N-Q 1 munibond.txt BLACKROCK 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 811-02688 Name of Fund: BlackRock Municipal Bond Fund, Inc. BlackRock High Yield Municipal Fund BlackRock Short-Term Municipal Fund BlackRock Municipal Insured Fund BlackRock National Municipal Fund Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock 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: (800) 441-7762 Date of fiscal year end: 06/30/2008 Date of reporting period: 07/01/2007 - 09/30/2007 Item 1 - Schedule of Investments BlackRock Municipal Bond Fund, Inc. - BlackRock High Yield Municipal Fund Schedule of Investments as of September 30, 2007 (Unaudited) (in Thousands)
Face Amount Municipal Bonds Value Alabama - 0.7% $ 500 Tuscaloosa, Alabama, Special Care Facilities Financing Authority, Residential Care Facility Revenue Bonds (Capstone Village, Inc. Project), Series A, 5.875% due 8/01/2036 $ 498 Arizona - 3.0% 300 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.75% due 7/01/2029 293 1,000 Phoenix, Arizona, IDA, Airport Facility, Revenue Refunding Bonds (America West Airlines Inc. Project), AMT, 6.30% due 4/01/2023 1,005 285 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project), Series O, 5.25% due 7/01/2031 268 100 Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, VRDN, AMT, 4.89% due 4/25/2008 (k) 100 500 Queen Creek Improvement District Number 001, Arizona, Special Assessment Bonds, 5% due 1/01/2032 493 California - 4.4% 1,500 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Refunding Bonds, Senior Series A-1, 5.125% due 6/01/2047 1,290 500 Lammersville, California, School District, Special Tax Bonds (Community Facilities District Number 2002 - Mountain House), 5.125% due 9/01/2035 471 500 Roseville, California, Special Tax Bonds (Fiddyment Ranch Community Facilities Number 1), 5.25% due 9/01/2036 472 500 Temecula, California, Public Financing Authority, Community Facilities District Number 01-2, Special Tax Refunding Bonds, Sub-Series B, 5.10% due 9/01/2036 465 565 Temecula Valley, California, Unified School District, Community Facilities District Number 2005-1, Special Tax Bonds, 5% due 9/01/2036 517
Portfolio Abbreviations To simplify the listings of BlackRock Municipal Bond Fund, Inc. - BlackRock High Yield Municipal Fund'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) EDA Economic Development Authority EDR Economic Development Revenue Bonds GO General Obligation Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds PARS Periodic Auction Rate Securities PCR Pollution Control Revenue Bonds S/F Single-Family VRDN Variable Rate Demand Notes BlackRock Municipal Bond Fund, Inc. - BlackRock High Yield Municipal Fund Schedule of Investments as of September 30, 2007 (concluded) (in Thousands)
Face Amount Municipal Bonds Value Colorado - 3.6% $ 750 Aspen Valley Hospital District, Colorado, Revenue Refunding Bonds, 5% due 10/15/2026 $ 718 1,000 Colorado HFA, Revenue Refunding Bonds (Adventist Health System/Sunbelt Obligor Group), Series D, 5.25% due 11/15/2035 1,019 450 Colorado Health Facilities Authority, Revenue Refunding Bonds (Christian Living Communities Project), Series A, 5.75% due 1/01/2037 434 500 Sorrel Ranch Metropolitan District, Colorado, Limited Tax, GO, 5.75% due 12/01/2036 459 Connecticut - 3.4% 1,500 Connecticut State, HFA, Housing Mortgage Finance Program Revenue Bonds, AMT, Sub-Series A-2, 5.15% due 5/15/2038 1,502 1,000 Connecticut State Health and Educational Facilities Authority Revenue Bonds (University of Hartford), Series G, 5.25% due 7/01/2036 (h) 1,016 Florida - 9.2% 605 Easton Park Community Development District, Florida, Capital Improvement Revenue Bonds, 5.20% due 5/01/2037 520 490 Highland Meadows Community Development District, Florida, Special Assessment Bonds, Series A, 5.50% due 5/01/2036 441 1,000 Hillsborough County, Florida, IDA, Hospital Revenue Bonds (Tampa General Hospital Project), 5.25% due 10/01/2041 1,003 300 Jacksonville, Florida, Economic Development Commission, IDR (Gerdau Ameristeel US, Inc.), AMT, 5.30% due 5/01/2037 292 500 Lee County, Florida, IDA, Health Care Facilities, Revenue Refunding Bonds (Shell Point/Alliance Obligor Group), 5% due 11/15/2029 471 600 Lee County, Florida, IDA, Health Care Facilities, Revenue Refunding Bonds (Shell Point/Alliance Obligor Group), 5% due 11/15/2032 556 570 Lee County, Florida, IDA, IDR (Lee Charter Foundation), Series A, 5.375% due 6/15/2037 525 500 New River Community Development District, Florida, Capital Improvement Revenue Bonds, Series B, 5% due 5/01/2013 475 1,000 Pine Ridge Plantation Community Development District, Florida, Capital Improvement and Special Assessment Bonds, Series B, 5% due 5/01/2011 970 500 Santa Rosa Bay Bridge Authority, Florida, Revenue Bonds, 6.25% due 7/01/2028 485 210 Sarasota County, Florida, Health Facilities Authority, Retirement Facility Revenue Refunding Bonds (Village on the Isle Project), 5.50% due 1/01/2027 207 190 Sarasota County, Florida, Health Facilities Authority, Retirement Facility Revenue Refunding Bonds (Village on the Isle Project), 5.50% due 1/01/2032 183 650 Watergrass Community Development District, Florida, Special Assessment Revenue Bonds, Series A, 5.375% due 5/01/2039 572 Georgia - 2.8% 500 Brunswick and Glynn County, Georgia, Development Authority, First Mortgage Revenue Bonds (Coastal Community Retirement Corporation Project), Series A, 7.25% due 1/01/2035 (l) 383 180 Gainesville, Georgia, Redevelopment Authority, Educational Facilities Revenue Refunding Bonds (Riverside Military Academy), 5.125% due 3/01/2027 174 1,000 Richmond County, Georgia, Development Authority, Environmental Improvement Revenue Bonds (International Paper Co. Projects), AMT, Series A, 5% due 8/01/2030 918 600 Rockdale County, Georgia, Development Authority Revenue Bonds (Visy Paper Project), AMT, Series A, 6.125% due 1/01/2034 601 Illinois - 4.2% 1,000 Chicago, Illinois, O'Hare International Airport, Special Facility Revenue Refunding Bonds (American Airlines Inc. Project), 5.50% due 12/01/2030 944 1,000 Illinois Development Finance Authority, Solid Waste Disposal Revenue Bonds (Waste Management Inc. Project), AMT, 5.05% due 1/01/2010 1,011 500 Illinois State Finance Authority Revenue Bonds (Three Crowns Park Plaza), Series A, 5.875% due 2/15/2038 497 625 Illinois State Finance Authority, Revenue Refunding Bonds (Riverside Health System), PARS, VRDN, 6.25% due 11/15/2029 (h)(k) 625 Indiana - 2.4% 700 Indiana Health and Educational Facilities Financing Authority, Hospital Revenue Bonds (Community Foundation of Northwest Indiana), 5.50% due 3/01/2037 697 185 Indiana Health Facilities Financing Authority, Hospital Revenue Refunding Bonds (Methodist Hospital, Inc.), 5.375% due 9/15/2022 186 525 Indiana Health Facilities Financing Authority, Hospital Revenue Refunding Bonds (Methodist Hospital, Inc.), 5.50% due 9/15/2031 525 155 Vigo County, Indiana, Hospital Authority Revenue Bonds (Union Hospital, Inc.), 5.70% due 9/01/2037 152 190 Vigo County, Indiana, Hospital Authority Revenue Bonds (Union Hospital, Inc.), 5.75% due 9/01/2042 184 Iowa - 0.7% 500 Iowa Financing Authority, Health Facilities Revenue Refunding Bonds (Care Initiatives Project), Series A, 5% due 7/01/2019 498 Kansas - 5.0% 1,350 Lenexa, Kansas, Health Care Facility, Revenue Refunding Bonds, 5.50% due 5/15/2039 1,340 1,000 Manhattan, Kansas, Health Care Facilities Revenue Bonds (Meadowlark Hills Retirement), Series B, 5.125% due 5/15/2042 862 990 Sedgwick and Shawnee Counties, Kansas, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Series B-2, 5.25% due 12/01/2038 (b)(c) 1,036 450 Wyandotte County, Kansas, Kansas City Unified Government Revenue Refunding Bonds (General Motors Corporation Project), 6% due 6/01/2025 447 Kentucky - 2.3% 1,725 Trimble County, Kentucky, Environmental Facilities Revenue Refunding Bonds, 4.60% due 6/01/2033 (a) 1,692 Maryland - 3.8% 540 Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Sub-Series B, 5.875% due 9/01/2039 558 500 Howard County, Maryland, Retirement Community Revenue Refunding Bonds (Columbia Vantage House Corporation), Series A, 5.25% due 4/01/2033 463 1,000 Maryland State Energy Financing Administration, Limited Obligation Revenue Bonds (Cogeneration-AES Warrior Run), AMT, 7.40% due 9/01/2019 1,003 500 Maryland State Health and Higher Educational Facilities Authority Revenue Bonds (King Farm Presbyterian Community), Series A, 5.30% due 1/01/2037 464 250 Maryland State Health and Higher Educational Facilities Authority Revenue Bonds (Washington Christian Academy), 5.25% due 7/01/2018 254 Massachusetts - 2.8% 390 Massachusetts State Development Finance Agency Revenue Bonds (Curry College), Series A, 5.25% due 3/01/2026 (e) 392 1,000 Massachusetts State Development Finance Agency Revenue Bonds (Linden Ponds, Inc. Facility), Series A, 5.75% due 11/15/2042 976 645 Massachusetts State Health and Educational Facilities Authority, Revenue Refunding Bonds (Bay Cove Human Services Issue), Series A, 5.90% due 4/01/2028 647 Michigan - 0.4% 310 Garden City, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds (Garden City Hospital Obligation), Series A, 5% due 8/15/2038 274 Missouri - 1.1% 250 Branson, Missouri, Regional Airport Transportation Development District, Airport Revenue Bonds, AMT, Series B, 6% due 7/01/2037 244 600 Kansas City, Missouri, Tax Increment Financing Commission, Tax Allocation Revenue Bonds (Kansas City MainCor Project), Series A, 5.25% due 3/01/2018 593 Nevada - 1.3% 1,000 Clark County, Nevada, IDR (Southwest Gas Corp. Project), AMT, Series A, 4.75% due 9/01/2036 (f) 952 New Hampshire - 3.5% 950 New Hampshire Health and Education Facilities Authority, Revenue Refunding Bonds (Havenwood-Heritage Heights Retirement Community), Series A, 5.40% due 1/01/2030 904 1,015 New Hampshire Health and Education Facilities Authority, Revenue Refunding Bonds (Southern New Hampshire University), 5% due 1/01/2027 (e) 990 650 New Hampshire State Business Financing Authority, Solid Waste Disposal Revenue Bonds (Waste Management Inc. Project), AMT, 5.20% due 5/01/2027 639 New Jersey - 5.3% 750 Burlington County, New Jersey, Bridge Commission, EDR (The Evergreens Project), Refunding, 5.625% due 1/01/2038 745 1,000 New Jersey EDA, Retirement Community Revenue Refunding Bonds (Seabrook Village, Inc.), 5.25% due 11/15/2036 927 490 New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 6.625% due 9/15/2012 508 650 New Jersey Health Care Facilities Financing Authority Revenue Bonds (Pascack Valley Hospital Association), 6.625% due 7/01/2036 354 1,000 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds (South Jersey Hospital System), 5% due 7/01/2046 1,000 385 Tobacco Settlement Financing Corporation of New Jersey, Revenue Refunding Bonds, Series 1A, 5% due 6/01/2041 326 New York - 8.0% 500 Erie County, New York, IDA, Revenue Bonds (Orchard Park CCRC, Inc. Project), Series A, 6% due 11/15/2036 489 500 Genesee County, New York, IDA, Civic Facility Revenue Refunding Bonds (United Memorial Medical Center Project), 5% due 12/01/2032 455 1,000 Nassau County, New York, Tobacco Settlement Corporation, Senior Asset-Backed Revenue Refunding Bonds, Series A-3, 5% due 6/01/2035 939 750 New York City, New York City IDA, Special Facility Revenue Bonds (JetBlue Airways Corporation Project), AMT, 5.125% due 5/15/2030 656 805 New York City, New York, GO, Sub-Series I-1, 5% due 4/01/2025 833 1,000 New York Liberty Development Corporation Revenue Bonds (National Sports Museum Project), Series A, 6.125% due 2/15/2019 1,018 1,000 New York State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (New York University Hospital Center), Series A, 5% due 7/01/2026 963 500 Onondaga County, New York, IDA, PCR Refunding (Anheuser-Busch Companies, Inc. Project), Series A, 4.875% due 7/01/2041 489 North Dakota - 1.3% 1,000 Ward County, North Dakota, Health Care Facility Revenue Refunding Bonds (Trinity Health Obligated Group), 5.125% due 7/01/2029 985 Ohio - 1.2% 875 Richland County, Ohio, Hospital Facilities Revenue Refunding Bonds (MedCentral Health System), 5.25% due 11/15/2036 883 Oklahoma - 0.8% 555 Oklahoma State Development Finance Authority, Revenue Refunding Bonds (Saint John Health System), 5% due 2/15/2042 555 Pennsylvania - 3.8% 735 Allegheny County, Pennsylvania, Hospital Development Authority, Health System Revenue Refunding Bonds (West Penn Allegheny Health System), Series A, 5.375% due 11/15/2040 708 1,525 Cumberland County, Pennsylvania, Municipal Authority, Revenue Refunding Bonds (Diakon Lutheran Social Ministries Project), VRDN, Series B, 6.25% due 1/01/2025 (h)(k) 1,525 500 Harrisburg, Pennsylvania, Authority, University Revenue Bonds (Harrisburg University of Science), Series B, 6% due 9/01/2036 507 Rhode Island - 1.3% 1,000 Rhode Island Housing and Mortgage Finance Corporation, Homeownership Opportunity Revenue Bonds, AMT, Series 53-B, 5% due 10/01/2046 964 South Carolina - 2.2% 1,000 Connector 2000 Association, Inc., South Carolina, Toll Road and Capital Appreciation Revenue Bonds, Senior-Series B, 7.97% due 1/01/2015 (j) 555 500 Myrtle Beach, South Carolina, Tax Increment Revenue Bonds (Myrtle Beach Air Force Base), Series A, 5.25% due 11/01/2026 463 600 South Carolina Jobs, EDA, Health Care Facilities, First Mortgage Revenue Refunding Bonds (Luthern Homes), 5.50% due 5/01/2028 572 Tennessee - 0.9% 700 Sullivan County, Tennessee, Health, Educational & Housing Facilities Board, Hospital Revenue Bonds (Wellmont Health System Project), Series C, 5.25% due 9/01/2036 688 Texas - 8.0% 1,000 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue Refunding Bonds (American Airlines Inc. Project), AMT, 5.75% due 12/01/2029 953 500 Brazos River Authority, Texas, PCR (TXU Energy Company LLC Project), AMT, 5% due 3/01/2041 425 500 Dallas, Texas, Industrial Development Corporation, IDR (CR/PL Inc. Project), AMT, 7.50% due 8/01/2017 505 655 HFDC of Central Texas, Inc., Retirement Facilities Revenue Bonds, Series A, 5.75% due 11/01/2036 615 1,000 Harlandale, Texas, Independent School District, School Building, GO, (Permanent School Fund Bond Guarantee Program), 4.75% due 8/15/2040 985 500 Houston, Texas, Airport System, Special Facilities Revenue Bonds (Continental Airlines), AMT, Series E, 7.375% due 7/01/2022 531 1,000 Mission, Texas, Economic Development Corporation, Solid Waste Disposal Revenue Bonds (Allied Waste N.A. Inc Project), Series A, 5.20% due 4/01/2018 982 1,000 Texas State Public Financing Authority, Charter School Financing Corporation, Revenue Refunding Bonds (KIPP, Inc.), Series A, 5% due 2/15/2036 (e) 942 Utah - 2.2% 1,640 Utah Housing Corporation, S/F Mortgage Revenue Bonds, AMT, Series A-1, Class I, 5% due 7/01/2037 1,603 Virginia - 7.0% 1,150 Albemarle County, Virginia, IDA, Residential Care Facilities, Mortgage Revenue Refunding Bonds (Westminster-Canterbury), 5% due 1/01/2031 1,081 300 Fairfax County, Virginia, EDA, Residential Care Facilities, Mortgage Revenue Refunding Bonds (Goodwin House, Inc.), 5.125% due 10/01/2042 287 500 Fairfax County, Virginia, EDA, Retirement Revenue Refunding Bonds (Greenspring Village Inc.), Series A, 4.875% due 10/01/2036 460 500 Farms of New Kent, Virginia, Community Development Authority, Special Assessment Bonds, Series C, 5.80% due 3/01/2036 482 450 Henrico County, Virginia, EDA, Residential Care Facility, Mortgage Revenue Refunding Bonds (Westminster-Canterbury Of Winchester, Inc.), 5% due 10/01/2027 434 210 Lexington, Virginia, IDA, Residential Care Facility, Mortgage Revenue Refunding Bonds (Kendal at Lexington), Series A, 5.375% due 1/01/2028 198 750 Lynchburg, Virginia, IDA, Residential Care Facility, Mortgage Revenue Refunding Bonds (Westminster-Canterbury), 5% due 7/01/2031 700 500 Tobacco Settlement Financing Corporation of Virginia, Revenue Refunding Bonds, Senior Series B-1, 5% due 6/01/2047 422 1,000 Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series H, Sub-Series H-1, 5.35% due 7/01/2031 (g) 1,022 Washington - 0.7% 550 Washington State Housing Financing Commission, Nonprofit Revenue Bonds (Skyline at First Hill Project), Series A, 5.625% due 1/01/2038 536 Wisconsin - 0.7% 500 Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Franciscan Sisters Healthcare), 5% due 9/01/2026 487 Total Municipal Bonds (Cost - $75,127) - 98.0% 71,602 Shares Held Mutual Funds Value 1,000 Merrill Lynch Institutional Tax-Exempt Fund, 3.67% (d)(i) 1,000 Total Mutual Funds (Cost - $1,000) - 1.4% 1,000 Total Investments (Cost - $76,127*) - 99.4% 72,602 Other Assets Less Liabilities - 0.6% 450 ------------- Net Assets - 100.0% $ 73,052 ============= * The cost and unrealized appreciation (depreciation) of investments as of September 30, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 76,127 ================= Gross unrealized appreciation $ 51 Gross unrealized depreciation (3,576) ----------------- Net unrealized depreciation $ (3,525) ================= (a) AMBAC Insured. (b) FHLMC Collateralized. (c) FNMA/GNMA Collateralized. (d) 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 (2,409) $26 (e) ACA Insured. (f) FGIC Insured. (g) MBIA Insured. (h) Radian Insured. (i) Represents the current yield as of September 30, 2007. (j) Represents a zero coupon bond; the interest rate shown reflects the effective yield. (k) 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. (l) Non-income producing security; issuer filed for bankruptcy or is in default of interest payments. o Forward interest rate swaps outstanding as of September 30, 2007 were as follows: Notional Unrealized Amount Depreciation Pay a fixed rate of 3.9765% and receive a floating rate based on 1 week (SIFMA) Municipal Swap Index Rate Broker, JPMorgan Chase Expires January 2023 $3,100 $(28)
BlackRock Short-Term Municipal Fund of BlackRock Municipal Bond Fund, Inc. Schedule of Investments as of September 30, 2007 (Unaudited) (In Thousands)
Face State Amount Municipal Bonds Value Alabama - 5.4% $ 6,075 Birmingham, Alabama, Special Care Facilities Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group), Series A, 5% due 10/01/2008 $ 6,155 8,095 Huntsville, Alabama, GO, Refunding, Series A, 5.25% due 2/01/2009 (j) 8,282 Arizona - 3.1% 1,376 Tierra Antigua, Arizona, Revenue Bonds, VRDN, AMT, Series A, 3.76% due 12/01/2034 (b) 1,376 7,000 Yavapai County, Arizona, IDA, Solid Waste Disposal Revenue Bonds (Waste Management Inc. Project), AMT, 4% due 6/01/2027 6,895 California - 1.7% 750 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds (Republic Services, Inc. Project), VRDN, AMT, 4.25% due 3/01/2028 (b) 750 3,650 Contra Costa County, California, M/F Housing Revenue Bonds (Pleasant Hill Bart Transit Station Project), VRDN, AMT, Series A, 3.95% due 4/15/2046 (b) 3,652 Florida - 9.1% 7,000 Florida Hurricane Catastrophe Fund Financing Corporation Revenue Bonds, Series A, 5% due 7/01/2010 7,245 2,020 Miami-Dade County, Florida, Educational Facilities Authority Revenue Bonds (University of Miami), Series A, 5.75% due 4/01/2010 (a)(c) 2,145 14,195 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50% due 10/01/2009 (a)(c) 14,746 Georgia - 8.9% 5,600 Catoosa County, Georgia, School District, GO, 4.25% due 8/01/2008 (h) 5,636 6,005 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series DD, 7% due 1/01/2008 (h) 6,058 11,905 Georgia State, GO, Series B, 5% due 3/01/2008 11,983 Indiana - 2.3% 4,750 Indiana Bond Bank Revenue Bonds (State Revolving Fund), Series B, 5.30% due 8/01/2010 (c) 5,017 1,000 Indiana State Development Finance Authority, IDR (Republic Services, Inc. Project), VRDN, AMT, 4.22% due 11/01/2035 (b) 1,000 Louisiana - 1.5% 1,800 Louisiana HFA, S/F Mortgage Revenue Bonds, VRDN, AMT, 4.64% due 11/28/2008 (b) 1,800 2,132 Louisiana HFA, S/F Mortgage Revenue Refunding Bonds, VRDN, AMT, 4.714% due 12/01/2047 (b) 2,132 Maryland - 1.4% 3,700 Maryland State Health and Higher Educational Facilities Authority, Revenue Refunding Bonds (Pickersgill Inc.), VRDN, Series A, 5.50% due 1/01/2035 (b)(i) 3,700 Massachusetts - 3.2% 8,505 Massachusetts State Consolidated Loan, GO, Series C, 5% due 5/01/2008 (f) 8,582 Michigan - 3.8% 5,000 Detroit, Michigan, Water Supply System Revenue Bonds, Second Lien, Series B, 5.50% due 7/01/2011 (c)(g) 5,382 280 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Kay Screen Printing, Inc. Project), VRDN, AMT, 4.15% due 5/01/2020 (b) 280 4,120 Michigan State Trunk Line Fund, Revenue Refunding Bonds, Series B, 5% due 9/01/2010 (j) 4,287 Minnesota - 1.0% 2,620 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, AMT, Series B, 5.50% due 1/01/2010 (g) 2,702
Portfolio Abbreviations To simplify the listings of BlackRock Short-Term Municipal Fund of BlackRock Municipal Bond Fund Inc.'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 CP Commercial Paper EDR Economic Development Revenue Bonds GO General Obligation Bonds HFA Housing Finance Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds M/F Multi-Family S/F Single-Family TRAN Tax Revenue Anticipation Notes VRDN Variable Rate Demand Notes BlackRock Short-Term Municipal Fund of BlackRock Municipal Bond Fund, Inc. Schedule of Investments as of September 30, 2007 (concluded) (In Thousands)
Face State Amount Municipal Bonds Value Nebraska - 0.9% $ 2,500 Central Plains Energy Project, Nebraska, Revenue Bonds (Gas Project Number 1), VRDN, 3.908% due 12/01/2010 (b) $ 2,459 Nevada - 5.4% 6,500 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, AMT, Series B-1, 5% due 7/01/2008 6,562 7,500 Clark County, Nevada, EDR (Alexander Dawson School of Nevada Project), 5.50% due 5/15/2009 (c) 7,801 New Jersey - 2.7% 2,000 Bayonne, New Jersey, GO, BAN, 4.75% due 10/26/2007 2,001 4,790 New Jersey Building Authority, State Building Revenue Refunding Bonds, Series B, 5.25% due 12/15/2010 (a) 5,042 New Mexico - 2.2% 5,685 New Mexico State, Severance Tax Bonds, Series A, 5% due 7/01/2008 (h) 5,750 Ohio - 4.5% 4,400 Ohio State Building Authority, State Facilities Revenue Bonds (Administrative Building Fund Projects), Series A, 5.375% due 10/01/2008 (c) 4,525 3,875 Ohio State, Common Schools, GO, Series A, 5% due 3/15/2011 4,058 3,450 Trumbull County, Ohio, Health Care Facilities Revenue Bonds (Shepherd of the Valley), VRDN, 6% due 10/01/2031 (b)(i) 3,450 Oklahoma - 0.2% 500 Oklahoma State Capitol Improvement Authority, State Facilities Revenue Bonds (Higher Education Projects), VRDN, Series D-4, 3.92% due 7/01/2034 (b)(f) 500 Pennsylvania - 5.5% 4,000 Bethlehem, Pennsylvania, Area School District, GO, Refunding, Series A, 5% due 9/01/2010 (h) 4,162 5,000 Pennsylvania State, GO, Refunding, Third Series, 5% due 7/01/2009 5,130 5,000 University of Pittsburgh, Pennsylvania, The Commonwealth System of Higher Education, Revenue Refunding Bonds (Pittsburgh Asset Notes-Panthers), 5% due 8/01/2010 5,183 South Carolina - 3.5% 4,590 Aiken County, South Carolina, Consolidated School District, GO, Refunding, 5% due 3/01/2009 4,689 2,160 Hilton Head Island, South Carolina, Public Facility Corporation, COP (Beach Preservation Fee Pledge), 5% due 8/01/2008 (h) 2,186 2,240 Hilton Head Island, South Carolina, Public Facility Corporation, COP (Beach Preservation Fee Pledge), 5% due 8/01/2009 (h) 2,298 Tennessee - 1.5% 4,000 Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series A, 5% due 9/01/2009 4,079 Texas - 12.6% 3,980 Austin, Texas, Independent School District, GO, Refunding, 5.25% due 8/01/2009 4,105 7,000 Brazos River, Texas, Harbor Navigation District, Brazoria County Environmental Revenue Refunding Bonds (Dow Chemical Company Project), AMT, VRDN, Series A-4, 5.20% due 5/15/2033 (b) 7,036 5,000 Harris County, Texas, Toll Road Revenue Refunding Bonds, VRDN, Series B-2, 5% due 8/15/2021 (b)(g) 5,122 2,200 Montgomery County, Texas, Unlimited Tax Adjustable Rate Road, GO, VRDN, Series B, 5% due 3/01/2028 (b)(j) 2,230 2,790 North Texas Thruway Authority, Dallas North Thruway System, Revenue Refunding Bonds, VRDN, Series B, 5% due 1/01/2038 (a)(b) 2,820 2,500 San Antonio, Texas, Electric and Gas System, Junior Lien Revenue Bonds, VRDN, 3.55% due 12/01/2027 (b) 2,499 4,275 Tarrant County, Texas, Cultural Education Facilities Financing Corporation, Revenue Refunding Bonds (Texas Health Resources), Series A, 5% due 2/15/2011 4,433 5,000 Texas State, GO, TRAN, 4.50% due 8/28/2008 5,049 Virginia - 1.9% 4,885 Virginia State Public School Authority, School Financing Revenue Bonds, Series B, 5% due 8/01/2008 (c) 4,993 Washington - 5.0% 9,940 Energy Northwest, Washington, Electric Revenue Refunding Bonds (Columbia Generating Station), Series A, 5.25% due 7/01/2009 (a) 10,234 2,900 Tacoma, Washington, Electric System Revenue Refunding Bonds, Series A, 5.625% due 1/01/2011 (c)(j) 3,108 Wisconsin - 2.8% 7,070 Wisconsin Public Power Inc., Power Supply System, Revenue Refunding Bonds, Series A, 5.25% due 7/01/2010 (h) 7,370 Puerto Rico - 3.2% 8,465 Government Development Bank of Puerto Rico, CP, 4.20% due 10/11/2007 8,465 Total Municipal Bonds (Cost - $246,447) - 93.3% 247,144 Shares Held Short-Term Securities 15,700 Merrill Lynch Institutional Tax-Exempt Fund, 3.67% (d)(e) 15,700 Total Short-Term Securities (Cost - $15,700) - 5.9% 15,700 Total Investments (Cost - $262,147*) - 99.2% 262,844 Other Assets Less Liabilities - 0.8% 2,167 ----------- Net Assets - 100.0% $ 265,011 =========== * The cost and unrealized appreciation (depreciation) of investments as of September 30, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 262,147 ============== Gross unrealized appreciation $ 862 Gross unrealized depreciation (165) -------------- Net unrealized appreciation $ 697 ============== (a) AMBAC Insured. (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) Prerefunded. (d) 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 9,097 $ 158 (e) Represents the current yield as of September 30, 2007. (f) CIFG Insured. (g) FGIC Insured. (h) MBIA Insured. (i) Radian Insured. (j) FSA Insured.
BlackRock Municipal Bond Fund, Inc. - BlackRock Municipal Insured Fund Schedule of Investments as of September 30, 2007 (Unaudited) (In Thousands)
Face State Amount Municipal Bonds Value Alabama - 3.0% $ 10,000 Lauderdale County and Florence, Alabama, Health Care Authority Revenue Refunding Bonds (Coffee Health Group), Series A, 6% due 7/01/2029 (g) $ 10,699 7,840 University of Alabama, General Revenue Bonds, Series A, 5% due 7/01/2034 8,015 7,000 University of Alabama, University Revenue Bonds (Birmingham), 6% due 10/01/2009 (c)(h) 7,339 Arkansas - 0.5% 4,000 University of Arkansas, University Revenue Bonds (Various Facilities-Fayetteville Campus), 5% due 12/01/2027 (c) 4,139 California - 16.2% 1,050 Antelope Valley, California, Community College District, GO (Election of 2004), Series B, 5.25% due 8/01/2039 1,116 2,800 Arcadia, California, Unified School District, Capital Appreciation, GO (Election of 2006), Series A, 4.96% due 8/01/2039 (e)(l) 537 4,100 Cabrillo, California, Community College District, GO (Election of 2004), Series B, 5.20% due 8/01/2037 (g)(l) 870 2,075 California State Department of Veteran Affairs, Home Purchase Revenue Refunding Bonds, Series A, 5.35% due 12/01/2027 (a) 2,173 5,800 Coast Community College District, California, GO (Election of 2002), Series C, 5.392% due 8/01/2036 (l) 1,253 2,000 Corona-Norco, California, Unified School District, GO (Election of 2006), Series A, 5% due 8/01/2031 (e) 2,093 5,170 Fresno, California, Unified School District, GO (Election of 2001), Series D, 5% due 8/01/2027 (g) 5,387 1,500 Fresno, California, Unified School District, GO (Election of 2001), Series E, 5% due 8/01/2030 (e) 1,565 5,595 Grossmont-Cuyamaca Community College District, California, GO (Election of 2002), Series B, 5% due 8/01/2029 (c) 5,819 10,000 Hesperia, California, Public Financing Authority Revenue Redevelopment & Housing Projects, Series A, 5.50% due 9/01/2027 10,919 15,000 Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Series B1, 4.75% due 8/01/2037 (c) 14,975 8,965 Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds, 5.50% due 9/01/2036 (a) 9,499 6,440 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (g) 6,941 10,500 Ramona, California, Unified School District, Convertible Capital Appreciation Refunding Bonds, COP, 5.106% due 5/01/2032 (c)(l) 8,477 3,900 Redlands, California, Unified School District, GO (Election of 2002), 5% due 7/01/2025 (e) 4,070 11,685 Rialto, California, Unified School District, GO, Series A, 6.24% due 6/01/2025 (c)(l) 5,185
Portfolio Abbreviations To simplify the listings of BlackRock Municipal Bond Fund, Inc. - BlackRock Municipal Insured Fund'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 HFA Housing Finance Agency IDR Industrial Development Revenue Bonds PCR Pollution Control Revenue Bonds S/F Single-Family BlackRock Municipal Bond Fund, Inc. - BlackRock Municipal Insured Fund Schedule of Investments as of September 30, 2007 (concluded) (In Thousands)
Face State Amount Municipal Bonds Value California $ 5,000 Roseville, California, Joint Union High School District, GO (Election of 2004), (concluded) Series A, 5% due 8/01/2029 (c) $ 5,178 5,075 Sacramento, California, Unified School District, GO (Election of 1999), Series B, 5% due 7/01/2026 (c) 5,264 2,685 San Diego, California, Community College District, GO (Election of 2002), 5% due 5/01/2030 (e) 2,788 3,495 San Diego County, California, COP (Edgemoor Project and Regional System), Refunding, 5% due 2/01/2027 (a) 3,616 6,600 San Jose, California, Airport Revenue Refunding Bonds, AMT, Series A, 5.50% due 3/01/2032 (a) 6,983 3,700 San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5% due 9/01/2030 (g) 3,820 10,055 Sequoia, California, Unified High School District, GO, Refunding, Series B, 5.50% due 7/01/2035 (e) 10,920 2,755 Tahoe Truckee, California, Unified School District, GO (School Facilities Improvement District Number 2), Series A, 5.25% due 8/01/2029 (g) 2,884 7,980 Tustin, California, Unified School District, Senior Lien Special Tax Bonds (Community Facilities District Number 97-1), Series A, 5% due 9/01/2032 (e) 8,153 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 (e) 9,513 Colorado - 2.8% 19,250 Aurora, Colorado, COP, 6% due 12/01/2010 (a)(h) 20,653 3,000 Logan County, Colorado, Justice Center Finance Corporation, COP, 5.50% due 12/01/2020 (g) 3,197 District of 5,000 District of Columbia, Ballpark Revenue Bonds, Series B-1, 5% due 2/01/2031 (c) 5,120 Columbia - 0.9% 2,800 District of Columbia, GO, Series A, 4.75% due 6/01/2036 (c) 2,802 Florida - 1.4% 5,500 Dade County, Florida, Water and Sewer System Revenue Bonds, 5.25% due 10/01/2026 (c) 5,562 5,450 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, Series A, 5% due 10/01/2040 (k) 5,453 1,260 West Coast Regional Water Supply Authority, Florida, Capital Improvement Revenue Bonds, 10.40% due 10/01/2010 (a)(h) 1,323 Georgia - 4.2% 20,000 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series EE, 7% due 1/01/2025 (a) 26,327 90 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series Y, 6.40% due 1/01/2011 (h) 98 8,420 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series Y, 6.40% due 1/01/2013 (a) 9,251 490 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series Y, 6.40% due 1/01/2013 (a)(b) 541 Illinois - 1.0% 8,640 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, Third Lien, AMT, Series C-2, 5.25% due 1/01/2034 (k) 8,791 Kansas - 0.6% 5,145 Manhattan, Kansas, Hospital Revenue Bonds (Mercy Health Center), 5.50% due 8/15/2020 (e) 5,450 Louisiana - 1.5% 2,500 Louisiana State Citizens Property Insurance Corporation, Assessment Revenue Bonds, Series B, 5% due 6/01/2022 (a) 2,609 2,400 Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 4.75% due 5/01/2039 (e) 2,402 5,000 New Orleans, Louisiana, GO (Public Improvements), 5.25% due 12/01/2029 (a) 5,256 2,800 Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC Project), AMT, 4.70% due 11/01/2036 (a) 2,628 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 (c) 5,588 Massachusetts - 6.2% 4,000 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C, 5.60% due 1/01/2045 (e) 4,158 2,845 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128, 4.80% due 12/01/2027 (e) 2,766 7,000 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128, 4.875% due 12/01/2038 (e) 6,702 15,000 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds, Series A, 5% due 8/15/2030 (e) 15,553 22,250 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25% due 1/01/2014 (c)(h) 24,159 Michigan - 0.2% 1,500 Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien, Series A, 5% due 7/01/2030 (c) 1,525 Minnesota - 1.7% 5,860 Delano, Minnesota, Independent School District Number 879, GO, Series A, 5.875% due 2/01/2025 (e) 6,266 3,735 Sauk Rapids, Minnesota, Independent School District Number 047, GO, Series A, 5.65% due 2/01/2020 (g) 3,968 4,440 Sauk Rapids, Minnesota, Independent School District Number 047, GO, Series A, 5.70% due 2/01/2021 (g) 4,724 Mississippi - 1.4% 1,320 Harrison County, Mississippi, Wastewater Management District, Revenue Refunding Bonds (Wastewater Treatment Facilities), Series A, 8.50% due 2/01/2013 (b)(c) 1,624 10,000 Mississippi Hospital Equipment and Facilities Authority Revenue Bonds (Forrest County General Hospital Project), 6% due 1/01/2011 (e)(h) 10,827 Missouri - 4.5% 12,990 Kansas City, Missouri, Airport Revenue Refunding and Improvement Bonds, Series A, 5.50% due 9/01/2013 (g) 13,204 9,000 Kansas City, Missouri, Airport Revenue Refunding and Improvement Bonds, Series A, 5.50% due 9/01/2014 (g) 9,148 7,930 Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds (Latan 2 Project), Series A, 5% due 1/01/2027 (a) 8,234 8,325 Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds (Latan 2 Project), Series A, 5% due 1/01/2028 (a) 8,632 Nebraska - 0.6% 5,000 Public Power Generation Agency, Nebraska, Revenue Bonds (Whelan Energy Center Unit 2), Series A, 5% due 1/01/2032 (a) 5,172 Nevada - 0.4% 1,300 Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series A, 4.75% due 9/01/2036 (c) 1,237 2,200 Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series D, 5.25% due 3/01/2038 (c) 2,241 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 (g) 8,592 3,125 Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation Revenue Bonds, Series A, 5.80% due 11/01/2021 (e) 3,546 8,310 Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation Revenue Bonds, Series A, 5.80% due 11/01/2022 (e) 9,425 4,340 Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation Revenue Bonds, Series A, 5.80% due 11/01/2023 (e) 4,927 5,000 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5% due 7/01/2027 (g) 5,176 23,000 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due 7/01/2033 (g) 24,158 4,240 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue Bonds, Series D, 5% due 6/15/2018 (a) 4,517 11,530 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue Bonds, Series D, 5% due 6/15/2019 (e) 12,229 New Mexico - 1.3% 10,400 New Mexico Finance Authority, Senior Lien State Transportation Revenue Bonds, Series A, 5.125% due 6/15/2018 (g) 11,152 New York - 11.4% 11,495 New York City, New York, GO, Series C, 5.625% due 3/15/2012 (h)(k) 12,482 5 New York City, New York, GO, Series C, 5.625% due 3/15/2018 (k) 5 6,155 New York City, New York, GO, Series I, 6% due 4/15/2012 (e) 6,228 2 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, DRIVERS, Series 1133Z, 6.319% due 10/15/2012 (a)(j) 2 16,905 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5% due 10/15/2020 (g) 17,886 15,650 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5% due 10/15/2032 (a) 16,204 11,795 New York State Dormitory Authority Revenue Bonds (School Districts Financing Program), Series D, 5.25% due 10/01/2023 (g) 12,519 9,110 New York State Urban Development Corporation, Personal Income Tax Revenue Bonds (State Facilities), Series A-1, 5.25% due 3/15/2034 (c) 9,523 5 Niagara Falls, New York, GO, Public Improvement, 6.90% due 3/01/2024 (g) 5 22,500 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25% due 6/01/2022 (a) 23,855 North Carolina - 0.4% 3,030 North Carolina HFA, Home Ownership Revenue Bonds, AMT, Series 14-A, 5.35% due 1/01/2022 (a) 3,072 North Dakota - 0.3% 2,630 North Dakota State, HFA, Revenue Bonds (Housing Finance Program), Series C, 5.30% due 7/01/2022 (a) 2,662 Oklahoma - 0.8% 2,680 Oklahoma State Industries Authority, Health System Revenue Refunding Bonds (Integris Obligated Group), Series A, 6.25% due 8/15/2009 (g)(h) 2,838 3,705 Oklahoma State Industries Authority, Health System Revenue Refunding Bonds (Integris Obligated Group), Series A, 6.25% due 8/15/2016 (g) 3,906 Oregon - 1.6% 8,700 Oregon State Department, Administrative Services, COP, Series A, 6.25% due 5/01/2010 (a)(h) 9,358 3,865 Port of Portland, Oregon, Airport Revenue Refunding Bonds (Portland International Airport), AMT, Series 7-B, 7.10% due 1/01/2012 (g)(h) 4,355 Pennsylvania - 2.8% 5,510 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 12th Series B, 7% due 5/15/2020 (b)(g) 6,536 4,420 Philadelphia, Pennsylvania, Redevelopment Authority Revenue Bonds (Neighborhood Transformation), Series A, 5.50% due 4/15/2020 (c) 4,729 12,010 Pittsburgh, Pennsylvania, GO, Series C, 5.25% due 9/01/2018 (e) 13,121 Rhode Island - 0.9% 6,815 Rhode Island State Economic Development Corporation, Airport Revenue Bonds, Series B, 6% due 7/01/2010 (c)(h) 7,313 Texas - 1.6% 3,500 Houston, Texas, Water Conveyance System Contract, COP, Series J, 6.25% due 12/15/2013 (a) 3,996 8,110 Lewisville, Texas, Independent School District, Capital Appreciation and School Building, GO, Refunding, 4.67% due 8/15/2024 (c)(l) 3,541 1,500 North Texas Thruway Authority, Dallas North Thruway System Revenue Bonds, Series A, 5% due 1/01/2035 (e) 1,538 2,065 Texas State Department of Housing and Community Affairs, S/F Mortgage Revenue Bonds, AMT, Series A, 5.45% due 9/01/2023 (d)(g) 2,105 2,700 Texas State Department of Housing and Community Affairs, S/F Mortgage Revenue Bonds, AMT, Series A, 5.50% due 3/01/2026 (d)(g) 2,749 Utah - 1.9% 9,535 Utah Transit Authority, Sales Tax and Transportation Revenue Bonds (Salt Lake County Light Rail Transit Project), 5.375% due 12/15/2007 (e)(h) 9,664 2,515 Utah Water Finance Agency Revenue Bonds (Pooled Loan Financing Program), Series A, 5.75% due 10/01/2015 (a) 2,663 3,770 Utah Water Finance Agency Revenue Bonds (Pooled Loan Financing Program), Series A, 6% due 10/01/2020 (a) 4,016 Vermont - 0.2% 1,300 Vermont HFA, Revenue Refunding Bonds, AMT, Series C, 5.50% due 11/01/2038 (e) 1,334 Washington - 0.9% 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) 7,432 West Virginia - 1.5% 12,250 Pleasants County, West Virginia, PCR, Refunding (Potomac-Pleasants), Series C, 6.15% due 5/01/2015 (a) 12,621 Wisconsin - 1.4% 9,000 Superior, Wisconsin, Limited Obligation Revenue Refunding Bonds (Midwest Energy Resources), Series E, 6.90% due 8/01/2021 (c) 11,445 670 Wisconsin State, GO, AMT, Series B, 6.50% due 5/01/2025 (g) 671 Total Municipal Bonds (Cost - $684,342) - 83.1% 717,477 Face State Amount Municipal Bonds Held in Trust (m) California - 3.6% $ 12,040 Mount Diablo, California, Unified School District, GO (Election of 2002), 5% due 7/01/2027 (c) 12,517 7,500 San Jose, California, Financing Authority, Lease Revenue Refunding Bonds (Civic Center Project), Series B, 5% due 6/01/2032 (a) 7,665 10,000 Washington, California, Unified School District, 5.125% due 8/01/2037 (a) 10,363 Florida - 4.6% 15,000 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, Series A, 5% due 10/01/2039 (g) 15,021 14,600 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, Series A, 5% due 10/01/2040 (k) 14,607 10,000 Tallahassee, Florida, Energy System Revenue Bonds, 5% due 10/01/2037 (g) 10,269 Illinois - 3.4% 17,690 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT, Series B-2, 6% due 1/01/2027 (g) 19,156 10,000 Illinois Municipal Electric Agency, Power Supply Revenue Bonds, Series A, 5% due 2/01/2035 (c) 10,308 Maryland - 2.6% 21,640 Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Senior Series A, 5.25% due 9/01/2039 (k) 22,659 Michigan - 1.6% 13,145 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control Project), AMT, Series A, 5.50% due 6/01/2030 (k) 13,738 Nebraska - 1.4% 11,300 Public Power Generation Agency, Nebraska Revenue Bonds (Whelan Energy Center Unit 2-A), 5% due 1/01/2025 (a) 11,828 New Jersey - 1.6% 13,500 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C, 5% due 1/01/2030 (e) 13,998 New York - 3.7% 13,925 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5.25% due 10/15/2027 (a) 14,765 16,830 New York State Thruway Authority, General Revenue Refunding Bonds, Series G, 5% due 1/01/2032 (e) 17,442 Texas - 4.3% 35,950 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, Series A, 6% due 11/01/2028 (c) 37,282 Total Municipal Bonds Held in Trust (Cost - $233,499) - 26.8% 231,618 Shares Held Mutual Funds (f) 300 BlackRock California Insured Municipal 2008 Term Trust, Inc. 4,515 810 BlackRock Insured Municipal 2008 Term Trust, Inc. 12,312 205 BlackRock Insured Municipal Term Trust, Inc. 2,036 Total Mutual Funds (Cost - $21,127) - 2.2% 18,863 Short-Term Securities 2,217 Merrill Lynch Institutional Tax-Exempt Fund, 3.67% (f)(i) 2,217 Total Short-Term Securities (Cost - $2,217) - 0.2% 2,217 Total Investments (Cost - $941,185*) - 112.3% 970,175 Other Assets Less Liabilities - 1.2% 10,386 Liability for Trust Certificates, Including Interest Expense Payable - (13.5%) (117,006) ------------ Net Assets - 100.0% $ 863,555 ============ * The cost and unrealized appreciation (depreciation) of investments as of September 30, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 824,698 ================ Gross unrealized appreciation $ 34,801 Gross unrealized depreciation (5,238) ---------------- Net unrealized appreciation $ 29,563 ================ (a) AMBAC Insured. (b) Escrowed to maturity. (c) FGIC Insured. (d) FNMA/GNMA Collateralized. (e) FSA Insured. (f) 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: Purchase Sales Realized Dividend Affiliate Cost Cost Gain Income BlackRock California Insured Municipal 2008 Term Trust, Inc. - - - $ 49 BlackRock Insured Municipal 2008 Term Trust, Inc. - - - $ 148 BlackRock Insured Municipal Term Trust, Inc. - - - $ 19 Merrill Lynch Institutional Tax-Exempt Fund - $ 1,020* - $ 85 * Represents net sales cost. (g) MBIA Insured. (h) Prerefunded. (i) Represents the current yield as of September 30, 2007. (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) Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase. (m) Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction. o Forward interest rate swaps outstanding as of September 30, 2007 were as follows: Notional Unrealized Amount Depreciation Pay a fixed rate of 4.037% and receive a floating rate based on 1-week (SIFMA) Municipal Swap Index Rate Broker, JPMorgan Chase Expires August 2022 $19,000 $(300)
BlackRock Municipal Bond Fund, Inc. - BlackRock National Municipal Fund Schedule of Investments as of September 30, 2007 (Unaudited) (in Thousands)
Face State Amount Municipal Bonds Value Alabama - 0.9% $ 3,820 Alabama Incentives Financing Authority, Special Obligation Revenue Refunding Bonds, Series A, 6% due 10/01/2029 (c) $ 4,046 3,525 Jefferson County, Alabama, Public Building Authority, Lease Revenue Bonds, 5.125% due 4/01/2021 (c) 3,746 500 Mobile, Alabama, IDB, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.35% due 5/15/2016 519 2,500 Selma, Alabama, IDB, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.70% due 2/01/2018 2,622 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 3,383 Alaska - 0.3% 3,860 Anchorage, Alaska, School, GO, Series B, 5.875% due 12/01/2010 (d)(n) 4,126 Arizona - 2.4% 4,000 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625% due 7/01/2020 4,351 3,100 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.75% due 7/01/2029 3,024 1,625 Maricopa County, Arizona, IDA, Health Facilities Revenue Refunding Bonds (Catholic Healthcare West Project), Series A, 5% due 7/01/2021 1,640 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 1,012 190 Peoria, Arizona, Improvement District Number 8801, Special Assessment Bonds, 7.30% due 1/01/2009 193 395 Peoria, Arizona, Improvement District Number 8801, Special Assessment Bonds, 7.30% due 1/01/2011 402 430 Peoria, Arizona, Improvement District Number 8802, Special Assessment Bonds, 7.20% due 1/01/2010 438 510 Peoria, Arizona, Improvement District Number 8802, Special Assessment Bonds, 7.20% due 1/01/2013 519 2,330 Phoenix, Arizona, Civic Improvement Corporation, Municipal Facilities, Excise Tax Revenue Bonds, 5.75% due 7/01/2010 (d)(n) 2,487 3,685 Phoenix, Arizona, IDA, Airport Facility, Revenue Refunding Bonds (America West Airlines Inc. Project), AMT, 6.30% due 4/01/2023 3,702 500 Pinal County, Arizona, IDA, Wastewater Revenue Bonds (San Manuel Facilities Project), AMT, 6.25% due 6/01/2026 531
Portfolio Abbreviations To simplify the listings of BlackRock Municipal Bond Fund, Inc. - BlackRock National Municipal Fund'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 PARS Periodic Auction Rate Securities PCR Pollution Control Revenue Bonds S/F Single-Family VRDN Variable Rate Demand Notes BlackRock Municipal Bond Fund, Inc. - BlackRock National Municipal Fund Schedule of Investments as of September 30, 2007 (concluded) (in Thousands)
Face State Amount Municipal Bonds Value Arizona $ 391 Prescott Valley, Arizona, Improvement District, Special Assessment Bonds (concluded) (Sewer Collection System Roadway Repair), 7.90% due 1/01/2012 $ 402 6,000 Salt River Project, Arizona, Agriculture Improvement and Power District, Electric System Revenue Refunding Bonds, Series A, 5.125% due 1/01/2023 6,285 3,515 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project), Series A, 6.125% due 7/01/2010 (k)(n) 3,782 1,000 University of Arizona, COP (University of Arizona Parking and Student Housing), 5.75% due 6/01/2009 (c)(n) 1,037 2,915 University of Arizona, COP (University of Arizona Projects), Refunding, Series A, 5.50% due 6/01/2012 (c)(n) 3,154 265 University of Arizona, COP (University of Arizona Projects), Refunding, Series A, 5.50% due 6/01/2018 (c) 284 3,000 Vistancia Community Facilities District, Arizona, GO, 6.75% due 7/15/2022 3,224 2,125 Vistancia Community Facilities District, Arizona, GO, 5.75% due 7/15/2024 2,211 Arkansas - 0.1% 250 Arkansas State Student Loan Authority Revenue Bonds, AMT, Sub-Series B, 7.25% due 6/01/2009 254 200 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) 202 250 North Little Rock, Arkansas, Health Facilities Board, Health Care Revenue Bonds (Baptist Health), 5.50% due 7/01/2016 258 500 Pine Bluff, Arkansas, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series A, 6.70% due 8/01/2020 522 250 University of Central Arkansas, Housing System Revenue Bonds, 6.50% due 1/01/2010 (h)(n) 270 California - 18.8% 2,500 Agua Caliente Band of Cahuilla Indians, California, Casino Revenue Bonds, 6% due 7/01/2018 2,629 12,000 Antelope Valley, California, Health Care District Revenue Bonds, Series A, 5.25% due 9/01/2017 12,327 33,000 Bay Area Toll Authority, California, Toll Bridge Revenue Refunding Bonds (San Francisco Bay Area), Series F, 5% due 4/01/2031 34,262 3,000 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds (Waste Management Inc. Project), AMT, Series A-2, 5.40% due 4/01/2025 3,022 4,150 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Refunding Bonds (Republic Services Inc. Project), AMT, Series C, 5.25% due 6/01/2023 4,269 5,000 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Refunding Bonds (Waste Management Inc. Project), AMT, Series A, 5% due 1/01/2022 4,910 4,970 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Sub-Series FH-1, 5.50% due 8/01/2047 5,236 45 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 (f)(g) 46 5 California State, GO, 5.25% due 4/01/2029 5 15 California State, GO, Refunding, 5.75% due 5/01/2010 (n) 16 115 California State, GO, Refunding, 5.75% due 5/01/2030 122 18,330 California State, GO, Refunding, 5% due 6/01/2032 18,689 10,000 California State, Various Purpose, GO, 5.25% due 11/01/2027 10,499 14,100 California State, Various Purpose, GO, 5.50% due 11/01/2033 14,928 9,880 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 6% due 10/01/2023 10,571 12,895 Chabot-Las Positas, California, Community College District, GO (Election of 2004), Series B, 5% due 8/01/2031 (c) 13,446 1,080 Chula Vista, California, Community Facilities District Number 06-1, Special Tax Bonds (Eastlake Woods Area), Series A, 6.05% due 9/01/2020 1,135 2,965 Chula Vista, California, Community Facilities District Number 06-1, Special Tax Bonds (Eastlake Woods Area), Series A, 6.15% due 9/01/2026 3,104 10,000 Chula Vista, California, IDR, Refunding (San Diego Gas & Electric Co.), AMT, Series C, 5.25% due 12/01/2027 10,213 1,585 Contra Costa County, California, Special Tax Bonds (Community Facilities District Number 2001-01), 6% due 9/01/2026 1,646 1,200 Contra Costa County, California, Special Tax Bonds (Community Facilities District Number 2001-01), 6.10% due 9/01/2031 1,242 3,100 Elk Grove, California, Poppy Ridge Community Facilities Number 3 Special Tax, Series 1, 6% due 9/01/2008 (n) 3,192 10,000 Fremont, California, Unified School District, Alameda County, GO (Election of 2002), Series B, 5% due 8/01/2028 (h) 10,414 17,500 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Refunding Bonds, Senior Series A-1, 5.75% due 6/01/2047 16,662 10,000 Long Beach, California, Harbor Revenue Bonds, AMT, Series A, 5.25% due 5/15/2023 (d) 10,344 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) 13,184 20,000 Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series A, 5% due 7/01/2037 20,830 10,000 Metropolitan Water District of Southern California, Waterworks Revenue Refunding Bonds, Series B, 5% due 7/01/2035 10,358 1,100 Poway, California, Unified School District, Special Tax Bonds (Community District Number 6), Series A, 6.05% due 9/01/2025 1,132 8,000 Rancho Mirage, California, Joint Powers Financing Authority Revenue Bonds (Eisenhower Medical Center), Series A, 5% due 7/01/2038 7,968 2,695 Riverside, California, Improvement Bond Act of 1915, Special Assessment (Riverwalk Assessment District), 6.375% due 9/02/2026 2,838 3,915 Roseville, California, Special Tax Bonds (Fiddyment Ranch Community Facilities Number 1), 5.125% due 9/01/2026 3,784 1,125 Roseville, California, Special Tax Bonds (Stoneridge Community Facilities Number 1), 6% due 9/01/2011 (n) 1,238 1,250 Roseville, California, Special Tax Bonds (Stoneridge Community Facilities Number 1), 6.20% due 9/01/2011 (n) 1,385 2,500 Roseville, California, Special Tax Bonds (Stoneridge Community Facilities Number 1), 6.30% due 9/01/2011 (n) 2,779 2,200 Sacramento, California, Special Tax (North Natomas Community Facilities), Series 01-03, 6% due 9/01/2028 2,258 2,270 Sacramento, California, Special Tax (North Natomas Community Facilities), Series 4-C, 6% due 9/01/2028 2,350 10,000 San Diego, California, Public Facilities Financing Authority, Subordinated Water Revenue Refunding Bonds, 5% due 8/01/2032 (j) 10,214 6,000 San Francisco, California, Bay Area Rapid Transit District, GO (Election of 2004), Series B, 5% due 8/01/2035 6,260 5,865 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds, Series A, 4.25% due 7/01/2036 (h) 5,378 5,000 San Francisco, California, City and County Redevelopment Agency Revenue Bonds (Community Facilities District Number 6 - Mission), 6% due 8/01/2021 5,134 2,500 San Francisco, California, City and County Redevelopment Agency Revenue Bonds, GO (Community Facilities District Number 6 - Mission), Series A, 6% due 8/01/2025 2,549 1,075 San Francisco, California, Uptown Parking Corporation, Parking Revenue Bonds (Union Square), 6% due 7/01/2020 (j) 1,175 1,030 Santa Margarita, California, Water District, Special Tax Refunding Bonds (Community Facilities District Number 99), Series 1, 6.20% due 9/01/2009 (n) 1,101 2,950 Santa Margarita, California, Water District, Special Tax Refunding Bonds (Community Facilities District Number 99), Series 1, 6.25% due 9/01/2009 (n) 3,146 2,650 Santa Margarita, California, Water District, Special Tax Refunding Bonds (Community Facilities District Number 99), Series 1, 6.20% due 9/01/2020 2,754 4,500 Southern California HFA, S/F Mortgage Revenue Bonds, AMT, Series A, 5.80% due 12/01/2049 (f)(g) 4,838 2,000 Tustin, California, Community Facilities District Number 07-1, Special Tax Bonds (Tustin Legacy), 6% due 9/01/2037 2,057 Colorado - 1.8% 500 Boulder County, Colorado, Hospital Development Revenue Bonds (Longmont United Hospital Project), 6% due 12/01/2010 (k)(n) 536 225 Colorado HFA, Revenue Bonds (S/F Program), Series B-3, 6.55% due 10/01/2016 230 255 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series A-2, 7.50% due 4/01/2031 263 90 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series A-3, 7.35% due 10/01/2030 93 100 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series B-2, 7.10% due 4/01/2017 103 760 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series B-2, 7.25% due 10/01/2031 811 35 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series B-3, 6.80% due 11/01/2028 36 275 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series C-2, 7.25% due 10/01/2031 (e) 279 475 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series C-3, 6.75% due 10/01/2021 (e) 514 100 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series C-3, 7.15% due 10/01/2030 (e) 101 2,500 Colorado Health Facilities Authority, Revenue Refunding Bonds (Catholic Health Initiatives), 5.50% due 9/01/2011 (n) 2,671 1,000 Colorado Health Facilities Authority, Revenue Refunding Bonds (Christian Living Communities Project), Series A, 5.75% due 1/01/2037 964 350 Colorado Water Resource and Power Development Authority, Small Water Resources Revenue Bonds, Series A, 5.80% due 11/01/2010 (d)(n) 373 200 Colorado Water Resource and Power Development Authority, Small Water Resources Revenue Bonds, Series A, 5.80% due 11/01/2020 (d) 212 7,560 Elk Valley, Colorado, Public Improvement Revenue Bonds (Public Improvement Fee), Series A, 7.35% due 9/01/2031 7,882 880 Elk Valley, Colorado, Public Improvement Revenue Bonds (Public Improvement Fee), Series B, 7.45% due 9/01/2031 920 3,685 Larimer County, Colorado, Poudre School District Number R-1, GO, 6% due 12/15/2010 (d)(n) 3,959 7,700 Plaza Metropolitan District Number 1, Colorado, Tax Allocation Revenue Bonds (Public Improvement Fees), 8% due 12/01/2025 8,315 1,910 Plaza Metropolitan District Number 1, Colorado, Tax Allocation Revenue Bonds (Public Improvement Fees), 8.125% due 12/01/2025 1,899 Connecticut - 1.7% 1,000 Connecticut State Development Authority, Governmental Lease Revenue Bonds, 6.60% due 6/15/2014 (j) 1,002 1,250 Connecticut State Development Authority, Water Facility Revenue Bonds (Bridgeport Hydraulic Company), AMT, 6.15% due 4/01/2035 (c) 1,277 960 Connecticut State, HFA, Revenue Refunding Bonds (Housing Mortgage Finance Program), Series C-1, 6.30% due 11/15/2017 985 1,000 Connecticut State Health and Educational Facilities Authority Revenue Bonds (Bridgeport Hospital), Series A, 6.625% due 7/01/2018 (j) 1,004 1,500 Connecticut State Health and Educational Facilities Authority Revenue Bonds (Waterbury Hospital Issue), Series C, 5.75% due 7/01/2020 (k) 1,543 1,000 Connecticut State Health and Educational Facilities Authority Revenue Bonds (Westover School), Series A, 5.70% due 7/01/2010 (k)(n) 1,030 12,685 Connecticut State Health and Educational Facilities Authority, Revenue Refunding Bonds (Eastern Connecticut Health Network), Series A, 6.50% due 7/01/2010 (k)(n) 13,728 5,710 Connecticut State Health and Educational Facilities Authority, Revenue Refunding Bonds (University of Hartford), Series E, 5.50% due 7/01/2022 (k) 5,951 545 Connecticut State Higher Education Supplemental Loan Authority, Revenue Bonds (Family Education Loan Program), AMT, Series A, 5.50% due 11/15/2020 (j) 548 860 Waterbury, Connecticut, GO, 6% due 2/01/2009 (k)(n) 896 Delaware - 0.1% 1,685 New Castle County, Delaware, PCR (General Motors Corporation Project), VRDN, 7% due 10/01/2008 (r) 1,685 Florida - 6.8% 5,500 Alachua County, Florida, IDR (North Florida Retirement Village), Refunding, 5.875% due 11/15/2036 5,556 1,975 Anthem Park Community Development District, Florida, Capital Improvement Revenue Bonds, 5.80% due 5/01/2036 1,857 2,000 Ave Maria Stewardship Community District, Florida, Capital Improvement Revenue Bonds, Series A, 5.125% due 5/01/2038 1,695 1,500 Ave Maria Stewardship Community District, Florida, Revenue Bonds, 4.80% due 11/01/2012 1,419 1,645 Ballantrae, Florida, Community Development District, Capital Improvement Revenue Bonds, 6% due 5/01/2035 1,782 4,900 Bartram Springs Community Development District, Florida, Special Assessment Refunding Bonds, 4.75% due 5/01/2034 3,980 1,755 Beacon Tradeport Community, Florida, Development District, Special Assessment Revenue Refunding Bonds (Commercial Project), Series A, 5.25% due 5/01/2016 (k) 1,826 2,500 CFM Community Development District, Florida, Capital Improvement Revenue Bonds, Series B, 5.875% due 5/01/2014 2,470 2,725 Duval County, Florida, School Board, COP, 5.75% due 7/01/2017 (h) 2,820 5,350 Fiddlers Creek, Florida, Community Development District Number 2, Special Assessment Revenue Bonds, Series A, 6.375% due 5/01/2035 5,418 1,020 Fiddlers Creek, Florida, Community Development District Number 2, Special Assessment Revenue Bonds, Series B, 5.75% due 5/01/2013 1,025 7,000 Halifax Hospital Medical Center, Florida, Hospital Revenue Refunding and Improvement Bonds, Series A, 5.25% due 6/01/2026 7,131 1,135 Highland Meadows Community Development District, Florida, Special Assessment Bonds, Series A, 5.50% due 5/01/2036 1,022 5,000 Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum Company), AMT, Series A, 7.125% due 4/01/2030 5,248 16,845 Hillsborough County, Florida, IDA, Hospital Revenue Bonds (Tampa General Hospital Project), 5.25% due 10/01/2041 16,905 2,000 Lee County, Florida, IDA, Health Care Facilities, Revenue Refunding Bonds (Shell Point/Alliance Obligor Group), 5% due 11/15/2029 1,883 1,140 Lexington Oaks, Florida, Community Development District, Special Assessment Revenue Bonds, Series A, 6.70% due 5/01/2033 1,240 950 Mediterra, Florida, South Community Development District, Capital Improvement Revenue Bonds, 6.85% due 5/01/2031 1,020 2,500 Middle Village Community Development District, Florida, Special Assessment Bonds, Series A, 6% due 5/01/2035 2,483 6,625 Midtown Miami, Florida, Community Development District, Special Assessment Revenue Bonds, Series A, 6.25% due 5/01/2037 6,580 1,000 New River Community Development District, Florida, Capital Improvement Revenue Bonds, Series B, 5% due 5/01/2013 951 1,565 Old Palm Community Development District, Florida, Special Assessment Bonds (Palm Beach Gardens), Series B, 5.375% due 5/01/2014 1,566 3,500 Orange County, Florida, HFA, M/F Housing Revenue Bonds (Loma Vista Project), Series G, 5.50% due 3/01/2032 3,527 1,000 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), 5.70% due 7/01/2026 994 1,000 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), Series B, 5.125% due 11/15/2039 1,004 5,000 Panther Trace Community Development District II, Florida, Special Assessment Revenue Bonds, 5.125% due 11/01/2013 4,767 5,000 Panther Trace Community Development District II, Florida, Special Assessment Revenue Bonds, Series A, 5.60% due 5/01/2035 4,606 960 Park Place Community Development District, Florida, Special Assessment Revenue Bonds, 6.75% due 5/01/2032 1,024 2,300 Park Place Community Development District, Florida, Special Assessment Revenue Bonds, 6.375% due 5/01/2034 2,379 2,000 Saint Lucie, Florida, West Services District, Utility Revenue Refunding Bonds, Senior Lien, 6% due 10/01/2022 (j) 2,160 780 Sarasota County, Florida, Health Facilities Authority, Retirement Facility Revenue Refunding Bonds (Village on the Isle Project), 5.50% due 1/01/2027 768 1,645 Sarasota County, Florida, Health Facilities Authority, Retirement Facility Revenue Refunding Bonds (Village on the Isle Project), 5.50% due 1/01/2032 1,581 2,875 Somerset Community Development District, Florida, Capital Improvement Revenue Bonds, 5% due 5/01/2015 2,792 305 Sterling Hill, Florida, Community Development District, Capital Improvement Revenue Refunding Bonds, Series B, 5.50% due 11/01/2010 305 180 Stoneybrook West, Florida, Community Development District, Special Assessment Revenue Bonds, Series B, 6.45% due 5/01/2010 182 1,190 Tern Bay Community Development District, Florida, Capital Improvement Revenue Refunding Bonds, Series B, 5% due 5/01/2015 1,101 2,185 Tuscany Reserve Community Development District, Florida, Capital Improvement Revenue Bonds, Series B, 5.25% due 5/01/2016 2,041 3,520 University of South Florida Financing Corporation, COP (Master Lease Program), Refunding, Series A, 5.375% due 7/01/2022 (c) 3,753 1,650 Watergrass Community Development District, Florida, Special Assessment Revenue Bonds, Series B, 4.875% due 11/01/2010 1,600 Georgia - 2.3% 5,000 Atlanta, Georgia, Tax Allocation Bonds (Atlantic Station Project), 7.90% due 12/01/2011 (n) 5,869 2,285 Brunswick and Glynn County, Georgia, Development Authority, First Mortgage Revenue Bonds (Coastal Community Retirement Corporation Project), Series A, 7.125% due 1/01/2025 (p) 1,763 4,555 Brunswick and Glynn County, Georgia, Development Authority, First Mortgage Revenue Bonds (Coastal Community Retirement Corporation Project), Series A, 7.25% due 1/01/2035 (p) 3,492 5,210 College Park, Georgia, Business and IDA Revenue Bonds (Civic Center Project), 5.75% due 9/01/2010 (c)(n) 5,620 1,940 Fulton County, Georgia, Development Authority, PCR (General Motors Corporation), Refunding, VRDN, 7% due 4/01/2010 (r) 1,940 3,450 Fulton County, Georgia, Development Authority Revenue Bonds (Morehouse College Project), 5.875% due 12/01/2010 (c)(n) 3,683 2,250 Fulton County, Georgia, Residential Care Facilities, Revenue Refunding Bonds (Canterbury Court Project), Series A, 6% due 2/15/2022 2,260 4,350 Gainesville, Georgia, Redevelopment Authority, Educational Facilities Revenue Refunding Bonds (Riverside Military Academy), 5.125% due 3/01/2027 4,220 1,800 Gainesville, Georgia, Redevelopment Authority, Educational Facilities Revenue Refunding Bonds (Riverside Military Academy), 5.125% due 3/01/2037 1,705 1,500 Milledgeville-Baldwin County, Georgia, Development Authority Revenue Bonds (Georgia College and State University Foundation), 6% due 9/01/2014 (n) 1,722 5,000 Rockdale County, Georgia, Development Authority Revenue Bonds (Visy Paper Project), AMT, Series A, 6.125% due 1/01/2034 5,006 Illinois - 6.7% 1,000 Bolingbrook, Illinois, Special Services Area Number 1, Special Tax Bonds (Forest City Project), 5.90% due 3/01/2027 1,038 3 Chicago, Illinois, Board of Education, GO, DRIVERS, Series 199, 7.281% due 12/01/2020 (c)(m) 3 26,800 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT, Series B-2, 6% due 1/01/2029 (l) 28,984 350 Chicago, Illinois, Park District, GO, Refunding, Series B, 5.75% due 1/01/2015 (d) 372 230 Chicago, Illinois, Park District, Limited Tax, GO, Series A, 5.75% due 1/01/2016 (d) 245 315 Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT, Series A, 7.15% due 9/01/2031 (f)(g) 324 2,000 Chicago, Illinois, Special Assessment Bonds (Lake Shore East), 6.75% due 12/01/2032 2,108 3,210 Cicero, Illinois, GO, Refunding (Corporate Purpose), 6% due 12/01/2028 (j) 3,407 7,000 Decatur, Illinois, GO, Refunding, 6% due 3/01/2008 (d)(n) 7,074 10,000 Hodgkins, Illinois, Environmental Improvement Revenue Bonds (Metro Biosolids Management LLC Project), AMT, 6% due 11/01/2023 10,131 3,140 Illinois Development Finance Authority Revenue Bonds (Community Rehabilitation Providers Facilities), Series A, 6.50% due 7/01/2022 3,365 1,750 Illinois State Finance Authority Revenue Bonds (Friendship Village of Schaumburg), Series A, 5.625% due 2/15/2037 1,655 2,155 Illinois State Finance Authority Revenue Bonds (Landing At Plymouth Place Project), Series A, 6% due 5/15/2037 2,163 5,000 Illinois State Finance Authority, Revenue Refunding Bonds (Riverside Health System), PARS, VRDN, 6.25% due 11/15/2029 (k)(r) 5,000 8,890 Illinois State, GO, 1st Series, 5.75% due 12/01/2015 (j) 9,439 3,745 Illinois State, GO, 1st Series, 5.75% due 12/01/2016 (j) 3,977 4,000 Illinois State, GO, 1st Series, 5.75% due 12/01/2017 (j) 4,249 3,000 Illinois State, Sales Tax Revenue Bonds, 6% due 6/15/2020 3,174 2,000 Illinois State, Sales Tax Revenue Refunding Bonds, Series Q, 6% due 6/15/2009 2,043 2,000 Lake County, Illinois, Forest Preservation District, GO (Land Acquisition and Development), 5.75% due 12/15/2010 (n) 2,133 16,160 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion), Series A, 5.25% due 6/15/2042 (j) 16,772 625 Naperville, Illinois, IDR (General Motors Corporation), Refunding, VRDN, 7% due 12/01/2012 (r) 625 1,585 Village of Wheeling, Illinois, Revenue Bonds (North Milwaukee/Lake-Cook Tax Increment Financing (TIF) Redevelopment Project), 6% due 1/01/2025 1,560 Indiana - 0.5% 7,350 Indiana Bond Bank, Special Program Revenue Bonds (Town of Westfield and West Central Conservancy District Projects), Series A, 5.125% due 10/01/2022 (j) 7,701 Iowa - 0.4% 1,000 Iowa City, Iowa, Sewer Revenue Bonds, 5.75% due 7/01/2021 (j) 1,002 3,905 Iowa Finance Authority, Health Care Facilities, Revenue Refunding Bonds (Care Initiatives Project), 9.25% due 7/01/2011 (n) 4,701 Kansas - 0.7% 6,870 Sedgwick and Shawnee Counties, Kansas, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Series B-2, 5.25% due 12/01/2038 (f)(g) 7,192 1,425 Sedgwick and Shawnee Counties, Kansas, S/F Revenue Bonds, AMT, Series A-1, 6.95% due 6/01/2029 (i) 1,489 2,500 Wichita, Kansas, Hospital Facilities Revenue Refunding and Improvement Bonds, Series III, 6.25% due 11/15/2019 2,695 Louisiana - 1.4% 2,000 Houma-Terrebonne Public Trust Financing Authority, Louisiana, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), 5.15% due 12/01/2040 (f)(g) 2,091 5,000 Jefferson Parish, Louisiana, Finance Authority, S/F Mortgage Revenue Bonds, Series B, 5.70% due 12/01/2048 (f)(g) 5,446 370 Louisiana HFA, S/F Mortgage Revenue Bonds, AMT, Series D-2, 5.80% due 6/01/2020 (g) 373 7,000 Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds (Capital Projects and Equipment Acquisition), Series A, 6.30% due 7/01/2030 (c) 8,230 5,000 Louisiana Public Facilities Authority Revenue Bonds (University of New Orleans Research and Technology Foundation, Inc. - Student Housing Project), 5.25% due 3/01/2037 (j) 5,265 45 Louisiana State, HFA, S/F Revenue Refunding Bonds (Home Ownership Program), Series B-2, AMT, 6.20% due 12/01/2029 (e)(g) 45 2,000 Rapides Finance Authority, Louisiana, Environmental Improvement Revenue Bonds (International Paper Company Project), AMT, Series A, 6.55% due 11/15/2023 2,076 Maine - 0.5% 8,635 Maine Finance Authority, Solid Waste Recycling Facilities Revenue Bonds (Great Northern Paper Project-Bowater), AMT, 7.75% due 10/01/2022 8,698 Maryland - 0.4% 500 Anne Arundel County, Maryland, Special Obligation Revenue Bonds (Arundel Mills Project), 7.10% due 7/01/2009 (n) 538 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 1,025 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 1,032 1,000 Maryland State Energy Financing Administration, Solid Waste Disposal Revenue Bonds, Limited Obligation (Wheelabrator Water Projects), AMT, 6.45% due 12/01/2016 1,022 3,200 Maryland State Health and Higher Educational Facilities Authority Revenue Bonds (King Farm Presbyterian Community), Series B, 5% due 1/01/2017 3,126 Massachusetts - 1.2% 255 Massachusetts Educational Financing Authority, Education Loan Revenue Refunding Bonds, AMT, Issue E, 5.85% due 7/01/2014 (c) 257 3,000 Massachusetts State Development Finance Agency Revenue Bonds (Linden Ponds, Inc. Facility), Series A, 5.75% due 11/15/2035 2,938 3,850 Massachusetts State Health and Educational Facilities Authority Revenue Bonds (Medical Center of Central Massachusetts), CARS, Series B, 8.82% due 6/23/2022 (c)(m) 4,019 1,000 Massachusetts State Industrial Finance Agency, Higher Education Revenue Refunding Bonds (Hampshire College Project), 5.625% due 10/01/2007 (n) 1,020 130 Massachusetts State Water Pollution Abatement Trust, Water Abatement Revenue Bonds, Series A, 6.375% due 2/01/2015 130 1,600 Montachusett, Massachusetts, Regional Vocational Technical School District, GO, 5.95% due 1/15/2020 (j) 1,696 9,000 Route 3 North Transit Improvement Association, Massachusetts, Lease Revenue Refunding Bonds, VRDN, Series B, 3.86% due 6/15/2033 (c)(r) 9,000 Michigan - 1.7% 7,500 Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25% due 4/15/2012 (n) 8,323 500 Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75% due 6/01/2016 523 585 Eastern Michigan University, General Revenue Refunding Bonds, 6% due 6/01/2010 (c)(n) 627 415 Eastern Michigan University, General Revenue Refunding Bonds, 6% due 6/01/2024 (c) 442 3,000 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), 6% due 7/01/2020 3,062 3,325 Macomb County, Michigan, Hospital Finance Authority, Hospital Revenue Bonds (Mount Clemens General Hospital), Series B, 5.875% due 11/15/2034 3,318 1,500 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount Clemens), Series A, 6% due 5/15/2009 (j)(n) 1,573 10,000 Michigan Tobacco Settlement Financing Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Series A, 6% due 6/01/2048 9,975 Minnesota - 0.8% 520 Anoka County, Minnesota, Solid Waste Disposal Revenue Bonds (Natural Rural Utilities), AMT, Series A, 6.95% due 12/01/2008 523 1,000 Eden Prairie, Minnesota, M/F Housing Revenue Bonds (Rolling Hills Project), Series A, 6.15% due 8/20/2031 (i) 1,080 470 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, AMT, Sub-Series D, 5.75% due 1/01/2012 (d) 496 470 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, AMT, Sub-Series D, 5.75% due 1/01/2014 (d) 494 2,060 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, AMT, Sub-Series D, 5.75% due 1/01/2015 (d) 2,155 1,500 Minneapolis, Minnesota, Health Care System Revenue Bonds (Allina Health System), Series A, 5.70% due 11/15/2022 1,573 2,665 Minneapolis, Minnesota, Health Care System Revenue Bonds (Allina Health System), Series A, 5.75% due 11/15/2032 2,768 1,110 Ramsey County, Minnesota, Housing and Redevelopment Authority, M/F Housing Revenue Bonds (Hanover Townhouses Project), AMT, 6% due 7/01/2031 1,131 1,000 Saint Cloud, Minnesota, Health Care Revenue Refunding Bonds (Saint Cloud Hospital Obligation Group), Series A, 6.25% due 5/01/2020 (h) 1,070 1,500 Waconia, Minnesota, Health Care Facilities Revenue Bonds (Ridgeview Medical Center Project), Series A, 6.125% due 1/01/2010 (k)(n) 1,583 Mississippi - 0.4% 3,995 Mississippi Home Corporation, S/F Mortgage Revenue Bonds, Series A-1, 5.50% due 6/01/2038 (f)(g) 4,290 1,700 Warren County, Mississippi, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), AMT, Series B, 6.75% due 8/01/2021 1,780 Missouri - 0.6% 1,000 Fenton, Missouri, Tax Increment Revenue Refunding and Improvement Bonds (Gravois Bluffs Redevelopment Project), 5% due 4/01/2014 1,046 1,500 Kansas City, Missouri, IDA, First Mortgage Health Facilities Revenue Bonds (Bishop Spencer Place), Series A, 6.50% due 1/01/2035 1,548 6,435 Missouri State Housing Development Commission, S/F Mortgage Revenue Bonds (Homeownership Loan Program), AMT, Series E-1, 5.60% due 3/01/2037 (g) 6,921 Montana - 0.6% 3,000 Montana State Board of Housing, S/F Mortgage Revenue Refunding Bonds, AMT, Series A-2, 5.50% due 6/01/2037 3,166 6,000 Montana State Higher Education, Student Assistance Corporation, Student Loan Revenue Refunding Bonds, AMT, Sub-Series B, 6.40% due 12/01/2032 6,217 Nevada - 3.3% 3,500 Clark County, Nevada, Airport Revenue Bonds (Jet Aviation Fuel Tax), AMT, Series C, 5.375% due 7/01/2020 (c) 3,659 1,525 Clark County, Nevada, Improvement District Number 142, Special Assessment Bonds, 6.375% due 8/01/2023 1,575 165 Elko, Nevada, GO (Airport Improvement), AMT, Series B, 6.10% due 10/01/2014 (j) 167 245 Elko, Nevada, GO (Airport Improvement), AMT, Series B, 6.30% due 10/01/2019 (j) 248 320 Elko, Nevada, GO (Airport Improvement), AMT, Series B, 6.75% due 10/01/2024 (j) 324 225 Elko, Nevada, GO (Airport Improvement), AMT, Series B, 7% due 10/01/2029 (j) 228 20,000 Henderson, Nevada, Health Care Facilities, Revenue Refunding Bonds (Catholic Healthcare West), Series B, 5.25% due 7/01/2031 20,365 1,730 Las Vegas, Nevada, Local Improvement Bonds, Special Assessment, Special Improvement District Number 808, Summerlin, 5.875% due 12/01/2007 (n) 1,787 1,990 Las Vegas, Nevada, Local Improvement Bonds, Special Assessment, Special Improvement District Number 808, Summerlin, 6.125% due 12/01/2007 (n) 2,056 2,220 Las Vegas, Nevada, Local Improvement Bonds, Special Assessment, Special Improvement District Number 808, Summerlin, 6.25% due 12/01/2007 (n) 2,294 10,000 Reno, Nevada, Health Revenue Refunding Bonds (Catholic Healthcare West), Series A, 5.25% due 7/01/2031 10,183 1,880 Reno, Nevada, Special Assessment District Number 4 (Somerset Parkway), 6.625% due 12/01/2022 1,938 3,110 Sparks, Nevada, Redevelopment Agency, Tax Allocation Revenue Refunding Bonds, Series A, 6% due 1/15/2015 (k) 3,243 6,315 Sparks, Nevada, Redevelopment Agency, Tax Allocation Revenue Refunding Bonds, Series A, 6% due 1/15/2023 (k) 6,549 New Hampshire - 0.2% 1,750 New Hampshire Health and Education Facilities Authority, Revenue Refunding Bonds (Elliot Hospital), Series B, 5.60% due 10/01/2022 1,827 590 New Hampshire Health and Education Facilities Authority, Revenue Refunding Bonds (Havenwood-Heritage Heights Retirement Community), Series A, 5% due 1/01/2016 569 1,035 New Hampshire Health and Education Facilities Authority, Revenue Refunding Bonds (Havenwood-Heritage Heights Retirement Community), Series A, 5.35% due 1/01/2026 992 New Jersey - 2.0% 310 Camden County, New Jersey, Pollution Control Financing Authority, Solid Waste Resource Recovery, Revenue Refunding Bonds, AMT, Series B, 7.50% due 12/01/2009 314 3,300 New Jersey EDA, Retirement Community Revenue Bonds (Cedar Crest Village Inc. Facility), Series A, 7.25% due 11/15/2011 (n) 3,773 3,680 New Jersey EDA, State Lease Revenue Bonds (State Office Buildings Projects), 6% due 6/15/2010 (c)(n) 3,915 3,130 New Jersey Health Care Facilities Financing Authority Revenue Bonds (South Jersey Hospital), 6% due 7/01/2012 (n) 3,454 2,250 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds (Capital Health System Inc.), Series A, 5.75% due 7/01/2023 2,340 640 New Jersey State Housing and Mortgage Finance Agency, M/F Housing Revenue Refunding Bonds, Series B, 6.25% due 11/01/2026 (h) 662 7,025 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series A, 5.75% due 1/01/2010 (j)(n) 7,363 2,975 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series A, 5.75% due 1/01/2018 (e)(j) 3,110 7,000 Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Bonds, 7% due 6/01/2013 (n) 8,164 New Mexico - 0.7% 8,000 Farmington, New Mexico, PCR, Refunding (Public Service Company of New Mexico - San Juan Project), Series B, 6.30% due 12/01/2016 8,173 50 New Mexico Mortgage Finance Authority, Revenue Refunding Bonds, Mortgage-Backed Securities, Series F, 7% due 1/01/2026 (g) 50 3,165 New Mexico Mortgage Financing Authority, S/F Mortgage Program Revenue Bonds, AMT, Series D, 6.15% due 7/01/2035 (f)(g) 3,351 250 Santa Fe County, New Mexico, Correctional System Revenue Bonds, 6% due 2/01/2027 (h) 292 New York - 3.4% 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 3,305 4,050 New York City, New York, City IDA, Special Facility Revenue Bonds (British Airways Plc Project), AMT, 7.625% due 12/01/2032 4,413 6,540 New York City, New York, GO, Refunding, Series A, 6% due 5/15/2010 (n) 7,005 2,205 New York City, New York, GO, Refunding, Series A, 6.25% due 5/15/2010 (l)(n) 2,376 60 New York City, New York, GO, Refunding, Series A, 6% due 5/15/2021 (l) 64 325 New York City, New York, GO, Refunding, Series H, 6% due 8/01/2017 (l) 328 6,640 New York City, New York, GO, Series B, 5.875% due 8/01/2010 (j)(n) 7,121 1,300 New York City, New York, GO, Series B, 5.875% due 8/01/2015 (j) 1,389 590 New York State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (Mount Sinai-NYU Medical Center Health System), Series A, 6.50% due 7/01/2010 (n) 641 2,410 New York State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (Mount Sinai-NYU Medical Center Health System), Series A, 6.50% due 7/01/2016 2,548 1,680 New York State Dormitory Authority, Revenue Refunding Bonds (Mount Sinai Health), Series A, 6.50% due 7/01/2025 1,762 3,000 New York State Dormitory Authority, Revenue Refunding Bonds (State University Educational Facilities), Series A, 7.50% due 5/15/2013 3,559 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 1,427 2,285 Oneida County, New York, IDA Revenue Bonds (Civic Facility-Faxton Hospital), Series C, 6.625% due 1/01/2015 (k) 2,417 3,000 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, Thirty-Seventh Series, 5.50% due 7/15/2018 (h) 3,245 95 Suffolk County, New York, IDA, Civic Facility Revenue Bonds (Special Needs Facilities Pooled Program), Series D-1, 6% due 7/01/2012 97 5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Bonds, 5.125% due 11/15/2026 (c) 5,264 705 Westchester County, New York, IDA, Civic Facilities Revenue Bonds (Special Needs Facilities Pooled Program), Series E-1, 6% due 7/01/2012 720 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 8,444 North Carolina - 2.8% 920 Brunswick County, North Carolina, COP, 6% due 6/01/2010 (h)(n) 986 4,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Series D, 6.75% due 1/01/2026 4,241 4,440 North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series D, 6.70% due 1/01/2019 (b) 4,713 4,390 North Carolina HFA, Home Ownership Revenue Bonds, AMT, Series 9-A, 5.80% due 1/01/2020 4,526 2,500 North Carolina Medical Care Commission, Health Care Facilities, First Mortgage Revenue Bonds (Presbyterian Homes Project), 6.875% due 10/01/2010 (n) 2,731 3,000 North Carolina Medical Care Commission, Health Care Facilities, First Mortgage Revenue Bonds (Presbyterian Homes Project), 5.50% due 10/01/2031 2,980 2,500 North Carolina Medical Care Commission, Health Care Facilities, First Mortgage Revenue Refunding Bonds (Presbyterian Homes Project), Series B, 5.20% due 10/01/2021 2,430 1,100 North Carolina Medical Care Commission, Health Care Facilities, First Mortgage Revenue Refunding Bonds (Salemtowne Project), 5.10% due 10/01/2030 1,031 1,625 North Carolina Medical Care Commission, Retirement Facilities, First Mortgage Revenue Bonds (Forest at Duke Project), 6.375% due 9/01/2012 (n) 1,801 2,500 North Carolina Medical Care Commission, Retirement Facilities, First Mortgage Revenue Bonds (Givens Estates Project), Series A, 6.50% due 7/01/2013 (n) 2,879 5,000 North Carolina Medical Care Commission, Retirement Facilities, First Mortgage Revenue Refunding Bonds (Forest at Duke Project), 5.125% due 9/01/2032 4,853 1,000 North Carolina Medical Care Commission, Retirement Facilities, First Mortgage Revenue Refunding Bonds (Givens Estates Project), 5% due 7/01/2033 917 500 North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue Refunding Bonds, Series B, 6.375% due 1/01/2013 527 1,080 North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue Refunding Bonds, Series B, 6.375% due 1/01/2013 (b) 1,139 5,000 North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue Refunding Bonds, Series B, 6.50% due 1/01/2020 5,310 2,500 North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue Refunding Bonds, Series B, 6.50% due 1/01/2020 (b) 2,655 1,000 Piedmont Triad Airport Authority, North Carolina, Airport Revenue Refunding Bonds, Series A, 6% due 7/01/2009 (h)(n) 1,052 1,000 Piedmont Triad Airport Authority, North Carolina, Airport Revenue Refunding Bonds, Series A, 6.375% due 7/01/2009 (h)(n) 1,059 Ohio - 1.2% 6,685 Ohio HFA, Mortgage Revenue Refunding Bonds, AMT, Series C, 5.90% due 9/01/2035 (g) 6,956 8,000 Ohio State Air Quality Development Authority Revenue Refunding Bonds (Ohio Power Company), Series C, 5.15% due 5/01/2026 (c) 8,215 1,470 Port of Greater Cincinnati Development Authority, Ohio, Special Assessment Revenue Bonds (Cooperative Public Parking Infrastructure Project), 6.40% due 2/15/2034 1,535 3,005 Toledo-Lucas County, Ohio, Lodging Tax Revenue Refunding Bonds (Convention Center Project), 5.70% due 10/01/2015 (j) 3,040 Oklahoma - 0.6% 10,000 Tulsa County, Oklahoma, Industrial Authority, Health Care Revenue Refunding Bonds (Saint Francis Health System), 5% due 12/15/2036 10,065 Oregon - 0.3% 250 Forest Grove, Oregon, Campus Improvement Revenue Refunding Bonds (Pacific University), 6% due 5/01/2010 (k)(n) 265 250 Forest Grove, Oregon, Campus Improvement Revenue Refunding Bonds (Pacific University), 6.20% due 5/01/2010 (k)(n) 266 35 Oregon State Housing and Community Services Department, Mortgage Revenue Refunding Bonds (S/F Mortgage Program), AMT, Series A, 6.20% due 7/01/2027 36 55 Oregon State Housing and Community Services Department, Mortgage Revenue Refunding Bonds (S/F Mortgage Program), Series A, 6.40% due 7/01/2018 56 500 Portland, Oregon, M/F Housing Authority Revenue Bonds (Lovejoy Station Apartments Project), AMT, 5.90% due 7/01/2023 (j) 512 1,000 Portland, Oregon, Urban Renewal and Redevelopment Revenue Refunding Bonds (Downtown Waterfront), Series A, 5.75% due 6/15/2018 (c) 1,063 3,190 Portland, Oregon, Urban Renewal and Redevelopment Revenue Refunding Bonds (South Park Blocks), Series A, 5.75% due 6/15/2018 (c) 3,391 Pennsylvania - 2.0% 3,640 Allegheny County, Pennsylvania, IDA, Environmental Improvement Revenue Refunding Bonds, 5.50% due 11/01/2016 3,768 2,220 Allegheny County, Pennsylvania, Sanitation Authority, Sewer Revenue Bonds, 5.75% due 12/01/2010 (j)(n) 2,382 1,760 Bucks County, Pennsylvania, IDA, Retirement Community Revenue Bonds (Ann's Choice Inc.), Series A, 6.125% due 1/01/2025 1,795 5,225 Cumberland County, Pennsylvania, Municipal Authority, Revenue Refunding Bonds (Diakon Lutheran Social Ministries Project), VRDN, Series B, 6.25% due 1/01/2025 (k)(r) 5,225 7,750 Delaware County, Pennsylvania, IDA, Revenue Refunding Bonds (Resource Recovery Facility), Series A, 6.10% due 7/01/2013 7,929 4,000 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (University of Pennsylvania Medical Center Health System), Series A, 6% due 1/15/2031 4,269 1,265 Philadelphia, Pennsylvania, Authority for IDR, Commercial Development, 7.75% due 12/01/2017 1,267 3,915 Sayre, Pennsylvania, Health Care Facilities Authority, Revenue Refunding Bonds (Guthrie Healthcare System), Series A, 5.875% due 12/01/2011 (n) 4,291 1,085 Sayre, Pennsylvania, Health Care Facilities Authority, Revenue Refunding Bonds (Guthrie Healthcare System), Series A, 5.875% due 12/01/2031 1,133 Rhode Island - 0.5% 6,815 Rhode Island State Economic Development Corporation, Airport Revenue Bonds, Series B, 6% due 7/01/2010 (d)(n) 7,313 1,000 Rhode Island State Economic Development Corporation Revenue Bonds (Providence Place Mall), 6.125% due 7/01/2020 (k) 1,061 South Carolina - 0.9% 2,450 Medical University Hospital Authority, South Carolina, Hospital Facilities Revenue Refunding Bonds, 6.50% due 8/15/2012 (n) 2,762 5,400 Medical University Hospital Authority, South Carolina, Hospital Facilities Revenue Refunding Bonds, Series A, 6.375% due 8/15/2012 (n) 6,057 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 5,109 South Dakota - 0.3% 3,750 Pierre, South Dakota, School District Number 32-2, GO, 5.75% due 8/01/2010 (h)(n) 3,972 1,565 South Dakota, HDA, Homeownership Revenue Bonds, AMT, Series C, 5.375% due 5/01/2018 1,589 Tennessee - 1.4% 4,485 Chattanooga, Tennessee, IDB, Lease Rent Revenue Bonds (Southside Redevelopment Corporation), 5.75% due 10/01/2017 (c) 4,751 3,740 Chattanooga, Tennessee, IDB, Lease Rent Revenue Bonds (Southside Redevelopment Corporation), 5.75% due 10/01/2018 (c) 3,953 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 1,020 4,950 McMinn County, Tennessee, IDB, Solid Waste Revenue Bonds (Recycling Facility-Calhoun Newsprint), AMT, 7.40% due 12/01/2022 4,979 7,300 Shelby County, Tennessee, Health, Educational and Housing Facility Board, Hospital Revenue Refunding Bonds (Methodist Healthcare), 6.50% due 9/01/2012 (n) 8,255 Texas - 11.3% 5,000 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue Refunding Bonds (American Airlines Inc. Project), AMT, 5.75% due 12/01/2029 4,768 5,300 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.), First Tier, Series A, 6.60% due 1/01/2011 (n) 5,786 2,300 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.), First Tier, Series A, 6.70% due 1/01/2011 (n) 2,518 10,630 Austin, Texas, Revenue Bonds (Town Lake Community Events Center Venue), 6.20% due 11/15/2009 (d)(n) 11,212 600 Bexar County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Army Retirement Residence Project), 6.125% due 7/01/2012 (n) 670 1,750 Bexar County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Army Retirement Residence Project), 6.30% due 7/01/2012 (n) 1,966 2,280 Brazos River Authority, Texas, PCR, Refunding (TXU Energy Company LLC Project), AMT, Series A, 7.70% due 4/01/2033 2,484 4,250 Brazos River Authority, Texas, Revenue Refunding Bonds (Reliant Energy Inc. Project), Series B, 7.75% due 12/01/2018 4,409 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 3,955 525 Central Texas Housing Finance Corporation, S/F Mortgage Revenue Bonds (GNMA Mortgage Program), AMT, 8.20% due 6/28/2017 (i) 543 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 3,611 600 Dallas, Texas, Industrial Development Corporation, IDR (CR/PL Inc. Project), VRDN, AMT, 7.50% due 8/01/2017 (r) 606 3,500 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Good Shepherd Medical Center Project), 6.375% due 10/01/2010 (k)(n) 3,810 1,000 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Good Shepherd Medical Center Project), 6.875% due 10/01/2010 (k)(n) 1,103 5,465 Gulf Coast Waste Disposal Authority, Texas, Revenue Refunding Bonds (International Paper Company), AMT, Series A, 6.10% due 8/01/2024 5,656 2,255 HFDC of Central Texas, Inc., Retirement Facilities Revenue Bonds, Series A, 5.75% due 11/01/2036 2,116 1,850 HFDC of Central Texas, Inc., Retirement Facilities Revenue Bonds (Village at Gleannloch Farms), Series A, 5.50% due 2/15/2037 1,747 15,000 Houston, Texas, Airport System Revenue Refunding Bonds, Sub-Lien, AMT, Series A, 5.50% due 7/01/2023 (h) 15,411 6,000 Houston, Texas, Airport System, Special Facilities Revenue Bonds (Continental Airlines), AMT, Series E, 7% due 7/01/2029 6,295 2,000 Houston, Texas, Combined Utility System, First Lien Revenue Refunding Bonds, Series A, 5.125% due 5/15/2028 (j) 2,075 4,000 Kerrville, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Sid Peterson Memorial Hospital Project), 5.25% due 8/15/2021 4,035 8,080 Matagorda County, Texas, Navigation District Number 1, Revenue Refunding Bonds (Reliant Energy Inc.), Series C, 8% due 5/01/2029 8,359 7,350 Matagorda County, Texas, Port of Bay City Authority Revenue Bonds (Hoechst Celanese Corp. Project), AMT, 6.50% due 5/01/2026 7,373 4,825 Port Corpus Christi, Texas, Individual Development Corporation, Environmental Facilities Revenue Bonds (Citgo Petroleum Corporation Project), AMT, 8.25% due 11/01/2031 4,932 1,000 Red River, Texas, Education Finance Revenue Bonds (Saint Mark's School-Texas Project), 6% due 8/15/2019 1,043 780 South Plains, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds, AMT, Series A, 7.30% due 9/01/2031 (g) 791 10 Southeast Texas Housing Finance Corporation, Revenue Bonds, AMT, Series A, 8% due 11/01/2025 (f)(i) 10 120 Southeast Texas Housing Finance Corporation, Revenue Bonds, AMT, Series B, 8.50% due 11/01/2025 (f)(i) 122 2,200 Tarrant County, Texas, Cultural Education Facilities Financing Corporation, Retirement Facilities Revenue Refunding Bonds (Northwest Senior Housing - Edgemere Project), Series A, 6% due 11/15/2026 2,245 3,000 Tarrant County, Texas, Cultural Education Facilities Financing Corporation, Retirement Facilities Revenue Refunding Bonds (Northwest Senior Housing - Edgemere Project), Series A, 6% due 11/15/2036 3,056 5,000 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds (Fire Fighter and Law Enforcement or Security Officer Home Loan Program), AMT, Series C, 5.45% due 12/01/2039 (f)(g) 5,289 6,240 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds (Professional Educators Home Loan Program), AMT, Series A-1, 5.50% due 12/01/2039 (f)(g) 6,625 2,100 Texas State Public Finance Authority, Building Revenue Bonds (General Services Commission Project), Series A, 6% due 2/01/2010 (h)(n) 2,215 1,000 Texas State Public Finance Authority, Building Revenue Bonds (State Preservation Project), Series B, 6% due 8/01/2009 (h)(n) 1,044 45,000 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A, 5.75% due 8/15/2038 (c) 48,211 4,930 Upper Trinity Regional Water District, Texas, Water Revenue Bonds (Regional Treated Water Supply System), Series A, 6% due 8/01/2010 (d)(n) 5,255 1,500 Webster, Texas, GO, COP, Series A, 6% due 3/01/2010 (h)(n) 1,585 805 Webster, Texas, GO, COP, Series A, 6% due 3/01/2021 (h) 848 1,250 West Central Texas Regional Housing Finance Corporation, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Series A, 5.35% due 12/01/2039 (f)(g) 1,304 Utah - 0.1% 755 Utah State, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series C, Class III, 5.50% due 1/01/2018 767 Virginia - 0.6% 1,750 Albemarle County, Virginia, IDA, Residential Care Facilities, Mortgage Revenue Refunding Bonds (Westminster-Canterbury), 5% due 1/01/2024 1,704 1,100 Albemarle County, Virginia, IDA, Residential Care Facilities, Mortgage Revenue Refunding Bonds (Westminster-Canterbury), 5% due 1/01/2031 1,034 2,425 Chesterfield County, Virginia, IDA, PCR, Refunding (Virginia Electric and Power Company), Series B, 5.875% due 6/01/2017 2,580 3,250 Fairfax County, Virginia, EDA, Residential Care Facilities, Mortgage Revenue Refunding Bonds (Goodwin House, Inc.), 5.125% due 10/01/2037 3,151 500 Norfolk, Virginia, Redevelopment and Housing Authority, First Mortgage Revenue Bonds (Retirement Community), Series A, 6% due 1/01/2025 504 1,100 Norfolk, Virginia, Redevelopment and Housing Authority, First Mortgage Revenue Bonds (Retirement Community), Series A, 6.125% due 1/01/2035 1,104 Washington - 1.7% 5,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds (Project Number 3), Series A, 5.50% due 7/01/2017 (h) 5,342 3,000 Port of Seattle, Washington, Special Facilities Revenue Bonds, Series A, 6% due 3/01/2010 (j)(n) 3,198 3,010 Seattle, Washington, Drain and Wastewater Utility Revenue Bonds, 5.75% due 11/01/2009 (j)(n) 3,175 2,750 Seattle, Washington, Housing Authority Revenue Bonds (Newholly Project), AMT, 6.25% due 12/01/2035 2,807 4,710 Seattle, Washington, Housing Authority Revenue Bonds (Replacement Housing Project), 6.125% due 12/01/2032 4,773 7,750 Tacoma, Washington, Electric System Revenue Refunding Bonds, Series A, 5.75% due 1/01/2011 (h)(n) 8,336 Wisconsin - 0.6% 950 Wisconsin Housing and EDA, Home Ownership Revenue Bonds, AMT, Series C, 6% due 9/01/2036 1,009 1,960 Wisconsin State, GO, AMT, Series B, 6.20% due 11/01/2026 (j) 1,980 3,155 Wisconsin State Health and Educational Facilities Authority Revenue Bonds (SynergyHealth Inc.), 6% due 11/15/2023 3,308 3,700 Wisconsin State Health and Educational Facilities Authority Revenue Bonds (SynergyHealth Inc.), 6% due 11/15/2032 3,836 Guam - 0.0% 115 Guam Housing Corporation, S/F Mortgage Revenue Bonds, AMT, Series A, 5.75% due 9/01/2031 (f) 121 Puerto Rico - 1.7% 8,045 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds, 5.75% due 7/01/2022 8,625 20,000 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A, 4.915% due 7/01/2030 (d)(p) 6,753 12,605 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A, 4.96% due 7/01/2035 (c)(p) 3,254 785 Puerto Rico Commonwealth, Public Improvement, GO, Refunding, 5.70% due 7/01/2020 (j) 828 5,500 Puerto Rico Commonwealth, Public Improvement, GO, Refunding, Series B, 5.25% due 7/01/2032 5,663 15,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds, Series A, 5.04% due 8/01/2045 (j)(p) 2,338 U.S. Virgin 8,000 Virgin Islands Government Refinery Facilities, Revenue Refunding Bonds (Hovensa Islands - 0.5% Coker Project), AMT, 6.50% due 7/01/2021 8,514 Total Municipal Bonds (Cost - $1,390,357) - 87.2% 1,425,135 Municipal Bonds Held in Trust (a) Florida - 2.2% 14,000 Lee County, Florida, Airport Revenue Bonds, AMT, Series A, 6% due 10/01/2029 (h) 14,849 20,115 Port St. Lucie, Florida, Utility Revenue Bonds, 5.125% due 9/01/2036 (j) 20,865 Illinois - 1.3% 21,235 Chicago, Illinois, Board of Education, GO (Chicago School Reform), 5.75% due 12/01/2007 (c) 21,732 Michigan - 0.9% 13,500 Hartland, Michigan, Consolidated School District, GO, Refunding, 5.125% due 5/01/2029 13,813 New Jersey - 2.7% 22,000 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.25% due 3/01/2024 23,344 20,000 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series A, 5.75% due 1/01/2018 (j)(s) 20,906 Pennsylvania - 2.3% 36,210 Philadelphia, Pennsylvania, Redevelopment Authority Revenue Bonds (Neighborhood Transformation), Series A, 5.30% due 4/15/2026 (d) 37,965 South Carolina - 1.3% 21,215 South Carolina State Ports Authority, Ports Revenue Bonds, AMT, 5.30% due 7/01/2026 (h) 21,571 Texas - 4.8% 36,500 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, Series A, 6% due 11/01/2024 (d) 37,853 18,860 Houston, Texas, Airport System Revenue Refunding Bonds, Sub Lien, Series B, 5.20% due 7/01/2018 (d) 19,144 20,000 Houston, Texas, Combined Utility System, First Lien Revenue Refunding Bonds, Series A, 5.125% due 5/15/2028 (j) 20,747 Puerto Rico - 0.8% 4,000 Puerto Rico Commonwealth, Public Improvement, GO, Refunding, 5.70% due 7/01/2020 (j) 4,196 4,000 Puerto Rico Industrial Tourist Educational, Medical and Environmental Control Facilities Revenue Bonds (Hospital de la Concepcion), Series A, 6.125% due 11/15/2025 4,266 4,220 Puerto Rico Industrial Tourist Educational, Medical and Environmental Control Facilities Revenue Bonds (Hospital de la Concepcion), Series A, 6.125% due 11/15/2030 4,469 Total Municipal Bonds Held in Trust (Cost - $265,777) - 16.3% 265,720 Shares Held Short-Term Securities 57,123 Merrill Lynch Institutional Tax-Exempt Fund, 3.67% (o)(q) 57,123 Total Short-Term Securities (Cost - $57,123) - 3.5% 57,123 Total Investments (Cost - $1,713,257*) - 107.0% 1,747,978 Liability for Trust Certificates, Including Interest Expense Payable - (8.2%) (133,983) Other Assets Less Liabilities - 1.2% 20,090 ------------ Net Assets - 100.0% $ 1,634,085 ============ * The cost and unrealized appreciation (depreciation) of investments as of September 30, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 1,583,278 =================== Gross unrealized appreciation $ 43,614 Gross unrealized depreciation (11,396) ------------------- Net unrealized appreciation $ 32,218 =================== (a) Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction. (b) ACA Insured. (c) AMBAC Insured. (d) FGIC Insured. (e) FHA Insured. (f) FHLMC Collateralized. (g) FNMA/GNMA Collateralized. (h) FSA Insured. (i) GNMA Collateralized. (j) MBIA Insured. (k) Radian Insured. (l) XL Capital Insured. (m) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (n) Prerefunded. (o) 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 28,517 $ 341 (p) Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase. (q) Represents the current yield as of September 30, 2007. (r) 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. (s) Escrowed to maturity.
Item 2 - Controls and Procedures 2(a) - The registrant's principal executive and principal financial officers or persons performing similar functions have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities and Exchange Act of 1934, as amended. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3 - Exhibits Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BlackRock Municipal Bond Fund, Inc. By: /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Executive Officer (principal executive officer) of BlackRock Municipal Bond Fund, Inc. Date: November 20, 2007 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/ Donald C. Burke ------------------- Donald C. Burke, Chief Executive Officer (principal executive officer) of BlackRock Municipal Bond Fund, Inc. Date: November 20, 2007 By: /s/ Neal J. Andrews ------------------- Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Municipal Bond Fund, Inc. Date: November 20, 2007