N-Q 1 munibond.txt MERRILL LYNCH MUNICIPAL BOND FUND, INC. 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: Robert C. Doll, Jr., Chief Executive Officer, 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: 06/30/05 Date of reporting period: 01/01/05 - 03/31/05 Item 1 - Schedule of Investments Merrill Lynch Municipal Bond Fund, Inc. - Short-Term Portfolio Schedule of Investments as of March 31, 2005 (in Thousands)
Face State Amount Municipal Bonds Value Alaska - 0.4% $ 2,150 Alaska Student Loan Corporation, Capital Project Revenue Bonds, Series A, 5% due 1/01/2008 (e) $ 2,261 Arizona - 4.6% 4,000 Central Arizona, Water Conservation District, Contract Revenue Refunding Bonds (Central Arizona Project), Series A, 5.40% due 11/01/2005 4,068 8,640 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Bonds, Junior Lien, 5.90% due 7/01/2006 (a) 8,984 10,070 Salt River Project, Arizona, Agriculture Improvement and Power District, Electric System Revenue Refunding Bonds (Salt River Project), Series D, 5% due 1/01/2007 10,440 Arkansas - 0.4% 2,115 Fayetteville, Arkansas, Sales and Use Tax Capital Improvement, Special Assessment Bonds, 4% due 12/01/2006 2,158 California - 2.0% 10,000 California Statewide Communities Development Authority Revenue Bonds (Kaiser Permanente), Series C, 3.70% due 11/01/2029 10,021 Colorado - 1.0% 5,000 Denver, Colorado, City and County Airport Revenue Refunding Bonds, VRDN, AMT, Series A, 5.25% due 11/15/2006 (b)(f) 5,182 Connecticut - 1.6% 2,700 Connecticut State, GO, Refunding, Series C, 4% due 12/15/2005 2,729 5,000 Connecticut State, Special Tax Obligation Revenue Bonds (Transportation Infrastructure), Series A, 5.75% due 6/01/2006 (a)(f) 5,229 Delaware - 1.9% Delaware State, GO, Series A: 4,125 5% due 1/01/2006 4,201 5,190 5% due 1/01/2008 5,472 Florida - 4.1% 3,690 Collier County, Florida, Limited, GO (Conservation Collier Program), Series A, 5% due 1/01/2007 (c) 3,829 1,000 Florida State Board of Education, Capital Outlay, GO (Public Education), Series B, 5.625% due 6/01/2005 1,006 10,000 Florida State Board of Education, GO (Public Education Capital Outlay), Refunding, Series B, 5% due 6/01/2007 10,446 2,500 Florida State Board of Education, Lottery Revenue Bonds, Series B, 5.25% due 7/01/2005 (f) 2,518 2,860 Florida State Turnpike Authority, Turnpike Revenue Refunding Bonds (Department of Transportation), Series A, 5.25% due 7/01/2008 (e) 3,054 400 Hillsborough County, Florida, Aviation Authority Revenue Refunding Bonds (Tampa International Airport), AMT, Series A, 5% due 10/01/2005 (c) 405
Portfolio Abbreviations To simplify the listings of Merrill Lynch Municipal Bond Fund, Inc. - Short-Term 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 IDA Industrial Development Authority PCR Pollution Control Revenue Bonds TAN Tax Anticipation Notes VRDN Variable Rate Demand Notes Merrill Lynch Municipal Bond Fund, Inc. - Short-Term Portfolio Schedule of Investments as of March 31, 2005 (concluded) (in Thousands)
Face State Amount Municipal Bonds Value Georgia - 5.8% $ 5,000 Cobb County, Georgia, GO, TAN, 3.50% due 12/30/2005 $ 5,038 5,000 Coweta County, Georgia, School District, GO, Sales Tax, 4.50% due 8/01/2005 5,036 6,225 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series DD, 7% due 1/01/2008 (d)(g) 6,860 2,550 Georgia State, GO, Refunding, Series A, 6.25% due 3/01/2006 2,634 4,360 Georgia State, GO, Series B, 4.50% due 5/01/2006 4,448 1,000 Gwinnett County, Georgia, School District, GO, Refunding, 4.50% due 2/01/2006 1,016 4,680 Henry County, Georgia, GO, 4% due 7/01/2006 4,755 Illinois - 0.8% 3,740 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Refunding Bonds, Series A, 6% due 12/15/2006 3,939 Indiana - 2.9% 10,000 Indiana Health Facilities Financing Authority, Subordinate Credit Group Revenue Bonds (Ascension Health), Series A, 5% due 5/01/2008 10,451 4,300 Indiana State Development Finance Authority, PCR, Refunding (Southern Indiana Gas & Electric), AMT, Series C, 5% due 3/01/2030 (c) 4,360 Iowa - 2.5% Ankeny, Iowa, GO, BAN: 6,920 Series C, 1.50% due 6/01/2005 6,922 5,775 Series D, 2% due 12/01/2005 5,760 Kansas - 3.9% 20,228 Unified Government of Wyandotte County and Kansas City, Kansas, GO (Municipal Temporary Notes), Series I, 1.35% due 4/01/2005 20,228 Massachusetts - 3.0% 15,070 New England Education Loan Marketing Corporation, Massachusetts, Student Loan Revenue Refunding Bonds, AMT, Series A, 5.70% due 7/01/2005 15,192 Michigan - 3.1% 32,750 Huron Valley, Michigan, School District, GO, 6.535%* due 5/01/2006 (a)(f) 11,703 Michigan State Hospital Finance Authority Revenue Refunding Bonds (Oakwood Obligated Group): 2,000 5% due 11/01/2005 2,025 2,000 5% due 11/01/2006 2,059 Minnesota - 1.6% 8,315 Minneapolis, Minnesota, Revenue Bonds (Minneapolis Society of Fine Arts), VRDN, 1.75% due 10/14/2015 (b) 8,288 Missouri - 2.6% 3,980 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, AMT, 5% due 4/01/2007 (c) 4,122 4,000 Kansas City, Missouri, School District, Building Revenue Refunding Bonds, Series A, 5% due 2/01/2006 (f) 4,078 5,000 Missouri State Public Utilities Commission, Interim Construction Notes, 2.75% due 10/01/2005 5,006 Nebraska - 1.5% 7,000 Nebraska Public Power District, General Revenue Refunding Bonds, Series B-2, 5% due 1/01/2009 (f) 7,447 New Jersey - 5.5% 4,550 Jersey City, New Jersey, GO (Public Improvement), Refunding, Series A, 4% due 9/01/2007 (d) 4,667 New Jersey EDA, Market Transition Facility, Senior Lien Revenue Refunding Bonds, Series A (d): 3,000 5% due 7/01/2006 3,086 14,000 6% due 7/01/2007 14,938 5,000 New Jersey State Transit Corporation, COP, 6.50% due 4/01/2007 (a)(e) 5,398 New Mexico - 2.7% 3,595 Rio Rancho, New Mexico, Water and Wastewater System Revenue Bonds, Series A, 6% due 5/15/2006 (a)(e) 3,728 10,000 San Juan County, New Mexico, Gross Receipts Tax Revenue Bonds, Subordinate Series A, 2.50% due 8/15/2005 10,000 New York - 2.8% 7,500 Monroe County, New York, BAN, 4% due 7/28/2005 7,526 7,000 New York City, New York, GO, Refunding, Series G, 5% due 8/01/2005 7,061 North Carolina - 1.0% 5,000 North Carolina State, Public School Building, GO, 4.60% due 4/01/2006 5,099 Ohio - 2.0% Ohio State, Highway Capital Improvement, GO: 5,375 Series C, 4.75% due 5/01/2005 5,386 4,850 Series F, 5% due 5/01/2005 4,861 Oklahoma - 1.2% 630 Midwest City, Oklahoma, Municipal Authority, Capital Improvement Revenue Bonds, 4.55% due 6/01/2005 (e)(g) 632 3,040 Oklahoma City, Oklahoma, Airport Trust Revenue Refunding Bonds, Junior Lien, AMT, 28th Series, 4% due 7/01/2005 (d) 3,051 2,500 Oklahoma Development Finance Authority Revenue Bonds (Conoco Project), VRDN, AMT, Series B, 2.44% due 8/01/2037 (b) 2,500 Oregon - 0.5% 2,385 Tri-County, Oregon, Metropolitan Transportation District Revenue Bonds, Series A, 5.25% due 8/01/2005 (g) 2,408 Pennsylvania - 2.9% 9,620 Allegheny County, Pennsylvania, Port Authority, Subordinate Lien Special Revenue Transportation Bonds, 5.375% due 6/01/2006 (d) 9,914 3,000 Midway Sewerage Authority, Pennsylvania, Revenue Notes, 2% due 12/01/2005 2,987 2,000 Pennsylvania State, GO, First Series, 5% due 1/01/2008 (d) 2,106 Rhode Island - 2.5% 2,500 Rhode Island Housing and Mortgage Finance Corporation, Homeowner Opportunity Revenue Bonds, AMT, Series 41-C, 3.375% due 11/01/2005 2,512 10,000 Rhode Island State Economic Development Corporation, Grant Anticipation Bonds (Rhode Island Department of Transportation), 5% due 6/15/2006 10,262 South Carolina - 0.1% 500 South Carolina State Highway, GO, Series B, 5.25% due 4/01/2005 500 Tennessee - 0.7% 3,815 Hamilton County, Tennessee, GO, Refunding, 4% due 10/01/2005 (f) 3,845 Texas - 13.8% 3,205 Corpus Christi, Texas, GO (General Improvement), Refunding, Series A, 5% due 3/01/2006 (e) 3,273 1,250 Dallas County, Texas, Community College District, GO (Maintenance Tax Notes), 5% due 2/15/2008 1,315 8,180 Gulf Coast Waste Disposal Authority, Texas, PCR (Amoco Oil Company Project), VRDN, 2% due 10/01/2006 (b) 8,081 14,000 Matagorda County, Texas, Navigation District No. 1, PCR (Central Power and Light Company), Refunding, Series A, 4.55% due 11/01/2029 (b) 14,256 4,000 Texas A & M University, Financing System Revenue Refunding Bonds, 4.65% due 5/15/2006 4,085 10,025 Texas Public Finance Authority, Capital Appreciation Building Revenue Refunding Bonds, 2.45%* due 8/01/2006 (d)(g) 9,677 12,000 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, Second Tier, BAN, 5% due 6/01/2008 12,675 3,000 Texas Water Development Board Revenue Bonds (State Revolving Fund), Senior Lien, Series A, 6% due 7/15/2006 (b) 3,123 4,000 Trinity River Authority, Texas, Regional Wastewater System Revenue Refunding Bonds, 5% due 8/01/2006 (d) 4,117 10,000 Weatherford, Texas, Independent School District, GO, Series A, 2.50% due 2/01/2035 (b) 10,004 Utah - 1.4% 7,000 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds, Series A, 5% due 7/01/2007 (d) 7,311 Virginia - 2.1% 6,875 Louisa, Virginia, IDA, Solid Waste and Sewer Disposal Revenue Bonds (Virginia Electric and Power Company Project), AMT, Series A, 3.15% due 9/01/2030 (b) 6,729 3,900 Virginia State Public School Authority, School Financing, GO, Series B, 4% due 8/01/2005 3,922 Washington - 5.4% 7,500 Energy Northwest, Washington, Electric Revenue Refunding Bonds (Columbia Generating Station), Series A, 5.25% due 7/01/2008 7,980 3,345 King County, Washington, GO, Refunding, 5% due 12/01/2005 3,400 7,195 Washington State, GO, Series B and AT-7, 6.10% due 6/01/2006 7,472 Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project Number 1), Series A (c): 5,000 6% due 7/01/2005 5,045 3,550 6% due 7/01/2006 3,691 West Virginia - 0.5% 2,230 West Virginia State Building Commission Revenue Bonds, Series A, 5.50% due 7/01/2006 (d) 2,306 Wisconsin - 1.2% 6,055 Wisconsin State Transportation Revenue Bonds, Series A, 5% due 7/01/2007 (d) 6,327 Puerto Rico - 1.0% 5,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series AA, 5% due 7/01/2006 5,133 Total Municipal Bonds (Cost - $468,431) - 91.0% 465,758 Shares Held Short-Term Securities 39,304 Merrill Lynch Institutional Tax-Exempt Fund (h) 39,304 Total Short-Term Securities (Cost - $39,304) - 7.6% 39,304 Total Investments (Cost - $507,735**) - 98.6% 505,062 Other Assets Less Liabilities - 1.4% 6,952 --------- Net Assets - 100.0% $ 512,014 ========= (a) Prerefunded. (b) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. (c) AMBAC Insured. (d) MBIA Insured. (e) FSA Insured. (f) FGIC Insured. (g) Escrowed to maturity. (h) 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 22,490 $ 252 * 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 March 31, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 507,735 =============== Gross unrealized appreciation $ 262 Gross unrealized depreciation (2,935) --------------- Net unrealized depreciation $ (2,673) ===============
Merrill Lynch Municipal Bond Fund, Inc. - Insured Portfolio Schedule of Investments as of March 31, 2005 (in Thousands)
Face State Amount Municipal Bonds Value Alabama - 2.3% Alabama Water Pollution Control Authority Revenue Bonds (b): $ 3,020 5.75% due 8/15/2018 $ 3,315 1,585 Revolving Fund Loan, Series A, 6.75% due 8/15/2005 (a) 1,611 10,000 Lauderdale County and Florence, Alabama, Health Care Authority, Revenue Refunding Bonds (Coffee Health Group), Series A, 6% due 7/01/2029 (e) 11,181 7,000 University of Alabama, University Revenue Bonds (Birmingham), 6% due 10/01/2020 (g) 7,729 Arkansas - 1.1% University of Arkansas, University Revenue Bonds (Various Facilities- Fayetteville Campus) (g): 6,060 5.50% due 12/01/2012 (a) 6,772 5,000 5% due 12/01/2027 5,147 California - 18.6% 19,000 California Pollution Control Financing Authority, PCR, Refunding (Pacific Gas & Electric), AMT, Series A, 5.35% due 12/01/2016 (e) 20,181 2,075 California State Department of Veteran Affairs, Home Purpose, Revenue Refunding Bonds, Series A, 5.35% due 12/01/2027 (b) 2,147 California State Department of Water Resources, Power Supply Revenue Bonds, Series A: 12,000 5.375% due 5/01/2017 (k) 13,017 10,250 5.375% due 5/01/2021 (e) 11,109 6,384 5.375% due 5/01/2022 (e) 6,910 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series B (g): 23,200 5.375% due 6/01/2028 24,321 5,000 5.50% due 6/01/2033 5,395 Industry, California, Urban Development Agency, Tax Allocation Bonds, Series 1-B (e): 5,645 5% due 5/01/2020 5,895 6,000 5% due 5/01/2021 6,243 5,000 Los Angeles, California, GO, Series A, 5% due 9/01/2019 (e) 5,241 Los Angeles, California, Unified School District, GO: 24,465 (Election of 1997), Series F, 5% due 1/01/2028 (g) 25,367 13,800 Series A, 5% due 1/01/2028 (e) 14,309 8,965 Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds, 5.50% due 9/01/2036 (b) 9,718 12,040 Mount Diablo, California, Unified School District, GO (Election of 2002), 5% due 7/01/2027 (g) 12,459 6,440 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (e) 7,040 11,685 Rialto, California, Unified School District, GO, Series A, 6.24%* due 6/01/2025 (g) 4,133 5,075 Sacramento, California, Unified School District, GO (Election of 1999), Series B, 5% due 7/01/2026 (g) 5,240 8,390 San Joaquin Hills, California, Transportation Corridor Agency, Toll Road Revenue Refunding Bonds, Series A, 5.28%* due 1/15/2024 (e) 3,204
Portfolio Abbreviations To simplify the listings of Merrill Lynch Municipal Bond Fund, Inc. - Insured Portfolio's holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list at right. 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 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 March 31, 2005 (concluded) (in Thousands)
Face State Amount Municipal Bonds Value California $ 2,755 Tahoe Truckee, California, Unified School District, GO (School Facilities (concluded) Improvement District Number 2), Series A, 5.25% due 8/01/2029 (e) $ 2,921 9,330 Tustin, California, Unified School District, Senior Lien Special Tax Bonds (Community Facilities District No. 97-1), Series A, 5% due 9/01/2038 (i) 9,497 Colorado - 5.7% 19,250 Aurora, Colorado, COP, 6% due 12/01/2025 (b) 21,390 31,160 Denver, Colorado, City and County Airport Revenue Refunding Bonds, RIB, Series 153, 8.791% due 11/15/2025 (e)(j) 33,354 4,000 Logan County, Colorado, Justice Center Finance Corporation, COP, 5.50% due 12/01/2020 (e) 4,362 Florida - 2.3% 5,500 Dade County, Florida, Water and Sewer System Revenue Bonds, 5.25% due 10/01/2026 (g) 5,758 15,000 Escambia County, Florida, Health Facilities Authority, Health Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95% due 7/01/2020 (b) 15,244 2,240 West Coast Regional Water Supply Authority, Florida, Capital Improvement Revenue Bonds, 10.40% due 10/01/2010 (a)(b) 2,721 Georgia - 3.5% Georgia Municipal Electric Authority, Power Revenue Bonds, Series Y (b): 8,510 6.40% due 1/01/2013 9,764 490 6.40% due 1/01/2013 (c) 563 20,000 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series EE, 7% due 1/01/2025 (b) 26,527 Hawaii - 1.0% 10,170 Honolulu, Hawaii, City and County GO, Refunding, Series B, 5% due 7/01/2009 (e) 10,862 Illinois - 2.6% 17,690 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT, Series B-2, 6% due 1/01/2027 (e) 19,726 6,800 Illinois State, GO, 5.75% due 5/01/2021 (e) 7,135 Kansas - 0.5% 5,145 Manhattan, Kansas, Hospital Revenue Bonds (Mercy Health Center), 5.50% due 8/15/2020 (i) 5,587 Louisiana - 1.0% 10,250 Louisiana Public Facilities Authority, Mortgage Revenue Refunding Bonds (Baton Rouge General Medical Center Project), 5.25% due 7/01/2033 (d)(e) 10,747 Maryland - 0.5% 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) 5,672 Massachusetts - 3.1% 4,000 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C, 5.60% due 1/01/2045 (i) 4,090 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds (g): 4,750 5.25% due 1/01/2025 5,040 10,000 5.25% due 1/01/2026 10,611 12,250 5.25% due 1/01/2027 13,008 Michigan - 2.7% 4,305 Michigan State, HDA, Rental Housing Revenue Refunding Bonds, Series B, 6.15% due 10/01/2015 (e) 4,402 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds: 10,000 (Detroit Edison Company), Series AA, 6.40% due 9/01/2025 (e) 10,340 13,145 (Detroit Edison Company Project), AMT, Series A, 5.50% due 6/01/2030 (k) 13,914 Minnesota - 1.5% 5,860 Delano, Minnesota, Independent School District Number 879, GO, Series A, 5.875% due 2/01/2025 (i) 6,471 Sauk Rapids, Minnesota, Independent School District Number 047, GO, Series A (e): 3,735 5.65% due 2/01/2020 4,079 4,440 5.70% due 2/01/2021 4,860 Mississippi - 1.2% 1,320 Harrison County, Mississippi, Wastewater Management District, Revenue Refunding Bonds (Wastewater Treatment Facilities), Series A, 8.50% due 2/01/2013 (g) 1,727 10,000 Mississippi Hospital Equipment and Facilities Authority Revenue Bonds (Forrest County General Hospital Project), 6% due 1/01/2030 (i) 11,091 Missouri - 2.3% Kansas City, Missouri, Airport Revenue Refunding and Improvement Bonds, Series A (e): 12,990 5.50% due 9/01/2013 13,865 9,000 5.50% due 9/01/2014 9,606 Nevada - 6.4% Clark County, Nevada, IDR, AMT, Series A: 10,000 (Power Company Project), 6.70% due 6/01/2022 (g) 10,139 9,575 (Southwest Gas Corporation Project), 5.25% due 7/01/2034 (b) 9,899 45,000 Washoe County, Nevada, Water Facility Revenue Bonds (Sierra Pacific Power Company), AMT, 6.65% due 6/01/2017 (e) 46,728 New Jersey - 8.4% 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) 8,708 Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation Revenue Bonds, Series A (i): 3,125 5.80% due 11/01/2021 (l) 3,466 8,310 5.80% due 11/01/2022 (l) 9,180 4,340 5.80% due 11/01/2023 (l) 4,779 16,500 Revenue Bonds, Series B, 5.17%* due 11/01/2024 6,517 23,000 New Jersey, EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due 7/01/2033 (e) 24,453 25,000 New Jersey, EDA, Natural Gas Facilities, Revenue Refunding Bonds (NUI Corporation Project), Series A, 6.35% due 10/01/2022 (b) 25,573 4,000 New Jersey, EDA, School Facility Construction, Revenue Refunding Bonds, Series K, 5.25% due 12/15/2017 (g) 4,381 New York - 12.5% 10,000 Metropolitan Transportation Authority, New York, Service Contract Revenue Bonds, Series B, 5.50% due 1/01/2013 (e) 11,153 12,075 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, RIB, Series 158, 8.977% due 6/15/2026 (e)(j) 13,199 New York City, New York, GO: 11,500 Series C, 5.625% due 3/15/2018 (k) 12,632 21,000 Series I, 6% due 4/15/2007 (i) 22,399 5,155 New York City, New York, GO, Refunding, Series G, 5.75% due 2/01/2006 (i) 5,355 11,600 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5.25% due 10/15/2027 (b) 12,502 9,190 New York State Dormitory Authority Revenue Bonds (School Districts Financing Program), Series D, 5.25% due 10/01/2023 (e) 9,810 365 New York State Dormitory Authority, Revenue Refunding Bonds, Series A, 5.75% due 2/15/2007 (e) 388 9,110 New York State Urban Development Corporation, Personal Income Tax Revenue Bonds (State Facilities), Series A-1, 5.25% due 3/15/2034 (g) 9,641 5 Niagara Falls, New York, GO, Public Improvement, 6.90% due 3/01/2024 (e) 5 25,000 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25% due 6/01/2022 (b) 26,549 West Islip, New York, Union Free School District, GO, Refunding (i): 1,535 5% due 10/01/2015 1,666 4,120 5% due 10/01/2016 4,459 North Carolina - 0.3% 3,370 North Carolina, HFA, Home Ownership Revenue Bonds, AMT, Series 14-A, 5.35% due 1/01/2022 (b) 3,492 North Dakota - 0.4% 3,575 North Dakota State, HFA Revenue Bonds (Housing Finance Program), Series C, 5.30% due 7/01/2022 (b) 3,683 Oklahoma - 0.7% 6,385 Oklahoma State, IDR, Refunding (Health System), Series A, 6.25% due 8/15/2016 (e) 7,102 Oregon - 1.4% 8,700 Oregon State Department, Administrative Services, COP, Series A, 6.25% due 5/01/2010 (a)(b) 9,982 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) 4,590 Pennsylvania - 3.1% 5,000 Pennsylvania, HFA, S/F Revenue Bonds, AMT, Series 72A, 5.25% due 4/01/2021 (e) 5,159 8,350 Pennsylvania State, GO, Second Series, 5.25% due 6/01/2015 (i) 9,166 5,000 Pennsylvania State Turnpike Commission, Turnpike Revenue Refunding Bonds, Series T, 5.50% due 12/01/2013 (g) 5,602 6,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 12th Series B, 7% due 5/15/2020 (c)(e) 7,272 4,420 Philadelphia, Pennsylvania, Redevelopment Authority Revenue Bonds (Neighborhood Transformation), Series A, 5.50% due 4/15/2020 (g) 4,803 Rhode Island - 0.7% 6,815 Rhode Island State Economic Development Corporation, Airport Revenue Bonds, Series B, 6% due 7/01/2028 (g) 7,564 South Carolina - 0.4% 4,200 South Carolina State Public Service Authority, Revenue Refunding Bonds, Series A, 6.25% due 1/01/2006 (b) 4,395 Texas - 4.4% 17,975 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT, Series 202, 9.548% due 11/01/2028 (g)(j) 21,135 El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds, Series A (i): 4,375 6% due 3/01/2018 4,905 4,645 6% due 3/01/2019 5,207 3,500 Houston, Texas, Water Conveyance System Contract, COP, Series J, 6.25% due 12/15/2013 (b) 4,055 5,000 San Antonio, Texas, Municipal Drain Utility System Revenue Bonds, 5% due 2/01/2030 (e) 5,132 Texas State Department of Housing and Community Affairs, S/F Mortgage Revenue Bonds, AMT, Series A (e)(f): 2,085 5.45% due 9/01/2023 2,166 2,735 5.50% due 3/01/2026 2,811 Utah - 1.7% 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) 10,075 Utah Water Finance Agency Revenue Bonds (Pooled Loan Financing Program), Series A (b): 2,515 5.75% due 10/01/2015 2,775 3,770 6% due 10/01/2020 4,204 Virginia - 3.1% 19,755 Fairfax County, Virginia, EDA, Resource Recovery, Revenue Refunding Bonds, AMT, Series A, 6.10% due 2/01/2011 (b) 21,970 9,690 Virginia State HDA, Commonwealth Mortgage Revenue Bonds, Series J, Sub-Series J-1, 5.20% due 7/01/2019 (e) 9,815 Washington - 0.7% 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) 7,547 West Virginia - 1.2% 12,250 Pleasants County, West Virginia, PCR, Refunding (Potomac-Pleasants), Series C, 6.15% due 5/01/2015 (b) 12,603 Wisconsin - 1.2% 9,000 Superior, Wisconsin, Limited Obligation, Revenue Refunding Bonds (Midwest Energy Resources), Series E, 6.90% due 8/01/2021 (g) 11,562 1,075 Wisconsin State, GO, AMT, Series B, 6.50% due 5/01/2025 (e) 1,078 Puerto Rico - 1.6% 1,750 Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue Bonds, Series G, 5.25% due 7/01/2017 (g) 1,909 14,200 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series RR, 5% due 7/01/2035 (g) 14,812 Total Municipal Bonds (Cost - $971,699) - 98.1% 1,022,770 Shares Held Mutual Funds 300 BlackRock California Insured Municipal 2008 Term Trust, Inc. 4,800 810 BlackRock Insured Municipal 2008 Term Trust, Inc. 12,765 323 BlackRock Insured Municipal Term Trust, Inc. 3,537 Total Mutual Funds (Cost - $22,396) - 2.0% 21,102 Shares Held Short-Term Securities 14,017 Merrill Lynch Institutional Tax-Exempt Fund (h) 14,017 Total Short-Term Securities (Cost - $14,017) - 1.4% 14,017 Total Investments (Cost - $1,008,112**) - 101.5% 1,057,889 Liabilities in Excess of Other Assets - (1.5%) (15,336) ----------- Net Assets - 100.0% $ 1,042,553 =========== (a) Prerefunded. (b) AMBAC Insured. (c) Escrowed to maturity. (d) FHA Insured. (e) MBIA Insured. (f) FNMA/GNMA Collateralized. (g) FGIC Insured. (h) 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 11,000 $ 295 (i) FSA Insured. (j) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (k) XL Capital Insured. (l) When-issued security. * 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 March 31, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 1,008,112 =============== Gross unrealized appreciation $ 53,762 Gross unrealized depreciation (3,985) --------------- Net unrealized appreciation $ 49,777 =============== Forward interest rate swaps outstanding as of March 31, 2005 were as follows: (in Thousands) Notional Unrealized Amount Appreciation Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate of 3.759% Broker, JPMorgan Chase Bank Expires November 2018 $ 11,500 $ 232
Merrill Lynch Municipal Bond Fund, Inc. - National Portfolio Schedule of Investments as of March 31, 2005 (In Thousands)
Face State Amount Municipal Bonds Value Alabama - 0.5% $ 3,820 Alabama Incentives Financing Authority, Special Obligation, Revenue Refunding Bonds, Series A, 6% due 10/01/2029 (c) $ 4,265 500 Mobile, Alabama, Industrial Development Board, Environmental Improvement, Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.35% due 5/15/2016 535 2,500 Selma, Alabama, IDB, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.70% due 2/01/2018 2,715 Alaska - 0.5% 3,000 Alaska State Housing Financial Corporation, General Mortgage Revenue Refunding Bonds, Series A, 6% due 6/01/2027 (f) 3,109 3,860 Anchorage, Alaska, School, GO, Series B, 5.875% due 12/01/2010 (e)(j) 4,340 Arizona - 2.5% 4,000 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625% due 7/01/2020 4,430 1,000 Glendale, Arizona, Development Authority, Educational Facilities, Revenue Refunding Bonds (American Graduate School International), 7.125% due 7/01/2005 (a)(j) 1,022 1,000 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation), 6.125% due 4/01/2018 1,047 3,600 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.75% due 7/1/2029 3,570 1,625 Maricopa County, Arizona, IDA, Health Facilities, Revenue Refunding Bonds (Catholic Healthcare West Project), Series A, 5% due 7/01/2021 1,628 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) 1,020 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding, Series A: 1,200 (El Paso Electric Company Project), 6.25% due 5/01/2037 1,213 1,000 (Public Service Company of New Mexico Project), 6.30% due 12/01/2026 1,067
Portfolio Abbreviations To simplify the listings of Merrill Lynch Municipal Bond Fund, Inc. - National Portfolio's portfolio holdings in the Schedule of Investments, we 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 Merrill Lynch Municipal Bond Fund, Inc. - National Portfolio Schedule of Investments as of March 31, 2005 (concluded) (In Thousands)
Face State Amount Municipal Bonds Value Arizona Peoria, Arizona, Improvement District No. 8401, Special Assessment (concluded) Bonds No. 8802: $ 430 7.20% due 1/01/2010 $ 439 510 7.20% due 1/01/2013 520 Peoria, Arizona, Improvement District, Special Assessment Bonds No. 8801: 190 7.30% due 1/01/2009 194 395 7.30% due 1/01/2011 403 2,330 Phoenix, Arizona, Civic Improvement Corporation, Municipal Facilities, Excise Tax Revenue Bonds, 5.75% due 7/01/2016 (e) 2,580 5,000 Phoenix, Arizona, IDA, Airport Facility, Revenue Refunding Bonds (America West Airlines Inc. Project), AMT, 6.30% due 4/01/2023 3,784 545 Prescott Valley, Arizona, Improvement District, Special Assessment Bonds (Sewer Collection System Roadway Repair), 7.90% due 1/01/2012 562 3,515 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project), Series A, 6.125% due 7/01/2024 (m) 3,894 3,180 University of Arizona, COP, Refunding, Series A, 5.50% due 6/01/2018 (c) 3,472 1,000 University of Arizona, COP (University of Arizona Parking and Student Housing), 5.75% due 6/01/2019 (c) 1,084 3,000 Vistancia, Arizona, Community Facilities District, GO, 6.75% due 7/15/2022 3,181 Arkansas - 0.1% 75 Arkansas State Development Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), Series H, 6.15% due 7/01/2016 (i) 78 250 Arkansas State Student Loan Authority Revenue Bonds, AMT, Sub-Series B, 7.25% due 6/01/2009 273 200 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) 211 250 North Little Rock, Arkansas, Health Facilities Board, Health Care Revenue Bonds (Baptist Health), 5.50% due 7/01/2016 260 500 Pine Bluff, Arkansas, Environmental Improvement, Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.70% due 8/01/2020 545 250 University of Central Arkansas, Housing System Revenue Bonds, 6.50% due 1/01/2031 (h) 284 California - 12.4% 2,500 Agua Caliente Band of Cahuilla Indians, California, Casino Revenue Bonds, 6% due 7/01/2018 2,571 9,145 Alameda County, California, COP (Financing Project), 6% due 9/01/2006 (f)(j) 9,722 2,805 American Canyon, California, Finance Authority, Reassessment Revenue Bonds, Series A, 5% due 9/02/2031 (m) 2,820 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Class 5 (i)(l): 485 Series C, 6.75% due 3/01/2029 491 335 Series D, 6.70% due 5/01/2029 336 325 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) 329 7,500 California State Department of Water Resources, Power Supply Revenue Bonds, Series A, 5.75% due 5/01/2017 8,291 5,000 California State, GO, 5.25% due 4/01/2029 5,256 2,000 California State, GO, Refunding, 5.75% due 5/01/2030 2,189 14,100 California State, Various Purpose, GO, 5.50% due 11/01/2033 15,094 9,880 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 6% due 10/01/2023 11,164 2,880 Capistrano, California, Unified School District, Community Facility District, Special Tax Bonds (No. 90-2 Talega), 6% due 9/01/2032 3,072 Chula Vista, California, Community Facilities District, Special Tax Bonds (No. 06-1, Eastlake Woods Area), Series A: 1,080 6.05% due 9/01/2020 1,142 2,965 6.15% due 9/01/2026 3,101 13,000 Clovis, California, Unified School District, Capital Appreciation, GO (Election of 2004), Series A, 5.05%* due 8/01/2029 (e) 3,615 Contra Costa County, California, Special Tax Bonds (Community Facilities District Number 2001-01): 1,585 6% due 9/01/2026 1,640 1,200 6.10% due 9/01/2031 1,243 11,300 Desert, California, Community College District, GO, Series A, 5% due 8/01/2029 (f) 11,717 3,100 Elk Grove, California, Poppy Ridge Community Facilities Number 3 Special Tax, Series 1, 6% due 9/01/2028 3,229 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds: 2,000 Series A-4, 7.80% due 6/01/2042 2,272 2,785 Series A-5, 7.875% due 6/01/2042 3,178 2,740 Pomona, California, Public Financing Authority, Revenue Refunding Bonds (Merged Redevelopment Project), Series A1, 5.75% due 2/01/2034 2,821 1,100 Poway, California, Unified School District, Special Tax Bonds (Community District No. 6), Series A, 6.05% due 9/01/2025 1,154 2,695 Riverside, California, Improvement Bond Act of 1915, Special Assessment (Riverwalk Assessment District), 6.375% due 9/02/2026 2,918 Roseville, California, Special Tax (Stoneridge Community Facilities Number 1): 1,250 6.20% due 9/01/2021 1,325 1,125 6% due 9/01/2025 1,174 2,500 6.30% due 9/01/2031 2,662 Sacramento, California, Special Tax (North Natomas Community Facilities): 2,200 Series 01-03, 6% due 9/01/2028 2,296 2,270 Series 4-C, 6% due 9/01/2028 2,399 21,260 Sacramento County, California, Sanitation District Financing Authority Revenue Bonds, Series A, 5% due 12/01/2035 (c) 22,000 10,000 San Diego, California, Public Facilities Financing Authority, Subordinated Water Revenue Refunding Bonds, 5% due 8/1/2032 (f) 10,277 11,520 San Diego, California, Unified School District, GO (Election of 1998), Series F, 5% due 7/01/2028 (h) 11,951 San Francisco California, City and County Redevelopment Agency Revenue Bonds (Community Facilities District Number 6-Mission): 5,000 6% due 8/01/2021 5,232 2,500 GO, Series A, 6% due 8/01/2025 2,620 1,075 San Francisco, California, Uptown Parking Corporation, Parking Revenue Bonds (Union Square), 6% due 7/01/2020 (f) 1,208 Santa Margarita, California, Water District, Special Tax Refunding Bonds (Community Facilities District No. 99), Series 1: 3,680 6.20% due 9/01/2020 4,000 3,000 6.25% due 9/01/2029 3,186 South Tahoe, California, Joint Powers Financing Authority, Revenue Refunding Bonds (South Tahoe Redevelopment Project Area No. 1), Series A (c): 2,250 5% due 10/01/2028 2,273 2,000 5% due 10/01/2035 2,011 Val Verde, California, Unified School District, Special Tax Bonds (Community Facilities District No. 1), Series A: 1,000 5.40% due 9/01/2030 992 1,000 5.45% due 9/01/2036 995 Colorado - 2.1% 500 Boulder County, Colorado, Hospital Development Revenue Bonds (Longmont United Hospital Project), 6% due 12/01/2030 (m) 545 560 Colorado HFA, Revenue Bonds (S/F Program), Series B-3, 6.55% due 10/01/2016 569 Colorado HFA, Revenue Refunding Bonds (S/F Program): 465 AMT, Senior Series A-2, 7.50% due 4/01/2031 492 190 AMT, Senior Series B-2, 7.10% due 4/01/2017 194 1,270 AMT, Senior Series B-2, 7.25% due 10/01/2031 1,317 95 AMT, Senior Series B-3, 6.80% due 11/01/2028 95 600 AMT, Senior Series C-2, 7.25% due 10/01/2031 (b) 622 160 Senior Series A-3, 7.35% due 10/01/2030 165 810 Senior Series C-3, 6.75% due 10/01/2021 (b) 836 240 Senior Series C-3, 7.15% due 10/01/2030 (b) 249 2,500 Colorado Health Facilities Authority, Revenue Refunding Bonds (Catholic Health Initiatives), 5.50% due 9/01/2017 2,654 550 Colorado Water Resource and Power Development Authority, Small Water Resource Revenue Bonds, Series A, 5.80% due 11/01/2020 (e) 608 Elk Valley, Colorado, Public Improvement Revenue Bonds (Public Improvement Fee): 7,560 Series A, 7.35% due 9/01/2031 8,044 1,400 Series B, 7% due 9/01/2031 1,433 3,685 Larimer County, Colorado, Poudre School District Number R-1, GO, 6% due 12/15/2010 (e)(j) 4,171 7,700 Plaza Metropolitan District No. 1, Colorado, Tax Allocation Revenue Bonds (Public Improvement Fees), 8% due 12/01/2025 8,091 Connecticut - 2.2% 3,500 Bridgeport, Connecticut, Senior Living Facilities Revenue Bonds (3030 Park Retirement Community Project), 7.25% due 4/01/2035 3,503 1,000 Connecticut State Development Authority, Governmental Lease Revenue Bonds, 6.60% due 6/15/2014 (f) 1,023 1,500 Connecticut State Development Authority, Solid Waste Disposal Facilities Revenue Bonds (Pfizer Inc. Project), AMT, 7% due 7/01/2025 1,545 1,250 Connecticut State Development Authority, Water Facility Revenue Bonds (Bridgeport Hydraulic Company), AMT, 6.15% due 4/01/2035 (c) 1,342 1,200 Connecticut State, HFA, Revenue Refunding Bonds (Housing Mortgage Finance Program), Series C-1, 6.30% due 11/15/2017 1,245 Connecticut State Health and Educational Facilities Authority Revenue Bonds: 1,000 (Bridgeport Hospital), Series A, 6.625% due 7/01/2018 (f) 1,003 1,500 (Waterbury Hospital Issue), Series C, 5.75% due 7/01/2020 (m) 1,612 1,000 (Westover School), Series A, 5.70% due 7/01/2030 (m) 1,058 Connecticut State Health and Educational Facilities Authority, Revenue Refunding Bonds: 5,025 DRIVERS, Series 215, 10.593% due 6/01/2030 (g)(m) 6,295 2,000 (Eastern Connecticut Health Network), Series A, 6.50% due 7/01/2030 (m) 2,253 640 (Sacred Heart University), 6.625% due 7/01/2026 (m) 681 5,710 (University of Hartford), Series E, 5.50% due 7/01/2022 (m) 6,140 1,000 (Yale-New Haven Hospital Issue), Series H, 5.70% due 7/01/2025 (f) 1,049 930 Connecticut State Higher Education, Supplemental Loan Authority Revenue Bonds (Family Education Loan Program), AMT, Series A, 5.50% due 11/15/2020 (f) 932 1,000 Connecticut State Regional Learning Educational Service Center Revenue Bonds (Office/Education Center Facility), 7.75% due 2/01/2006 (j) 1,059 860 Waterbury, Connecticut, GO, 6% due 2/01/2009 (j)(m) 954 District of 5,000 District of Columbia, GO, Refunding, DRIVERS, Series 214, 9.578% due Columbia - 0.4% 6/01/2026 (f)(g) 5,836 Florida - 5.7% 2,000 Anthem Park Community Development District, Florida, Capital Improvement Revenue Bonds, 5.80% due 5/01/2036 1,995 1,700 Ballantrae, Florida, Community Development District, Capital Improvement Revenue Bonds, 6% due 5/01/2035 1,717 1,895 Beacon Tradeport Community, Florida, Development District, Special Assessment, Revenue Refunding Bonds (Commercial Project), Series A, 5.25% due 5/01/2016 (m) 2,014 2,500 CFM Community Development District, Florida, Capital Improvement Revenue Bonds, Series B, 5.875% due 5/01/2014 2,541 2,725 Duval County, Florida, School Board, COP, 5.75% due 7/01/2017 (h) 2,963 Fiddlers Creek, Florida, Community Development District Number 2, Special Assessment Revenue Bonds: 5,350 Series A, 6.375% due 5/01/2035 5,570 1,250 Series B, 5.75% due 5/01/2013 1,288 1,100 Heritage Isles Community Development District, Florida, Special Assessment, Revenue Refunding Bonds, 5.90% due 11/01/2006 1,101 5,000 Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum), AMT, Series A, 7.125% due 4/01/2030 5,494 7,000 Lee County, Florida, Airport Revenue Bonds, RIB, AMT, Series 580X, 9.36% due 10/01/2029 (g)(h) 8,255 4,500 Lee County, Florida, Transportation Facilities Revenue Bonds, 5.75% due 10/01/2005 (f)(j) 4,664 1,200 Lexington Oaks, Florida, Community Development District, Special Assessment Revenue Bonds, Series A, 6.70% due 5/01/2033 1,251 Mediterra, Florida, South Community Development District, Capital Improvement Revenue Bonds: 1,055 6.85% due 5/01/2031 1,114 1,765 Series B, 5.50% due 5/01/2010 1,786 2,500 Middle Village Community Development District, Florida, Special Assessment Bonds, Series A, 6% due 5/01/2035 2,541 6,095 Midtown Miami, Florida, Community Development District, Special Assessment Revenue Bonds, Series A, 6.25% due 5/01/2037 6,289 2,500 Old Palm Community Development District, Florida, Special Assessment Bonds (Palm Beach Gardens), Series B, 5.375% due 5/01/2014 2,513 Orange County, Florida, HFA, M/F Housing Revenue Bonds: 3,500 (Loma Vista Project), Series G, 5.50% due 3/01/2032 3,505 2,375 Series A, 6.40% due 1/01/2031 (f) 2,472 135 Orange County, Florida, HFA, Mortgage Revenue Bonds, AMT, Series A, 8.375% due 3/01/2021 (b)(d) 135 5,000 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50% due 10/01/2020 (c) 5,372 5,000 Panther Trace II, Florida, Community Development District, Special Assessment Bonds, Series A, 5.60% due 5/01/2035 4,936 180 Panther Trace, Florida, Community Development District, Special Assessment Revenue Bonds, Series B, 6.50% due 5/01/2009 181 Park Place Community Development District, Florida, Special Assessment Revenue Bonds: 1,000 6.75% due 5/01/2032 1,050 2,500 6.375% due 5/01/2034 2,561 2,000 Saint Lucie, Florida, West Services District, Utility Revenue Refunding Bonds, Senior Lien, 6% due 10/01/2022 (f) 2,260 1,000 Sterling Hill, Florida, Community Development District, Capital Improvement Revenue Refunding Bonds, Series B, 5.50% due 11/01/2010 1,015 945 Stoneybrook West, Florida, Community Development District, Special Assessment Revenue Bonds, Series B, 6.45% due 5/01/2010 960 730 Verandah West, Florida, Community Development District, Capital Improvement Revenue Bonds, Series B, 5.25% due 5/01/2008 733 2,705 Vista Lakes Community, Florida, Development District, Capital Improvement Revenue Bonds, Series B, 5.80% due 5/01/2008 2,719 Georgia - 1.8% 5,000 Atlanta, Georgia, Tax Allocation Revenue Bonds (Atlantic Station Project), 7.90% due 12/01/2024 5,423 Brunswick & Glynn County, Georgia, Development Authority, First Mortgage Revenue Bonds (Coastal Community Retirement Corporation Project), Series A: 2,285 7.125% due 1/01/2025 2,385 3,305 7.25% due 1/01/2035 3,460 5,210 College Park, Georgia, Business and IDA Revenue Bonds (Civic Center Project), 5.75% due 9/01/2026 (c) 5,779 3,450 Fulton County, Georgia, Development Authority Revenue Bonds (Morehouse College Project), 5.875% due 12/01/2030 (c) 3,843 2,250 Fulton County, Georgia, Residential Care Facilities, Revenue Refunding Bonds (Canterbury Court Project), Series A, 6% due 2/15/2022 2,260 1,500 Milledgeville-Baldwin County, Georgia, Development Authority Revenue Bonds (Georgia College and State University Foundation), 6% due 9/01/2033 1,592 Hawaii - 0.3% Kuakini, Hawaii, Health System, Special Purpose Revenue Bonds, Series A: 1,410 6.30% due 7/01/2022 1,462 3,000 6.375% due 7/01/2032 3,100 Illinois - 7.3% 10,620 Chicago, Illinois, Board of Education, GO, DRIVERS, Series 199, 9.077% due 12/01/2020 (c)(g) 12,536 1,400 Chicago, Illinois, GO (Neighborhoods Alive 21 Program), 5.875% due 7/01/2010 (e)(j) 1,556 26,800 Chicago, Illinois, O'Hare International Airport Revenue Bonds, 3rd Lien, AMT, Series B-2, 6% due 1/01/2029 (k) 29,740 3,000 Chicago, Illinois, O'Hare International Airport, Special Facility, Revenue Refunding Bonds (American Airlines Inc. Project), 8.20% due 12/01/2024 2,488 2,265 Chicago, Illinois, Park District, GO, Refunding, Series B, 5.75% due 1/01/2015 (e) 2,496 Chicago, Illinois, Park District, Limited Tax, GO, Series A (e): 1,270 5.75% due 1/01/2011 (j) 1,417 230 5.75% due 1/01/2016 253 535 Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT, Series A, 7.15% due 9/01/2031 (i)(l) 542 2,000 Chicago, Illinois, Special Assessment Bonds (Lake Shore East), 6.75% due 12/01/2032 2,061 3,210 Cicero, Illinois, GO, Refunding (Corporate Purpose), 6% due 12/01/2028 (f) 3,588 7,000 Decatur, Illinois, GO, Refunding, 6% due 3/01/2008 (e)(j) 7,579 10,000 Hodgkins, Illinois, Environmental Improvement Revenue Bonds (Metro Biosolids Management LLC Project), AMT, 6% due 11/01/2023 10,622 Illinois Development Finance Authority Revenue Bonds: 3,140 (Community Rehabilitation Providers Facility), Series A, 6.50% due 7/01/2022 3,303 660 Series B, 6.40% due 9/01/2031 (h) 704 Illinois State, GO, 1st Series (f): 8,890 5.75% due 12/01/2015 9,809 3,745 5.75% due 12/01/2016 4,132 4,000 5.75% due 12/01/2017 4,409 3,000 Illinois State, Sales Tax Revenue Bonds, 6% due 6/15/2020 3,325 2,000 Lake County, Illinois, Forest Preservation District, GO (Land Acquisition and Development), 5.75% due 12/15/2016 2,231 Indiana - 0.8% 5,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25% due 6/01/2025 (e) 5,306 6,000 MSD Warren Township, Indiana, Vision 2005, School Building Corporation Revenue Bonds, First Mortgage, 5.50% due 1/15/2011 (e)(j) 6,619 Iowa - 0.7% 1,000 Iowa City, Iowa, Sewer Revenue Bonds, 5.75% due 7/01/2021 (f) 1,034 6,860 Iowa Finance Authority, Health Care Facilities, Revenue Refunding Bonds (Care Initiatives Project), 9.25% due 7/01/2025 8,245 Kansas - 0.4% 2,810 Sedgwick and Shawnee Counties, Kansas, S/F Revenue Bonds, AMT, Series A-1, 6.95% due 6/01/2029 (d) 2,824 2,500 Wichita, Kansas, Hospital Facilities, Revenue Refunding and Improvement Bonds, Series III, 6.25% due 11/15/2019 2,770 Louisiana - 2.0% 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) 10,403 2,900 New Orleans, Louisiana, GO, Refunding, 6.125% due 10/01/2016 (c) 2,976 13,000 Port New Orleans, Louisiana, IDR, Refunding (Continental Grain Company Project), 7.50% due 7/01/2013 13,423 2,000 Rapides Finance Authority, Louisiana, Environmental Improvement Revenue Bonds (International Paper Company Project), AMT, Series A, 6.55% due 11/15/2023 2,153 Maine - 1.1% 8,635 Maine Finance Authority, Solid Waste Recycling Facilities Revenue Bonds (Great Northern Paper Project-Bowater), AMT, 7.75% due 10/01/2022 8,678 6,045 Maine State Housing Authority, Mortgage Purpose Revenue Bonds, DRIVERS, AMT, Series 170, 9.524% due 11/15/2028 (g) 6,444 Maryland - 0.5% 500 Anne Arundel County, Maryland, Special Obligation Revenue Bonds (Arundel Mills Project), 7.10% due 7/01/2009 (j) 584 1,000 Maryland State Community Development Administration, Department of Housing and Community Development, Housing Revenue Bonds, AMT, Series B, 6.15% due 1/01/2021 1,058 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) 1,221 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 1,046 125 Maryland State Economic Development Corporation Revenue Bonds (Health and Mental Hygiene Program), Series A, 7.125% due 3/01/2006 128 1,000 Maryland State Energy Financing Administration, Solid Waste Disposal Revenue Bonds, Limited Obligation (Wheelabrator Water Projects), AMT, 6.45% due 12/01/2016 1,042 Maryland Water Quality Financing Administration, Revolving Loan Fund Revenue Bonds, Series A: 300 6.375% due 9/01/2010 301 465 6.55% due 9/01/2014 467 500 Prince George's County, Maryland, Housing Authority, Mortgage Revenue Refunding Bonds (Parker Apartments Project), Series A, 7.25% due 11/20/2016 (d) 505 1,000 University of Maryland, System Auxiliary Facility and Tuition Revenue Bonds, Series A, 5.75% due 4/01/2010 (f)(h) 1,110 Massachusetts - 1.6% 435 Massachusetts Educational Financing Authority, Education Loan Revenue Refunding Bonds, AMT, Issue E, 5.85% due 7/01/2014 (c) 439 1,000 Massachusetts State Development Finance Agency, Revenue Refunding Bonds (Eastern Nazarene College), 5.625% due 4/01/2029 915 1,705 Massachusetts State, HFA, Housing Revenue Refunding Bonds, Series B, 6.05% due 12/01/2009 (f) 1,741 240 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 48, 6.35% due 6/01/2026 (f) 241 4,950 Massachusetts State Health and Educational Facilities Authority Revenue Bonds (Medical Center of Central Massachusetts), CARS, Series B, 11.02% due 6/23/2022 (c)(g) 5,826 1,000 Massachusetts State Industrial Finance Agency, Higher Education, Revenue Refunding Bonds (Hampshire College Project), 5.625% due 10/01/2007 (j) 1,077 130 Massachusetts State Water Pollution Abatement Trust, Water Abatement Revenue Bonds, Series A, 6.375% due 2/01/2015 132 9,875 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds, Series A, 5% due 8/01/2034 (f) 10,243 1,600 Montachusett, Massachusetts, Regional Vocational Technical School District, GO, 5.95% due 1/15/2020 (f) 1,777 Michigan - 1.4% 7,500 Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25% due 4/15/2027 8,439 500 Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75% due 6/01/2016 534 1,000 Eastern Michigan University Revenue Refunding Bonds, 6% due 6/01/2024 (c) 1,117 3,000 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), 6% due 7/01/2020 3,020 615 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding and Improvement Bonds (Bronson Methodist Hospital), Series A, 6.375% due 5/15/2017 (f) 618 3,325 Macomb County, Michigan, Hospital Finance Authority, Hospital Revenue Bonds (Mount Clemens General Hospital), Series B, 5.875% due 11/15/2034 3,145 1,500 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy Mount Clemens), Series A, 6% due 5/15/2014 (f) 1,650 1,060 Michigan State Strategic Fund, Limited Obligation, Revenue Refunding Bonds (Detroit Edison Company), Series AA, 6.40% due 9/01/2025 (f) 1,096 Minnesota - 1.1% 1,070 Anoka County, Minnesota, Solid Waste Disposal Revenue Bonds (Natural Rural Utilities), AMT, Series A, 6.95% due 12/01/2008 1,077 1,000 Eden Prairie, Minnesota, M/F Housing Revenue Bonds (Rolling Hills Project), Series A, 6.15% due 8/20/2031 (d) 1,078 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, AMT, Sub-Series D (e): 470 5.75% due 1/01/2012 512 470 5.75% due 1/01/2014 509 2,060 5.75% due 1/01/2015 2,237 680 Minneapolis, Minnesota, Community Development Agency, Supported Development Revenue Bonds (Common Bond Fund), AMT, Series 2, 6.20% due 6/01/2017 700 Minneapolis, Minnesota, Health Care System Revenue Bonds (Allina Health System), Series A: 1,500 5.70% due 11/15/2022 1,587 2,665 5.75% due 11/15/2032 2,816 1,110 Ramsey County, Minnesota, Housing and Redevelopment Authority, M/F Housing Revenue Bonds (Hanover Townhouses Project), AMT, 6% due 7/01/2031 1,138 1,000 Saint Cloud, Minnesota, Health Care Revenue Refunding Bonds (Saint Cloud Hospital Obligation Group), Series A, 6.25% due 5/01/2020 (h) 1,125 1,000 Saint Francis, Minnesota, Independent School District No. 015, GO, Series A, 6.35% due 2/01/2013 (h) 1,030 1,500 Waconia, Minnesota, Health Care Facilities Revenue Bonds (Ridgeview Medical Center Project), Series A, 6.125% due 1/01/2029 (m) 1,642 Mississippi - 0.1% 1,700 Warren County, Mississippi, Environmental Improvement, Revenue Refunding Bonds (International Paper Company Project), AMT, Series B, 6.75% due 8/01/2021 1,863 Missouri - 0.6% Fenton, Missouri, Tax Increment Revenue Refunding and Improvement Bonds (Gravois Bluffs): 610 6.75% due 10/01/2015 617 4,000 7% due 10/01/2021 4,300 1,500 Kansas City, Missouri, IDA, First Mortgage Health Facilities Revenue Bonds (Bishop Spencer Place), Series A, 6.50% due 1/01/2035 1,519 2,200 Saint Louis, Missouri, Airport Revenue Bonds (Airport Development Program), Series A, 5.625% due 7/01/2019 (f) 2,411 Montana - 0.4% 6,000 Montana State Higher Education, Student Assistance Corporation, Student Loan Revenue Refunding Bonds, AMT, Sub-Series B, 6.40% due 12/01/2032 6,274 Nevada - 2.1% 5,000 Clark County, Nevada, IDR (Power Company Project), AMT, Series A, 6.70% due 6/01/2022 (e) 5,070 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): 165 6.10% due 10/01/2014 177 245 6.30% due 10/01/2019 265 320 6.75% due 10/01/2024 350 225 7% due 10/01/2029 247 2,970 Henderson, Nevada, Local Improvement Districts, Special Assessment, Series NO T-14, 5.80% due 3/01/2023 3,062 Las Vegas, Nevada, Local Improvement Bonds, Special Assessment, Special Improvement District Number 808, Summerlin: 1,765 5.875% due 6/01/2009 1,823 2,040 6.125% due 6/01/2012 2,107 2,270 6.25% due 6/01/2013 2,345 145 Nevada Housing Division, S/F Program, AMT, Senior Series E, 7.05% due 4/01/2027 (b) 147 2,000 Reno, Nevada, Special Assessment District Number 4 (Somerset Parkway), 6.625% due 12/01/2022 2,031 Sparks, Nevada, Redevelopment Agency, Tax Allocation, Revenue Refunding Bonds, Series A (m): 3,110 6% due 1/15/2015 3,408 6,315 6% due 1/15/2023 6,905 New Hampshire - 0.1% 1,750 New Hampshire Health and Education Facilities Authority, Revenue Refunding Bonds (Elliot Hospital), Series B, 5.60% due 10/01/2022 1,814 New Jersey - 4.1% 570 Camden County, New Jersey, Pollution Control Financing Authority, Solid Waste Resource Recovery Revenue Refunding Bonds, AMT, Series B, 7.50% due 12/01/2009 570 3,300 New Jersey EDA, Retirement Community Revenue Bonds (Cedar Crest Village Inc. Facility), Series A, 7.25% due 11/15/2031 3,447 5,000 New Jersey EDA, Revenue Refunding Bonds (RWJ Health Care Corporation), 6.50% due 7/01/2024 (h) 5,114 2,000 New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 6.25% due 9/15/2029 1,556 3,680 New Jersey EDA, State Lease Revenue Bonds (State Office Buildings Projects), 6% due 6/15/2010 (c)(j) 4,138 New Jersey Health Care Facilities Financing Authority Revenue Bonds: 3,000 (Pascack Valley Hospital Association), 6% due 7/01/2013 2,836 3,130 (South Jersey Hospital), 6% due 7/01/2026 3,317 2,250 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds (Capital Health System Inc.), Series A, 5.75% due 7/01/2023 2,379 1,090 New Jersey State Housing and Mortgage Finance Agency, M/F Housing, Revenue Refunding Bonds, Series B, 6.25% due 11/01/2026 (h) 1,147 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds (f): 10,000 DRIVERS, Series 155, 9.092% due 1/01/2018 (g) 11,770 7,025 Series A, 5.75% due 1/01/2010 (j) 7,785 2,975 Series A, 5.75% due 1/01/2018 3,238 9,500 Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds, 7% due 6/01/2041 10,175 New Mexico - 0.6% 8,000 Farmington, New Mexico, PCR, Refunding (Public Service Company of New Mexico - San Juan), Series B, 6.30% due 12/01/2016 8,558 190 New Mexico Mortgage Finance Authority, Revenue Refunding Bonds, Mortgage-Backed Securities, Series F, 7% due 1/01/2026 (i) 202 250 Santa Fe County, New Mexico, Correctional System Revenue Bonds, 6% due 2/01/2027 (h) 303 New York - 11.3% 9,500 Metropolitan Transportation Authority, New York, Commuter Facilities, Service Contract Revenue Refunding Bonds, Series 8, 5.50% due 7/01/2013 (h)(j) 10,641 10,000 Metropolitan Transportation Authority, New York, Transit Facilities Revenue Bonds, Series A, 5.625% due 7/01/2007 (f)(j) 10,736 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 3,313 2,000 New York City, New York, City IDA Revenue Bonds (Visy Paper Inc. Project), AMT, 7.95% due 1/01/2028 2,086 4,050 New York City, New York, City IDA, Special Facility Revenue Bonds (British Airways Plc Project), AMT, 7.625% due 12/01/2032 4,238 10,000 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, RIB, Series 158, 8.977% due 6/15/2026 (g) 10,931 3,000 New York City, New York, City Transit Authority, Triborough Metropolitan Transportation Authority, COP, 5.75% due 1/01/2010 (c)(j) 3,357 6,000 New York City, New York, City Transitional Finance Authority Revenue Bonds, Future Tax Secured, Series B, 6% due 5/15/2010 (j) 6,757 New York City, New York, City Transitional Finance Authority, Revenue Refunding Bonds, Series C (j): 12,015 5.875% due 5/01/2010 13,564 8,000 Future Tax Secured, 5.875% due 5/01/2010 9,031 New York City, New York, GO, Refunding: 5,870 Series A, 6% due 5/15/2010 (j)(k) 6,664 730 Series A, 6% due 5/15/2021 (k) 815 2,210 Series A, 6.25% due 5/15/2026 (k) 2,490 4,000 Series B, 8.25% due 6/01/2006 (k)(n) 4,255 4,000 Series C, 5.875% due 8/01/2006 (e)(j) 4,215 12,815 Series G, 5.75% due 2/01/2006 (f)(j) 13,342 2,185 Series G, 5.75% due 2/01/2014 (f) 2,271 20 Series H, 6% due 8/01/2007 (j)(k) 22 980 Series H, 6% due 8/01/2017 (k) 1,053 10,000 New York City, New York, GO, Series B, 5.875% due 8/01/2015 (f) 11,167 New York State Dormitory Authority Revenue Bonds (Catholic Health Services - Long Island): 1,175 5% due 7/01/2012 1,231 1,775 5% due 7/01/2013 1,849 1,935 5% due 7/01/2014 2,007 New York State Dormitory Authority, Revenue Refunding Bonds: 3,370 (Concord Nursing Home Inc.), 6.25% due 7/01/2016 3,648 2,500 (Concord Nursing Home Inc.), 6.50% due 7/01/2029 2,711 3,000 (Mount Sinai Health), Series A, 6.50% due 7/01/2016 3,147 3,950 (Mount Sinai Health), Series A, 6.50% due 7/01/2025 4,101 3,000 (State University Educational Facilities), Series A, 7.50% due 5/15/2013 3,731 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 1,504 4,000 New York State Thruway Authority, General Revenue Bonds, Series F, 5% due 1/01/2030 (c) 4,150 2,285 Oneida County, New York, IDA, Revenue Bonds (Civic Facility-Faxton Hospital), Series C, 6.625% due 1/01/2015 (m) 2,548 95 Suffolk County, New York, IDA, Civic Facility Revenue Bonds (Special Needs Facilities Pooled Program), Series D-1, 6% due 7/01/2012 97 705 Westchester County, New York, IDA, Civic Facilities Revenue Bonds (Special Needs Facilities Pooled Program), Series E-1, 6% due 7/01/2012 723 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 8,192 North Carolina - 2.7% 920 Brunswick County, North Carolina, COP, 6% due 6/01/2010 (h)(j) 1,030 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 1,539 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: 1,500 Series B, 5.875% due 1/01/2021 (f) 1,594 4,000 Series D, 6.75% due 1/01/2026 (o) 4,433 4,440 North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series D, 6.70% due 1/01/2019 4,922 290 North Carolina HFA, S/F Revenue Bonds, Series W, 6.50% due 3/01/2018 292 2,500 North Carolina Medical Care Commission, Health Care Facilities, First Mortgage Revenue Bonds (Presbyterian Homes Project), 6.875% due 10/01/2021 2,674 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 1,988 North Carolina Medical Care Commission, Retirement Facilities, First Mortgage Revenue Bonds: 1,625 (Forest at Duke Project), 6.375% due 9/01/2032 1,692 2,500 (Givens Estates Project), Series A, 6.50% due 7/01/2032 2,609 North Carolina Municipal Power Agency Number 1, Catawba Electric, Revenue Refunding Bonds, Series B: 500 6.375% due 1/01/2013 553 1,080 6.375% due 1/01/2013 (o) 1,197 5,000 6.50% due 1/01/2020 5,565 2,500 6.50% due 1/01/2020 (o) 2,783 1,175 North Carolina State Educational Assistance Authority Revenue Bonds (Guaranteed Student Loan), AMT, Sub-lien, Series C, 6.35% due 7/01/2016 1,222 Piedmont, North Carolina, Triad Airport Authority, Airport Revenue Refunding Bonds, Series A (h): 1,000 6.375% due 7/01/2016 1,118 1,000 6% due 7/01/2024 1,103 Ohio - 1.2% 1,000 Cuyahoga County, Ohio, Health Care Facilities Revenue Refunding Bonds (Benjamin Rose Institute Project), 5.50% due 12/01/2028 931 1,200 Huron County, Ohio, GO, Human Services Building, 7.25% due 12/01/2005 (f)(j) 1,262 510 Ohio HFA, Mortgage Revenue Bonds, AMT, Series A-1, 6.15% due 3/01/2029 (d) 525 8,000 Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Dayton Power & Light Company), Series B, 6.40% due 8/15/2027 (f) 8,022 1,000 Ohio State Water Development Authority, Pollution Control Facilities, Revenue Refunding Bonds (Pennsylvania Power Co. Project), 6.15% due 8/01/2023 (c) 1,023 1,470 Port of Greater Cincinnati Development Authority, Ohio, Special Assessment Revenue Bonds (Cooperative Public Parking Infrastructure Project), 6.40% due 2/15/2034 1,549 3,005 Toledo-Lucas County, Ohio, Lodging Tax, Revenue Refunding Bonds (Convention Center Project), 5.70% due 10/01/2015 (f) 3,181 Oregon - 0.7% Forest Grove, Oregon, Campus Improvement, Revenue Refunding Bonds (Pacific University) (m): 250 6% due 5/01/2015 273 250 6.20% due 5/01/2020 275 2,485 Jackson County, Oregon, Central Point School District Number 006, GO, 5.75% due 6/15/2010 (e)(j) 2,776 Oregon State Housing and Community Services Department, Mortgage Revenue Refunding Bonds (S/F Mortgage Program), Series A: 90 6.40% due 7/01/2018 91 60 AMT, 6.20% due 7/01/2027 62 500 Portland, Oregon, M/F Housing Authority Revenue Bonds (Lovejoy Station Apartments Project), AMT, 5.90% due 7/01/2023 (f) 524 1,000 Portland, Oregon, Sewer System Revenue Bonds, Series A, 5.75% due 8/01/2018 (e) 1,098 Portland, Oregon, Urban Renewal and Redevelopment, Revenue Refunding Bonds, Series A (c): 1,000 (Downtown Waterfront), 5.75% due 6/15/2018 1,104 3,190 (South Park Blocks), 5.75% due 6/15/2018 3,523 Pennsylvania - 0.9% 2,220 Allegheny County, Pennsylvania, Sanitation Authority, Sewer Revenue Bonds, 5.75% due 12/01/2010 (f)(j) 2,471 4,000 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (University of Pennsylvania Medical Center Health System), Series A, 6% due 1/15/2031 4,314 1,265 Philadelphia, Pennsylvania, Authority for IDR, Commercial Development, 7.75% due 12/01/2017 1,293 5,000 Sayre, Pennsylvania, Health Care Facilities Authority, Revenue Refunding Bonds (Guthrie Health), Series A, 5.875% due 12/01/2031 5,243 Rhode Island - 0.6% 6,815 Rhode Island State Economic Development Corporation, Airport Revenue Bonds, Series B, 6% due 7/01/2028 (e) 7,564 1,000 Rhode Island State Economic Development Corporation Revenue Bonds (Providence Place Mall), 6.125% due 7/01/2020 (m) 1,113 South Carolina - 1.3% Medical University Hospital Authority, South Carolina, Hospital Facilities, Revenue Refunding Bonds (j): 2,450 6.50% due 8/15/2012 2,889 5,400 Series A, 6.375% due 8/15/2012 6,324 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds (e): 1,745 6.75% due 1/01/2019 2,165 1,255 6.75% due 1/01/2019 (n) 1,584 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 5,090 South Dakota - 0.3% 3,750 Pierre, South Dakota, School District Number 32-2, GO, 5.75% due 8/01/2010 (h)(j) 4,176 Tennessee - 2.0% Chattanooga, Tennessee, Industrial Development Board, Lease Rent Revenue Bonds, (Southside Redevelopment Corporation) (c): 4,485 5.75% due 10/01/2017 4,943 3,740 5.75% due 10/01/2018 4,118 1,000 Johnson City, Tennessee, Health and Educational Facilities Board, Retirement Facility Revenue Bonds (Appalachian Christian Village Project), Series A, 6.25% due 2/15/2032 983 4,950 McMinn County, Tennessee, IDB, Solid Waste Revenue Bonds (Recycling Facility-Calhoun Newsprint), AMT, 7.40% due 12/01/2022 4,974 5,000 Metropolitan Government of Nashville and Davidson County, Tennessee, GO, 5.875% due 5/15/2026 5,198 Shelby County, Tennessee, Health, Educational and Housing Facility Board, Hospital Revenue Refunding Bonds (Methodist Healthcare): 4,380 6.50% due 9/01/2012 (j) 5,149 2,920 6.50% due 9/01/2026 (n) 3,429 Texas - 13.4% Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.): 5,300 First Tier, Series A, 6.60% due 1/01/2021 5,621 2,300 First Tier, Series A, 6.70% due 1/01/2028 2,450 6,740 Trust Certificates, Second Tier, Series B, 6% due 1/01/2023 7,225 10,630 Austin, Texas, Revenue Bonds (Town Lake Community Events Center Venue), 6.20% due 11/15/2029 (e) 11,777 Bexar County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Army Retirement Residence Project): 600 6.125% due 7/01/2022 633 1,750 6.30% due 7/01/2032 1,836 2,280 Brazos River Authority, Texas, PCR, Refunding (Texas Utility Company), AMT, Series A, 7.70% due 4/01/2033 2,686 4,250 Brazos River Authority, Texas, Revenue Refunding Bonds (Reliant Energy Inc. Project), Series B, 7.75% due 12/01/2018 4,723 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 4,059 885 Central Texas Housing Finance Corporation, S/F Mortgage Revenue Bonds (GNMA Mortgage Program), AMT, 8.20% due 4/01/2022 (b)(d) 905 1,500 Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds, 5% due 1/01/2035 (e) 1,530 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 3,637 18,250 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT, Series 201, 9.548% due 11/01/2024 (e)(g) 21,458 1,260 Fort Bend County, Texas, Municipal Utility District Number 23, GO, 6.625% due 9/01/2007 (j)(m) 1,369 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Good Shepherd Medical Center Project) (m): 1,000 6.875% due 10/01/2020 1,146 3,500 6.375% due 10/01/2025 3,924 2,465 Gulf Coast, Texas, Waste Disposal Authority Revenue Refunding Bonds (International Paper Company), AMT, Series A, 6.10% due 8/01/2024 2,614 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 2,658 3,000 Houston, Texas, Airport System, Special Facilities Revenue Bonds (Continental Airlines Terminal Improvement), AMT, Series B, 6.125% due 7/15/2027 2,291 20,000 Houston, Texas, Combined Utility System, First Lien Revenue Refunding Bonds, Series A, 5.125% due 5/15/2028 (f) 20,871 8,080 Matagorda County, Texas, Navigation District Number 1, Revenue Refunding Bonds (Reliant Energy Inc.), Series C, 8% due 5/01/2029 8,908 7,350 Matagorda County, Texas, Port of Bay City Authority Revenue Bonds (Hoechst Celanese Corp. Project), AMT, 6.50% due 5/01/2026 7,496 1,000 Pflugerville, Texas, Independent Industrial School District, GO, 5.75% due 8/15/2010 (j) 1,094 4,825 Port Corpus Christi, Texas, Individual Development Corporation, Environmental Facilities Revenue Bonds (Citgo Petroleum Corporation Project), AMT, 8.25% due 11/01/2031 5,177 1,000 Red River, Texas, Education Finance Revenue Bonds (Saint Mark's School-Texas Project), 6% due 8/15/2019 1,094 1,815 South Plains, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds, AMT, Series A, 7.30% due 9/01/2031 (i) 1,839 Southeast Texas, Housing Finance Corporation Revenue Bonds, AMT (d)(l): 225 Series A, 8% due 11/01/2025 226 245 Series B, 8.50% due 11/01/2025 247 Texas State Public Finance Authority, Building Revenue Bonds (h)(j): 2,100 (General Services Commission Project), Series A, 6% due 2/01/2010 2,345 1,000 (State Preservation Project), Series B, 6% due 8/01/2009 1,109 45,000 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A, 5.75% due 8/15/2038 (c) 49,650 4,930 Upper Trinity Regional Water District, Texas, Water Revenue Bonds (Regional Treated Water Supply System), Series A, 6% due 8/01/2020 (e) 5,469 2,305 Webster, Texas, GO, COP, Series A, 6% due 3/01/2021 (h) 2,539 Utah - 0.1% 1,055 Utah State, HFA, S/F Mortgage, Revenue Refunding Bonds, AMT, Series C, Class III, 5.50% due 1/01/2018 1,093 Virginia - 0.6% 2,425 Chesterfield County, Virginia, IDA, PCR, Refunding (Virginia Electric and Power Company), Series B, 5.875% due 6/01/2017 2,612 Norfolk, Virginia, Redevelopment and Housing Authority, First Mortgage Revenue Bonds (Retirement Community), Series A: 500 6% due 1/01/2025 498 1,100 6.125% due 1/01/2035 1,087 4,250 Pocahontas Parkway Association, Virginia, Toll Road Revenue Bonds, Senior Series A, 5.50% due 8/15/2028 4,117 Washington - 1.9% 2,065 Kitsap County, Washington, GO, 5.875% due 7/01/2020 (c) 2,278 3,000 Port of Seattle, Washington, Special Facilities Revenue Bonds, Series A, 6% due 9/01/2029 (f) 3,318 3,010 Seattle, Washington, Drain and Wastewater Utility Revenue Bonds, 5.75% due 11/01/2022 (f) 3,312 Seattle, Washington, Housing Authority Revenue Bonds: 2,750 (Newholly Project), AMT, 6.25% due 12/01/2035 2,766 4,875 (Replacement Housing Project), 6.125% due 12/01/2032 4,763 7,750 Tacoma, Washington, Electric System, Revenue Refunding Bonds, Series A, 5.75% due 1/01/2017 (h) 8,574 1,625 University of Washington, University Revenue Bonds (Student Facilities Fee), 5.875% due 6/01/2017 (h) 1,806 West Virginia - 0.5% 7,500 Upshur County, West Virginia, Solid Waste Disposal Revenue Bonds (TJ International Project), AMT, 7% due 7/15/2025 7,762 Wisconsin - 0.6% Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Synergyhealth Inc.): 3,250 6% due 11/15/2023 3,453 1,700 6% due 11/15/2032 1,789 2,725 Wisconsin State, GO, AMT, Series B, 6.20% due 11/01/2026 (f) 2,756 Wyoming - 1.3% 8,400 Sweetwater County, Wyoming, PCR, Refunding (Idaho Power Company Project), Series A, 6.05% due 7/15/2026 (f) 8,877 9,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds (FMC Corporation Project), AMT, Series A, 7% due 6/01/2024 9,129 Guam - 0.0% 115 Guam Housing Corporation, S/F Mortgage Revenue Bonds, AMT, Series A, 5.75% due 9/01/2031 (l) 124 Puerto Rico - 2.3% Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds: 8,045 5.75% due 7/01/2022 8,853 1,000 Series B, 6% due 7/01/2005 (j) 1,019 2,000 Series B, 5.875% due 7/01/2021 (f) 2,227 785 Puerto Rico Commonwealth, Public Improvement, GO, Refunding, 5.70% due 7/01/2020 (f) 858 15,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125% due 7/01/2029 15,503 2,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Revenue Bonds (Ascension Health), RIB, Series 377, 9.67% due 11/15/2030 (g) 2,464 960 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.50% due 8/01/2029 1,015 U.S. Virgin Islands - 8,000 Virgin Islands Government Refinery Facilities, Revenue Refunding Bonds 0.6% (Hovensa Coker Project), AMT, 6.50% due 7/01/2021 8,730 Total Municipal Bonds (Cost - $1,281,816) - 95.7% 1,358,640 Shares Held Short-Term Securities 46,423 Merrill Lynch Institutional Tax-Exempt Fund (p) 46,423 Total Short-Term Securities (Cost - $46,423) - 3.3% 46,423 Total Investments (Cost - $1,328,239**) - 99.0% 1,405,063 Other Assets Less Liabilities - 1.0% 13,615 ----------- Net Assets - 100.0% $ 1,418,678 =========== * 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 March 31, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 1,328,247 =============== Gross unrealized appreciation $ 80,170 Gross unrealized depreciation (3,354) --------------- Net unrealized appreciation $ 76,816 =============== (a) Connie Lee Insured. (b) FHA Insured. (c) AMBAC Insured. (d) GNMA Collateralized. (e) FGIC Insured. (f) MBIA Insured. (g) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (h) FSA Insured. (i) FNMA/GNMA Collateralized. (j) Prerefunded. (k) XL Capital Insured. (l) FHLMC Collateralized. (m) Radian Insured. (n) Escrowed to maturity. (o) ACA Insured. (p) 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 29,000 $ 401
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/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr. Chief Executive Officer Merrill Lynch Municipal Bond Fund, Inc. Date: May 23, 2005 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/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr. Chief Executive Officer Merrill Lynch Municipal Bond Fund, Inc. Date: May 23, 2005 By: /s/ Donald C. Burke ------------------- Donald C. Burke Chief Financial Officer Merrill Lynch Municipal Bond Fund, Inc. Date: May 23, 2005