, 6.75% due 8/01/2021 1,860 Missouri - 0.7% Fenton, Missouri, Tax Increment Revenue Refunding and Improvement Bonds (Gravois Bluffs): NR* NR* 1,050 6.75% due 10/01/2015 1,103 NR* NR* 4,000 7% due 10/01/2021 4,321 NR* NR* 1,500 Kansas City, Missouri, IDA, First Mortgage Health Facilities Revenue Bonds (Bishop Spencer Place), Series A, 6.50% due 1/01/2035 1,518 AAA Aaa 2,200 Saint Louis, Missouri, Airport Revenue Bonds (Airport Development Program), Series A, 5.625% due 7/01/2019(f) 2,479 Montana - 0.4% NR* A2 6,000 Montana State Higher Education, Student Assistance Corporation, Student Loan Revenue Refunding Bonds, AMT, Sub-Series B, 6.40% due 12/01/2032 6,272 Nevada - 2.1% AAA Aaa 5,000 Clark County, Nevada, IDR (Power Company Project), AMT, Series A, 6.70% due 6/01/2022(e) 5,195 NR* NR* 1,550 Clark County, Nevada, Improvement District No. 142 Special Assessment, 6.375% due 8/01/2023 1,598 Elko, Nevada, GO (Airport Improvement), AMT, Series B (f): AAA Aaa 165 6.10% due 10/01/2014 182 AAA Aaa 245 6.30% due 10/01/2019 272 AAA Aaa 320 6.75% due 10/01/2024 361 AAA Aaa 225 7% due 10/01/2029 255 NR* NR* 2,990 Henderson, Nevada, Local Improvement Districts, Special Assessment, Series NO T-14, 5.80% due 3/01/2023 3,063 Las Vegas, Nevada, Local Improvement Bonds, Special Assessment, Special Improvement District Number 808, Summerlin: NR* NR* 1,770 5.875% due 6/01/2009 1,829 NR* NR* 2,045 6.125% due 6/01/2012 2,113 NR* NR* 2,275 6.25% due 6/01/2013 2,350 AAA Aaa 190 Nevada Housing Division, S/F Program, AMT, Senior Series E, 7.05% due 4/01/2027(b) 194 NR* NR* 2,000 Reno, Nevada, Special Assessment District Number 4 (Somerset Parkway), 6.625% due 12/01/2022 2,037 Sparks, Nevada, Redevelopment Agency, Tax Allocation Revenue Refunding Bonds, Series A (m): AA NR* 3,110 6% due 1/15/2015 3,461 AA NR* 6,315 6% due 1/15/2023 6,994 New Hampshire - BBB+ Baa1 1,750 New Hampshire Health and Education Facilities 0.1% Authority, Revenue Refunding Bonds (Elliot Hospital), Series B, 5.60% due 10/01/2022 1,796 New Jersey - 3.9% CCC B2 670 Camden County, New Jersey, Pollution Control Financing Authority, Solid Waste Resource Recovery Revenue Refunding Bonds, AMT, Series B, 7.50% due 12/01/2009 669 NR* NR* 3,300 New Jersey EDA, Retirement Community Revenue Bonds (Cedar Crest Village Inc. Facility), Series A, 7.25% due 11/15/2031 3,364 AAA Aaa 5,000 New Jersey EDA, Revenue Refunding Bonds (RWJ Health Care Corporation), 6.50% due 7/01/2024(h) 5,118 AAA Aaa 3,680 New Jersey EDA, State Lease Revenue Bonds (State Office Buildings Projects), 6% due 6/15/2016(c) 4,213 New Jersey Health Care Facilities Financing Authority Revenue Bonds: B+ NR* 3,000 (Pascack Valley Hospital Association), 6% due 7/01/2013 2,809 NR* Baa1 3,130 (South Jersey Hospital), 6% due 7/01/2026 3,295 BBB Baa1 2,250 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds (Capital Health System Inc.), 2,369 Series A, 5.75% due 7/01/2023 AAA Aaa 1,090 New Jersey State Housing and Mortgage Finance Agency, M/F Housing Revenue Refunding Bonds, 1,157 Series B, 6.25% due 11/01/2026(h) New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds (f): AAA Aaa 10,000 DRIVERS, Series 155, 9.718% due 1/01/2018 (g) 12,447 AAA Aaa 10,000 Series A, 5.75% due 1/01/2018 11,223 BBB Baa3 9,500 Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds, 7% due 6/01/2041 9,339 New Mexico - 0.7% BBB Baa2 8,000 Farmington, New Mexico, PCR, Refunding (Public Service Company of New Mexico - San Juan), Series B, 6.30% due 12/01/2016 8,718 AAA Aaa 300 Las Cruces, New Mexico, Health Facilities Revenue Refunding Bonds (Evangelical Lutheran Project), 6.45% due 12/01/2017(h) 303 AAA NR* 250 New Mexico Mortgage Finance Authority, Revenue Refunding Bonds, Mortgage-Backed Securities, Series F, 7% due 1/01/2026(i) 274 AAA Aaa 250 Santa Fe County, New Mexico, Correctional System Revenue Bonds, 6% due 2/01/2027(h) 302 New York - 11.0% AAA Aaa 9,500 Metropolitan Transportation Authority, New York, Commuter Facilities, Service Contract Revenue Refunding Bonds, Series 8, 5.50% due 7/01/2013(h)(j) 10,991 AAA Aaa 10,000 Metropolitan Transportation Authority, New York, Transit Facilities Revenue Bonds, Series A, 5.625% due 7/01/2007(f)(j) 11,111 NR* NR* 3,230 New York City, New York, City IDA, Civic Facility Revenue Bonds (Special Needs Facilities Pooled Program), Series C-1, 6% due 7/01/2012 3,299 NR* NR* 2,000 New York City, New York, City IDA, Revenue Bonds (Visy Paper Inc. Project), AMT, 7.95% due 1/01/2028 2,087 BB- Ba2 4,050 New York City, New York, City IDA, Special Facility Revenue Bonds (British Airways PLC Project), AMT, 7.625% due 12/01/2032 4,010 NR* Aaa 10,000 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, RIB, Series 158, 9.567% due 6/15/2026(f)(g) 11,459 AAA Aaa 3,000 New York City, New York, City Transit Authority, Triborough Metropolitan Transportation Authority, COP, 5.75% due 1/01/2010(c)(j) 3,454 AA+ Aa2 6,000 New York City, New York, City Transitional Finance Authority Revenue Bonds, Future Tax Secured, Series B, 6% due 11/15/2010 6,943 New York City, New York, City Transitional Finance Authority, Revenue Refunding Bonds, Series C: AA+ Aa2 12,015 5.875% due 11/01/2015 13,781 AA+ Aa2 8,000 Future Tax Secured, 5.875% due 11/01/2017 9,145 New York City, New York, GO, Refunding: AAA Aaa 6,600 Series A, 6% due 5/15/2021(k) 7,544 AAA A2 2,210 Series A, 6.25% due 5/15/2026(k) 2,543 AAA Aaa 4,000 Series B, 8.25% due 6/01/2006(k) 4,411 AAA Aaa 4,000 Series C, 5.875% due 8/01/2006(e) 4,331 AAA A2 8,885 Series G, 5.75% due 2/01/2006(f)(j) 9,492 AAA A2 6,115 Series G, 5.75% due 2/01/2014(f) 6,505 AAA Aaa 1,000 Series H, 6% due 8/01/2017(k) 1,109 AAA Aaa 10,000 New York City, New York, GO, Series B, 5.875% due 8/01/2015(f) 11,491 New York State Dormitory Authority, Revenue Refunding Bonds: NR* Aa1 3,370 (Concord Nursing Home Inc.), 6.25% due 7/01/2016 3,717 NR* Aa1 2,500 (Concord Nursing Home Inc.), 6.50% due 7/01/2029 2,722 BB Ba1 3,000 (Mount Sinai Health), Series A, 6.50% due 7/01/2016 3,069 BB Ba1 3,950 (Mount Sinai Health), Series A, 6.50% due 7/01/2025 4,010 AA- A3 3,000 (State University Educational Facilities), Series A, 7.50% due 5/15/2013 3,859 AAA Aaa 1,360 New York State Environmental Facilities Corporation, State Clean Water and Drinking Revenue Bonds (Revolving Funds), Series B, 5.875% due 1/15/2019 1,549 NR* VMIG1+ 500 New York State HFA, Housing Revenue Bonds (Liberty Street Realty LLC), VRDN, 1.72% due 500 11/01/2035(n) AA NR* 2,285 Oneida County, New York, IDA, Revenue Bonds (Civic Facility-Faxton Hospital), Series C, 6.625% due 1/01/2015(m) 2,606 NR* NR* 95 Suffolk County, New York, IDA, Civic Facility Revenue Bonds (Special Needs Facilities Pooled Program), Series D-1, 6% due 7/01/2012 97 A-1+ VMIG1+ 1,500 Triborough Bridge and Tunnel Authority, New York, Special Obligation Revenue Refunding Bonds, VRDN, Series C, 1.68% due 1/01/2031(h)(n) 1,500 NR* NR* 705 Westchester County, New York, IDA, Civic Facilities Revenue Bonds (Special Needs Facilities Pooled Program), Series E-1, 6% due 7/01/2012 720 NR* NR* 8,095 Westchester County, New York, IDA, Continuing Care Retirement, Mortgage Revenue Bonds (Kendal on Hudson Project), Series A, 6.50% due 1/01/2034 8,222 North Carolina - AAA Aaa 920 Brunswick County, North Carolina, COP, 2.8% 6% due 6/01/2016(h) 1,056 AAA Aaa 1,000 Cumberland County, North Carolina, COP (Civic Center Project), Series A, 6.40% due 12/01/2004(c)(j) 1,028 NR* Baa1 1,500 Haywood County, North Carolina, Industrial Facilities and Pollution Control Financing Authority Revenue Bonds (Champion International Corporation Project), AMT, 6.25% due 9/01/2025 1,547 BBB Baa2 2,000 Martin County, North Carolina, Industrial Facilities and Pollution Control Financing Authority Revenue Bonds (Solid Waste Disposal - Weyerhaeuser Company), AMT, 6.80% due 5/01/2024 2,049 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds: AAA Aaa 1,500 Series B, 5.875% due 1/01/2021(f) 1,633 BBB Baa2 4,000 Series D, 6.75% due 1/01/2026 4,424 A Baa2 4,440 North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series D, 6.70% due 1/01/2019 4,999 AA Aa2 390 North Carolina HFA, S/F Revenue Bonds, Series W, 6.50% due 3/01/2018 394 NR* NR* 2,500 North Carolina Medical Care Commission, Health Care Facilities, First Mortgage Revenue Bonds (Presbyterian Homes Project), 6.875% due 10/01/2021 2,667 NR* Baa1 2,000 North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (The ARC of North Carolina Projects), Series A, 5.80% due 10/01/2034 1,993 North Carolina Medical Care Commission, Retirement Facilities, First Mortgage Revenue Bonds: NR* NR* 1,625 (Forest at Duke Project), 6.375% due 9/01/2032 1,684 NR* NR* 2,500 (Givens Estates Project), Series A, 6.50% due 7/01/2032 2,543 North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue Refunding Bonds, Series B: BBB+ Baa1 500 6.375% due 1/01/2013 565 A A 1,080 6.375% due 1/01/2013 1,223 BBB+ Baa1 5,000 6.50% due 1/01/2020 5,562 A A 2,500 6.50% due 1/01/2020 2,781 NR* A2 1,175 North Carolina State Educational Assistance Authority Revenue Bonds (Guaranteed Student Loan), 1,235 AMT, Sub-lien, Series C, 6.35% due 7/01/2016 Piedmont Triad Airport Authority, North Carolina, Airport Revenue Refunding Bonds, Series A (h): AAA Aaa 1,000 6.375% due 7/01/2016 1,152 AAA Aaa 1,000 6% due 7/01/2024 1,127 Ohio - 1.5% NR* NR* 1,000 Cuyahoga County, Ohio, Health Care Facilities Revenue Refunding Bonds (Benjamin Rose Institute Project), 5.50% due 12/01/2028 880 AAA Aaa 1,200 Huron County, Ohio, GO, Human Services Building, 7.25% due 12/01/2005(f)(j) 1,298 NR* NR* 2,000 Lucas County, Ohio, Hospital Revenue Bonds (Flower Hospital), 6.125% due 12/01/2004(j) 2,034 AAA Aaa 3,000 North Canton, Ohio, City School District GO, 6.70% due 12/01/2004(c)(j) 3,086 AAA Aaa 630 Ohio HFA, Mortgage Revenue Bonds, AMT, Series A-1, 6.15% due 3/01/2029(d) 659 AAA Aaa 8,000 Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Dayton Power & Light Company), Series B, 6.40% due 8/15/2027(f) 8,029 AAA Aaa 1,000 Ohio State Water Development Authority, Pollution Control Facilities Revenue Refunding Bonds (Pennsylvania Power Co. Project), 6.15% due 8/01/2023(c) 1,024 NR* NR* 1,470 Port of Greater Cincinnati Development Authority, Ohio, Special Assessment Revenue Bonds (Cooperative Public Parking Infrastructure Project), 6.40% due 2/15/2034 1,485 AAA Aaa 3,005 Toledo-Lucas County, Ohio, Lodging Tax Revenue Refunding Bonds (Convention Center Project), 5.70% due 10/01/2015(f) 3,269 Oregon - 0.7% Forest Grove, Oregon, Campus Improvement Revenue Refunding Bonds (Pacific University) (m): AA NR* 250 6% due 5/01/2015 277 AA NR* 250 6.20% due 5/01/2020 280 AAA Aaa 2,485 Jackson County, Oregon, Central Point School District Number 006, GO, 5.75% due 6/15/2010(e)(j) 2,849 Oregon State Housing and Community Services Department, Mortgage Revenue Refunding Bonds (S/F Mortgage Program), Series A: NR* Aa2 155 6.40% due 7/01/2018 158 NR* Aa2 70 AMT, 6.20% due 7/01/2027 73 NR* Aaa 500 Portland, Oregon, M/F Housing Authority Revenue Bonds (Lovejoy Station Apartments Project), AMT, 5.90% due 7/01/2023(f) 527 AAA Aaa 1,000 Portland, Oregon, Sewer System Revenue Bonds, Series A, 5.75% due 8/01/2018(e) 1,135 Portland, Oregon, Urban Renewal and Redevelopment, Revenue Refunding Bonds, Series A(c): NR* Aaa 1,000 (Downtown Waterfront), 5.75% due 6/15/2018 1,135 NR* Aaa 3,190 (South Park Blocks) 5.75% due 6/15/2018 3,620 Pennsylvania - AAA Aaa 2,220 Allegheny County, Pennsylvania, Sanitation 0.9% Authority, Sewer Revenue Bonds, 5.75% due 2,553 12/01/2017(f) A NR* 4,000 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (University of Pennsylvania Medical Center Health System), Series A, 6% due 1/15/2031 4,222 NR* NR* 1,265 Philadelphia, Pennsylvania, Authority for IDR, Commercial Development, 7.75% due 12/01/2017 1,295 A- NR* 5,000 Sayre, Pennsylvania, Health Care Facilities Authority, Revenue Refunding Bonds (Guthrie Health), Series A, 5.875% due 12/01/2031 5,171 Rhode Island - AAA Aaa 6,815 Rhode Island State Economic Development Corporation, 0.6% Airport Revenue Bonds, Series B, 6% due 7/01/2028(e) 7,653 AA NR* 1,000 Rhode Island State Economic Development Corporation Revenue Bonds (Providence Place Mall), 6.125% due 7/01/2020(m) 1,128 South Carolina - Medical University, South Carolina, Hospital Authority, 1.2% Hospital Facilities Revenue Refunding Bonds: BBB+ Baa2 2,450 6.50% due 8/15/2032 2,602 BBB+ Baa2 5,400 Series A, 6.375% due 8/15/2027 5,700 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds (e): AAA Baa3 1,255 6.75% due 1/01/2019 1,627 AAA Baa3 1,745 6.75% due 1/01/2019 2,221 NR* NR* 5,000 South Carolina Jobs EDA, Residential Care Facilities Revenue Bonds (South Carolina Episcopal - Still Hopes Residence Project), Series A, 6.375% due 5/15/2032 5,019 South Dakota - NR* Aaa 3,750 Pierre, South Dakota, School District Number 0.3% 32-2, GO, 5.75% due 8/01/2010(h)(j) 4,305 Tennessee - 2.1% Chattanooga, Tennessee, Industrial Development Board, Lease Rent Revenue Bonds (Southside Redevelopment Corporation) (c): AAA Aaa 4,485 5.75% due 10/01/2017 5,105 AAA Aaa 3,740 5.75% due 10/01/2018 4,257 BB Ba2 4,950 McMinn County, Tennessee, IDB, Solid Waste Revenue Bonds (Recycling Facility-Calhoun Newsprint), AMT, 7.40% due 12/01/2022 4,949 AA Aa2 5,000 Metropolitan Government of Nashville and Davidson County, Tennessee, GO, 5.875% due 5/15/2026 5,302 NR* NR* 2,000 Metropolitan Knoxville, Tennessee, Airport Authority, Special Purpose Revenue Bonds (Northwest Airlines Inc. Project), AMT, 8% due 4/01/2032 1,818 Shelby County, Tennessee, Health, Educational and Housing Facility Board, Hospital Revenue Refunding Bonds (Methodist Healthcare): A- A3 4,380 6.50% due 9/01/2012(j) 5,316 A- A3 2,920 6.50% due 9/01/2026(o) 3,530 Texas - 12.5% Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.): BBB- Baa3 5,300 First Tier, Series A, 6.60% due 1/01/2021 5,567 BBB- Baa3 2,300 First Tier, Series A, 6.70% due 1/01/2028 2,437 NR* A3 6,740 Trust Certificates, Second Tier, Series B, 6% due 1/01/2023 6,851 AAA Aaa 10,630 Austin, Texas, Revenue Bonds (Town Lake Community Events Center Venue), 6.20% due 11/15/2029(e) 11,993 Bexar County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Army Retirement Residence Project): BBB- NR* 600 6.125% due 7/01/2022 633 BBB- NR* 1,750 6.30% due 7/01/2032 1,826 Brazos River Authority, Texas, PCR, Refunding, AMT: BBB Baa2 1,195 (TXU Energy Company Project), Series C, 5.75% due 5/01/2036 1,259 BBB Baa2 2,280 (Texas Utility Company), Series A, 7.70% due 4/01/2033 2,705 BBB- NR* 4,250 Brazos River Authority, Texas, Revenue Refunding Bonds (Reliant Energy Inc. Project), Series B, 7.75% due 12/01/2018 4,657 A A3 3,700 Brazos River, Texas, Harbor Navigation District, Brazoria County Environmental Revenue Refunding Bonds (Dow Chemical Company Project), AMT, Series A-7, 6.625% due 5/15/2033 4,076 AAA NR* 1,045 Central Texas Housing Fianance Corporation, S/F Mortgage Revenue Bonds (GNMA Mortgage Program), AMT, 8.20% due 6/28/2017(d) 1,045 BBB- Baa3 3,620 Dallas-Fort Worth, Texas, International Airport Facility, Improvement Corporation Revenue Bonds (Learjet Inc.), AMT, Series 2001-A-1, 6.15% due 1/01/2016 3,602 AAA NR* 18,250 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT, Series 201, 10.163% due 11/01/2024(e)(g) 22,137 AA NR* 1,260 Fort Bend County, Texas, Municipal Utility District Number 23, GO, 6.625% due 9/01/2007(j)(m) 1,420 AA+ Aa1 1,400 Fort Worth, Texas, Certificates of Obligation, GO, 6.25% due 3/01/2005(j) 1,427 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Good Shepherd Medical Center Project) (m): AA Baa2 1,000 6.875% due 10/01/2020 1,171 AA Baa2 3,500 6.375% due 10/01/2025 3,996 BBB Baa2 2,465 Gulf Coast, Texas, Waste Disposal Authority, Revenue Refunding Bonds (International Paper Company), AMT, Series A, 6.10% due 8/01/2024 2,572 AA- NR* 2,500 Harris County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Saint Luke's Episcopal Hospital), Series A, 5.625% due 2/15/2017 2,700 B- Caa2 3,000 Houston, Texas, Airport System, Special Facilities Revenue Bonds (Continental Airlines Terminal 2,204 Improvement), AMT, Series B, 6.125% due 7/15/2027 BBB- Ba2 8,080 Matagorda County, Texas, Navigation District Number 1 Revenue Refunding Bonds (Reliant Energy 8,983 Inc.), Series C, 8% due 5/01/2029 B- NR* 7,350 Matagorda County, Texas, Port of Bay City Authority Revenue Bonds (Hoechst Celanese Corp. Project), AMT, 7,150 6.50% due 5/01/2026 AAA Aaa 1,000 Pflugerville, Texas, Independent Industrial School District, GO, 5.75% due 8/15/2020 1,122 BB Ba2 4,825 Port Corpus Christi, Texas, Individual Development Corporation, Environmental Facilities Revenue Bonds (Citgo Petroleum Corporation Project), AMT, 8.25% due 11/01/2031 5,096 B- Ba3 2,495 Red River Authority, Texas, PCR, Refunding (Celanese Project), Series A, 6.45% due 11/01/2030 2,404 AA NR* 1,000 Red River, Texas, Education Finance Revenue Bonds (Saint Mark's School-Texas Project), 6% due 8/15/2019 1,112 NR* Aaa 2,710 South Plains, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds, AMT, Series A, 7.30% due 9/01/2031(i) 2,804 Southeast Texas, Housing Finance Corporation Revenue Bonds, AMT (d)(l): NR* Aaa 225 Series A, 8% due 11/01/2025 232 NR* Aaa 310 Series B, 8.50% due 11/01/2025 311 AA Aa1 2,590 Texas State, GO, Veterans' Housing Assistance Fund II, AMT, Series A, 7% due 8/01/2004 2,648 Texas State Public Finance Authority, Building Revenue Bonds (h): AAA Aaa 2,100 (General Services Commission Project), Series A, 6% due 2/01/2020 2,371 AAA Aaa 1,000 (State Preservation Project), Series B, 6% due 8/01/2015 1,131 AAA Aaa 45,000 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, 49,957 Series A, 5.75% due 8/15/2038(c) AAA Aaa 4,930 Upper Trinity Regional Water District, Texas, Water Revenue Bonds (Regional Treated Water Supply System), Series A, 6% due 8/01/2020(e) 5,620 AAA Aaa 2,305 Webster, Texas, GO, COP, Series A, 6% due 3/01/2021(h) 2,607 Utah - 0.9% AAA NR* 12,000 Weber County, Utah, Municipal Building Authority, Lease Revenue Bonds, 7.50% due 12/15/2004(j)(m) 12,387 Virginia - 0.5% BBB+ A3 2,425 Chesterfield County, Virginia, IDA, PCR, Refunding (Virginia Electric and Power Company), Series B, 5.875% due 6/01/2017 2,685 BB Ba2 4,250 Pocahontas Parkway Association, Virginia, Toll Road Revenue Bonds, Senior Series A, 5.50% due 8/15/2028 3,847 Washington - 1.9% AAA Aaa 2,065 Kitsap County, Washington, GO, 5.875% due 7/01/2020(c) 2,332 AAA Aaa 3,000 Port Seattle, Washington, Special Facilities Revenue Bonds, Series A, 6% due 9/01/2029(f) 3,387 AAA Aaa 3,010 Seattle, Washington, Drain and Wastewater Utility Revenue Bonds, 5.75% due 11/01/2022(f) 3,381 Seattle, Washington, Housing Authority Revenue Bonds: NR* NR* 2,750 (Newholly Project), AMT, 6.25% due 12/01/2035 2,651 NR* NR* 4,935 (Replacement Housing Project), 6.125% due 12/01/2032 4,879 AAA Aaa 7,750 Tacoma, Washington, Electric System Revenue Refunding Bonds, Series A, 5.75% due 1/01/2017(h) 8,802 AAA Aaa 1,625 University of Washington, University Revenue Bonds (Student Facilities Fee), 5.875% due 6/01/2017(h) 1,852 West Virginia - BBB Baa2 7,500 Upshur County, West Virginia, Solid Waste 0.6% Disposal Revenue Bonds (TJ International Project), 7,863 AMT,7% due 7/15/2025 Wisconsin - 0.6% AAA Aaa 3,255 Wisconsin State, GO, AMT, Series B, 6.20% due 11/01/2026(f) 3,361 Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Synergyhealth Inc.): BBB+ NR* 3,250 6% due 11/15/2023 3,423 BBB+ NR* 1,700 6% due 11/15/2032 1,777 Wyoming - 1.3% AAA Aaa 8,400 Sweetwater County, Wyoming, PCR, Refunding (Idaho Power Company Project), Series A, 6.05% due 7/15/2026(f) 9,094 BB+ Ba3 9,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds (FMC Corporation Project), AMT, Series A, 7% due 6/01/2024 9,144 Guam - 0.0% AAA NR* 115 Guam Housing Corporation, S/F Mortgage Revenue Bonds, AMT, Series A, 5.75% due 9/01/2031(l) 126 Puerto Rico - 3.5% Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds: A- Baa2 8,045 5.75% due 7/01/2022 8,931 A Baa1 1,000 Series B, 6% due 7/01/2005(j) 1,043 AAA Aaa 2,000 Series B, 5.875% due 7/01/2021(f) 2,279 AAA Aaa 785 Puerto Rico Commonwealth, Public Improvement, GO, Refunding, 5.70% due 7/01/2020(f) 878 A- A3 15,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125% due 7/01/2029 15,430 NR* Aa2 2,000 Puerto Rico Industrial Tourist Educational, Medical and Environmental Control Facilities Revenue Bonds (Ascension Health), RIB, Series 377, 10.28% due 11/15/2030(g) 2,525 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds: AAA Aaa 10,340 Series A, 5.50% due 8/01/2011(f)(j) 11,737 AAA Aaa 5,205 Series A, 5.50% due 8/01/2011(f)(j) 5,908 BBB+ Baa2 960 Series E, 5.50% due 8/01/2029 1,011 Virgin Islands BBB- Baa3 8,000 Virgin Islands Government Refinery Facilities, - - 0.6% Revenue Refunding Bonds (Hovensa Coker Project), AMT, 6.50% due 7/01/2021 8,707 Total Municipal Bonds (Cost - $1,283,205) - 96.1% 1,369,775 Shares Held Short-Term Securities 34,123 Merrill Lynch Institutional Tax-Exempt Fund** 34,123 Total Short-Term Securities (Cost - $34,123) - 2.4% 34,123 Total Investments (Cost - $1,317,328***) - 98.5% 1,403,898 Other Assets Less Liabilities - 1.5% 21,993 ------------- Net Assets - 100.0% $ 1,425,891 ============= (a)Connie Lee Insured. (b)FHA Insured. (c)AMBAC Insured. (d)GNMA Collateralized. (e)FGIC Insured. (f)MBIA Insured. (g)The interest rate is subject to change periodically and inversely based upon prevailing market rates. The interest rate shown is the rate in effect at September 30, 2004. (h)FSA Insured. (i)FNMA/GNMA Collateralized. (j)Prerefunded. (k)XL Capital Insured. (l)FHLMC Collateralized. (m)Radian Insured. (n)The interest rate is subject to change periodically based upon prevailing market rates. The interest rate shown is the rate in effect at September 30, 2004. (o)Escrowed to maturity. *Not Rated. **Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income Merrill Lynch Institutional Tax-Exempt Fund 16,700 $68 ***The cost and unrealized appreciation/depreciation of investments as of September 30, 2004, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 1,317,166 ============== Gross unrealized appreciation $ 90,418 Gross unrealized depreciation (3,857) -------------- Net unrealized appreciation $ 86,561 ============== +Highest short-term rating by Moody's Investors Service, Inc.
Item 2 - Controls and Procedures 2(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 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. Merrill Lynch Municipal Bond Fund, Inc. By: /s/ Terry K. Glenn________ Terry K. Glenn, President Merrill Lynch Municipal Bond Fund, Inc. Date: November 19, 2004 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/ Terry K. Glenn________ Terry K. Glenn President Merrill Lynch Municipal Bond Fund, Inc. Date: November 19, 2004 By: /s/ Donald C. Burke________ Donald C. Burke Chief Financial Officer Merrill Lynch Municipal Bond Fund, Inc. Date: November 19, 2004 EX-99.CERT 2 ex99cert.txt EX-99 CERT EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Terry K. Glenn, President of Merrill Lynch Municipal Bond Fund, Inc., certify that: 1. I have reviewed this report on Form N-Q of Merrill Lynch Municipal Bond Fund, Inc. (the "Fund"); 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 schedule of investments included in this report fairly present in all material respects the investments of the Fund as of the end of the fiscal quarter for which the report is filed; 4. The Fund'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 Fund 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 Fund, 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 Fund'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 Fund's internal control over financial reporting that occurred during the Fund's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting; and 5. The Fund's other certifying officer(s) and I have disclosed to the Fund's auditors and the audit committee of the Fund'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 Fund'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 Fund's internal control over financial reporting. Date: November 19, 2004 /s/ Terry K. Glenn Terry K. Glenn President Merrill Lynch Municipal Bond Fund, Inc. EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Donald C. Burke, Chief Financial Officer of Merrill Lynch Municipal Bond Fund, Inc., certify that: 1. I have reviewed this report on Form N-Q of Merrill Lynch Municipal Bond Fund, Inc. (the "Fund"); 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 schedule of investments included in this report fairly present in all material respects the investments of the Fund as of the end of the fiscal quarter for which the report is filed; 4. The Fund'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 Fund 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 Fund, 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 Fund'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 Fund's internal control over financial reporting that occurred during the Fund's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting; and 5. The Fund's other certifying officer(s) and I have disclosed to the Fund's auditors and the audit committee of the Fund'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 Fund'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 Fund's internal control over financial reporting. Date: November 19, 2004 /s/ Donald C. Burke Donald C. Burke Chief Financial Officer Merrill Lynch Municipal Bond Fund, Inc. -----END PRIVACY-ENHANCED MESSAGE-----