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: 06/30/06 Date of reporting period: 07/01/05 - 09/30/05 Item 1 - Schedule of Investments Merrill Lynch Municipal Bond Fund, Inc. - Short-Term Portfolio Schedule of Investments as of September 30, 2005 (in Thousands)
Face State Amount Municipal Bonds Value Alaska - 0.5% $ 2,150 Alaska Student Loan Corporation, Capital Project Revenue Bonds, Series A, 5% due 1/01/2008 (e) $ 2,238 Connecticut - 0.6% 2,700 Connecticut State, GO, Refunding, Series C, 4% due 12/15/2005 2,707 Delaware - 2.3% Delaware State, GO, Series A: 4,125 5% due 1/01/2006 4,148 5,190 5% due 1/01/2008 5,414 Florida - 2.0% 3,690 Collier County, Florida, Limited, GO (Conservation Collier Program), Series A, 5% due 1/01/2007 (c) 3,783 400 Hillsborough County, Florida, Aviation Authority, Revenue Refunding Bonds (Tampa International Airport), AMT, Series A, 5% due 10/01/2005 (c) 400 4,365 Saint John's River Management District, Florida, Land Acquisition Revenue Refunding Bonds, 4.50% due 7/01/2007 (e) 4,476 Georgia - 3.6% 5,000 Cobb County, Georgia, GO, TAN, 3.50% due 12/30/2005 5,008 1,075 Fulton County, Georgia, Development Authority, PCR, Refunding (General Motors Corporation), VRDN, 5.78% due 4/01/2010 (b) 1,075 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series DD (d): 220 7% due 1/01/2008 (g) 239 6,005 7% due 1/01/2008 6,497 2,550 Georgia State, GO, Refunding, Series A, 6.25% due 3/01/2006 2,586 Illinois - 8.4% 12,500 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, Third Lien, Series A, 5% due 1/01/2008 (d) 12,993 7,350 Illinois Development Finance Authority, PCR, Refunding (Commonwealth Edison Company Project), Series A, 4.40% due 12/01/2006 (c) 7,461 4,950 Illinois State, GO, Series A, 5% due 3/01/2009 5,230 3,740 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Refunding Bonds, Series A, 6% due 12/15/2006 (c) 3,876 5,780 Naperville, Illinois, IDR, Refunding (General Motors Corporation), VRDN, 5.78% due 12/01/2012 (b) 5,780
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 HFA Housing Finance Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds PCR Pollution Control Revenue Bonds S/F Single-Family TAN Tax Anticipation Notes VRDN Variable Rate Demand Notes Merrill Lynch Municipal Bond Fund, Inc. - Short-Term Portfolio Schedule of Investments as of September 30, 2005 (concluded) (in Thousands)
Face State Amount Municipal Bonds Value Indiana - 3.5% $ 10,000 Indiana Health Facilities Financing Authority, Subordinate Credit Group Revenue Bonds (Ascension Health), Series A, 5% due 5/01/2008 $ 10,406 4,300 Indiana State Development Finance Authority, PCR, Refunding (Southern Indiana Gas & Electric), VRDN, AMT, Series C, 5% due 3/01/2030 (b) 4,322 Iowa - 1.0% 4,000 Iowa Finance Authority, State Revolving Fund, Revenue Refunding Bonds, 5% due 8/01/2008 4,206 Louisiana - 2.4% 10,000 Louisiana HFA, S/F Mortgage Revenue Refunding Bonds, VRDN, AMT, 3.864% due 4/30/2007 (b) 10,000 Michigan - 1.0% Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Oakwood Obligated Group): 2,000 5% due 11/01/2005 2,003 2,000 5% due 11/01/2006 2,038 Minnesota - 2.8% 5,195 Minneapolis, Minnesota, GO, Refunding, Series A, 5% due 3/01/2009 5,508 3,235 Minneapolis-St Paul Metropolitan Area Council, Minnesota, Transit, GO, Refunding, Series B, 5% due 2/01/2007 3,322 2,890 Minneapolis-St Paul Metropolitan Area Council, Minnesota, Waste Water, GO, Refunding, Series B, 5% due 5/01/2008 3,027 Missouri - 3.1% 3,980 Kansas City, Missouri, Passenger Facility Charge Revenue Bonds, AMT, 5% due 4/01/2007 (c) 4,086 4,000 Kansas City, Missouri, School District, Building Revenue Refunding Bonds, Series A, 5% due 2/01/2006 (f) 4,029 5,000 Missouri State Public Utilities Commission, Interim Construction Notes, 2.75% due 10/01/2005 5,000 Nebraska - 1.7% 7,000 Nebraska Public Power District, General Revenue Refunding Bonds, Series B-2, 5% due 1/01/2009 (f) 7,390 Nevada - 2.0% 5,825 Las Vegas Valley Water District, Nevada, GO, Refunding, Series B, 4% due 6/01/2007 5,918 2,430 Nevada State, Capital Improvement, GO, Refunding, Series A, 5% due 2/01/2009 2,566 New Jersey - 7.8% 14,000 New Jersey EDA, Market Transition Facility, Senior Lien Revenue Refunding Bonds, Series A, 6% due 7/01/2007 (d) 14,711 New Jersey State Educational Facilities Authority, Revenue Refunding Bonds (Higher Education Trust Fund), Sub-Series A-1: 4,000 5% due 9/01/2007 4,147 5,000 5% due 9/01/2008 5,255 3,375 New Jersey State, GO, Refunding, Series M, 5% due 7/15/2007 (c) 3,493 5,000 New Jersey State Transit Corporation, COP, 6.50% due 4/01/2007 (a)(e) 5,305 New Mexico - 1.3% 5,440 New Mexico State, GO (Capital Projects), Series A, 4% due 3/01/2008 5,557 New York - 4.3% 9,800 Long Island Power Authority, New York, Electric System Revenue Refunding Bonds, Series A, 6% due 12/01/2007 (c) 10,405 New York City, New York, GO: 3,910 Series J, 5% due 3/01/2008 4,084 3,645 Series M, 4% due 4/01/2008 3,725 North Carolina - 6.2% 10,010 North Carolina State, GO, Series A, 5% due 4/01/2008 (a) 10,662 5,000 North Carolina State, Public School Building, GO, 4.60% due 4/01/2006 5,045 10,000 Wake County, North Carolina, GO, Refunding, Series A, 5% due 2/01/2008 10,445 Ohio - 1.1% 4,500 Ohio State Water Development Authority, Water Pollution Control, Revenue Refunding Bonds, Series A, 3.35% due 6/01/2006 (b) 4,495 Pennsylvania - 1.8% 20 Midway Sewerage Authority, Pennsylvania, Revenue Notes, 2% due 12/01/2005 20 2,000 Pennsylvania State, GO, First Series, 5% due 1/01/2008 (d) 2,084 5,000 Pennsylvania State, GO, Refunding, Second Series, 5% due 7/01/2009 (f) 5,319 Rhode Island - 0.6% 2,500 Rhode Island Housing and Mortgage Finance Corporation, Homeowner Opportunity Revenue Bonds, AMT, Series 41-C, 3.375% due 11/01/2005 2,501 Tennessee - 2.3% 3,815 Hamilton County, Tennessee, GO, Refunding, 4% due 10/01/2005 (f) 3,815 5,830 Metropolitan Government of Nashville and Davidson County, Tennessee, GO, Refunding, Series B, 4% due 1/01/2007 5,906 Texas - 15.2% 9,080 Brazos River Authority, Texas, PCR, Refunding (Utilities Electric Company), AMT, Series B, 5.05% due 6/19/2006 (b) 9,167 4,500 El Paso, Texas, GO, 5.75% due 8/15/2007 (a)(e) 4,722 5,000 Lower Colorado River Authority, Texas, Revenue Refunding Bonds, Series B, 6% due 5/15/2007 (e) 5,233 14,000 Matagorda County, Texas, Navigation District Number. 1, PCR, Refunding (Central Power and Light Company), Series A, 4.55% due 11/01/2006 (b) 14,224 3,885 Tarrant Regional Water District, Texas, Water Improvement Revenue Refunding Bonds, 5% due 3/01/2009 (e) 4,102 10,025 Texas Public Finance Authority, Capital Appreciation Building, Revenue Refunding Bonds, 2.45%* due 8/01/2006 (d)(g) 9,784 4,300 Texas State, GO, Refunding, Series A, 8% due 10/01/2007 4,709 7,995 Texas State Public Finance Authority, GO, Refunding, Series A, 5.25% due 10/01/2007 8,334 4,000 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, Second Tier, BAN, 5% due 6/01/2008 4,185 Virginia - 5.2% 6,875 Louisa, Virginia, IDA, Solid Waste and Sewer Disposal Revenue Bonds (Virginia Electric and Power Company Project), AMT, Series A, 3.15% due 9/01/2007 (b) 6,719 4,490 Virginia Beach, Virginia, Development Authority, Public Facility Revenue Refunding Bonds, Series A, 5% due 5/01/2007 4,630 Virginia State Public School Authority, School Financing Revenue Bonds: 5,660 Series C, 5% due 8/01/2007 5,862 4,635 Series D, 5% due 2/01/2008 4,834 Washington - 9.7% 11,500 Energy Northwest, Washington, Electric Revenue Refunding Bonds (Columbia Generating Station), Series A, 5.25% due 7/01/2008 12,122 3,345 King County, Washington, GO, Refunding, 5% due 12/01/2005 3,357 5,000 Washington State, GO (Motor Vehicle Fuel Tax), Refunding, Series R, 4.50% due 1/01/2009 (d) 5,201 5,075 Washington State, GO (Motor Vehicle Fuel Tax), Series B, 5% due 7/01/2007 (f) 5,247 7,185 Washington State, GO, Series A, 5.625% due 7/01/2009 (a) 7,793 7,195 Washington State, GO, Series B and AT-7, 6.10% due 6/01/2006 7,348 Wisconsin - 2.3% 4,250 Franklin, Wisconsin, Solid Waste Disposal, Revenue Bonds, 3.625% due 5/01/2006 (b) 4,250 5,180 Wisconsin State, Petroleum Inspection Fee, Revenue Refunding Bonds, Series 1, 5% due 7/01/2008 (e) 5,428 Puerto Rico - 1.2% 5,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series AA, 5% due 7/01/2006 5,074 Total Municipal Bonds (Cost - $398,296) - 93.9% 397,031 Shares Held Short-Term Securities 21,304 Merrill Lynch Institutional Tax-Exempt Fund (h) 21,304 Total Short-Term Securities (Cost - $21,304) - 5.0% 21,304 Total Investments (Cost - $419,600**) - 98.9% 418,335 Other Assets Less Liabilities - 1.1% 4,838 ------------ Net Assets - 100.0% $ 423,173 ============ * 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, 2005, as computed for federal income tax purposes, were as follows: Aggregate cost $ 419,600 ================= Gross unrealized appreciation $ 51 Gross unrealized depreciation (1,316) ----------------- Net unrealized depreciation $ (1,265) ================= (a) Prerefunded. (b) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that 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, for purposes of 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 21,300 $ 160
Merrill Lynch Municipal Bond Fund, Inc. - Insured Portfolio Schedule of Investments as of September 30, 2005 (in Thousands)
Face State Amount Municipal Bonds Value Alabama - 2.2% $ 3,020 Alabama Water Pollution Control Authority Revenue Bonds, 5.75% due 8/15/2018 (a) $ 3,322 10,000 Lauderdale County and Florence, Alabama, Health Care Authority, Revenue Refunding Bonds (Coffee Health Group), Series A, 6% due 7/01/2029 (b) 11,168 7,000 University of Alabama, University Revenue Bonds (Birmingham), 6% due 10/01/2009 (d)(g) 7,725 Arkansas - 0.5% 5,000 University of Arkansas, University Revenue Bonds (Various Facilities-Fayetteville Campus), 5% due 12/01/2027 (d) 5,198 California - 21.6% 10,680 California Pollution Control Financing Authority, PCR, Refunding, DRIVERS, AMT, Series 878Z, 7.617% due 12/01/2009 (b)(j) 12,333 2,075 California State Department of Veteran Affairs, Home Purpose Revenue Refunding Bonds, Series A, 5.35% due 12/01/2027 (a) 2,171 California State Department of Water Resources, Power Supply Revenue Bonds, Series A: 12,000 5.375% due 5/01/2017 (i) 13,098 10,250 5.375% due 5/01/2021 (b) 11,220 6,385 5.375% due 5/01/2022 (b) 6,989 East Side Union High School District, California, Santa Clara County, GO (Election of 2002), Series D (i): 1,375 5% due 8/01/2016 1,493 2,795 5% due 8/01/2017 3,016 3,480 5% due 8/01/2022 3,691 8,120 5% due 8/01/2026 8,532 5,170 Fresno, California, Unified School District, GO (Election of 2001), Series D, 5% due 8/01/2027 (b) 5,449 5,000 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series B, 5.50% due 6/01/2013 (d)(g) 5,588 Industry, California, Urban Development Agency, Tax Allocation Bonds, Series 1-B (b): 5,645 5% due 5/01/2020 5,927 6,000 5% due 5/01/2021 6,307 5,000 Los Angeles, California, GO, Series A, 5% due 9/01/2019 (b) 5,342
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, 2005 (concluded) (in Thousands)
Face State Amount Municipal Bonds Value California Los Angeles, California, Unified School District, GO: (concluded) $ 24,465 (Election of 1997), Series F, 5% due 1/01/2028 (d) $ 25,642 13,780 Series A, 5% due 1/01/2028 (b) 14,443 6,000 Series E, 5% due 7/01/2025 (a) 6,346 6,680 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition A, First Tier Senior-Series A, 5% due 7/01/2021 (a) 7,137 8,965 Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds, 5.50% due 9/01/2036 (a) 9,838 12,040 Mount Diablo, California, Unified School District, GO (Election of 2002), 5% due 7/01/2027 (d) 12,574 Oakland, California, Sewer Revenue Bonds, Series A (f): 3,875 5% due 6/15/2027 4,064 2,270 5% due 6/15/2029 2,374 6,440 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (b) 7,139 11,685 Rialto, California, Unified School District, GO, Series A, 6.24%** due 6/01/2025 (d) 4,614 5,000 Roseville, California, Joint Union High School District, GO (Election of 2004), Series A, 5% due 8/01/2029 (d) 5,232 5,075 Sacramento, California, Unified School District, GO (Election of 1999), Series B, 5% due 7/01/2026 (d) 5,281 San Diego, California, Unified School District, GO (Election of 1998), Series G (f): 3,000 5% due 7/01/2028 3,156 4,645 5% due 7/01/2029 4,879 3,700 San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5% due 9/01/2030 (b) 3,857 2,755 Tahoe Truckee, California, Unified School District, GO (School Facilities Improvement District Number 2), Series A, 5.25% due 8/01/2029 (b) 2,942 9,330 Tustin, California, Unified School District, Senior Lien Special Tax Bonds (Community Facilities District Number 97-1), Series A, 5% due 9/01/2038 (f) 9,610 Colorado - 5.7% 19,250 Aurora, Colorado, COP, 6% due 12/01/2025 (a) 21,355 31,160 Denver, Colorado, City and County Airport Revenue Refunding Bonds, RIB, Series 153, 8.341% due 11/15/2025 (b)(j) 32,628 4,000 Logan County, Colorado, Justice Center Finance Corporation, COP, 5.50% due 12/01/2020 (b) 4,387 Connecticut - 0.4% Hartford, Connecticut, GO, Refunding, Series D (b): 1,300 5% due 9/01/2017 1,412 1,105 5% due 9/01/2018 1,196 1,700 5% due 9/01/2021 1,821 Florida - 1.7% 5,500 Dade County, Florida, Water and Sewer System Revenue Bonds, 5.25% due 10/01/2026 (d) 5,724 9,425 Jacksonville Electric Authority, Florida, Water and Sewer System Revenue Bonds, Series C, 5% due 10/01/2039 (f) 9,608 1,955 West Coast Regional Water Supply Authority, Florida, Capital Improvement Revenue Bonds, 10.40% due 10/01/2010 (a)(g) 2,311 Georgia - 3.7% Georgia Municipal Electric Authority, Power Revenue Refunding Bonds (a): 20,000 Series EE, 7% due 1/01/2025 26,957 90 Series Y, 6.40% due 1/01/2011 (g) 103 490 Series Y, 6.40% due 1/01/2013 (h) 564 8,420 Series Y, 6.40% due 1/01/2013 9,713 Illinois - 1.8% 8,845 Chicago, Illinois, O'Hare International Airport Revenue Bonds, DRIVERS, AMT, Series 845-Z, 8.906% due 1/01/2012 (b)(i)(j) 10,970 6,800 Illinois State, GO, 5.75% due 5/01/2021 (b) 7,036 Kansas - 0.6% 5,145 Manhattan, Kansas, Hospital Revenue Bonds (Mercy Health Center), 5.50% due 8/15/2020 (f) 5,616 Louisiana - 0.5% 5,000 New Orleans, Louisiana, GO (Public Improvements), 5.25% due 12/01/2029 (a) 5,294 Maryland - 0.6% 4,400 Maryland State Health and Higher Educational Facilities Authority Revenue Bonds (University of Maryland Medical System), Series B, 7% due 7/01/2022 (d) 5,739 Massachusetts - 7.1% Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT (f): 10,720 Series A, 5.15% due 7/01/2026 10,816 4,000 Series C, 5.60% due 1/01/2045 4,229 27,585 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds, Series A, 5% due 8/15/2030 (f) 28,965 25,795 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25% due 1/01/2014 (d)(g) 28,421 Michigan - 1.1% 3,870 Michigan State, HDA, Rental Housing Revenue Refunding Bonds, Series B, 6.15% due 10/01/2015 (b) 3,952 6,170 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds, DRIVERS, AMT, Series 858Z, 7.908% due 12/01/2011 (i)(j) 7,022 Minnesota - 1.5% 5,860 Delano, Minnesota, Independent School District Number 879, GO, Series A, 5.875% due 2/01/2025 (f) 6,466 Sauk Rapids, Minnesota, Independent School District Number 047, GO, Series A (b): 3,735 5.65% due 2/01/2020 4,091 4,440 5.70% due 2/01/2021 4,874 Mississippi - 1.3% 1,320 Harrison County, Mississippi, Wastewater Management District, Revenue Refunding Bonds (Wastewater Treatment Facilities), Series A, 8.50% due 2/01/2013 (d) 1,700 10,000 Mississippi Hospital Equipment and Facilities Authority Revenue Bonds (Forrest County General Hospital Project), 6% due 1/01/2030 (f) 11,045 Missouri - 2.3% Kansas City, Missouri, Airport Revenue Refunding and Improvement Bonds, Series A (b): 12,990 5.50% due 9/01/2013 13,729 9,000 5.50% due 9/01/2014 9,512 Nevada - 6.5% Clark County, Nevada, IDR, AMT, Series A: 10,000 (Power Company Project), 6.70% due 6/01/2022 (d) 10,062 9,575 (Southwest Gas Corporation Project), 5.25% due 7/01/2034 (a) 10,009 45,000 Washoe County, Nevada, Water Facility Revenue Bonds (Sierra Pacific Power Company), AMT, 6.65% due 6/01/2017 (b) 46,224 New Jersey - 7.7% 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 (b) 8,803 Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation Revenue Bonds, Series A (f)(l): 3,125 5.80% due 11/01/2021 3,594 8,310 5.80% due 11/01/2022 9,520 4,340 5.80% due 11/01/2023 4,948 16,500 Garden State Preservation Trust of New Jersey, Revenue Bonds, Series B, 5.17%** due 11/01/2024 (f) 6,849 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A (b): 5,000 5% due 7/01/2027 5,268 23,000 5.25% due 7/01/2033 24,805 13,500 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C, 5% due 1/01/2030 (f) 14,246 New York - 13.1% 10,000 Metropolitan Transportation Authority, New York, Revenue Bonds, Series B, 5% due 11/15/2030 (a) 10,544 15,735 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds, Series B, 5.75% due 6/15/2026 (b) 16,189 New York City, New York, GO: 11,500 Series C, 5.625% due 3/15/2018 (i) 12,733 21,000 Series I, 6% due 4/15/2007 (f) 22,093 5,155 New York City, New York, GO, Refunding, Series G, 5.75% due 2/01/2006 (f) 5,278 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A (a): 13,925 5.25% due 10/15/2027 15,070 2,900 5% due 10/15/2032 3,048 120 New York State Dormitory Authority, Mental Health Revenue Refunding Bonds, Series A, 5.75% due 8/15/2022 (b) 127 3,665 New York State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (School Districts Bond Financing Program), Series B, 5% due 10/01/2025 (b) 3,890 9,190 New York State Dormitory Authority Revenue Bonds (School Districts Financing Program), Series D, 5.25% due 10/01/2023 (b) 9,963 9,110 New York State Urban Development Corporation, Personal Income Tax Revenue Bonds (State Facilities), Series A-1, 5.25% due 3/15/2034 (d) 9,765 5 Niagara Falls, New York, GO, Public Improvement, 6.90% due 3/01/2024 (b) 5 22,500 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25% due 6/01/2022 (a) 24,372 North Carolina - 0.3% 3,370 North Carolina HFA, Home Ownership Revenue Bonds, AMT, Series 14-A, 5.35% due 1/01/2022 (a) 3,490 North Dakota - 0.3% 3,145 North Dakota State HFA Revenue Bonds (Housing Finance Program), Series C, 5.30% due 7/01/2022 (a) 3,239 Oklahoma - 0.7% Oklahoma State Industries Authority, Health System Revenue Refunding Bonds (Integris Obligated Group), Series A (b): 2,680 6.25% due 8/15/2009 (g) 2,988 3,705 6.25% due 8/15/2016 4,108 Oregon - 1.4% 8,700 Oregon State Department, Administrative Services, COP, Series A, 6.25% due 5/01/2010 (a)(g) 9,865 3,865 Port of Portland, Oregon, Airport Revenue Refunding Bonds (Portland International Airport), AMT, Series 7-B, 7.10% due 1/01/2012 (b)(g) 4,559 Pennsylvania - 2.8% 9,330 Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania Power and Light Utilities Corporation Project), 4.75% due 2/15/2027 (d) 9,471 5,000 Pennsylvania HFA, S/F Revenue Bonds, AMT, Series 72A, 5.25% due 4/01/2021 (b) 5,141 2,035 Pennsylvania State Higher Educational Facilities Authority, Revenue Bonds (Slippery Rock University Foundation, Inc.), Series A, 5% due 7/01/2019 (i) 2,167 6,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 12th Series B, 7% due 5/15/2020 (b)(h) 7,302 4,420 Philadelphia, Pennsylvania, Redevelopment Authority Revenue Bonds (Neighborhood Transformation), Series A, 5.50% due 4/15/2020 (d) 4,843 Rhode Island - 0.8% 6,815 Rhode Island State Economic Development Corporation, Airport Revenue Bonds, Series B, 6% due 7/01/2010 (d)(g) 7,676 South Carolina - 0.4% 4,200 South Carolina State Public Service Authority Revenue Refunding Bonds, Series A, 6.25% due 1/01/2006 (a) 4,317 Texas - 4.1% 17,975 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT, Series 202, 8.906% due 11/01/2028 (d)(j) 20,955 El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds, Series A (f): 195 6% due 3/01/2018 221 205 6% due 3/01/2019 232 10,500 Harris County, Texas, Revenue Refunding Bonds, DRIVERS, Series 1111, 8% due 8/15/2009 (f)(j) 11,560 3,500 Houston, Texas, Water Conveyance System Contract, COP, Series J, 6.25% due 12/15/2013 (a) 4,063 Texas State Department of Housing and Community Affairs, S/F Mortgage Revenue Bonds, AMT, Series A (b)(e): 2,085 5.45% due 9/01/2023 2,170 2,725 5.50% due 3/01/2026 2,831 Utah - 1.7% 9,535 Utah Transit Authority, Sales Tax and Transportation Revenue Bonds (Salt Lake County Light Rail Transit Project), 5.375% due 12/15/2007 (f)(g) 10,014 Utah Water Finance Agency Revenue Bonds (Pooled Loan Financing Program), Series A (a): 2,515 5.75% due 10/01/2015 2,777 3,770 6% due 10/01/2020 4,184 Washington - 0.8% 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 (a) 7,653 West Virginia - 1.2% 12,250 Pleasants County, West Virginia, PCR, Refunding (Potomac-Pleasants), Series C, 6.15% due 5/01/2015 (a) 12,512 Wisconsin - 1.2% 9,000 Superior, Wisconsin, Limited Obligation Revenue Refunding Bonds (Midwest Energy Resources), Series E, 6.90% due 8/01/2021 (d) 11,684 1,075 Wisconsin State, GO, AMT, Series B, 6.50% due 5/01/2025 (b) 1,078 Puerto Rico - 2.5% 1,750 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds, Series G, 5.25% due 7/01/2017 (d) 1,921 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series RR: 8,200 5% due 7/01/2027 (i) 8,707 14,400 5% due 7/01/2028 (c) 15,195 Total Municipal Bonds (Cost - $949,153) - 98.1% 999,281 Shares Held Mutual Funds 300 BlackRock California Insured Municipal 2008 Term Trust, Inc. 4,737 810 BlackRock Insured Municipal 2008 Term Trust, Inc. 12,766 237 BlackRock Insured Municipal Term Trust, Inc. 2,558 Total Mutual Funds (Cost - $21,469) - 2.0% 20,061 Short-Term Securities 9,317 Merrill Lynch Institutional Tax-Exempt Fund (k) 9,317 Total Short-Term Securities (Cost - $9,317) - 0.9% 9,317 Total Investments (Cost - $979,939*) - 101.0% 1,028,659 Liabilities in Excess of Other Assets - (1.0%) (10,316) ----------- Net Assets - 100.0% $ 1,018,343 =========== * The cost and unrealized appreciation (depreciation) of investments, as of September 30, 2005, as computed for federal income tax purposes, were as follows: Aggregate cost $ 979,939 ================= Gross unrealized appreciation $ 51,927 Gross unrealized depreciation (3,207) ----------------- Net unrealized appreciation $ 48,720 ================= ** Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase by the Fund. (a) AMBAC Insured. (b) MBIA Insured. (c) CIFG Insured. (d) FGIC Insured. (e) FNMA/GNMA Collateralized. (f) FSA Insured. (g) Prerefunded. (h) Escrowed to maturity. (i) XL Capital Insured. (j) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (k) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: Net Dividend Affiliate Activity Income Merrill Lynch Institutional Tax-Exempt Fund (1,700) $ 83 (l) When-issued security. Forward interest rate swaps outstanding as of September 30, 2005 were as follows: Notional Unrealized Amount Depreciation Pay a fixed rate of 3.923% and receive a floating rate based on 1-week Bond Market Association Rate Broker, JPMorgan Chase Bank Expires November 2018 $ 11,500 $ (111)
Merrill Lynch Municipal Bond Fund, Inc. - National Portfolio Schedule of Investments as of September 30, 2005 (in Thousands)
Face State Amount Municipal Bonds Value Alabama - 0.8% $ 3,820 Alabama Incentives Financing Authority, Special Obligation Revenue Refunding Bonds, Series A, 6% due 10/01/2029 (c) $ 4,244 500 Mobile, Alabama, Industrial Development Board, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.35% due 5/15/2016 534 2,500 Selma, Alabama, IDB, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.70% due 2/01/2018 2,721 3,400 Tuscaloosa, Alabama, Special Care Facilities Financing Authority, Residential Care Facility Revenue Bonds (Capstone Village, Inc. Project) Series A, 5.875% due 8/01/2036 3,401 Alaska - 0.4% 2,065 Alaska State Housing Financial Corporation, General Mortgage Revenue Refunding, Series A, 6% due 6/01/2027 (f) 2,159 3,860 Anchorage, Alaska, School, GO, Series B, 5.875% due 12/01/2010 (e)(j) 4,327 Arizona - 2.5% 4,000 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625% due 7/01/2020 4,489 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation): 730 6.125% due 4/01/2007 (j) 775 270 6.125% due 4/01/2018 282 3,600 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.75% due 7/01/2029 3,625 1,625 Maricopa County, Arizona, IDA, Health Facilities Revenue Refunding Bonds (Catholic Healthcare West Project), Series A, 5% due 7/01/2021 1,649 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) 1,029 1,000 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Public Service Company of New Mexico Project), Series A, 6.30% due 12/01/2026 1,056
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 ROLS Reset Option Long Certificates S/F Single-Family Merrill Lynch Municipal Bond Fund, Inc. - National Portfolio Schedule of Investments as of September 30, 2005 (concluded) (in Thousands)
Face State Amount Municipal Bonds Value Arizona Peoria, Arizona, Improvement District Number 8401, Special Assessment Bonds Number 8802: (concluded) $ 430 7.20% due 1/01/2010 $ 438 510 7.20% due 1/01/2013 520 Peoria, Arizona, Improvement District, Special Assessment Bonds Number 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) 2,582 5,000 Phoenix, Arizona, IDA, Airport Facility, Revenue Refunding Bonds (America West Airlines Inc. Project), AMT, 6.30% due 4/01/2023 3,709 545 Prescott Valley, Arizona, Improvement District, Special Assessment Bonds (Sewer Collection System Roadway Repair), 7.90% due 1/01/2012 561 3,515 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project), Series A, 6.125% due 7/01/2024 (m) 3,874 3,180 University of Arizona, COP, Refunding, Series A, 5.50% due 6/01/2018 (c) 3,498 1,000 University of Arizona, COP (University of Arizona Parking and Student Housing), 5.75% due 6/01/2009 (c)(j) 1,088 Vistancia Community Facilities District, Arizona, GO: 3,000 6.75% due 7/15/2022 3,221 2,125 5.75% due 7/15/2024 2,149 Arkansas - 0.1% 50 Arkansas State Development Finance Authority, S/F Mortgage Revenue Bonds (Mortgage Backed Securities Program), Series H, 6.15% due 7/01/2016 (i) 52 250 Arkansas State Student Loan Authority Revenue Bonds, AMT, Sub-Series B, 7.25% due 6/01/2009 270 200 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) 208 250 North Little Rock, Arkansas, Health Facilities Board, Health Care Revenue Bonds (Baptist Health), 5.50% due 7/01/2016 261 500 Pine Bluff, Arkansas, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.70% due 8/01/2020 546 250 University of Central Arkansas, Housing System Revenue Bonds, 6.50% due 1/01/2031 (h) 282 California - 11.9% 2,500 Agua Caliente Band of Cahuilla Indians, California, Casino Revenue Bonds, 6% due 7/01/2018 2,655 8,840 Alameda County, California, COP (Financing Project), 6% due 9/01/2006 (f)(j) 9,256 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage Backed Securities Program), AMT, Class 5 (i)(l): 160 Series C, 6.75% due 3/01/2029 162 175 Series D, 6.70% due 5/01/2029 175 225 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) 228 7,500 California State Department of Water Resources, Power Supply Revenue Bonds, Series A, 5.75% due 5/01/2017 8,334 5,000 California State, GO, 5.25% due 4/01/2029 5,344 2,000 California State, GO, Refunding, 5.75% due 5/01/2030 2,187 14,100 California State, Various Purpose, GO, 5.50% due 11/01/2033 15,428 9,880 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 6% due 10/01/2023 10,935 2,880 Capistrano, California, Unified School District, Community Facility District, Special Tax Bonds (Number 90-2 Talega), 6% due 9/01/2032 3,072 Chula Vista, California, Community Facilities District, Special Tax Bonds (Number 06-1, Eastlake Woods Area), Series A: 1,080 6.05% due 9/01/2020 1,151 2,965 6.15% due 9/01/2026 3,139 Contra Costa County, California, Special Tax Bonds (Community Facilities District Number 2001-01): 1,585 6% due 9/01/2026 1,646 1,200 6.10% due 9/01/2031 1,246 3,100 Elk Grove, California, Poppy Ridge Community Facilities Number 3 Special Tax, Series 1, 6% due 9/01/2008 (j) 3,355 2,000 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series A-4, 7.80% due 6/01/2042 2,499 12,730 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition A, First Tier Senior-Series A, 5% due 7/01/2035 (c) 13,350 2,740 Pomona, California, Public Financing Authority, Revenue Refunding Bonds (Merged Redevelopment Project), Series A1, 5.75% due 2/01/2034 2,827 1,100 Poway, California, Unified School District, Special Tax Bonds (Community District Number 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 2,914 Roseville, California, Special Tax (Stoneridge Community Facilities Number 1): 1,250 6.20% due 9/01/2021 1,343 1,125 6% due 9/01/2025 1,195 2,500 6.30% due 9/01/2031 2,672 Sacramento, California, Special Tax (North Natomas Community Facilities): 2,200 Series 01-03, 6% due 9/01/2028 2,313 2,270 Series 4-C, 6% due 9/01/2028 2,413 20,075 Sacramento County, California, Sanitation District Financing Authority, Revenue Bonds, Series A, 5% due 12/01/2035 (c) 21,005 10,000 San Diego, California, Public Facilities Financing Authority, Subordinated Water Revenue Refunding Bonds, 5% due 8/01/2032 (f) 10,367 11,520 San Diego, California, Unified School District, GO (Election of 1998), Series F, 5% due 7/01/2028 (h) 12,068 San Francisco California, City and County Redevelopment Agency Revenue Bonds (Community Facilities District Number 6-Mission): 5,000 6% due 8/01/2021 5,250 2,500 GO, Series A, 6% due 8/01/2025 2,607 1,075 San Francisco, California, Uptown Parking Corporation, Parking Revenue Bonds (Union Square), 6% due 7/01/2020 (f) 1,212 8,500 San Jose-Evergreen, California, Community College District, GO (Election of 2004), Refunding, Series A, 5% due 9/01/2027 (f) 8,962 Santa Margarita, California, Water District, Special Tax Refunding Bonds (Community Facilities District Number 99), Series 1: 3,680 6.20% due 9/01/2020 3,976 2,990 6.25% due 9/01/2029 3,171 Colorado - 2.5% 500 Boulder County, Colorado, Hospital Development Revenue Bonds (Longmont United Hospital Project), 6% due 12/01/2030 (m) 549 465 Colorado HFA, Revenue Bonds (S/F Program), Series B-3, 6.55% due 10/01/2016 478 Colorado HFA, Revenue Refunding Bonds (S/F Program): 440 AMT, Senior Series A-2, 7.50% due 4/01/2031 468 160 AMT, Senior Series B-2, 7.10% due 4/01/2017 164 1,095 AMT, Senior Series B-2, 7.25% due 10/01/2031 1,156 75 AMT, Senior Series B-3, 6.80% due 11/01/2028 75 510 AMT, Senior Series C-2, 7.25% due 10/01/2031 (b) 527 150 Senior Series A-3, 7.35% due 10/01/2030 160 675 Senior Series C-3, 6.75% due 10/01/2021 (b) 695 175 Senior Series C-3, 7.15% due 10/01/2030 (b) 181 Colorado Health Facilities Authority, Retirement Facilities Revenue Bonds (Liberty Heights Project) (a): 10,000 4.60%* due 7/15/2022 4,606 4,360 Series B, 4.65%* due 7/15/2024 1,811 2,500 Colorado Health Facilities Authority Revenue Refunding Bonds (Catholic Health Initiatives), 5.50% due 9/01/2017 2,665 550 Colorado Water Resource and Power Development Authority, Small Water Resource Revenue Bonds, Series A, 5.80% due 11/01/2020 (e) 606 Elk Valley, Colorado, Public Improvement Revenue Bonds (Public Improvement Fee): 7,560 Series A, 7.35% due 9/01/2031 8,053 1,200 Series B, 7% due 9/01/2031 1,234 3,685 Larimer County, Colorado, Poudre School District Number R-1, GO, 6% due 12/15/2010 (e)(j) 4,155 7,700 Plaza Metropolitan District Number 1, Colorado, Tax Allocation Revenue Bonds (Public Improvement Fees), 8% due 12/01/2025 8,510 Connecticut - 2.2% 4,000 Bridgeport, Connecticut, Senior Living Facilities Revenue Bonds (3030 Park Retirement Community Project), 7.25% due 4/01/2035 3,955 1,000 Connecticut State Development Authority, Governmental Lease Revenue Bonds, 6.60% due 6/15/2014 (f) 1,013 1,250 Connecticut State Development Authority, Water Facility Revenue Bonds (Bridgeport Hydraulic Company), AMT, 6.15% due 4/01/2035 (c) 1,323 1,200 Connecticut State HFA, Revenue Refunding Bonds (Housing Mortgage Finance Program), Series C-1, 6.30% due 11/15/2017 1,234 Connecticut State Health and Educational Facilities Authority Revenue Bonds: 1,000 (Bridgeport Hospital), Series A, 6.625% due 7/01/2018 (f) 1,026 1,500 (Waterbury Hospital Issue), Series C, 5.75% due 7/01/2020 (m) 1,608 1,000 (Westover School), Series A, 5.70% due 7/01/2030 (m) 1,079 Connecticut State Health and Educational Facilities Authority, Revenue Refunding Bonds: 5,025 DRIVERS, Series 215, 9.942% due 6/01/2030 (m)(n) 6,222 2,000 (Eastern Connecticut Health Network), Series A, 6.50% due 7/01/2030 (m) 2,238 640 (Sacred Heart University), 6.625% due 7/01/2026 (m) 669 5,710 (University of Hartford), Series E, 5.50% due 7/01/2022 (m) 6,257 1,000 (Yale-New Haven Hospital Issue), Series H, 5.70% due 7/01/2025 (f) 1,037 855 Connecticut State Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan Program), AMT, Series A, 5.50% due 11/15/2020 (f) 865 1,000 Connecticut State Regional Learning Educational Service Center Revenue Bonds (Office/Education Center Facility), 7.75% due 2/01/2006 (j) 1,035 860 Waterbury, Connecticut, GO, 6% due 2/01/2009 (j)(m) 945 District of 5,000 District of Columbia, GO, Refunding, DRIVERS, Series 214, 8.926% due 6/01/2026 (f)(n) 5,673 Columbia - 0.4% Florida - 5.7% 2,000 Anthem Park Community Development District, Florida, Capital Improvement Revenue Bonds, 5.80% due 5/01/2036 2,027 1,700 Ballantrae, Florida, Community Development District, Capital Improvement Revenue Bonds, 6% due 5/01/2035 1,769 1,870 Beacon Tradeport Community, Florida, Development District, Special Assessment Revenue Refunding Bonds (Commercial Project), Series A, 5.25% due 5/01/2016 (m) 2,006 2,500 CFM Community Development District, Florida, Capital Improvement Revenue Bonds, Series B, 5.875% due 5/01/2014 2,570 2,725 Duval County, Florida, School Board, COP, 5.75% due 7/01/2017 (h) 2,948 1,500 East Homestead Community Development District, Florida, Special Assessment Revenue Bonds, 5.45% due 5/01/2036 1,511 Fiddlers Creek, Florida, Community Development District Number 2, Special Assessment Revenue Bonds: 5,350 Series A, 6.375% due 5/01/2035 5,678 1,250 Series B, 5.75% due 5/01/2013 1,301 600 Heritage Isles Community Development District, Florida, Special Assessment Revenue Refunding Bonds, 5.90% due 11/01/2006 605 5,000 Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum), AMT, Series A, 7.125% due 4/01/2030 5,571 7,000 Lee County, Florida, Airport Revenue Bonds, RIB, AMT, Series 580X, 8.94% due 10/01/2029 (h)(n) 8,411 1,200 Lexington Oaks, Florida, Community Development District, Special Assessment Revenue Bonds, Series A, 6.70% due 5/01/2033 1,288 1,040 Mediterra, Florida, South Community Development District, Capital Improvement Revenue Bonds, 6.85% due 5/01/2031 1,120 2,500 Middle Village Community Development District, Florida, Special Assessment Bonds, Series A, 6% due 5/01/2035 2,606 6,095 Midtown Miami, Florida, Community Development District, Special Assessment Revenue Bonds, Series A, 6.25% due 5/01/2037 6,481 2,265 Old Palm Community Development District, Florida, Special Assessment Bonds (Palm Beach Gardens), Series B, 5.375% due 5/01/2014 2,305 Orange County, Florida, HFA, M/F Housing Revenue Bonds: 3,500 (Loma Vista Project), Series G, 5.50% due 3/01/2032 3,534 2,375 Series A, 6.40% due 1/01/2031 (f) 2,471 75 Orange County, Florida, HFA, Mortgage Revenue Bonds, AMT, Series A, 8.375% due 3/01/2021 (b)(d) 75 1,000 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), 5.70% due 7/01/2026 1,000 5,000 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50% due 10/01/2009 (c)(j) 5,425 Panther Trace, Florida, Community Development, Special Assessment Revenue Bonds: 45 District, Series B, 6.50% due 5/01/2009 45 5,000 District II, Series A, 5.60% due 5/01/2035 5,064 Park Place Community Development District, Florida, Special Assessment Revenue Bonds: 1,000 6.75% due 5/01/2032 1,067 2,500 6.375% due 5/01/2034 2,622 2,000 Saint Lucie, Florida, West Services District, Utility Revenue Refunding Bonds, Senior Lien, 6% due 10/01/2022 (f) 2,253 2,875 Somerset Community Development District, Florida, Capital Improvement Revenue Bonds, 5% due 5/01/2015 2,866 990 Sterling Hill, Florida, Community Development District, Capital Improvement Revenue Refunding Bonds, Series B, 5.50% due 11/01/2010 996 770 Stoneybrook West, Florida, Community Development District, Special Assessment Revenue Bonds, Series B, 6.45% due 5/01/2010 774 2,850 Tern Bay Community Development District, Florida, Capital Improvement Revenue Refunding Bonds, Series A, 5.375% due 5/01/2037 2,864 565 Verandah West, Florida, Community Development District, Capital Improvement Revenue Bonds, Series B, 5.25% due 5/01/2008 566 1,950 Vista Lakes Community, Florida, Development District, Capital Improvement Revenue Bonds, Series B, 5.80% due 5/01/2008 1,967 Georgia - 1.8% 5,000 Atlanta, Georgia, Tax Allocation Bonds (Atlantic Station Project), 7.90% due 12/01/2024 5,420 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 2,401 3,305 7.25% due 1/01/2035 3,474 5,210 College Park, Georgia, Business and IDA, Revenue Bonds (Civic Center Project), 5.75% due 9/01/2026 (c) 5,798 3,450 Fulton County, Georgia, Development Authority Revenue Bonds (Morehouse College Project), 5.875% due 12/01/2030 (c) 3,846 2,250 Fulton County, Georgia, Residential Care Facilities, Revenue Refunding Bonds (Canterbury Court Project), Series A, 6% due 2/15/2022 2,287 1,500 Milledgeville-Baldwin County, Georgia, Development Authority Revenue Bonds (Georgia College and State University Foundation), 6% due 9/01/2033 1,610 Hawaii - 0.3% Kuakini, Hawaii, Health System, Special Purpose Revenue Bonds, Series A: 1,410 6.30% due 7/01/2022 1,507 3,000 6.375% due 7/01/2032 3,200 Illinois - 7.3% 10,620 Chicago, Illinois, Board of Education, GO, DRIVERS, Series 199, 8.425% due 12/01/2020 (c)(n) 12,220 26,800 Chicago, Illinois, O'Hare International Airport Revenue Bonds, 3rd Lien, AMT, Series B-2, 6% due 1/01/2029 (k) 29,935 3,000 Chicago, Illinois, O'Hare International Airport, Special Facility Revenue Refunding Bonds (American Airlines Inc. Project), 8.20% due 12/01/2024 2,736 2,265 Chicago, Illinois, Park District, GO, Refunding, Series B, 5.75% due 1/01/2015 (e) 2,499 230 Chicago, Illinois, Park District, Limited Tax, GO, Series A, 5.75% due 1/01/2016 (e) 254 470 Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT, Series A, 7.15% due 9/01/2031 (i)(l) 481 2,000 Chicago, Illinois, Special Assessment Bonds (Lake Shore East), 6.75% due 12/01/2032 2,177 3,210 Cicero, Illinois, GO, Refunding (Corporate Purpose), 6% due 12/01/2028 (f) 3,568 7,000 Decatur, Illinois, GO, Refunding, 6% due 3/01/2008 (e)(j) 7,470 10,000 Hodgkins, Illinois, Environmental Improvement Revenue Bonds (Metro Biosolids Management LLC Project), AMT, 6% due 11/01/2023 10,606 Illinois Development Finance Authority Revenue Bonds: 3,140 (Community Rehabilitation Providers Facilities), Series A, 6.50% due 7/01/2022 3,416 660 Series B, 6.40% due 9/01/2031 (h) 691 1,750 Illinois State Finance Authority Revenue Bonds (Friendship Village of Schaumburg), Series A, 5.625% due 2/15/2037 1,770 Illinois State, GO, 1st Series (f): 8,890 5.75% due 12/01/2015 9,819 3,745 5.75% due 12/01/2016 4,136 4,000 5.75% due 12/01/2017 4,408 3,000 Illinois State, Sales Tax Revenue Bonds, 6% due 6/15/2020 3,310 2,000 Lake County, Illinois, Forest Preservation District, GO (Land Acquisition and Development), 5.75% due 12/15/2016 2,216 1,585 Village of Wheeling, Illinois, Revenue Bonds (North Milwaukee/Lake-Cook Tax Increment Financing (TIF) Redevelopment Project), 6% due 1/01/2025 1,567 Iowa - 0.7% 1,000 Iowa City, Iowa, Sewer Revenue Bonds, 5.75% due 7/01/2021 (f) 1,019 6,780 Iowa Finance Authority, Health Care Facilities, Revenue Refunding Bonds (Care Initiatives Project), 9.25% due 7/01/2025 8,293 Kansas - 0.5% 2,420 Sedgwick and Shawnee Counties, Kansas, S/F Revenue Bonds, AMT, Series A-1, 6.95% due 6/01/2029 (d) 2,432 1,700 Unified Government of Wyandotte County and Kansas City, Kansas, Sales Tax Special Obligation Revenue Refunding Bonds (Redevelopment Project Area B), Second Lien, 5% due 12/01/2020 1,744 2,500 Wichita, Kansas, Hospital Facilities Revenue Refunding and Improvement Bonds, Series III, 6.25% due 11/15/2019 2,756 Louisiana - 3.2% 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) 10,335 30,000 Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 5% due 5/01/2035 (e) 31,038 1,550 Louisiana State, HFA, S/F Revenue Refunding Bonds (Home Ownership Program), Series B-2, AMT, 6.20% due 12/01/2029 (b)(i) 1,589 2,000 Rapides Finance Authority, Louisiana, Environmental Improvement Revenue Bonds (International Paper Company Project), AMT, Series A, 6.55% due 11/15/2023 2,158 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 8,792 6,045 Maine State Housing Authority, Mortgage Purpose Revenue Bonds, DRIVERS, AMT, Series 170, 8.906% due 11/15/2028 (n) 6,509 Maryland - 0.4% 500 Anne Arundel County, Maryland, Special Obligation Revenue Bonds (Arundel Mills Project), 7.10% due 7/01/2009 (j) 576 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 1,052 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) 1,212 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 1,056 125 Maryland State Economic Development Corporation Revenue Bonds (Health and Mental Hygiene Program), Series A, 7.125% due 3/01/2006 126 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 Massachusetts - 2.1% 400 Massachusetts Educational Financing Authority, Education Loan Revenue Refunding Bonds, AMT, Issue E, 5.85% due 7/01/2014 (c) 402 1,000 Massachusetts State Development Finance Agency, Revenue Refunding Bonds (Eastern Nazarene College), 5.625% due 4/01/2029 999 1,605 Massachusetts State HFA, Housing Revenue Refunding Bonds, Series B, 6.05% due 12/01/2009 (f) 1,641 4,850 Massachusetts State Health and Educational Facilities Authority Revenue Bonds (Medical Center of Central Massachusetts), CARS, Series B,10.27% due 6/23/2022 (c)(n) 5,544 1,000 Massachusetts State Industrial Finance Agency, Higher Education Revenue Refunding Bonds (Hampshire College Project), 5.625% due 10/01/2007 (j) 1,067 17,000 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds, Series A, 5% due 8/15/2030 (h) 17,851 130 Massachusetts State Water Pollution Abatement Trust, Water Abatement Revenue Bonds, Series A, 6.375% due 2/01/2015 131 1,600 Montachusett, Massachusetts, Regional Vocational Technical School District, GO, 5.95% due 1/15/2020 (f) 1,773 Michigan - 1.3% 7,500 Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25% due 4/15/2012 (j) 8,662 500 Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75% due 6/01/2016 536 1,000 Eastern Michigan University Revenue Refunding Bonds, 6% due 6/01/2024 (c) 1,112 3,000 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), 6% due 7/01/2020 3,181 3,325 Macomb County, Michigan, Hospital Finance Authority, Hospital Revenue Bonds (Mount Clemens General Hospital), Series B, 5.875% due 11/15/2034 3,372 1,500 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount Clemens), Series A, 6% due 5/15/2014 (f) 1,638 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 1,076 1,000 Eden Prairie, Minnesota, M/F Housing Revenue Bonds (Rolling Hills Project), Series A, 6.15% due 8/20/2031 (d) 1,087 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, AMT, Sub-Series D (e): 470 5.75% due 1/01/2012 513 470 5.75% due 1/01/2014 510 2,060 5.75% due 1/01/2015 2,232 635 Minneapolis, Minnesota, Community Development Agency, Supported Development Revenue Bonds (Common Bond Fund), AMT, Series 2, 6.20% due 6/01/2017 652 Minneapolis, Minnesota, Health Care System Revenue Bonds (Allina Health System), Series A: 1,500 5.70% due 11/15/2022 1,603 2,665 5.75% due 11/15/2032 2,831 1,110 Ramsey County, Minnesota, Housing and Redevelopment Authority, M/F Housing Revenue Bonds (Hanover Townhouses Project), AMT, 6% due 7/01/2031 1,151 1,000 Saint Cloud, Minnesota, Health Care Revenue Refunding Bonds (Saint Cloud Hospital Obligation Group), Series A, 6.25% due 5/01/2020 (h) 1,117 1,000 Saint Francis, Minnesota, Independent School District Number 015, GO, Series A, 6.35% due 2/01/2013 (h) 1,011 1,500 Waconia, Minnesota, Health Care Facilities Revenue Bonds (Ridgeview Medical Center Project), Series A, 6.125% due 1/01/2029 (m) 1,634 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 1,866 Missouri - 0.4% Fenton, Missouri, Tax Increment Revenue Refunding and Improvement Bonds (Gravois Bluffs): 350 6.75% due 10/01/2015 352 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 1,575 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 6,359 Nevada - 2.6% 5,000 Clark County, Nevada, IDR (Power Company Project), AMT, Series A, 6.70% due 6/01/2022 (e) 5,031 1,550 Clark County, Nevada, Improvement District Number 142 Special Assessment, 6.375% due 8/01/2023 1,608 8,000 Clark County, Nevada, Senior Airport Revenue Bonds, Series A, 5% due 7/01/2040 (c) 8,274 Elko, Nevada, GO (Airport Improvement), AMT, Series B (f): 165 6.10% due 10/01/2014 175 245 6.30% due 10/01/2019 262 320 6.75% due 10/01/2024 346 225 7% due 10/01/2029 243 2,925 Henderson, Nevada, Local Improvement Districts, Special Assessment, Series NO T-14, 5.80% due 3/01/2023 3,032 Las Vegas, Nevada, Local Improvement Bonds, Special Assessment, Special Improvement District Number 808, Summerlin: 1,760 5.875% due 6/01/2009 1,819 2,025 6.125% due 6/01/2012 2,092 2,265 6.25% due 6/01/2013 2,341 105 Nevada Housing Division, S/F Program, AMT, Senior Series E, 7.05% due 4/01/2027 (b) 106 1,970 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 3,391 6,315 6% due 1/15/2023 6,872 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 1,849 New Jersey - 5.4% 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 574 3,300 New Jersey EDA, Retirement Community Revenue Bonds (Cedar Crest Village Inc. Facility), Series A, 7.25% due 11/15/2031 3,584 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O: 17,000 5.25% due 3/01/2024 18,171 5,130 5.125% due 3/01/2028 5,394 2,000 New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 6.25% due 9/15/2029 1,620 3,680 New Jersey EDA, State Lease Revenue Bonds (State Office Buildings Projects), 6% due 6/15/2010 (c)(j) 4,115 New Jersey Health Care Facilities Financing Authority Revenue Bonds: 2,740 (Pascack Valley Hospital Association), 6% due 7/01/2013 2,785 3,130 (South Jersey Hospital), 6% due 7/01/2026 3,359 2,250 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds (Capital Health System Inc.), Series A, 5.75% due 7/01/2023 2,412 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) 1,152 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds (f): 10,000 DRIVERS, Series 155, 8.457% due 1/01/2018 (a)(n) 11,754 7,025 Series A, 5.75% due 1/01/2010 (j) 7,726 2,975 Series A, 5.75% due 1/01/2018 3,236 9,500 Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Bonds, 7% due 6/01/2041 11,338 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 8,379 160 New Mexico Mortgage Finance Authority, Revenue Refunding Bonds, Mortgage-Backed Securities, Series F, 7% due 1/01/2026 (i) 169 250 Santa Fe County, New Mexico, Correctional System Revenue Bonds, 6% due 2/01/2027 (h) 309 New York - 10.6% 9,500 Metropolitan Transportation Authority, New York, Commuter Facilities, Service Contract Revenue Refunding Bonds, Series 8, 5.50% due 7/01/2013 (h)(j) 10,718 10,000 Metropolitan Transportation Authority, New York, Transit Facilities Revenue Bonds, Series A, 5.625% due 7/01/2007 (f)(j) 10,592 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 3,333 2,000 New York City, New York, City IDA Revenue Bonds (Visy Paper Inc. Project), AMT, 7.95% due 1/01/2028 2,067 4,050 New York City, New York, City IDA, Special Facility Revenue Bonds (British Airways PLC Project), AMT, 7.625% due 12/01/2032 4,398 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series B: 3,500 5.75% due 6/15/2006 (f)(j) 3,606 10,000 5.875% due 6/15/2026 (h) 10,293 6,500 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds, Series B, 5.75% due 6/15/2026 (f) 6,688 3,000 New York City, New York, City Transit Authority, Triborough Metropolitan Transportation Authority, COP, 5.75% due 1/01/2010 (c)(j) 3,328 19,515 New York City, New York, City Transitional Finance Authority, Future Tax Secured, Revenue Refunding Bonds, Series C.5.875% due 5/01/2010 (j) 21,873 New York City, New York, GO, Refunding: 5,870 Series A, 6% due 5/15/2010 (j) 6,615 2,205 Series A, 6.25% due 5/15/2010 (j)(k) 2,508 730 Series A, 6% due 5/15/2021 (k) 813 5 Series A, 6.25% due 5/15/2026 (k) 6 4,000 Series B, 8.25% due 6/01/2006 (a)(k) 4,141 4,000 Series C, 5.875% due 2/01/2016 (e) 4,152 15,000 Series G, 5.75% due 2/01/2006 (f)(j) 15,372 25 Series H, 6% due 8/01/2007 (j)(k) 27 975 Series H, 6% due 8/01/2017 (k) 1,035 New York City, New York, GO, Series B (f): 6,600 5.875% due 8/01/2010 (j) 7,431 1,340 5.875% due 8/01/2015 1,499 New York State Dormitory Authority, Revenue Refunding Bonds: 3,165 (Concord Nursing Home Inc.), 6.25% due 7/01/2016 3,432 2,500 (Concord Nursing Home Inc.), 6.50% due 7/01/2029 2,724 3,000 (Mount Sinai Health), Series A, 6.50% due 7/01/2016 3,171 3,950 (Mount Sinai Health), Series A, 6.50% due 7/01/2025 4,172 3,000 (State University Educational Facilities), Series A, 7.50% due 5/15/2013 3,724 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 1,495 2,285 Oneida County, New York, IDA Revenue Bonds (Civic Facility-Faxton Hospital), Series C, 6.625% due 1/01/2015 (m) 2,540 95 Suffolk County, New York, IDA, Civic Facility Revenue Bonds (Special Needs Facilities Pooled Program), Series D-1, 6% due 7/01/2012 98 705 Westchester County, New York, IDA, Civic Facilities Revenue Bonds (Special Needs Facilities Pooled Program), Series E-1, 6% due 7/01/2012 727 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 8,648 North Carolina - 2.9% 920 Brunswick County, North Carolina, COP, 6% due 6/01/2010 (h)(j) 1,036 4,390 Gaston County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Bonds (National Gypsum Company Project), AMT, 5.75% due 8/01/2035 4,572 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 1,532 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds: 1,500 Series B, 5.875% due 1/01/2021 (f) 1,577 4,000 Series D, 6.75% due 1/01/2026 4,448 4,440 North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series D, 6.70% due 1/01/2019 (g) 4,947 125 North Carolina HFA, S/F Revenue Bonds, Series W, 6.50% due 3/01/2018 125 2,500 North Carolina Medical Care Commission, Health Care Facilities, First Mortgage Revenue Bonds (Presbyterian Homes Project), 6.875% due 10/01/2021 2,681 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 2,054 North Carolina Medical Care Commission, Retirement Facilities, First Mortgage Revenue Bonds: 1,625 (Forest at Duke Project), 6.375% due 9/01/2032 1,719 2,500 (Givens Estates Project), Series A, 6.50% due 7/01/2032 2,679 North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue Refunding Bonds, Series B: 500 6.375% due 1/01/2013 551 1,080 6.375% due 1/01/2013 (g) 1,193 5,000 6.50% due 1/01/2020 5,512 2,500 6.50% due 1/01/2020 (g) 2,756 1,175 North Carolina State Educational Assistance Authority Revenue Bonds (Guaranteed Student Loan), AMT, Sub-lien, Series C, 6.35% due 7/01/2016 1,214 Piedmont Triad Airport Authority, North Carolina, Airport Revenue Refunding Bonds, Series A (h)(j): 1,000 6% due 7/01/2009 1,108 1,000 6.375% due 7/01/2009 1,121 Ohio - 0.5% 1,200 Huron County, Ohio, GO, Human Services Building, 7.25% due 12/01/2005 (f)(j) 1,233 420 Ohio HFA, Mortgage Revenue Bonds, AMT, Series A-1, 6.15% due 3/01/2029 (d) 432 1,000 Ohio State Water Development Authority, Pollution Control Facilities, Revenue Refunding Bonds (Pennsylvania Power Co. Project), 6.15% due 8/01/2023 (c) 1,012 1,470 Port of Greater Cincinnati Development Authority, Ohio, Special Assessment Revenue Bonds (Cooperative Public Parking Infrastructure Project), 6.40% due 2/15/2034 1,557 3,005 Toledo-Lucas County, Ohio, Lodging Tax Revenue Refunding Bonds (Convention Center Project), 5.70% due 10/01/2015 (f) 3,141 Oregon - 0.4% Forest Grove, Oregon, Campus Improvement Revenue Refunding Bonds (Pacific University) (j)(m): 250 6% due 5/01/2010 279 250 6.20% due 5/01/2010 281 Oregon State Housing and Community Services Department, Mortgage Revenue Refunding Bonds (S/F Mortgage Program), Series A: 85 6.40% due 7/01/2018 86 55 AMT, 6.20% due 7/01/2027 57 500 Portland, Oregon, M/F Housing Authority Revenue Bonds (Lovejoy Station Apartments Project), AMT, 5.90% due 7/01/2023 (f) 524 Portland, Oregon, Urban Renewal and Redevelopment Revenue Refunding Bonds, Series A (c): 1,000 (Downtown Waterfront), 5.75% due 6/15/2018 1,107 3,190 (South Park Blocks), 5.75% due 6/15/2018 3,532 Pennsylvania - 2.4% 2,220 Allegheny County, Pennsylvania, Sanitation Authority, Sewer Revenue Bonds, 5.75% due 12/01/2010 (f)(j) 2,475 4,000 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (University of Pennsylvania Medical Center Health System), Series A, 6% due 1/15/2031 4,380 1,265 Philadelphia, Pennsylvania, Authority for IDR, Commercial Development, 7.75% due 12/01/2017 1,293 18,105 Philadelphia, Pennsylvania, Redevelopment Authority Revenue Bonds, ROLS, Series RR-II-432X, 7.73% due 10/15/2010 (e)(n) 20,447 5,000 Sayre, Pennsylvania, Health Care Facilities Authority, Revenue Refunding Bonds (Guthrie Healthcare System), Series A, 5.875% due 12/01/2031 5,361 Rhode Island - 0.6% 6,815 Rhode Island State Economic Development Corporation, Airport Revenue Bonds, Series B, 6% due 7/01/2010 (e)(j) 7,676 1,000 Rhode Island State Economic Development Corporation Revenue Bonds (Providence Place Mall), 6.125% due 7/01/2020 (m) 1,117 South Carolina - 1.3% Medical University Hospital Authority, South Carolina, Hospital Facilities Revenue Refunding Bonds (j): 2,450 6.50% due 8/15/2012 2,884 5,400 Series A, 6.375% due 8/15/2012 6,316 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds (e): 1,745 6.75% due 1/01/2019 2,181 1,255 6.75% due 1/01/2019 (a) 1,604 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 5,196 South Dakota - 0.4% 3,750 Pierre, South Dakota, School District Number 32-2, GO, 5.75% due 8/01/2010 (h)(j) 4,157 1,835 South Dakota Housing Development Authority, Homeownership Revenue Bonds, AMT, Series C, 5.375% due 5/01/2018 1,891 Tennessee - 2.0% Chattanooga, Tennessee, Industrial Development Board, Lease Rent Revenue Bonds (Southside Redevelopment Corporation) (c): 4,485 5.75% due 10/01/2017 4,934 3,740 5.75% due 10/01/2018 4,114 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 1,023 4,950 McMinn County, Tennessee, IDB, Solid Waste Revenue Bonds (Recycling Facility-Calhoun Newsprint), AMT, 7.40% due 12/01/2022 5,015 5,000 Metropolitan Government of Nashville and Davidson County, Tennessee, GO, 5.875% due 5/15/2026 5,128 7,300 Shelby County, Tennessee, Health, Educational and Housing Facility Board, Hospital Revenue Refunding Bonds (Methodist Healthcare, ) 6.50% due 9/01/2012 (j) 8,600 Texas - 12.0% Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.), First Tier, Series A: 5,300 6.60% due 1/01/2021 5,629 2,300 6.70% due 1/01/2028 2,467 10,630 Austin, Texas, Revenue Bonds (Town Lake Community Events Center Venue), 6.20% due 11/15/2009 (e)(j) 11,842 Bexar County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Army Retirement Residence Project): 600 6.125% due 7/01/2022 643 1,750 6.30% due 7/01/2032 1,875 2,280 Brazos River Authority, Texas, PCR, Refunding (Texas Utility Company), AMT, Series A, 7.70% due 4/01/2033 2,726 4,250 Brazos River Authority, Texas, Revenue Refunding Bonds (Reliant Energy Inc. Project), Series B, 7.75% due 12/01/2018 4,695 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 4,086 885 Central Texas Housing Finance Corporation, S/F Mortgage Revenue Bonds (GNMA Mortgage Program), AMT, 8.20% due 6/28/2017 (b)(d) 919 3,620 Dallas-Fort Worth, Texas, International Airport Facility Improvement Corporation, Revenue Bonds (Learjet Inc.), AMT, Series A-1, 6.15% due 1/01/2016 3,691 18,250 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT, Series 201, 8.906% due 11/01/2024 (e)(n) 21,275 1,260 Fort Bend County, Texas, Municipal Utility District Number 23, GO, 6.625% due 9/01/2007 (j)(m) 1,345 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Good Shepherd Medical Center Project) (m): 1,000 6.875% due 10/01/2020 1,138 3,500 6.375% due 10/01/2025 3,906 2,465 Gulf Coast, Texas, Waste Disposal Authority, Revenue Refunding Bonds (International Paper Company), AMT, Series A, 6.10% due 8/01/2024 2,631 2,500 Harris County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Saint Luke's Episcopal Hospital), Series A, 5.625% due 8/15/2011 (j) 2,778 3,000 Houston, Texas, Airport System, Special Facilities Revenue Bonds (Continental Airlines Terminal Improvement), AMT, Series B, 6.125% due 7/15/2027 2,385 10,000 Houston, Texas, Utility System Revenue Refunding Bonds, DRIVERS, Series 1076, 7.188% due 5/15/2012 (f)(n) 11,008 8,080 Matagorda County, Texas, Navigation District Number 1, Revenue Refunding Bonds (Reliant Energy Inc.), Series C, 8% due 5/01/2029 8,832 7,350 Matagorda County, Texas, Port of Bay City Authority Revenue Bonds (Hoechst Celanese Corp. Project), AMT, 6.50% due 5/01/2026 7,462 4,825 Port Corpus Christi, Texas, Individual Development Corporation, Environmental Facilities Revenue Bonds (Citgo Petroleum Corporation Project), AMT, 8.25% due 11/01/2031 5,137 1,000 Red River, Texas, Education Finance Revenue Bonds (Saint Mark's School-Texas Project), 6% due 8/15/2019 1,088 1,265 South Plains, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds, AMT, Series A, 7.30% due 9/01/2031 (i) 1,281 Southeast Texas, Housing Finance Corporation Revenue Bonds, AMT (d)(l): 95 Series A, 8% due 11/01/2025 99 180 Series B, 8.50% due 11/01/2025 188 Texas State Public Finance Authority, Building Revenue Bonds (h)(j): 2,100 (General Services Commission Project), Series A, 6% due 2/01/2010 2,329 1,000 (State Preservation Project), Series B, 6% due 8/01/2009 1,100 45,000 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A, 5.75% due 8/15/2038 (c) 50,177 4,930 Upper Trinity Regional Water District, Texas, Water Revenue Bonds (Regional Treated Water Supply System), Series A, 6% due 8/01/2020 (e) 5,447 Webster, Texas, GO, COP, Series A (h): 1,500 6% due 3/01/2010 (j) 1,666 805 6% due 3/01/2021 883 Utah - 0.1% 995 Utah State HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series C, Class III, 5.50% due 1/01/2018 1,026 Virginia - 0.6% 2,425 Chesterfield County, Virginia, IDA, PCR, Refunding (Virginia Electric and Power Company), Series B, 5.875% due 6/01/2017 2,640 Norfolk, Virginia, Redevelopment and Housing Authority, First Mortgage Revenue Bonds (Retirement Community), Series A: 500 6% due 1/01/2025 515 1,100 6.125% due 1/01/2035 1,133 3,825 Pocahontas Parkway Association, Virginia, Toll Road Revenue Bonds, Senior-Series A, 5.50% due 8/15/2028 3,975 Washington - 1.6% 3,000 Port of Seattle, Washington, Special Facilities Revenue Bonds, Series A, 6% due 9/01/2029 (f) 3,314 3,010 Seattle, Washington, Drain and Wastewater Utility Revenue Bonds, 5.75% due 11/01/2022 (f) 3,292 Seattle, Washington, Housing Authority Revenue Bonds: 2,750 (Newholly Project), AMT, 6.25% due 12/01/2035 2,795 4,875 (Replacement Housing Project), 6.125% due 12/01/2032 4,871 7,750 Tacoma, Washington, Electric System Revenue Refunding Bonds, Series A, 5.75% due 1/01/2011 (h)(j) 8,688 Wisconsin - 0.7% 2,725 Wisconsin State, GO, AMT, Series B, 6.20% due 11/01/2026 (f) 2,746 Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Synergyhealth Inc.): 3,250 6% due 11/15/2023 3,515 3,700 6% due 11/15/2032 3,962 Wyoming - 1.3% 8,400 Sweetwater County, Wyoming, PCR, Refunding (Idaho Power Company Project), Series A, 6.05% due 7/15/2026 (f) 8,750 9,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds (FMC Corporation Project), AMT, Series A, 7% due 6/01/2024 9,083 Guam - 0.0% 115 Guam Housing Corporation, S/F Mortgage Revenue Bonds, AMT, Series A, 5.75% due 9/01/2031 (l) 128 Puerto Rico - 4.5% Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds: 8,045 5.75% due 7/01/2022 8,834 2,000 Series B, 5.875% due 7/01/2010 (f)(j) 2,248 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series K: 12,500 5% due 7/01/2040 12,819 9,250 5% due 7/01/2045 9,486 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A: 30,000 4.64%* due 7/01/2032 (e) 8,465 11,785 4.67%* due 7/01/2036 (c) 2,732 785 Puerto Rico Commonwealth, Public Improvement, GO, Refunding, 5.70% due 7/01/2020 (f) 860 15,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125% due 7/01/2029 15,707 2,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Revenue Bonds (Ascension Health), RIB, Series 377, 9.24% due 11/15/2030 (n) 2,448 960 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.50% due 8/01/2029 1,024 U.S. Virgin 8,000 Virgin Islands Government Refinery Facilities, Revenue Refunding Bonds (Hovensa Coker Islands - 0.6% Project), AMT, 6.50% due 7/01/2021 9,070 Total Municipal Bonds (Cost - $1,323,283) - 98.4% 1,401,632 Shares Held Short-Term Securities 25,923 Merrill Lynch Institutional Tax-Exempt Fund ** 25,923 Total Short-Term Securities (Cost - $25,923) - 1.8% 25,923 Total Investments (Cost - $1,349,206***) - 100.2% 1,427,555 Liabilities in Excess of Other Assets - (0.2%) (2,266) ----------- Net Assets - 100.0% $ 1,425,289 =========== * Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase by the Fund. ** Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: Net Dividend Affiliate Activity Income Merrill Lynch Institutional Tax-Exempt Fund 24,000 $ 111 *** The cost and unrealized appreciation (depreciation) of investments as of September 30, 2005, as computed for federal income tax purposes, were as follows: Aggregate cost $ 1,349,206 ================= Gross unrealized appreciation $ 82,444 Gross unrealized depreciation (4,095) ----------------- Net unrealized appreciation $ 78,349 ================= (a) Escrowed to maturity. (b) FHA Insured. (c) AMBAC Insured. (d) GNMA Collateralized. (e) FGIC Insured. (f) MBIA Insured. (g) ACA Insured. (h) FSA Insured. (i) FNMA/GNMA Collateralized. (j) Prerefunded. (k) XL Capital Insured. (l) FHLMC Collateralized. (m) Radian Insured. (n) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates.
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: November 17, 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: November 17, 2005 By: /s/ Donald C. Burke ------------------------ Donald C. Burke Chief Financial Officer Merrill Lynch Municipal Bond Fund, Inc. Date: November 17, 2005