BLACKROCK VIRGINIA MUNICIPAL BOND TRUST

Regulatory Filings • May 6, 2004

N-CSRS 1 c32166_ncsrs.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21053

BLACKROCK VIRGINIA MUNICIPAL BOND TRUST

(Exact name of registrant as specified in charter)

100 BELLEVUE PARKWAY, WILMINGTON, DE 19809

(Address of principal executive offices) (Zip code)

Robert S. Kapito, President

BLACKROCK ADVISORS, INC.

40 EAST 52ND STREET, NEW YORK, NY 10022

(Name and address of agent for service)

Registrant's telephone number, including area code: 302 797-2162

Date of fiscal year end: August 31, 2004

Date of reporting period: February 29, 2004

ITEM 1. REPORTS TO SHAREHOLDERS.

The Trust's semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

FIXED INCOME LIQUIDITY EQUITIES ALTERNATIVES BLACKROCK SOLUTIONS

BlackRock Closed-End Funds Semi-Annual Report

FEBRUARY 29, 2004 (UNAUDITED)

BlackRock Insured Municipal Income Trust (BYM)

BlackRock Municipal Bond Trust (BBK)

BlackRock Municipal Income Trust II (BLE)

BlackRock California Insured Municipal Income Trust (BCK)

BlackRock California Municipal Bond Trust (BZA)

BlackRock California Municipal Income Trust II (BCL)

BlackRock Florida Insured Municipal Income Trust (BAF)

BlackRock Florida Municipal Bond Trust (BIE)

BlackRock Maryland Municipal Bond Trust (BZM)

BlackRock New Jersey Municipal Bond Trust (BLJ)

BlackRock New York Insured Municipal Income Trust (BSE)

BlackRock New York Municipal Bond Trust (BQH)

BlackRock New York Municipal Income Trust II (BFY)

BlackRock Virginia Municipal Bond Trust (BHV)

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

TABLE OF CONTENTS

| Letter
to Shareholders | 1 |
| --- | --- |
| Trust Summaries | 2 |
| Portfolios of Investments | 16 |
| Financial Statements | |
| Statements
of Assets and Liabilities | 40 |
| Statements
of Operations | 43 |
| Statements
of Changes in Net Assets | 46 |
| Financial Highlights | 52 |
| Notes to Financial Statements | 66 |
| Dividend Reinvestment
Plans | 72 |
| Additional Information | 72 |

Privacy Principles of the Trusts

The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator).

The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of their shareholders.

LETTER TO SHAREHOLDERS

February 29, 2004

Dear Shareholder:

We are pleased to report that during the semi-annual period, the Trusts continued to provide monthly income, as well as the opportunity to invest in various portfolios of municipal securities. This report contains the Trusts’ unaudited financial statements and a listing of the portfolios’ holdings.

The portfolio management team continuously monitors the municipal bond market and adjusts the portfolios in order to gain exposure to various issuers, revenue sources and security types. This strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions.

The following table shows the Trusts’ current yields, tax-equivalent yields, closing market prices per share and net asset values (“NAV”) per share as of February 29, 2004.

	Current	Tax- — Equivalent	Closing — Market
Trust (Ticker)	Yield 1	Yield 1	Price	NAV
BlackRock Insured
Municipal Income Trust (BYM)	6.38%	9.81%	$14.70	$15.31
BlackRock Municipal Bond Trust
(BBK)	6.91	10.62	15.01	15.69
BlackRock Municipal
Income Trust II (BLE)	6.92	10.64	14.53	14.98
BlackRock California Insured
Municipal Income Trust (BCK)	6.28	9.66	14.34	14.82
BlackRock California
Municipal Bond Trust (BZA)	6.72	10.33	14.23	15.22
BlackRock California Municipal
Income Trust II (BCL)	6.98	10.74	13.96	14.41
BlackRock Florida
Insured Municipal Income Trust (BAF)	6.02	9.26	14.95	15.03
BlackRock Florida Municipal Bond
Trust (BIE)	6.21	9.55	15.04	15.77
BlackRock Maryland
Municipal Bond Trust (BZM)	5.46	8.40	15.69	15.61
BlackRock New Jersey Municipal
Bond Trust (BLJ)	6.32	9.72	14.93	15.33
BlackRock New
York Insured Municipal Income Trust (BSE)	6.14	9.44	14.66	15.08
BlackRock New York Municipal
Bond Trust (BQH)	6.37	9.80	14.52	15.53
BlackRock New
York Municipal Income Trust II (BFY)	6.53	10.05	14.47	14.91
BlackRock Virginia Municipal
Bond Trust (BHV)	5.30	8.15	16.40	16.00

1 Yields are based on closing market price. Tax-equivalent yield assumes the maximum Federal tax rate of 35%.

BlackRock, Inc. (“BlackRock”), a world leader in asset management, has a proven commitment to the municipal bond ma rket. As of December 31, 2003, BlackRock managed approximately $18 billion in municipal bonds, including six open-end and 37 closed-end municipal bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world’s largest institutional investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly owned subsidiary of BlackRock.

On behalf of BlackRock, we thank you for your continued trust and assure you that we remain committed to excellence in managing your assets.

Sincerely,

Laurence D. Fink Chief Executive Officer BlackRock Advisors, Inc. Ralph L. Schlosstein President BlackRock Advisors, Inc.

1

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock Insured Municipal Income Trust (BYM)

Trust Information

| Symbol
on New York Stock Exchange: | BYM |
| --- | --- |
| Initial Offering
Date: | October 31, 2002 |
| Closing Market Price as of 2/29/04: | $14.70 |
| Net Asset Value
as of 2/29/04: | $15.31 |
| Yield on Closing Market Price
as of 2/29/04 ($14.70): 1 | 6.38% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.078125 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.937500 |
| Leverage as of 2/29/04: 3 | 36% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.70	$13.51	8.81%	$14.84	$13.39
NAV	$15.31	$13.64	12.24%	$15.33	$13.51

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Transportation	27%	33%
Water & Sewer	24	19
Tobacco	10	10
City, County & State	9	12
Power	8	9
Lease Revenue	6	3
Tax Revenue	5	6
Education	4	1
Hospitals	4	2
Industrial & Pollution Control	3	2
Housing	—	3

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 83% | 83% |
| A | 4 | 7 |
| BBB/Baa | 13 | 10 |

4 Using the higher of Standard & Poor’s (“S&P’s”), Moody’s Investors Service (“Moody’s”) or Fitch Ratings (“Fitch’s”) rating.

2

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock Municipal Bond Trust (BBK)

Trust Information

| Symbol
on New York Stock Exchange: | BBK |
| --- | --- |
| Initial Offering
Date: | April 30, 2002 |
| Closing Market Price as of 2/29/04: | $15.01 |
| Net Asset Value
as of 2/29/04: | $15.69 |
| Yield on Closing Market Price
as of 2/29/04 ($15.01): 1 | 6.91% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.086375 |
| Current Annualized Distribution
per Common Share: 2 | $ 1.036500 |
| Leverage as of 2/29/04: 3 | 36% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$15.01	$13.66	9.88%	$15.25	$13.65
NAV	$15.69	$14.12	11.12%	$15.73	$14.02

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Hospitals	19%	20%
Industrial & Pollution Control	19	26
City, County
& State	12	6
Housing	10	14
Tobacco	10	9
Transportation	8	9
Tax Revenue	6	5
Lease Revenue	5	—
Power	3	3
Education	2	2
Water &
Sewer	1	1
Other	5	5

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 25% | 27% |
| AA/Aa | — | 5 |
| A | 20 | 23 |
| BBB/Baa | 39 | 32 |
| B | 5 | 4 |
| Not Rated 5 | 11 | 9 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $18,706,918 representing 8.2% of the Trust’s long-term investments.

3

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock Municipal Income Trust II (BLE)

Trust Information

| Symbol
on American Stock Exchange: | BLE |
| --- | --- |
| Initial Offering
Date: | July 30, 2002 |
| Closing Market Price as of 2/29/04: | $14.53 |
| Net Asset Value
as of 2/29/04: | $14.98 |
| Yield on Closing Market Price
as of 2/29/04 ($14.53): 1 | 6.92% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.08375 |
| Current Annualized Distribution
per Common Share: 2 | $ 1.00500 |
| Leverage as of 2/29/04: 3 | 38% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.53	$13.11	10.83%	$14.72	$13.12
NAV	$14.98	$13.28	12.80%	$15.02	$13.17

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Hospitals	22%	22%
Industrial & Pollution Control	19	18
City, County
& State	15	10
Tobacco	10	9
Transportation	9	12
Housing	6	12
Tax Revenue	6	7
Lease Revenue	5	—
Water &
Sewer	5	6
Power	2	2
Education	1	2

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 24% | 28% |
| AA/Aa | 7 | 7 |
| A | 14 | 20 |
| BBB/Baa | 36 | 27 |
| B | 4 | 4 |
| CCC/Caa | 2 | 2 |
| Not Rated 5 | 13 | 12 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $14,048,640 representing 2.7% of the Trust’s long-term investments.

4

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock California Insured Municipal Income Trust (BCK)

Trust Information

| Symbol
on the New York Stock Exchange: | BCK |
| --- | --- |
| Initial Offering
Date: | October 31, 2002 |
| Closing Market Price as of 2/29/04: | $14.34 |
| Net Asset Value
as of 2/29/04: | $14.82 |
| Yield on Closing Market Price
as of 2/29/04 ($14.34): 1 | 6.28% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.075 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.900 |
| Leverage as of 2/29/04: 3 | 37% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.34	$13.01	10.22%	$14.54	$13.03
NAV	$14.82	$13.09	13.22%	$14.83	$12.94

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Water &
Sewer	30%	30%
Education	24	23
Tobacco	11	10
Power	10	10
Lease Revenue	10	10
City, County & State	9	7
Transportation	4	4
Housing	2	2
Tax Revenue	—	4

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 83% | 84% |
| A | 6 | 6 |
| BBB/Baa | 11 | 10 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock California Municipal Bond Trust (BZA)

Trust Information

| Symbol
on New York Stock Exchange: | BZA |
| --- | --- |
| Initial Offering
Date: | April 30, 2002 |
| Closing Market Price as of 2/29/04: | $14.23 |
| Net Asset Value
as of 2/29/04: | $15.22 |
| Yield on Closing Market Price
as of 2/29/04 ($14.23): 1 | 6.72% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.079656 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.955872 |
| Leverage as of 2/29/04: 3 | 37% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.23	$13.15	8.21%	$14.52	$13.13
NAV	$15.22	$13.71	11.01%	$15.23	$13.59

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Education	25%	24%
Hospitals	18	17
Housing	14	15
Tobacco	12	11
City, County
& State	9	12
Lease Revenue	7	1
Transportation	5	5
Water & Sewer	3	3
Industrial
& Pollution Control	2	2
Power	—	5
Other	5	5

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 23% | 23% |
| AA/Aa | 4 | — |
| A | 20 | 31 |
| BBB/Baa | 31 | 24 |
| B | 2 | 2 |
| Not Rated 5 | 20 | 20 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $10,224,816 representing 13.4% of the Trust’s long-term investments.

6

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock California Municipal Income Trust II (BCL)

Trust Information

| Symbol
on American Stock Exchange: | BCL |
| --- | --- |
| Initial Offering
Date: | July 30, 2002 |
| Closing Market Price as of 2/29/04: | $13.96 |
| Net Asset Value
as of 2/29/04: | $14.41 |
| Yield on Closing Market Price
as of 2/29/04 ($13.96): 1 | 6.98% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.08125 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.97500 |
| Leverage as of 2/29/04: 3 | 38% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$13.96	$13.01	7.30%	$13.99	$13.00
NAV	$14.41	$12.76	12.93%	$14.43	$12.62

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
City, County
& State	27%	25%
Hospitals	13	13
Education	11	19
Tobacco	11	10
Lease Revenue	10	5
Transportation	10	9
Housing	8	9
Power	5	5
Water &
Sewer	4	4
Industrial & Pollution Control	1	1

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 37% | 47% |
| AA/Aa | 5 | — |
| A | 14 | 19 |
| BBB/Baa | 23 | 13 |
| B | 1 | 1 |
| Not Rated 5 | 20 | 20 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $8,528,630 representing 4.7% of the Trust’s long-term investments.

7

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock Florida Insured Municipal Income Trust (BAF)

Trust Information

| Symbol
on New York Stock Exchange: | BAF |
| --- | --- |
| Initial Offering
Date: | October 31, 2002 |
| Closing Market Price as of 2/29/04: | $14.95 |
| Net Asset Value
as of 2/29/04: | $15.03 |
| Yield on Closing Market Price
as of 2/29/04 ($14.95): 1 | 6.02% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.075 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.900 |
| Leverage as of 2/29/04: 3 | 37% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.95	$13.20	13.26%	$15.07	$13.31
NAV	$15.03	$13.74	9.39%	$15.03	$13.60

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Tax Revenue	22%	22%
City, County & State	22	25
Education	16	16
Power	12	13
Transportation	8	5
Water & Sewer	8	6
Hospital	7	8
Tobacco	4	4
Housing	1	1

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 83% | 82% |
| AA/Aa | 3 | 4 |
| A | 4 | 4 |
| BBB/Baa | 5 | 5 |
| Not Rated 5 | 5 | 5 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor had deemed all of these non-rated securities to be of investment grade quality at the time of purchase.

8

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock Florida Municipal Bond Trust (BIE)

Trust Information

Symbol on New York Stock Exchange:	BIE
Initial Offering Date:	April 30, 2002
Closing Market Price as of 2/29/04:	$15.04
Net Asset Value as of 2/29/04:	$15.77
Yield on Closing Market Price as of 2/29/04
($15.04): 1	6.21%
Current Monthly Distribution per Common Share: 2	$ 0.077808
Current Annualized Distribution per Common
Share: 2	$ 0.933696
Leverage as of 2/29/04: 3	36%

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$15.04	$13.55	11.00%	$15.09	$13.50
NAV	$15.77	$14.52	8.61%	$15.77	$14.41

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Hospitals	24%	24%
City, County & State	18	14
Tax Revenue	16	16
Power	10	12
Education	8	7
Water & Sewer	7	7
Lease Revenue	5	4
Transportation	4	4
Housing	2	2
Industrial & Pollution Control	2	2
Tobacco	—	4
Other	4	4

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 40% | 41% |
| AA/Aa | 17 | 17 |
| A | 23 | 21 |
| BBB/Baa | 3 | 7 |
| Not Rated 5 | 17 | 14 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $3,223,860 representing 4% of the Trust’s long-term investments.

9

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock Maryland Municipal Bond Trust (BZM)

Trust Information

| Symbol
on American Stock Exchange: | BZM |
| --- | --- |
| Initial Offering
Date: | April 30, 2002 |
| Closing Market Price as of 2/29/04: | $15.69 |
| Net Asset Value
as of 2/29/04: | $15.61 |
| Yield on Closing Market Price
as of 2/29/04 ($15.69): 1 | 5.46% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.07135 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.85620 |
| Leverage as of 2/29/04: 3 | 36% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$15.69	$13.90	12.88%	$15.69	$13.73
NAV	$15.61	$14.36	8.70%	$15.61	$14.24

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Education	24%	26%
Hospitals	17	17
City, County
& State	13	11
Water & Sewer	12	12
Transportation	9	9
Lease Revenue	8	8
Power	5	5
Housing	4	4
Tobacco	4	3
Other	4	5

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 35% | 34% |
| AA/Aa | 9 | 12 |
| A | 36 | 36 |
| BBB/Baa | 11 | 11 |
| Not Rated 5 | 9 | 7 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $2,149,240 representing 4.5% of the Trust’s long-term investments.

10

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock New Jersey Municipal Bond Trust (BLJ)

Trust Information

| Symbol
on American Stock Exchange: | BLJ |
| --- | --- |
| Initial Offering
Date: | April 30, 2002 |
| Closing Market Price as of 2/29/04: | $14.93 |
| Net Asset Value
as of 2/29/04: | $15.33 |
| Yield on Closing Market Price
as of 2/29/04 ($14.93): 1 | 6.32% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.078582 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.942984 |
| Leverage as of 2/29/04: 3 | 37% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.93	$13.64	9.46%	$14.98	$13.65
NAV	$15.33	$13.77	11.33%	$15.37	$13.66

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Hospitals	26%	24%
Transportation	17	17
Tobacco	11	11
City, County & State	10	5
Housing	9	15
Tax Revenue	6	5
Education	5	5
Lease Revenue	4	5
Power	4	5
Industrial & Pollution Control	4	4
Other	4	4

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 27% | 28% |
| A | 30 | 31 |
| BBB/Baa | 33 | 33 |
| B | 4 | 4 |
| Not Rated 5 | 6 | 4 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed all of these non-rated securities to be of investment grade quality.

11

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock New York Insured Municipal Income Trust (BSE)

Trust Information

| Symbol
on New York Stock Exchange: | BSE |
| --- | --- |
| Initial Offering
Date: | October 31, 2002 |
| Closing Market Price as of 2/29/04: | $14.66 |
| Net Asset Value
as of 2/29/04: | $15.08 |
| Yield on Closing Market Price
as of 2/29/04 ($14.66): 1 | 6.14% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.075 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.900 |
| Leverage as of 2/29/04: 3 | 37% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.66	$13.28	10.39%	$14.83	$13.19
NAV	$15.08	$13.45	12.12%	$15.10	$13.31

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Transportation	33%	33%
Education	28	29
Hospitals	13	14
Tobacco	11	10
Tax Revenue	10	7
Water & Sewer	3	3
Lease Revenue	1	4
Housing	1	—

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 81% | 82% |
| AA/Aa | 2 | 2 |
| A | 9 | 9 |
| BBB/Baa | 8 | 7 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

12

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock New York Municipal Bond Trust (BQH)

Trust Information

| Symbol
on New York Stock Exchange: | BQH |
| --- | --- |
| Initial Offering
Date: | April 30, 2002 |
| Closing Market Price as of 2/29/04: | $14.52 |
| Net Asset Value
as of 2/29/04: | $15.53 |
| Yield on Closing Market Price
as of 2/29/04 ($14.52): 1 | 6.37% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.077099 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.925188 |
| Leverage as of 2/29/04: 3 | 37% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.52	$13.35	8.76%	$14.60	$13.35
NAV	$15.53	$14.15	9.75%	$15.57	$14.04

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Transportation	13%	14%
Education	12	12
Tobacco	12	11
Hospitals	11	11
City, County
& State	10	10
Housing	9	9
Water &
Sewer	9	9
Tax Revenue	8	8
Industrial
& Pollution Control	5	4
Lease Revenue	4	5
Power	3	3
Other	4	4

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 21% | 21% |
| AA/Aa | 25 | 26 |
| A | 38 | 38 |
| BBB/Baa | 7 | 7 |
| B | 1 | — |
| CCC/Caa | 4 | 4 |
| Not Rated 5 | 4 | 4 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed all of these non-rated securities to be of investment grade quality.

13

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock New York Municipal Income Trust II (BFY)

Trust Information

| Symbol
on American Stock Exchange: | BFY |
| --- | --- |
| Initial Offering
Date: | July 30, 2002 |
| Closing Market Price as of 2/29/04: | $14.47 |
| Net Asset Value
as of 2/29/04: | $14.91 |
| Yield on Closing Market Price
as of 2/29/04 ($14.47): 1 | 6.53% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.07875 |
| Current Annualized Distribution per Common Share: 2 | $0.94500 |
| Leverage as of 2/29/04: 3 | 38% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$14.47	$13.12	10.29%	$14.49	$13.11
NAV	$14.91	$13.36	11.60%	$14.94	$13.24

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Education	21%	23%
Transportation	21	21
Tobacco	11	10
Industrial & Pollution Control	11	9
Hospitals	9	9
City, County & State	9	8
Tax Revenue	9	9
Water & Sewer	5	5
Housing	3	5
Power	1	1

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 16% | 21% |
| AA/Aa | 46 | 45 |
| A | 30 | 27 |
| BBB/Baa | 4 | 4 |
| B | 1 | — |
| CCC/Caa | 3 | 3 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

14

TRUST SUMMARIES (unaudited) FEBRUARY 29, 2004

BlackRock Virginia Municipal Bond Trust (BHV)

Trust Information

| Symbol
on American Stock Exchange: | BHV |
| --- | --- |
| Initial Offering
Date: | April 30, 2002 |
| Closing Market Price as of 2/29/04: | $16.40 |
| Net Asset Value
as of 2/29/04: | $16.00 |
| Yield on Closing Market Price
as of 2/29/04 ($16.40): 1 | 5.30% |
| Current Monthly
Distribution per Common Share: 2 | $ 0.072428 |
| Current Annualized Distribution
per Common Share: 2 | $ 0.869136 |
| Leverage as of 2/29/04: 3 | 36% |

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined herein).

The table below summarizes the changes in the Trust’s market price and NAV:

	2/29/04	8/31/03	Change	High	Low
Market Price	$16.40	$14.40	13.89%	$17.25	$14.30
NAV	$16.00	$14.46	10.65%	$16.00	$14.35

The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector	February 29, 2004	August 31, 2003
Water &
Sewer	19%	19%
City, County & State	17	17
Transportation	17	16
Hospitals	15	19
Housing	12	13
Education	5	5
Lease Revenue	4	4
Tobacco	4	3
Industrial
& Pollution Control	3	—
Other	4	4

Credit Breakdown 4

| Credit
Rating | February 29, 2004 | August 31, 2003 |
| --- | --- | --- |
| AAA/Aaa | 47% | 47% |
| AA/Aa | 16 | 16 |
| A | 15 | 21 |
| BBB/Baa | 7 | 3 |
| Not Rated 5 | 15 | 13 |

4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $4,196,460 representing 11.2% of the Trust’s long-term investments.

15

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock Insured Municipal Income Trust (BYM)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM INVESTMENTS—153.2%
		Alabama—11.5%
AAA	$40,000 3	Jefferson Cnty. Swr. Rev., Ser. D,
5.00%, 8/01/12, FGIC	N/A	$ 45,924,880
		California—40.1%
AAA	19,530	California, GO, 5.00%, 2/01/31, MBIA	02/13 @ 100	20,302,411
A-	14,000	California Dept. of Wtr. Res., Pwr.
Sply. Rev., Ser. A, 5.375%, 5/01/22	05/12 @ 101	14,914,620
		California Infrastructure & Econ.
Dev., Bay Area Toll Brdgs., Ser. A, AMBAC,
AAA	17,000	5.00%, 7/01/33	07/13 @ 100	17,844,220
AAA	10,000	5.00%, 7/01/36	07/13 @ 100	10,496,600
		Golden St. Tobacco Sec. Corp.,
BBB	6,500	Ser. A-1, 6.625%, 6/01/40	06/13 @ 100	6,212,570
AAA	2,195	Ser. B, 5.00%, 6/01/38, AMBAC	06/13 @ 100	2,262,123
AAA	22,500	Ser. B, 5.00%, 6/01/43, FSA	06/13 @ 100	23,119,650
AAA	5,000	Los Angeles Dept. of Wtr. & Pwr.,
Pwr. Sys. Rev., Ser. A-2, 5.00%, 7/01/27, MBIA	07/13 @ 100	5,248,300
AAA	5,000	Los Angeles Unified Sch. Dist., Ser.
A, 5.00%, 1/01/28, MBIA	07/13 @ 100	5,244,400
AAA	17,500	Met. Wtr. Dist. Southern California,
Ser. B-1, 5.00%, 10/01/33, FGIC	10/13 @ 100	18,388,825
		San Joaquin Hills Transp. Corridor
Agcy., Toll Road Rev., Ser. A, MBIA,
AAA	53,000	Zero Coupon, 1/15/31	No Opt. Call	13,484,790
AAA	48,690	Zero Coupon, 1/15/32	No Opt. Call	11,740,620
AAA	10,910	Univ. of California, Ser. O, 5.00%,
9/01/28, FGIC	09/10 @ 101	11,414,151
				160,673,280
		Georgia—7.2%
		Atlanta Wtr. & Wstwtr., Ser.
A,
AAA	9,555	5.00%, 11/01/38, FGIC	05/09 @ 101	9,880,921
AAA	8,145	5.00%, 11/01/39, MBIA	05/12 @ 100	8,466,402
Baa1	10,000	De Kalb Cnty. Dev. Auth., PCR, General
Mtrs. Corp. Proj., 6.00%, 3/15/21	12/12 @ 101	10,532,600
				28,879,923
		Illinois—10.6%
AAA	11,550	Chicago Spec. Transp., 5.25%, 1/01/31,
AMBAC	01/11 @ 101	12,241,845
AAA	9,150	Chicago Wtr., 5.00%, 11/01/31, AMBAC	11/11 @ 100	9,449,662
		Met. Pier & Exposition Auth.,
Dedicated St. Tax Rev., McCormick Place Expansion Proj., MBIA,
AAA	10,000	Ser. A, Zero Coupon, 12/15/25	No Opt. Call	3,312,000
AAA	30,000	Ser. A, Zero Coupon, 12/15/29	No Opt. Call	8,028,300
AAA	25,000	Ser. A, Zero Coupon, 6/15/35	No Opt. Call	4,940,500
AAA	15,000	Ser. B, Zero Coupon, 6/15/28	No Opt. Call	4,344,750
				42,317,057
		Indiana—2.5%
AAA	9,400	New Albany-Floyd Cnty. Sch. Bldg.
Corp., 5.125%, 1/15/27, FGIC	07/12 @ 100	9,860,506
		Massachusetts—10.9%
		Massachusetts Tpke. Auth., Met. Hwy.
Sys. Rev., Ser. A,
AAA	16,735 4	5.00%, 1/01/37, MBIA	01/07 @ 102	17,094,468
AAA	26,000	5.00%, 1/01/39, AMBAC	01/09 @ 101	26,639,340
				43,733,808
		Michigan—1.3%
AAA	5,000	Detroit City Sch. Dist., GO, Ser.
A, 5.125%, 5/01/31, FSA	05/12 @ 100	5,257,250
		Nevada—7.2%
AAA	6,000	Reno Transp. Proj., 5.125%, 6/01/32,
AMBAC	06/12 @ 100	6,285,900
		Truckee Meadows Wtr. Auth., Ser.
A, FSA,
AAA	10,000	5.00%, 7/01/25	07/11 @ 100	10,442,100
AAA	6,500	5.125%, 7/01/30	07/11 @ 100	6,808,815
AAA	5,000	5.25%, 7/01/34	07/11 @ 100	5,286,100
				28,822,915
		New Jersey—3.2%
		Tobacco Settlement Fin. Corp.,
BBB	2,000	6.125%, 6/01/24	06/13 @ 100	1,997,960
BBB	10,670	7.00%, 6/01/41	06/13 @ 100	10,763,363
				12,761,323

See Notes to Financial Statements.

16

BlackRock Insured Municipal Income Trust (BYM) (continued)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		New York—2.9%
AAA	$11,000	Triborough Brdg. & Tunl. Auth.,
Ser. E, 5.00%, 11/15/32, MBIA	11/12 @ 100	$ 11,555,830
		Pennsylvania—8.2%
BBB+	5,000	Lebanon Cnty. Hlth. Facs. Auth.,
Good Samaritan Hosp. Proj., 6.00%, 11/15/35	11/12 @ 101	5,150,250
AAA	4,560	Pennsylvania Tpke. Comm., 5.00%,
7/15/41, AMBAC	07/11 @ 101	4,754,803
		Philadelphia Gas Wks., FSA,
AAA	5,200	Ser. 3, 5.125%, 8/01/31	08/11 @ 100	5,429,528
AAA	16,625	Ser. 4, 5.00%, 8/01/32	08/13 @ 100	17,365,478
				32,700,059
		Rhode Island—0.8%
BBB	3,510	Tobacco Settlement Fin. Corp., Ser.
A, 6.25%, 6/01/42	06/12 @ 100	3,212,317
		South Carolina—14.2%
AAA	5,000	So. Carolina Pub. Svc. Auth., Ser.
B, 5.50%, 1/01/36, FSA	01/12 @ 100	5,437,150
		So. Carolina Transp. Infrastructure
Bank, AMBAC,
AAA	9,000 3	Ser. A, 5.00%, 10/01/11	N/A	10,416,420
AAA	12,750	Ser. A, 5.00%, 10/01/33	10/12 @ 100	13,312,403
AAA	12,660	Ser. B, 5.125%, 10/01/26	10/11 @ 100	13,405,547
BBB	15,385	Tobacco Settlement Rev. Mgmt. Auth.,
Ser. B, 6.375%, 5/15/28	05/11 @ 101	14,506,055
				57,077,575
		South Dakota—1.0%
BBB	4,165	Edl. Enhancement Fdg. Corp., Tobacco
Settlement, Ser. B, 6.50%, 6/01/32	06/12 @ 101	3,978,158
		Tennessee—3.5%
		Knox Cnty. Hlth. Edl. & Hsg.
Facs. Brd., Hosp. Facs. Rev., Ser. A, FSA,
AAA	11,705	Zero Coupon, 1/01/22	01/13 @ 59.566	4,466,862
AAA	9,260	Zero Coupon, 1/01/23	01/13 @ 56.016	3,308,228
AAA	8,500	Zero Coupon, 1/01/24	01/13 @ 52.749	2,844,185
AAA	6,850	Zero Coupon, 1/01/25	01/13 @ 49.712	2,153,982
AAA	5,000	Zero Coupon, 1/01/26	01/13 @ 46.781	1,475,350
				14,248,607
		Texas—11.5%
BBB	3,700	Comal Cnty. Hlth. Facs., Hlth. Care
Sys., McKenna Mem. Proj., Ser. A, 6.25%, 2/01/32	02/13 @ 100	3,805,117
		Harris Cnty.,
AAA	7,485	GO, Zero Coupon, 8/15/25, MBIA	No Opt. Call	2,542,580
AAA	10,915	GO, Zero Coupon, 8/15/28, MBIA	No Opt. Call	3,142,319
AAA	5,510	Toll Road Rev., 5.00%, 8/15/30,
FSA	08/12 @ 100	5,738,114
		Harris Cnty. Sports Auth., Ser. H,
MBIA,
AAA	5,785	Zero Coupon, 11/15/38	11/31 @ 64.91	825,924
AAA	6,160	Zero Coupon, 11/15/39	11/31 @ 60.976	825,748
AAA	25,000	Houston Wtr. & Swr. Sys., Ser.
A, 5.00%, 12/01/30, FSA	12/12 @ 100	26,064,500
BBB+	3,000	Tyler Cnty. Hlth. Facs. Dev., Mother
Frances Hosp., 6.00%, 7/01/31	07/12 @ 100	3,121,890
				46,066,192
		Virginia—2.9%
		Chesterfield Cnty. Indl. Dev. Auth.,
PCR, Elec. & Pwr. Co.,
A3	3,000	Ser. A, 5.875%, 6/01/17	11/10 @ 102	3,294,540
A3	4,000	Ser. B, 5.875%, 6/01/17	11/10 @ 102	4,392,720
AAA	3,640	Hampton Convention Center, 5.00%,
1/15/35, AMBAC	01/13 @ 100	3,818,724
				11,505,984
		Washington—10.9%
AAA	3,655	Chelan Cnty. Pub. Util. Dist. 1,
Chelan Hydro Sys., Ser. C, 5.125%, 7/01/33, AMBAC	07/12 @ 100	3,830,696
AAA	6,450	King Cnty. Swr., 5.00%, 1/01/31,
FGIC	01/12 @ 100	6,695,487
AAA	9,500	Seattle, GO, Ser. F, 5.125%, 12/15/28,
MBIA	12/08 @ 100	9,794,120
BBB	7,545	Tobacco Settlement Auth., 6.625%,
6/01/32	06/13 @ 100	7,259,950
		Washington, GO, FSA,
AAA	6,380	Ser. A, 5.00%, 7/01/25	07/11 @ 100	6,641,644
AAA	9,000	Ser. B, 5.00%, 1/01/27	01/12 @ 100	9,348,570
				43,570,467
		Wisconsin—2.8%
BBB	12,000	Badger Tobacco Asset Sec. Corp.,
6.375%, 6/01/32	06/12 @ 100	11,275,440
		Total Long-Term Investments (cost
$576,955,964)		613,421,571

See Notes to Financial Statements.

17

BlackRock Insured Municipal Income Trust (BYM) (continued)

Shares — (000)	Description	Value
	MONEY MARKET FUND—3.0%
11,900	AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $11,900,000)	$ 11,900,000
	Total Investments—156.2%
(cost $588,855,964)	$ 625,321,571
	Other assets in excess of liabilities—1.0%	4,039,205
	Preferred shares at redemption value,
including dividends payable—(57.2)%	(229,006,446)
	Net Assets Applicable to Common
Shareholders—100%	$ 400,354,330

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | This bond is prerefunded. Securities,
held in escrow, are used to pay interest on this security, as well as retire the
bond in full at the maturity date indicated, typically at a premium to par. |
| 4 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| Securities that are covered by
insurance, which ensures the timely payment of principal and interest, represent
approximately 81.4% of the Trust’s total investments. | |

KEY TO ABBREVIATIONS

| AMBAC — American Municipal
Bond
Assurance Corporation | GO — General Obligation |
| --- | --- |
| FGIC — Financial Guaranty
Insurance Company | MBIA — Municipal Bond
Insurance Association |
| FSA — Financial Security
Assurance | PCR — Pollution Control
Revenue |

See Notes to Financial Statements.

18

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock Municipal Bond Trust (BBK)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM
INVESTMENTS—144.5%
		Alabama—11.0%
BBB	$ 9,250	Courtland
Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.50%, 9/01/25	09/05
@ 102	$ 9,616,485
A2	7,500	Huntsville
Hlth. Care Auth., Ser. A, 5.75%, 6/01/31	06/11
@ 101	7,867,200
				17,483,685
		California—13.9%
		Golden
St. Tobacco Sec. Corp., Ser. B,
AAA	880	5.00%,
6/01/38, AMBAC	06/13
@ 100	906,910
BBB	7,300	5.50%,
6/01/43	06/13
@ 100	7,369,277
BBB	4,200	5.625%,
6/01/38	06/13
@ 100	4,277,742
B-	8,000	Los
Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. B, 7.50%,
12/01/24	12/12
@ 102	7,966,080
NR 3	1,585	Val
Verde Unified School Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28	10/13
@ 102	1,605,748
				22,125,757
		Connecticut—3.1%
		Connecticut
Dev. Auth., Connecticut Lt. & Pwr.,
A3	2,200	PCR,
Ser. A, 5.85%, 9/01/28	10/08
@ 102	2,327,468
A3	1,750	PCR,
Ser. B, 5.95%, 9/01/28	10/08
@ 102	1,840,002
BBB-	690	Mohegan
Tribe Indians Gaming Auth., Pub. Impvt., 5.25%, 1/01/33	01/14
@ 100	697,542
				4,865,012
		Delaware—7.1%
NR 3	10,500 4	Charter
Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52	10/14
@ 100	11,283,510
		District
of Columbia—10.7%
		Dist.
of Columbia,
A	595	Friendship
Pub. Charter Sch. Inc., 5.25%, 6/01/33, ACA	06/14
@ 100	610,345
AAA	33,450	Georgetown
Univ., Ser. A, Zero Coupon, 4/01/38, MBIA	04/11
@ 20.243	4,535,151
AAA	6,000	Tax
Incr., Gallary Place Proj., 5.40%, 7/01/31, FSA	07/12
@ 100	6,428,340
BBB	5,580	Tobacco
Settlement Fin. Corp., 6.75%, 5/15/40	05/11
@ 101	5,389,499
				16,963,335
		Florida—16.1%
BBB-	6,200	Martin
Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25	12/04
@ 102	6,401,810
A	10,000	Orange
Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32	11/12
@ 101	10,577,600
AAA	7,255	Palm
Beach Cnty. Hsg. Fin. Auth., Mult. Fam. Rev., Indian Trace Apts., Ser. A, 5.625%,
1/01/44, FSA	01/12 @ 100	7,549,988
NR	1,000	Stevens
Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35	05/14
@ 100	1,022,810
				25,552,208
		Georgia—0.8%
AAA	1,265	Atlanta
Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA	05/12
@ 100	1,314,917
		Illinois—18.3%
AAA	23,065	Bolingbrook,
GO, Ser. B, Zero Coupon, 1/01/36, FGIC	01/12
@ 23.018	3,481,662
NR	1,150	Centerpoint
Intermodal Center, Ser. A, 8.00%, 6/15/23	No
Opt. Call	1,157,061
AAA	5,880	Chicago,
GO, Ser. A, 5.50%, 1/01/38, MBIA	01/11
@ 101	6,428,545
BBB	6,000	Illinois
Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj.,
6.25%, 5/01/34	05/07 @ 100	6,166,860
A	6,000	Illinois
Hlth. Facs. Auth., Lake Forest Hosp., Ser. A, 5.75%, 7/01/29	07/12
@ 100	6,363,600
		Met.
Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion
Proj., Ser. A, MBIA,
AAA	10,000	Zero
Coupon, 6/15/35	No
Opt. Call	1,976,200
AAA	10,000	Zero
Coupon, 12/15/36	No
Opt. Call	1,822,200
AAA	10,000	Zero
Coupon, 12/15/37	No
Opt. Call	1,723,900
				29,120,028
		Indiana—1.3%
NR 3	2,020	Mult.
Fam. Hsg., Canterbury House Apts., Ser. 1, 5.90%, 12/01/34	12/11
@ 100	2,008,526
		Kansas—3.4%
A-	5,000	Wichita
Arpt. Auth., Arpt. Facs. Rev., Cessna Citation Svc. Ctr., Ser. A, 6.25%, 6/15/32	06/12
@ 101	5,335,550
		Louisiana—0.7%
Baa1	1,165	Louisiana
Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38	06/13
@ 102	1,184,490

See Notes to Financial Statements.

19

BlackRock Municipal Bond Trust (BBK) (continued)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		Maryland—1.5%
NR	$ 1,250	Baltimore, Spec. Oblig. Rev., Harborview Lot
No. 2, 6.50%, 7/01/31	07/13 @ 101	$ 1,296,675
BBB	1,040	Maryland St. Hlth. & Higher Edl. Facs.
Auth., Medstar Hlth., 5.50%, 8/15/33	08/14 @ 100	1,039,002
				2,335,677
		Massachusetts—4.8%
AAA	7,500 5	Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev.,
Ser. A, 5.00%, 1/01/37, MBIA	01/07 @ 102	7,661,100
		Nevada—0.9%
NR	1,400	Las Vegas Spec. Impvt. Dist. No. 809, Summerlin
Area, 5.65%, 6/01/23	06/04 @ 103	1,388,380
		New Jersey—14.5%
		New Jersey Econ. Dev. Auth.,
B	3,000	Continental Airlines Inc. Proj., 7.20%, 11/15/30	11/10 @ 101	2,872,170
Baa3	7,500	Kapkowski Road Landfill Proj., 6.50%, 4/01/28	No Opt. Call	8,685,750
BBB	11,330	Tobacco Settlement Fin. Corp., 7.00%, 6/01/41	06/13 @ 100	11,429,137
				22,987,057
		Ohio—0.9%
NR	1,500	Port Greater Cincinnati Dev. Auth., Cooperative
Pub. Parking Infrastructure Proj., 6.40%, 2/15/34	02/14 @ 102	1,499,910
		Oregon—0.6%
NR 3	1,000	Mult. Fam. Hsg., Pacific Tower Apts., Ser.
6, 6.05%, 11/01/34	06/12 @ 100	988,900
		Rhode Island—3.3%
BBB	5,805	Tobacco Settlement Fin. Corp., Ser. A, 6.25%,
6/01/42	06/12 @ 100	5,312,678
		South Carolina—1.4%
		So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs.
Rev.,
A-	1,000	Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%,
11/15/30	11/12 @ 100	1,019,830
BBB	1,000	Palmetto Hlth. Alliance, Ser. C, 7.00%, 8/01/30	08/13 @ 100	1,119,770
				2,139,600
		Texas—22.4%
BBB	1,230	Brazos River Auth., PCR, TXU Elec Co. Proj.,
Ser. C, 6.75%, 10/01/38	10/13 @ 101	1,339,777
AAA	11,690	Harris Cnty. Houston Sports Auth., Ser. G,
Zero Coupon, 11/15/41, MBIA	11/31 @ 53.779	1,380,238
BBB	1,155	Matagorda Cnty. Navigation Dist. 1, Collateral
Centerpoint Energy Proj., 5.60%, 3/01/27	03/14 @ 101	1,179,729
NR 3	2,840	Mult. Fam. Hsg., Copperwood Ranch Apts., Ser.
9, 5.95%, 11/01/35	06/12 @ 100	2,820,234
BBB	10,000	Red River Auth., PCR, Celanese Proj., Ser.
B, 6.70%, 11/01/30	05/12 @ 101	10,805,100
BBB	1,000	Sabine River Auth., PCR, TXU Elec. Co. Proj.,
Ser. B, 6.15%, 8/01/22	08/13 @ 101	1,058,210
AAA	60,000	Texas Tpke. Auth., Central Sys. Rev., Zero
Coupon, 8/15/35, AMBAC	08/12 @ 25.665	9,819,600
BBB+	6,840	Tyler Cnty. Hlth. Facs. Dev., Mother Frances
Hosp., 6.00%, 7/01/31	07/12 @ 100	7,117,909
				35,520,797
		West Virginia—2.2%
AAA	20,255	West Virginia Hsg. Dev. Fund, Hsg. Fin. Rev.,
Zero Coupon, 11/01/37	No Opt. Call	3,551,107
		Wisconsin—5.6%
		Wisconsin Hlth. & Edl. Facs. Auth.,
A-	1,350	Aurora Hlth. Care, 6.40%, 4/15/33	04/13 @ 100	1,445,729
A	7,000	Wheaton Franciscan Svcs., 5.75%, 8/15/30	02/12 @ 101	7,419,650
				8,865,379
		Total Long-Term Investments (cost $216,065,896)		229,487,603
		SHORT-TERM INVESTMENTS—10.9%
		Georgia—1.8%
A1+	2,800	Mun. Elec. Auth., Proj. 1, Ser. C, 0.85%, 3/03/04,
MBIA, FRWD 6	N/A	2,800,000
		New York—1.7%
A1+	1,500	New York City, Ser. H, 0.98%, 3/01/04, FSA,
FRDD 6	N/A	1,500,000
A1+	1,200	New York City Mun. Wtr. Fin. Auth., Wtr. & Swr.
Sys., Ser. G, 0.98%, 3/01/04, FGIC, FRDD 6	N/A	1,200,000
				2,700,000

See Notes to Financial Statements.

20

BlackRock Municipal Bond Trust (BBK) (continued)

Shares — (000)	Description	Value
	MONEY MARKET FUNDS—7.4%
7,900	AIM Tax Free Investment Co. Cash
Reserve Portfolio	$ 7,900,000
3,950	SSgA Tax Free Money Mkt. Fund	3,950,000
		11,850,000
	Total Short-Term Investments (cost
$17,350,000)	17,350,000
	Total Investments—155.4%
(cost $233,415,896)	$246,837,603
	Other assets in excess of liabilities—1.6%	2,468,424
	Preferred shares at redemption value,
including dividends payable—(57.0)%	(90,509,006)
	Net Assets Applicable to Common
Shareholders—100%	$158,797,021

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Security is deemed to be of investment
grade quality by the investment advisor. |
| 4 | Security is not registered under
the Securities Act of 1933. This security may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 7.1% of its net assets, with a current market value of
$11,283,510, in securities restricted as to resale. |
| 5 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 6 | For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted. |

KEY TO ABBREVIATIONS

| ACA — American
Capital Access | FSA — Financial
Security Assurance |
| --- | --- |
| AMBAC — American Municipal
Bond Assurance Corporation | GO — General Obligation |
| FGIC — Financial Guaranty
Insurance Company | PCR — Pollution Control
Revenue |
| FRDD — Floating Rate
Daily Demand | MBIA — Municipal Bond
Insurance Association |
| FRWD — Floating Rate
Weekly Demand | |

See Notes to Financial Statements.

21

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock Municipal Income Trust II (BLE)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM
INVESTMENTS—150.8%
		California—16.2%
A	$ 2,250	Agua
Caliente Band, Cahuilla Indians, 6.00%, 7/01/18	07/13
@ 100	$ 2,244,825
A	3,500	California
Mobilehome Park Fin. Auth., Palomar Estates East & West, Ser. A, 5.25%,
3/15/34, ACA	03/13 @ 102	3,560,165
A	5,000	California
Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33	04/13
@ 100	5,205,000
		Golden
St. Tobacco Sec. Corp., Ser. B,
AAA	1,880	5.00%,
6/01/38, AMBAC	06/13
@ 100	1,937,490
BBB	16,850	5.50%,
6/01/43	06/13
@ 100	17,009,907
BBB	8,800	5.625%,
6/01/38	06/13
@ 100	8,962,888
B-	11,410	Los
Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%,
12/01/24	12/12 @ 102	11,361,622
NR	4,620	San
Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South,
6.625%, 8/01/27	08/11 @ 101	4,811,314
				55,093,211
		Colorado—4.3%
AA	10,000	Colorado
Hlth. Facs. Auth., Catholic Hlth. Initiatives, Ser. A, 5.50%, 3/01/32	03/12
@ 100	10,482,600
AAA	4,000	Northwest
Pkwy. Pub. Hwy. Auth., Ser. A, 5.25%, 6/15/41, FSA	06/11
@ 102	4,257,840
				14,740,440
		Connecticut—1.2%
A3	2,500	Connecticut
Dev. Auth., Connecticut Lt. & Pwr., PCR, Ser. B, 5.95%, 9/01/28	10/08
@ 102	2,628,575
BBB-	1,440	Mohegan
Tribe Indians Gaming Auth., Pub. Impvt., 5.25%, 1/01/33	01/14
@ 100	1,455,739
				4,084,314
		District
of Columbia—5.7%
		Dist.
of Columbia,
A	1,265	Friendship
Pub. Charter Sch. Inc., 5.25%, 6/01/33, ACA	06/14
@ 100	1,297,624
BBB	7,500	Tobacco
Settlement Fin. Corp., 6.50%, 5/15/33	No
Opt. Call	7,070,100
BBB	11,500	Tobacco
Settlement Fin. Corp., 6.75%, 5/15/40	05/11
@ 101	11,107,390
				19,475,114
		Florida—15.5%
Baa3	4,500	Capital
Trust Agcy., Air Cargo Fort Lauderdale Proj., 5.75%, 1/01/32	01/14
@ 101	4,366,665
		Fishhawk
Cmnty. Dev. Dist. II, Spec. Assmnt. Rev,
NR	3,000	Ser.
A, 6.25%, 5/01/34	05/13
@ 101	3,095,730
NR	6,830	Ser.
B, 5.00%, 11/01/07	No
Opt. Call	6,943,446
A	2,650	Leesburg
Hosp., Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32	07/12
@ 100	2,705,332
NR	3,200	Live
Oak Comm. Dev., Dist. No. 1 Spec. Assmnt. Rev., Ser. A, 6.30%, 5/01/34	05/13
@ 101	3,323,200
A	6,850	Orange
Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32	11/12
@ 101	7,245,656
AA-	14,000	Pinellas
Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33	05/13
@ 100	14,454,160
NR	2,085	Stevens
Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35	05/14
@ 100	2,132,559
NR	4,625	Sumter
Cnty. Ind. Dev. Auth., No. Sumter Util. Co. LLC, 6.90%, 10/01/34	10/09
@ 100	4,707,140
NR	3,715	Sumter
Landing Cmnty. Dev., Spec. Assmnt. Rev, 6.875%, 5/01/23	05/13
@ 101	3,900,862
				52,874,750
		Georgia—1.6%
AAA	5,175	Atlanta
Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA	05/12
@ 100	5,379,206
		Illinois—16.5%
AAA	4,000	Bolingbrook,
GO, Ser. A, 5.375%, 1/01/38, FGIC	01/12
@ 100	4,264,280
NR	2,470	Centerpoint
Intermodal Center, Ser. A, 8.00%, 6/15/23	No
Opt. Call	2,485,166
A	7,500 3	Illinois
Dev. Fin. Auth., Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig., 5.65%, 11/15/24	11/09
@ 101	7,726,125
A2	8,000	Illinois
Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22	01/13
@ 100	8,402,080
AAA	15,000	Illinois
Sports Facs. Auth., Dedicated St. Tax Supported Rev., Zero Coupon, 6/15/30, AMBAC	06/15
@ 101	11,562,150
		Met.
Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion
Proj., Ser. A, MBIA,
AAA	25,000	Zero
Coupon, 12/15/29	No
Opt. Call	6,690,250
AAA	45,190	Zero
Coupon, 6/15/33	No
Opt. Call	9,965,298
AAA	5,000	Zero
Coupon, 6/15/40	No
Opt. Call	751,100
AAA	4,290	O’Hare
Intl. Arpt., Refdg. Gen. Arpt. 3rd Lien, Ser. C-2, 5.25%, 1/01/30, FSA	01/14
@ 100	4,502,827
				56,349,276

See Notes to Financial Statements.

22

BlackRock Municipal Income Trust II (BLE) (continued)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		Indiana—9.4%
Baa1	$ 5,500	Fort Wayne, PCR, Gen. Mtrs. Corp.
Proj., 6.20%, 10/15/25	12/12 @ 101	$ 5,880,270
AA	5,000	Indiana Hlth. Fac. Fin. Auth., Ascension
Hlth., Ser. F, 5.375%, 11/15/25	11/12 @ 101	5,160,950
AAA	19,735	Indianapolis Local Pub. Impvt. Bond
Bank, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/33, MBIA	07/12 @ 100	20,967,253
				32,008,473
		Louisiana—0.7%
Baa1	2,485	Louisiana Local Gov. Env., Oakleigh
Apts. Proj., Ser. A, 6.375%, 6/01/38	06/13 @ 102	2,526,574
		Maryland—2.5%
Baa3	5,000	Maryland Econ. Dev. Corp., Student
Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33	10/13 @ 100	5,058,450
		Maryland St. Hlth. & Higher Edl.
Facs. Auth.,
BBB	2,240	Medstar Hlth., 5.50%, 8/15/33	08/14 @ 100	2,237,850
A3	1,000	Union Hosp. of Cecil Cnty., 5.625%,
7/01/32	07/12 @ 100	1,040,950
				8,337,250
		Massachusetts—3.9%
AAA	13,110	Massachusetts Tpke. Auth., Met. Hwy.
Sys. Rev., Ser. A, 5.00%, 1/01/39, AMBAC	01/09 @ 101	13,432,375
		Mississippi—1.7%
BBB	4,950	Lowndes Cnty. Sld. Wst. Disp., PCR,
Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22	No Opt. Call	5,897,282
		Missouri—1.8%
NR	6,000	Dept. of Transp., Rt. 370/ Missouri
Bottom Rd./Taussig Rd. Transp. Dev., 7.20%, 5/01/33	05/13 @ 100	6,249,720
		Nevada—2.6%
NR	3,000	Henderson Local Impvt. Dist. No.
T-14, 5.80%, 3/01/23	03/04 @ 103	3,033,990
		No. Las Vegas Local Impvt., Spec.
Impvt. Dist. 60 Aliante,
NR	2,500	6.125%, 12/01/17	12/03 @ 103	2,576,225
NR	3,000	6.40%, 12/01/22	12/03 @ 103	3,091,320
				8,701,535
		New Jersey—8.7%
		New Jersey Econ. Dev. Auth.,
B	10,100	Continental Airlines Inc. Proj.,
7.20%, 11/15/30	11/10 @ 101	9,669,639
Baa3	7,475	Kapkowski Road Landfill Proj.,
6.50%, 4/01/28	No Opt. Call	8,656,797
Baa3	10,000	Kapkowski Road Landfill Proj.,
6.50%, 4/01/31	No Opt. Call	11,461,200
				29,787,636
		New Mexico—1.4%
Baa1	5,200	New Mexico Hsg. Auth., Region III,
Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38	01/13 @ 102	4,845,412
		New York—2.6%
Caa2	8,800	Port Auth. of NY & NJ, Spec.
Oblig. Rev., Cont’l/Eastern Proj. LaGuardia, 9.00%, 12/01/10	09/03 @ 100	8,847,520
		Pennsylvania—3.1%
BBB+	5,000	Monroe Cnty. Hosp. Auth., Hospital
Pocono Med Center, 6.00%, 1/01/43	01/14 @ 100	5,221,300
A3	5,175	Pennsylvania Econ. Dev. Fin. Auth.,
Amtrak Proj., Exempt Facs. Rev., Ser. A, 6.375%, 11/01/41	05/11 @ 101	5,325,696
				10,546,996
		Rhode Island—3.8%
BBB	14,200	Tobacco Settlement Fin. Corp., Ser.
A, 6.25%, 6/01/42	06/12 @ 100	12,995,698
		South Carolina—7.4%
		Greenwood Cnty. Hosp., Self Mem.
Hosp. Facs.,
A	3,280	5.50%, 10/01/26	10/11 @ 100	3,403,394
A	3,250	5.50%, 10/01/31	10/11 @ 100	3,361,865
NR	4,000	Lancaster Cnty. Assmnt., Edgewater
Impvt. Dist. Ser. A, 6.875%, 11/01/35	11/13 @ 101	4,116,040
		So. Carolina Jobs Econ. Dev. Auth.,
Hosp. Facs. Rev.,
A-	2,000	Bon Secours Hlth. Sys. Inc., Ser.
A, 5.625%, 11/15/30	11/12 @ 100	2,039,660
AA	3,750	Georgetown Mem. Hosp., 5.375%,
2/01/30, RAA	08/11 @ 100	3,952,425
BBB	2,640	Palmetto Hlth. Alliance, Ser. A,
6.25%, 8/01/31	08/13 @ 100	2,801,119
BBB	5,000	Palmetto Hlth. Alliance, Ser. C,
6.875%, 8/01/27	08/13 @ 100	5,553,100
				25,227,603
		South Dakota—2.8%
BBB	10,000	Edl. Enhancement Fdg. Corp., Tobacco
Settlement, Ser. B, 6.50%, 6/01/32	06/12 @ 101	9,551,400
		Tennessee—2.5%
AAA	20,405	Knox Cnty. Hlth. Edl. & Hsg.
Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/21, FSA	01/13 @ 63.44	8,359,724

See Notes to Financial Statements.

23

BlackRock Municipal Income Trust II (BLE) (continued)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		Texas—17.8%
BBB	$ 2,300	Brazos
River Auth., PCR, TXU Elec Co. Proj., Ser. C, 6.75%, 10/01/38	10/13
@ 101	$ 2,505,275
A-	1,750	Crawford
Ed. Facs. Corp., Higher Ed. Rev., Univ. of St. Thomas Proj., 5.375%, 10/01/27	10/12
@ 100	1,771,123
BBB	20,000	Gulf
Coast Wst. Disp. Auth., Environ. Impvt. Rev., Ser. A, 6.10%, 8/01/24	08/12
@ 100	21,176,600
BBB	2,485	Matagorda
Cnty. Navigation Dist. 1, Collateral Centerpoint Energy Proj., 5.60%, 3/01/27	03/14
@ 101	2,538,204
		Sabine
River Auth., PCR, Ser. B,
BBB	5,900	TXU
Elec. Co. Proj., 5.75%, 11/01/11	No
Opt. Call	6,374,183
BBB	2,000	TXU
Elec. Co. Proj., 6.15%, 8/01/22	08/13
@ 101	2,116,420
		Texas
Tpke. Auth., Central Sys. Rev., AMBAC,
AAA	73,370	Zero
Coupon, 8/15/36	08/12 @ 24.171	11,303,382
AAA	65,000	Zero
Coupon, 8/15/37	08/12 @ 22.708	9,308,650
AAA	27,600	Zero
Coupon, 8/15/38	08/12 @ 21.384	3,719,928
				60,813,765
		Utah—1.2%
BBB	4,000	Tooele
Cnty. Hazardous Wst. Treat., Union Pacific Proj., Ser. A, 5.70%, 11/01/26	04/08
@ 102	4,094,480
		Virginia—7.0%
NR 4	13,500	Alexandria
Redev. & Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34	04/08
@ 103	14,048,640
AAA	9,000	Halifax
Cnty. Indl. Dev. Auth., Exempt Fac. Rev., Old Dominion Elec. Coop. Proj., 5.625%,
6/01/28, AMBAC	06/13 @ 101	9,792,270
				23,840,910
		West
Virginia—1.5%
BBB+	5,000	Mason
Cnty., PCR, Refunding Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22	10/11
@ 100	5,114,850
		Wisconsin—6.5%
BBB	9,100	Badger
Tobacco Asset Sec. Corp., 6.375%, 6/01/32	06/12
@ 100	8,550,542
		Wisconsin
Hlth. & Edl. Facs. Auth.,
A-	3,930	Aurora
Hlth. Care, 6.40%, 4/15/33	04/13
@ 100	4,208,676
A-	4,000	Synergy
Hlth. Inc., 6.00%, 11/15/32	08/13
@ 100	4,175,160
A	5,000	Wheaton
Franciscan Svcs., 5.75%, 8/15/25	02/12
@ 101	5,329,650
				22,264,028
		U.
S. Virgin Islands—0.9%
A	2,920	Virgin
Islands Pub. Fin. Auth., Gross Rcpts. Taxes Loan Note, 5.00%, 10/01/31, ACA	10/14
@ 100	3,033,062
		Total
Long-Term Investments (cost $491,267,075)		514,472,604
		SHORT-TERM
INVESTMENTS—7.9%
		California—0.0%
A1	75	California
Hlth. Facs. Fin. Auth., Ins. Scripps Hlth., Ser. B, 0.92%, 3/03/04, MBIA, FRWD 5	N/A	75,000
		Kansas—0.3%
A1+	1,000	Kansas
Dept. Transp. Hwy, Ser. B-1, 0.94%, 3/01/04, FRDD 5	N/A	1,000,000
		Missouri—0.5%
A1+	1,800	Missouri
Hlth. & Edl. Facs. Auth., Edl. Facs. Rev., The Washington Univ., Ser. C,
0.98%, 3/01/04, FRDD 5	N/A	1,800,000
		Texas—3.8%
A1+	3,800	Brownsville
Util. Sys., Ser. A, 0.90%, 3/03/04, MBIA, FRWD 5	N/A	3,800,000
A1+	9,000	Lower
Neches Valley Auth., Ind. Dev. Corp., Ser. A, 0.88%, 3/01/04, FRDD 5	N/A	9,000,000
				12,800,000
		Puerto
Rico—0.9%
A1	3,000	Puerto
Rico Comnwlth. Govt. Dev. Bank, 0.89%, 3/03/04, MBIA, FRWD 5	N/A	3,000,000

See Notes to Financial Statements.

24

BlackRock Municipal Income Trust II (BLE) (continued)

Shares — (000)	Description	Value
	MONEY MARKET FUND—2.4%
8,200	AIM Tax Free Investment Co. Cash
Reserve Portfolio	$ 8,200,000
	Total Short-Term Investments (cost
$26,875,000)	26,875,000
	Total Investments—158.7%
(cost $518,142,075)	$ 541,347,604
	Other assets in excess of liabilities—1.6%	5,397,214
	Preferred shares at redemption value,
including dividends payable—(60.3)%	(205,571,978)
	Net Assets Applicable to Common
Shareholders—100%	$ 341,172,840

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 4 | Security is deemed to be of investment
grade quality by the investment advisor. |
| 5 | For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted. |

KEY TO ABBREVIATIONS

| ACA — American
Capital Access | FSA — Financial
Security Assurance |
| --- | --- |
| AMBAC — American Municipal
Bond Assurance Corporation | GO — General Obligation |
| FGIC — Financial Guaranty
Insurance Company | MBIA — Municipal Bond
Insurance Association |
| FRDD — Floating Rate
Daily Demand | PCR — Pollution Control
Revenue |
| FRWD — Floating Rate
Weekly Demand | RAA — Radian Asset
Assurance |

See Notes to Financial Statements.

25

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock California Insured Municipal Income Trust (BCK)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM INVESTMENTS—153.2%
AAA	$ 6,500	Benicia Unified Sch. Dist., Ser.
B, Zero Coupon, 8/01/23, MBIA	No Opt. Call	$ 2,501,720
		California Cnty., Tobacco Sec. Agcy.
Rev.,
BBB	7,405	Sonoma Cnty., 5.875%, 6/01/43	06/12 @ 100	6,371,558
BBB	7,650	Alameda Cnty., 6.00%, 6/01/42	06/12 @ 100	6,743,858
A-	6,500	California Dept. of Wtr. Res., Pwr.
Sply. Rev., Ser. A, 5.25%, 5/01/20	05/12 @ 101	6,939,790
AAA	2,385	California Edl. Facs. Auth., Scripps
Coll., 5.00%, 8/01/31, MBIA	08/11 @ 100	2,483,858
AAA	4,500 3	California Infrastructure & Econ.
Dev., Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC	04/12 @ 100	4,773,870
AAA	5,000	California Pub. Wks. Brd., Dept.
of Gen. Svcs., Ser. A, 5.00%, 12/01/27, AMBAC	12/12 @ 100	5,209,250
		Ceres Unified Sch. Dist., Ser. B,
FGIC,
AAA	3,055	Zero Coupon, 8/01/30	08/12 @ 34.887	710,837
AAA	3,180	Zero Coupon, 8/01/31	08/12 @ 32.868	696,611
AAA	3,300	Zero Coupon, 8/01/32	08/12 @ 30.966	679,008
AAA	3,440	Zero Coupon, 8/01/33	08/12 @ 29.174	670,834
AAA	3,575	Zero Coupon, 8/01/34	08/12 @ 27.782	658,015
AAA	3,275	Zero Coupon, 8/01/35	08/12 @ 26.186	568,966
AAA	2,000	Long Beach Unified Sch. Dist., Ser.
D, 5.00%, 8/01/31, FSA	08/10 @ 101	2,082,900
		Los Angeles Dept. of Wtr. & Pwr.,
Wtr. Wks. Rev., Ser. A, FGIC,
AAA	5,000	5.00%, 7/01/43	07/12 @ 100	5,187,300
AAA	5,000	5.125%, 7/01/41	07/11 @ 100	5,256,800
AAA	5,000	Los Angeles Unified Sch. Dist., Ser.
E, 5.125%, 1/01/27, MBIA	07/12 @ 100	5,321,800
		Los Angeles Wstwtr. Sys., Ser. A,
AAA	5,000	5.00%, 6/01/27, MBIA	06/13 @ 100	5,246,400
AAA	6,025	5.00%, 6/01/32, FGIC	06/12 @ 100	6,294,438
AAA	5,000	No. California Pwr. Agcy., Pub. Pwr.
Rev., Hydroelec. Proj. 1, Ser. A, 5.00%, 7/01/28, MBIA	07/08 @ 101	5,194,050
AAA	2,500	No. Orange Cnty. Cmnty. Coll. Dist.,
Ser. A, 5.00%, 2/01/27, MBIA	08/12 @ 101	2,625,125
AAA	5,000	Riverside Unified Sch. Dist., Ser.
A, 5.00%, 2/01/27, FGIC	02/12 @ 101	5,257,950
AAA	5,295	San Diego Cnty. Wtr. Auth., COP,
Ser. A, 5.00%, 5/01/32, MBIA	05/12 @ 101	5,533,646
AAA	4,805	San Diego Redev. Agcy., Centre City
Proj., Ser. A, 5.00%, 9/01/28, MBIA	09/11 @ 101	5,034,871
AAA	4,000	San Diego Univ. Fndtn Aux. Org.,
Ser. A, 5.00%, 3/01/37, MBIA	03/12 @ 100	4,174,480
AAA	20,000	San Joaquin Hills Transp. Corridor
Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/31, MBIA	No Opt. Call	5,088,600
AAA	6,000	San Jose Fin. Auth., Civic Ctr. Proj.,
Ser. B, 5.00%, 6/01/37, AMBAC	06/12 @ 100	6,268,320
AAA	11,125	Santa Rosa Wstwtr., Ser. B, Zero
Coupon, 9/01/27, AMBAC	No Opt. Call	3,392,012
AAA	3,000	Tustin Unified Sch. Dist., Spec.
Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. A, 5.00%, 9/01/38, FSA	09/12 @ 100	3,116,190
AAA	5,280	Westlands Wtr. Dist., COP, 5.00%,
9/01/34, MBIA	09/12 @ 101	5,525,467
		Total Long-Term Investments (cost
$116,149,319)		119,608,524
	Shares
	(000)
		MONEY MARKET FUND—4.6%
	3,600	AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $3,600,000)	N/A	3,600,000
		Total Investments—157.8%
(cost $119,749,319)		$123,208,524
		Other assets in excess of liabilities—1.7%		1,352,782
		Preferred shares at redemption value,
including dividends payable—(59.5)%		(46,508,035)
		Net Assets Applicable to Common
Shareholders—100%		$ 78,053,271

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| Securities that are covered by insurance,
which ensures the timely payment of principal and interest, represent approximately
80.8% of the Trust’s total investments. | |

KEY TO ABBREVIATIONS

| AMBAC — American
Municipal Bond Assurance Corporation | FSA — Financial
Security Assurance |
| --- | --- |
| COP — Certificate of
Participation | MBIA — Municipal Bond
Insurance Association |
| FGIC — Financial Guaranty
Insurance Company | |

See Notes to Financial Statements.

26

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock California Municipal Bond Trust (BZA)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM INVESTMENTS—149.6%
		California—142.2%
AAA	$ 5,000	Anaheim Pub. Fin. Auth., Pub. Impvt.
Proj., Ser. C, Zero Coupon, 9/01/32, FSA	No Opt. Call	$ 1,151,550
		California Cnty. Tobacco Sec. Agcy.,
Ser. A,
BBB	4,000	Kern Cnty. Fdg., 6.125%, 6/01/43	06/12 @ 100	3,576,560
BBB	3,250	Stanislaus Fdg., 5.875%, 6/01/43	06/12 @ 100	2,796,430
A2	4,000	California Edl. Facs. Auth., Univ.
of San Diego, Ser. A, 5.25%, 10/01/30	10/12 @ 100	4,203,480
BBB	3,270	California Hlth. Facs. Fin. Auth.,
Insured Hlth. Facs. Valleycare, Ser. A, 5.375%, 5/01/27	05/12 @ 100	3,369,146
AAA	15,755	California Hsg. Fin. Agcy., Home
Mtg., Ser. K, Zero Coupon, 2/01/33, MBIA	02/12 @ 27.46	2,826,289
		California Infrastructure & Econ.
Dev.,
AAA	3,000	5.25%, 6/01/30, MBIA	06/07 @ 101	3,176,850
A	3,750	J. David Gladstone Inst. Proj.,
5.25%, 10/01/34	10/11 @ 101	3,894,750
AAA	3,500 3	Rand Corp., Ser. A, 5.25%, 4/01/42,
AMBAC	04/12 @ 100	3,713,010
		California Statewide Cmnty. Dev.
Auth.,
A	5,000	Kaiser Permanente, Ser. A, 5.50%,
11/01/32	11/12 @ 100	5,221,950
AA-	3,250	Sutter Hlth. Oblig. Grp., Ser.
B, 5.625%, 8/15/42	08/12 @ 100	3,391,765
BBB	3,750	Foothill/Eastn. Transp. Corridor
Agcy., Toll Road Rev., 5.75%, 1/15/40	01/10 @ 101	3,875,100
		Golden St. Tobacco Sec. Corp.,
BBB	3,000	Ser. A-1, 6.75%, 6/01/39	06/13 @ 100	2,924,970
BBB	2,500	Ser. B, 5.50%, 6/01/43	06/13 @ 100	2,523,725
BBB	1,300	Ser. B, 5.625%, 6/01/38	06/13 @ 100	1,324,063
		Lathrop Fin. Auth., Wtr. Suply. Proj.,
NR 4	655	5.90%, 6/01/27	06/13 @ 100	654,928
NR 4	1,180	6.00%, 6/01/35	06/13 @ 100	1,187,918
		Los Angeles Regl. Arpt. Impvt., Corp.
Lease Rev., Amer. Airlines Inc.,
B-	1,000	Ser. B, 7.50%, 12/01/24	12/12 @ 102	995,760
B-	680	Ser. C, 7.50%, 12/01/24	12/12 @ 102	677,117
		Mult. Fam. Hsg.,
NR 4	2,240	San Lucas Apts., Ser. 5, 5.95%,
11/01/34	06/12 @ 100	2,218,765
NR 4	2,425	Westgate Courtyard Apts., Ser.
3, 5.80%, 11/01/34	12/11 @ 100	2,402,035
NR	2,400	Orange Cnty. Cmnty. Facs. Dist.,
Spl. Tax Rev., Ladera Ranch, Ser. A, 6.00%, 8/15/32	08/10 @ 101	2,466,552
BBB	3,000	Palm Springs Mobile Home Park, Sahara
Mobile Home Park, 5.75%, 5/15/37	05/12 @ 102	3,082,230
NR	2,500	San Francisco City & Cnty. Redev.
Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.25%, 8/01/33	08/11 @ 101	2,547,250
AAA	15,000	Santa Ana Unified Sch. Dist., COP,
Zero Coupon, 4/01/29, FSA	No Opt. Call	4,201,050
AAA	2,500	Santa Clara Valley Wtr. Dist., Wtr.
Util. Sys. Rev., Ser. A, 5.125%, 6/01/31, FGIC	06/10 @ 100	2,619,775
A+	1,500	Torrance Hosp. Rev., Torrance Mem.
Med Ctr., Ser. A, 5.50%, 6/01/31	06/11 @ 101	1,556,565
				72,579,583
		Delaware—7.4%
NR 4	3,500 5	Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	3,761,170
		Total Long-Term Investments (cost
$73,257,824)		76,340,753
	Shares
	(000)
		MONEY MARKET FUNDS—7.0%
	2,500	AIM Tax Free Investment Co. Cash
Reserve Portfolio	N/A	2,500,000
	1,050	SSgA Tax Free Money Mkt. Fund	N/A	1,050,000
		Money Market Funds (cost $3,550,000)		3,550,000
		Total Investments—156.6%
(cost $76,807,824)		$ 79,890,753
		Other assets in excess of liabilities—2.2%		1,105,938
		Preferred shares at redemption value,
including dividends payable—(58.8)%		(29,980,179)
		Net Assets Applicable to Common
Shareholders—100%		$ 51,016,512

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 4 | Security is deemed to be of investment
grade quality by the investment advisor. |
| 5 | Security is not registered under the Securities
Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 7.4% of its net assets, with a current market value
of $3,761,170, in securities restricted as to resale. |

KEY TO ABBREVIATIONS

| AMBAC — American
Municipal Bond Assurance Corporation | FSA — Financial
Security Assurance |
| --- | --- |
| COP — Certificate of
Participation | MBIA — Municipal Bond
Insurance Association |
| FGIC — Financial Guaranty
Insurance Company | |

See Notes to Financial Statements.

27

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock California Municipal Income Trust II (BCL)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM
INVESTMENTS—157.7%
		Anaheim
Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, FSA,
AAA	$15,000	Zero
Coupon, 9/01/34	No
Opt. Call	$ 3,116,400
AAA	10,000	Zero
Coupon, 9/01/36	No
Opt. Call	1,844,700
Baa1	8,000	California,
GO, 5.50%, 11/01/33	11/13
@ 100	8,346,560
		California
Cnty. Tobacco Sec. Agcy.,
Baa2	4,500	Gold
Country Fdg. Corp., 6.00%, 6/01/38	06/12
@ 100	3,991,050
BBB	5,515	Ser.
B, 6.00%, 6/01/29	06/12
@ 100	5,135,347
BBB	1,600	Stanislaus
Fdg., Ser. A, 5.875%, 6/01/43	06/12
@ 100	1,376,704
A-	6,000 3	California
Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/21	05/12
@ 101	6,424,620
		California
Infrastructure & Econ. Dev., Ser. A,
AAA	5,000	Bay
Area Toll Brdgs., 5.00%, 7/01/36, AMBAC	07/13
@ 100	5,248,300
A	1,735	Kaiser
Hosp. Asst. LLC, 5.55%, 8/01/31	08/11
@ 102	1,824,162
AAA	2,500	Rand
Corp., 5.25%, 4/01/42, AMBAC	04/12
@ 100	2,652,150
A	3,500	California
Mobilehome Park Fin. Auth., Palomar Estates East & West, Ser. A, 5.25%,
3/15/34, ACA	03/13 @ 102	3,560,165
		California
Statewide Cmnty. Dev. Auth.,
A	5,000	Kaiser
Permanente, Ser. A, 5.50%, 11/01/32	11/12
@ 100	5,221,950
A	7,000	Mem.
Hlth. Svcs., Ser. A, 5.50%, 10/01/33	04/13
@ 100	7,287,000
AA-	8,000	Sutter
Hlth. Oblig Corp., Ser. B, 5.50%, 8/15/34	08/12
@ 100	8,308,640
		California
Statewide Fin. Auth., Tobacco Settlement Rev.,
BBB	5,000	Ser.
A, 6.00%, 5/01/37	05/12
@ 100	4,469,000
BBB	1,750	Ser.
B, 6.00%, 5/01/43	05/12
@ 100	1,535,380
AAA	6,000	Corona
Norco Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. No. 98-1, 5.10%,
9/01/32, AMBAC	09/12 @ 100	6,317,940
		Foothill/Eastn.
Transp. Corridor Agcy., Toll Road Rev., Ser. A,
AAA	15,470 4	Zero
Coupon, 1/01/26	ETM	5,367,471
AAA	4,890 4	Zero
Coupon, 1/01/30	ETM	1,345,435
		Golden
St. Tobacco Sec. Corp.,
BBB	4,000	Ser.
A-1, 6.75%, 6/01/39	06/13
@ 100	3,899,960
BBB	5,650	Ser.
B, 5.50%, 6/01/43	06/13
@ 100	5,703,618
BBB	3,000	Ser.
B, 5.625%, 6/01/38	06/13
@ 100	3,055,530
AAA	5,000	La
Quinta Redev. Agcy. Tax Allocation, Redev. Proj. Area No. 1, 5.125%, 9/01/32, AMBAC	09/12
@ 102	5,326,150
		Lathrop
Fin. Auth., Wtr. Suply. Proj.,
NR 5	1,490	5.90%,
6/01/27	06/13
@ 100	1,489,836
NR 5	2,680	6.00%,
6/01/35	06/13
@ 100	2,697,983
AAA	5,500	Los
Angeles Dept. of Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, FGIC	07/11
@ 100	5,782,480
B-	1,785	Los
Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%,
12/01/24	12/12
@ 102	1,777,432
		Oxnard
Impvt. Bond, Dist. No. 1 Spec. Assmt., 1 Rice Ave.,
NR	1,920	5.625%,
9/02/27	09/04
@ 103	1,904,659
NR	1,915	5.70%,
9/02/32	09/04
@ 103	1,896,348
AAA	5,000	Poway
Redev. Agcy. Tax Allocation, Paguay Redev. Proj., 5.125%, 6/15/33, AMBAC	12/11
@ 101	5,300,050
		Poway
Unified Sch. Dist., Spl. Tax Rev., Cmnty. Facs. Dist. No. 6,
NR	1,500	5.50%,
9/01/25	09/10
@ 102	1,464,900
NR	1,700	5.60%,
9/01/33	09/10
@ 102	1,699,507
BBB	2,470	Rohnert
Park Fin. Auth., Rancho Feliz Mobile Home Park, Ser. A, 5.625%, 9/15/28	09/13
@ 100	2,423,243
AAA	5,000	Sacramento
City Fin. Auth., Cap. Impvt., Ser. A, 5.00%, 12/01/32, AMBAC	06/11
@ 100	5,199,850
NR	6,000	San
Bernardino Cnty., Spl. Tax Rev., Cmnty. Facs., 5.90%, 9/01/33	09/12
@ 102	5,917,440
AAA	8,665	San
Diego Unified Sch. Dist., Ser. D, 5.25%, 7/01/23, FGIC	07/12
@ 101	9,451,002
NR	5,000	San
Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South,
6.25%, 8/01/33	08/11
@ 101	5,094,500
AAA	30,000	San
Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/34,
MBIA	No
Opt. Call	6,531,900
NR	8,000	San
Jose Mult. Fam. Hsg., Helzer Courts Apts. Proj., Ser. A, 6.40%, 12/01/41	12/09
@ 102	7,734,400
		Santa
Clarita Facs. Dist., Valencia Town Ctr.,
NR 5	1,640	5.80%,
11/15/25	11/10
@ 102	1,646,511
NR 5	1,500	5.85%,
11/15/32	11/10
@ 102	1,508,985

See Notes to Financial Statements.

28

BlackRock California Municipal Income Trust II (BCL) (continued)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
AAA	$ 2,685	Santa Rosa Wstwtr., Ser. B, Zero
Coupon, 9/01/25, AMBAC	No Opt. Call	$ 911,477
BBB-	2,200	So. Tahoe Joint Pwr. Fin. Auth.,
So. Tahoe Redev. Proj. 1-A, 5.45%, 10/01/33	10/13 @ 100	2,233,242
NR	2,000	Tustin Unified Sch. Dist., Spec.
Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. B, 5.60%, 9/01/29	09/12 @ 101	2,009,500
AAA	2,000	Univ. of California, Ser. A, 5.00%,
5/15/33, AMBAC	05/13 @ 100	2,090,440
NR 5	1,170	Val Verde Unified Sch. Dist. Fin.
Auth., Spec. Tax Rev., 6.25%, 10/01/28	10/13 @ 102	1,185,315
A2	2,000	Vernon Elec. Sys., Malburg Generating
Station Proj., 5.50%, 4/01/33	04/08 @ 100	2,076,460
		Total Long-Term Investments (cost
$175,789,249)		181,385,692
	Shares
	(000)
		Money Market Fund—2.8%
	3,250	AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $3,250,000)	N/A	3,250,000
		Total Investments—160.5%
(cost $179,039,249)		$184,635,692
		Other assets in excess of liabilities—2.0%		2,346,708
		Preferred shares at redemption value,
including dividends payable—(62.5)%		(71,956,487)
		Net Assets Applicable to Common
Shareholders—100%		$115,025,913

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 4 | This security is collateralized by
U.S. Treasury obligations. |
| 5 | Security is deemed to be of investment
grade quality by the investment advisor. |

KEY TO ABBREVIATIONS

| ACA — American
Capital Access | FSA — Financial
Security Assurance |
| --- | --- |
| AMBAC — American Municipal
Bond Assurance Corporation | GO — General Obligation |
| ETM — Escrowed to Maturity | MBIA — Municipal Bond
Insurance Association |
| FGIC — Financial Guaranty
Insurance Company | |

See Notes to Financial Statements.

29

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock Florida Insured Municipal Income Trust (BAF)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM INVESTMENTS—155.9%
		Florida—149.2%
		Capital Trust Agcy. Multi-Fam., American
Opp.,
Baa3	$ 1,000	Ser. C, 7.25%, 6/01/38	06/13 @ 102	$ 993,580
Baa1	1,000	Ser. A, 5.875%, 6/01/38	06/13 @ 102	974,720
NR 3	4,000	Colonial Cntry. Club Cmnty. Dev.
Dist., 6.40%, 5/01/33	05/13 @ 101	4,175,080
		Florida Brd. of Ed.,
AAA	9,000	GO, Ser. A, 5.00%, 6/01/27, FSA	06/12 @ 101	9,506,790
AAA	8,640 4	Lottery Rev., Ser. C, 5.00%, 1/01/22,
MBIA	01/13 @ 101	9,187,776
AAA	7,000	Florida Dept. of Transp., 5.00%,
7/01/27, FSA	07/12 @ 101	7,353,080
AAA	8,695	Gainesville Util. Sys., Ser. A, 5.00%,
10/01/33, FSA	10/13 @ 100	9,122,707
A	8,500	Highlands Cnty. Hlth. Facs. Auth.,
Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31	11/11 @ 101	9,096,360
AAA	7,580	Hillsborough Cnty. Sch. Brd., COP,
Ser. A, 5.00%, 7/01/25, MBIA	07/10 @ 100	7,869,783
		Jacksonville,
AAA	8,000	Excise Tax, Ser. B, 5.00%, 10/01/26,
AMBAC	10/12 @ 100	8,387,920
AAA	9,500	Sales Tax, 5.00%, 10/01/27, MBIA	10/13 @ 100	10,005,400
AAA	9,500	Transp., 5.00%, 10/01/31, MBIA	10/11 @ 100	9,889,025
AAA	2,865	Jacksonville Cap. Impvt., Ser. A,
5.00%, 10/01/30, AMBAC	10/12 @ 100	2,997,650
AAA	1,480	Julington Creek Plantation Cmnty.
Dev., Assmt. Rev., 5.00%, 5/01/29, MBIA	05/12 @ 101	1,553,541
AAA	9,000	Lake Cnty. Sch. Brd., COP, Ser. A,
5.00%, 7/01/28, AMBAC	07/13 @ 100	9,461,070
AAA	26,935	Miami Dade Cnty., Spec. Oblig. Rev.,
Ser. B, Zero Coupon, 10/01/31, MBIA	04/08 @ 28.079	5,905,229
AAA	7,975	Orange Cnty., Sales Tax, Ser. B,
5.125%, 1/01/32, FGIC	01/13 @ 100	8,401,662
AAA	2,000	Orange Cnty. Sch. Brd., COP, Ser.
A, 5.00%, 8/01/27, MBIA	08/12 @ 100	2,088,180
AAA	9,250	Orange Cnty. Tourist Dev., Tax Rev.,
5.125%, 10/01/30, AMBAC	04/12 @ 100	9,722,027
AAA	4,000	Osceola Cnty. Sch. Brd., COP, Ser.
A, 5.25%, 6/01/27, AMBAC	06/12 @ 101	4,285,240
		Palm Bay Util., FGIC,
AAA	4,015	Zero Coupon, 10/01/28	No Opt. Call	1,196,350
AAA	5,570	Zero Coupon, 10/01/31	No Opt. Call	1,427,591
AAA	9,200	Palm Beach Cnty. Sch. Brd., COP,
Ser. D, 5.00%, 8/01/28, FSA	08/12 @ 100	9,612,252
AA-	5,000	Pinellas Cnty. Hlth. Fac. Auth.,
Baycare Hlth. Sys., 5.50%, 11/15/33	05/13 @ 100	5,162,200
AAA	9,500	Pinellas Cnty. Swr., 5.00%, 10/01/32,
FSA	10/13 @ 100	9,967,305
AAA	5,000	Polk Cnty. Util. Sys., 5.00%, 10/01/29,
FGIC	10/13 @ 100	5,257,950
AAA	825	Port St. Lucie Util., 5.125%, 9/01/31,
MBIA	09/11 @ 100	865,565
AAA	2,945	Sarasota Cnty. Util. Sys., Ser. C,
5.25%, 10/01/22, FGIC	10/12 @ 100	3,186,284
AAA	3,500	St. Petersburg Pub. Util., Ser. A,
5.00%, 10/01/28, FSA	10/09 @ 101	3,632,545
AAA	2,000	Tampa Bay Wtr. Util. Sys., Ser. A,
5.00%, 10/01/28, FGIC	10/11 @ 100	2,085,840
		Tohopekaliga Wtr. Auth., Ser. B,
FSA,
AAA	1,980	5.00%, 10/01/21	10/13 @ 100	2,125,570
AAA	1,000	5.00%, 10/01/23	10/13 @ 100	1,063,710
		Village Cmnty. Dev., Assmt. Rev.,
NR 3	5,000	Ser. A, 6.50%, 5/01/33	05/13 @ 101	5,284,400
NR 3	975	Ser. B, 5.40%, 5/01/07	No Opt. Call	994,481
AAA	12,000	Village Cntr. Cmnty. Dev. Dist.,
Ser. A, 5.00%, 11/01/32, MBIA	11/13 @ 101	12,644,040
				195,482,903
		Puerto Rico—6.7%
BBB	9,405	Children’s Trust Fund, Tobacco
Settlement Rev., 5.625%, 5/15/43	05/12 @ 100	8,768,940
		Total Long-Term Investments (cost
$196,677,572)		204,251,843

See Notes to Financial Statements.

30

BlackRock Florida Insured Municipal Income Trust (BAF) (continued)

Shares — (000)	Description	Value
	MONEY MARKET FUND—0.2%
300	AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $300,000)	$ 300,000
	Total Investments—156.1%
(cost $196,977,572)	$204,551,843
	Other assets in excess of liabilities—1.9%	2,533,079
	Preferred shares at redemption value,
including dividends payable—(58.0)%	(76,011,621)
	Net Assets Applicable to Common
Shareholders—100%	$131,073,301

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Security was deemed to be of investment
grade quality by the investment advisor at the time of purchase. |
| 4 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| Securities that are covered by insurance,
which ensures the timely payment of principal and interest, represent approximately
82.5% of the Trust’s total investments. | |

KEY TO ABBREVIATIONS

| AMBAC — American
Municipal Bond Assurance Corporation | FSA — Financial
Security Assurance |
| --- | --- |
| COP — Certificate of
Participation | GO — General Obligation |
| FGIC — Financial Guaranty
Insurance Company | MBIA — Municipal Bond
Insurance Association |

See Notes to Financial Statements.

31

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock Florida Municipal Bond Trust (BIE)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM INVESTMENTS—154.7%
		Florida—141.4%
AAA	$ 1,250	Bay Cnty., Sales Tax Rev., 5.125%,
9/01/32, AMBAC	09/12 @ 100	$ 1,319,350
A	1,000	Boynton Beach Multi. Fam., Clipper
Cove Apts., 5.30%, 1/01/23, ACA	01/13 @ 100	1,028,750
Baa1	1,000	Capital Trust Agcy. Multi-Fam., American
Opp., Ser. A, 5.875%, 6/01/38	06/13 @ 102	974,720
NR	1,690	Colonial Cntry. Club Cmnty. Dev.
Dist., 6.40%, 5/01/33	05/13 @ 101	1,763,971
AAA	750	Florida Brd. Educ., GO, Ser. J, 5.00%,
6/01/24, AMBAC	06/13 @ 101	797,910
AAA	3,150	Florida Mun. Loan Council, Ser. A,
5.125%, 5/01/32, MBIA	05/12 @ 101	3,336,039
NR	1,460	Gateway Svcs. Cmnty. Dev. Dist.,
Spec. Assmt., Stoneybrook Proj., 5.50%, 7/01/08	No Opt. Call	1,482,907
AAA	3,100	Greater Orlando Aviation Auth., Orlando
Arpt. Facs., Ser. A, 5.125%, 10/01/32, FSA	10/12 @ 100	3,259,681
A	4,900	Highlands Cnty. Hlth. Facs. Auth.,
Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31	11/11 @ 101	5,243,784
BBB+	1,810	Hillsborough Cnty. Ind. Dev. Auth.,
PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23	10/12 @ 100	1,831,322
AA	3,500	Jacksonville Econ. Dev. Comm. Hlth.
Facs., Mayo Clinic, Ser. B, 5.50%, 11/15/36	11/11 @ 101	3,704,435
AA+	5,000	JEA Elec. Sys., Ser. A, 5.50%, 10/01/41	10/07 @ 100	5,380,450
AAA	5,425 3	JEA Wtr. & Swr. Sys., Ser. A,
5.375%, 10/01/30, MBIA	04/07 @ 100	5,678,836
A1	3,000	Lakeland Hosp. Sys., Lakeland Regl.
Hlth. Sys., 5.50%, 11/15/32	11/12 @ 101	3,080,880
		Miami Dade Cnty., Spec. Oblig. Rev.,
MBIA,
AAA	5,500	Ser. A, Zero Coupon, 10/01/26	04/08 @ 37.301	1,611,775
AAA	10,000	Ser. B, Zero Coupon, 10/01/30	04/08 @ 29.688	2,321,500
AAA	5,410	Ser. B, Zero Coupon, 10/01/32	04/08 @ 26.494	1,118,355
A2	5,000	Orange Cnty. Hlth. Facs. Auth., Orlando
Regl. Hlth. Care, 5.75%, 12/01/32	12/12 @ 100	5,246,450
AAA	3,350	Orange Cnty. Tourist Dev., Tax Rev.,
5.125%, 10/01/30, AMBAC	04/12 @ 100	3,520,951
AAA	3,105	Osceola Cnty. Tourist Dev., Tax Rev.,
Ser. A, 5.00%, 10/01/32, FGIC	10/12 @ 100	3,244,228
AAA	3,630	Palm Bay Util., Zero Coupon, 10/01/28,
FGIC	No Opt. Call	1,081,631
AAA	3,000	Palm Beach Cnty. Sch. Brd., COP,
Ser. C, 5.00%, 8/01/27, FSA	08/12 @ 100	3,132,270
AAA	1,500	Port St. Lucie Util., 5.125%, 9/01/31,
MBIA	09/11 @ 100	1,573,755
Aa3	2,000	So. Broward Hosp. Dist., 5.60%, 5/01/27	05/12 @ 101	2,118,420
NR	2,000	Stevens Plantation Impvt. Proj.,
6.375%, 5/01/13	No Opt. Call	2,050,620
NR	2,850	Sumter Cnty. Indl. Dev. Auth., No.
Sumter Util. Co. LLC, 6.80%, 10/01/32	10/09 @ 100	2,907,485
NR	1,900	Village Cmnty. Dev., Assmt. Rev.,
Ser. A, 6.50%, 5/01/33	05/13 @ 101	2,008,072
		Volusia Cnty Edl. Fac. Auth., Embry
Riddle Aeronautical, RAA,
AA	1,250	5.20%, 10/15/26	10/13 @ 100	1,299,225
AA	1,610	5.20%, 10/15/33	10/13 @ 100	1,684,849
				73,802,621
		Delaware—6.2%
NR 4	3,000 5	Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	3,223,860
		Puerto Rico—7.1%
A-	3,500	Puerto Rico Pub. Bldgs. Auth., Gov’t.
Facs., Ser. D, 5.25%, 7/01/36	07/12 @ 100	3,693,480
		Total Investments—154.7%
(cost $75,832,770)		$ 80,719,961
		Other assets in excess of liabilities—2.4%		1,250,887
		Preferred shares at redemption value,
including dividends payable—(57.1)%		(29,778,001)
		Net Assets Applicable to Common
Shareholders—100%		$ 52,192,847

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 4 | Security is deemed to be of investment
grade quality by the investment advisor. |
| 5 | Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.2% of its net assets, with a current market value of
$3,223,860, in securities restricted as to resale. |

KEY TO ABBREVIATIONS

| ACA — American
Capital Access | FSA — Financial
Security Assurance |
| --- | --- |
| AMBAC — American Municipal
Bond Assurance Corporation | MBIA — Municipal Bond
Insurance Association |
| COP — Certificate
of Participation | PCR — Pollution Control
Revenue |
| FGIC — Financial Guaranty
Insurance Company | RAA — Radian Asset Assurance |

See Notes to Financial Statements.

32

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock Maryland Municipal Bond Trust (BZM)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM
INVESTMENTS—151.8%
		Maryland—120.2%
A3	$2,870	Anne
Arundel Cnty. Econ. Dev., Cmnty. Coll. Proj., 5.25%, 9/01/28	09/12
@ 102	$ 3,020,331
NR	1,000	Baltimore,
Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31	07/13
@ 101	1,037,340
		Baltimore
Cnty., GO,
AAA	2,000 3	Met.
67th Dist., 5.00%, 6/01/22	06/11
@ 101	2,139,700
AAA	2,000	Met.
68th Dist., 5.00%, 8/01/28	08/12
@ 100	2,099,680
		Baltimore
Wstwtr. Proj., Ser. A, FGIC,
AAA	2,000	5.125%,
7/01/42	07/12
@ 100	2,103,260
AAA	3,500	5.20%,
7/01/32	07/12
@ 100	3,729,110
NR	1,000	Frederick
Cnty. Spec. Oblig., Urbana Cmnty. Dev. Auth., 6.625%, 7/01/25	07/07
@ 102	1,050,730
Aa2	390	Maryland
Cmnty Dev. Admin., Dept. Hsg. & Cmnty. Dev., Ser. B, 4.95%, 7/01/32	07/12
@ 100	391,240
Baa3	1,500	Maryland
Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33	10/13
@ 100	1,517,535
		Maryland
Hlth. & Higher Edl. Facs. Auth.,
A	2,000	Brd.
of Child Care, 5.375%, 7/01/32	07/12
@ 100	2,105,020
BBB+	1,990	Carroll
Cnty. Gen. Hosp., 6.00%, 7/01/37	07/12
@ 100	2,110,694
AA	2,000	Johns
Hopkins Univ., Ser. B, 5.00%, 7/01/41	07/11
@ 100	2,070,580
A	2,000	Loyola
Coll. Issue, 5.00%, 10/01/39	10/09
@ 101	2,060,720
A3	2,000	Union
Hosp. of Cecil Cnty., 5.625%, 7/01/32	07/12
@ 100	2,081,900
A	2,000	Univ.
of Maryland Med. Sys., 5.25%, 7/01/34	07/11
@ 100	2,053,640
A2	1,905	Maryland
Ind. Dev. Fin. Auth., Econ. Dev. Rev., Nat’l. Aquarium Baltimore Fac.,
Ser. B, 5.20%, 11/01/26	11/12 @ 100	1,988,934
AAA	2,000	Maryland
Transp. Auth., Arpt. Pkg. Rev., Baltimore/Wash Intl. Arpt., Ser. B, 5.125%,
3/01/24, AMBAC	03/12 @ 101	2,100,160
		Montgomery
Cnty. Lease, Metrorail Garage Proj.,
AA	500	5.00%,
6/01/23	06/12
@ 100	529,480
AA	1,435	5.00%,
6/01/24	06/12
@ 100	1,514,470
		St.
Mary’s Coll., Academic & Auxil. Fees, Ser. A, AMBAC,
AAA	1,000	5.00%,
9/01/27	09/12
@ 101	1,055,240
AAA	1,000	5.00%,
9/01/32	09/12
@ 101	1,051,250
				37,811,014
		Delaware—6.9%
NR 4	2,000 5	Charter
Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52	10/14
@ 100	2,149,240
		Puerto
Rico—24.7%
BBB	2,000	Children’s
Trust Fund, Tobacco Settlement Rev., 5.50%, 5/15/39	05/12
@ 100	1,845,960
AAA	2,060	Puerto
Rico Elec. Pwr. Auth., Ser. HH, 5.25%, 7/01/29, FSA	07/10
@ 101	2,205,292
A	2,000	Puerto
Rico Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38	07/12
@ 100	2,103,440
A-	1,500	Puerto
Rico Pub. Bldgs. Auth., Gov’t. Facs., Ser. D, 5.375%, 7/01/33	07/12
@ 100	1,606,650
				7,761,342
		Total
Long-Term Investments (cost $44,966,131)		47,721,596
	Shares
	(000)
		MONEY MARKET
FUND —2.5%
	800	AIM
Tax Free Investment Co. Cash Reserve Portfolio (cost $800,000)	N/A	800,000
		Total
Investments—154.3% (cost $45,766,131)		$
48,521,596
		Other
assets in excess of liabilities—2.9%		927,691
		Preferred
shares at redemption value, including dividends payable—(57.2)%		(18,000,963)
		Net
Assets Applicable to Common Shareholders—100%		$ 31,448,324

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 4 | Security is deemed to be of investment
grade quality by the investment advisor. |
| 5 | Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.9% of its net assets, with a current market value of
$2,149,240, in securities restricted as to resale. |

KEY TO ABBREVIATIONS

| AMBAC — American Municipal
Bond Assurance Corporation | FSA — Financial Security
Assurance |
| --- | --- |
| FGIC — Financial Guaranty
Insurance Company | GO — General Obligation |

See Notes to Financial Statements.

33

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock New Jersey Municipal Bond Trust (BLJ)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM INVESTMENTS—158.0%
		New Jersey—123.1%
AAA	$10,000	Garden St. Pres. Trust, Open Space
& Farmland Pres., Ser. B, Zero Coupon, 11/01/27, FSA	No Opt. Call	$ 3,153,700
Baa1	2,500	Middlesex Cnty. Impvt. Auth., Str.
Student Hsg. Proj., Ser. A, 5.00%, 8/15/35	08/14 @ 100	2,453,275
		New Jersey Econ. Dev. Auth.,
B	2,335	Continental Airlines Inc. Proj.,
7.00%, 11/15/30	11/10 @ 101	2,182,221
BBB-	2,000	Fellowship Village, Ser. A, 5.50%,
1/01/25	01/08 @ 102	1,994,840
Baa3	2,250	Kapkowski Road Landfill Proj.,
6.50%, 4/01/28	No Opt. Call	2,605,725
Aaa	1,770	Victoria Hlth., Ser. A, 5.20%,
12/20/36,	12/11 @ 103	1,867,385
BBB-	1,500	Winchester, Ser. A, 5.80%, 11/01/31	11/14 @ 100	1,499,655
		New Jersey Edl. Facs. Auth.,
BBB-	1,000	Fairleigh Dickinson Univ., Ser.
D, 6.00%, 7/01/25	07/13 @ 100	1,048,910
BBB+	630	Georgian Court Coll. Proj., Ser.
C, 6.50%, 7/01/33	07/13 @ 100	702,904
		New Jersey Hlth. Care Fac. Fin. Auth.,
A-	2,000	Atlantic City Med. Ctr., 5.75%,
7/01/25	07/12 @ 100	2,122,600
A+	2,000	Catholic Hlth. East, Ser. A, 5.375%,
11/15/33	11/12 @ 100	2,061,480
A3	2,000 3	Kennedy Hlth. Sys., 5.625%, 7/01/31	07/11 @ 100	2,079,460
Baa1	2,500	So. Jersey Hosp., 6.00%, 7/01/32	07/12 @ 100	2,584,600
AAA	2,250	New Jersey Hsg. & Mtg. Fin. Agcy.,
Mult. Fam. Hsg. Rev., Ser. A, 5.65%, 5/01/40, AMBAC	11/07 @ 101.5	2,351,385
		Port Auth. of NY & NJ,
AAA	1,500	Ser. 125, 5.00%, 4/15/32, FSA	04/12 @ 101	1,582,095
AAA	2,250	Ser. 126, 5.25%, 5/15/37, FGIC	05/12 @ 101	2,372,558
Caa2	130	Spec. Oblig., Cont’l/Eastern
Proj. LaGuardia, 9.125%, 12/01/15	03/04 @ 100	130,183
BBB	7,000	Tobacco Settlement Fin. Corp., 6.125%,
6/01/42	06/12 @ 100	6,331,920
AAA	1,000	Univ. of Med. & Dentistry, Ser.
A, 5.00%, 12/01/31, AMBAC	12/12 @ 100	1,050,750
		Vineland, GO, MBIA,
AAA	1,000	5.30%, 5/15/29	05/10 @ 101	1,058,140
AAA	1,500	5.375%, 5/15/32	05/10 @ 101	1,590,285
				42,824,071
		Delaware—6.2%
NR 4	2,000 5	Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	2,149,240
		Puerto Rico—28.7%
A-	2,250	Puerto Rico Elec. Pwr. Auth., Ser.
2, 5.25%, 7/01/31	07/12 @ 101	2,388,532
A	4,900	Puerto Rico Hwy. & Transp. Auth.,
Ser. D, 5.25%, 7/01/38	07/12 @ 100	5,153,428
A-	2,300	Puerto Rico Pub. Bldgs. Auth., Gov’t.
Facs., Ser. D, 5.25%, 7/01/27	07/12 @ 100	2,435,355
				9,977,315
		Total Investments—158.0%
(cost $52,721,818)		$ 54,950,626
		Other assets in excess of liabilities—0.2%		57,080
		Preferred shares at redemption value,
including dividends payable—(58.2)%		(20,228,093)
		Net Assets Applicable to Common
Shareholders—100%		$ 34,779,613

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 4 | Security is deemed to be of investment
grade quality by the investment advisor. |
| 5 | Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.2% of its net assets, with a current market value of
$2,149,240, in securities restricted as to resale. |

KEY TO ABBREVIATIONS

| AMBAC — American
Municipal Bond Assurance Corporation | GO — General
Obligation |
| --- | --- |
| FGIC — Financial Guaranty
Insurance Company | MBIA — Municipal Bond
Insurance Association |
| FSA — Financial Security
Assurance | |

See Notes to Financial Statements.

34

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock New York Insured Municipal Income Trust (BSE)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM
INVESTMENTS—155.5%
		New
York—141.8%
BBB-	$ 1,000	Herkimer
Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg.,
6.25%, 8/01/34	08/13 @ 100	$ 1,031,420
		Met.
Transp. Auth.,
AAA	1,085	Ser.
A, 5.00%, 11/15/25, FGIC	11/12
@ 100	1,142,245
AAA	8,470	Ser.
A, 5.00%, 11/15/30, FSA	11/12
@ 100	8,879,186
AAA	5,000	Ser.
A, 5.25%, 11/15/31, FGIC	11/12
@ 100	5,365,200
AAA	5,000	Dedicated
Tax Fund, Ser. A, 5.00%, 11/15/28, FSA	11/12
@ 100	5,248,950
AAA	5,000	Dedicated
Tax Fund, Ser. A, 5.00%, 11/15/31, FGIC	11/11
@ 100	5,214,150
AAA	2,660	Refdg.
Transp., Ser. E, 5.25%, 11/15/31, FGIC	11/12
@ 100	2,854,286
AAA	10,000	Svc.
Contract Rev., Ser. A, 5.00%, 7/01/30, AMBAC	07/12
@ 100	10,465,400
A	2,500	New
York City Indl. Dev. Agcy., Lycee Francais de Proj., Ser. A, 5.375%, 6/01/23, ACA	12/12
@ 100	2,633,050
AAA	4,500	New
York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Syst, Ser. A, 5.125%, 6/15/34, FSA	06/12
@ 100	4,740,885
AAA	7,000	New
York City Transl. Fin. Auth., Ser. B, 5.00%, 5/01/30, AMBAC	11/11
@ 101	7,336,910
BBB	3,320	New
York Cntys. Tobacco Trust III, 6.00%, 6/01/43	06/13
@ 100	3,222,890
		New
York Dorm. Auth.,
AAA	5,000	Brooklyn
Law School, Ser. B, 5.125%, 7/01/30, XLCA	07/13
@ 100	5,284,050
AAA	7,000	Hosp.
Lutheran Med., 5.00%, 8/01/31, MBIA	02/13
@ 100	7,339,990
AAA	3,160	Iona
Coll., 5.00%, 7/01/27, XLCA	07/12
@ 100	3,313,829
Aa3	3,000	Joachim
& Ann Residence, 5.25%, 7/01/27	07/12
@ 100	3,067,500
AAA	10,000	Memorial
Sloan Kettering Ctr., Ser. 1, Zero Coupon, 7/01/30, MBIA	No
Opt. Call	2,776,000
AAA	5,000	New
York & Presbyterian Hosp., 5.00%, 8/01/32, AMBAC	02/08
@ 101	5,159,600
AAA	7,000	New
York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC	07/11
@ 100	7,264,810
AAA	2,000	Sch.
Dist. Fin., Ser. A, 5.00%, 4/01/31, MBIA	10/12
@ 100	2,094,060
AAA	3,500	Sch.
Dist. Fin., Ser. D, 5.00%, 10/01/30, MBIA	10/12
@ 100	3,667,160
AAA	7,000 3	St.
Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC	08/12
@ 100	7,323,680
AAA	5,000 4	Univ.
Dorm. Facs., 5.00%, 7/01/12, MBIA	N/A	5,775,700
AAA	2,000	Winthrop
Univ. Hosp. Assoc., Ser. A, 5.25%, 7/01/31, AMBAC	07/11
@ 101	2,133,520
		New
York Urban Dev. Corp.,
AAA	5,000	Ser.
B, 5.00%, 3/15/33, MBIA	03/13
@ 100	5,241,950
AAA	2,500	Ser.
C-1, 5.00%, 3/15/33, FGIC	03/13
@ 100	2,620,975
AAA	10,000	Triborough
Brdg. & Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA	11/12
@ 100	10,505,300
A3	6,000	TSASC
Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32	07/12
@ 100	5,925,840
				137,628,536
		Puerto
Rico—13.7%
BBB	7,600	Children’s
Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43	05/12
@ 100	7,086,012
A	5,000	Puerto
Rico Indl. Fin. Auth., Med. & Env. Ctrl. Facs., Polytecnic Univ., Ser. A,
5.00%, 8/01/32, ACA	08/12 @ 100	5,145,800
AAA	1,000	Puerto
Rico Mun. Fin. Agcy., Ser. A, 5.00%, 8/01/27, FSA	08/12
@ 100	1,057,090
				13,288,902
		Total
Long-Term Investments (cost $144,725,754)		150,917,438
	Shares
	(000)
		MONEY MARKET
FUND—0.7%
	650	AIM
Tax Free Investment Co. Cash Reserve Portfolio (cost $650,000)	N/A	650,000
		Total
Investments—156.2% (cost $145,375,754)		$151,567,438
		Other
assets in excess of liabilities—1.5%		1,476,987
		Preferred
shares at redemption value, including dividends payable—(57.7)%		(56,002,765)
		Net
Assets Applicable to Common Shareholders—100%		$ 97,041,660

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 4 | This bond is prerefunded. Securities,
held in escrow, are used to pay interest on this security, as well as retire the
bond in full at the maturity date indicated, typically at a premium to par. |
| Securities that are covered by insurance,
which ensures the timely payment of principal and interest, represent approximately
86.2% of the Trust’s total investments. | |

KEY TO ABBREVIATIONS

| ACA — American
Capital Access | FSA — Financial
Security Assurance |
| --- | --- |
| AMBAC — American
Municipal Bond Assurance Corporation | MBIA — Municipal Bond
Insurance Association |
| FGIC — Financial Guaranty
Insurance Company | XLCA — XL Capital
Assurance |

See Notes to Financial Statements.

35

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock New York Municipal Bond Trust (BQH)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM INVESTMENTS—155.5%
		New York—114.5%
AA	$2,000	Dutchess Cnty. Ind. Dev. Agcy., Civic
Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40	08/11 @ 101	$ 2,139,960
A	3,000	Met. Transp. Auth., Dedicated Tax
Fund, Ser. A, 5.125%, 11/15/31	11/12 @ 100	3,127,620
A+	3,000	New York City, GO, Ser. D, 5.375%,
6/01/32	06/12 @ 100	3,145,650
A3	1,100	New York City Hlth. & Hosp. Corp.,
Hlth. Sys., Ser. A, 5.375%, 2/15/26	02/12 @ 100	1,136,410
AA	2,500	New York City Hsg. Dev. Corp., Mult.
Fam. Hsg. Rev., Ser. A, 5.50%, 11/01/34	05/12 @ 100	2,589,525
AAA	2,500	New York City Mun. Wtr. Fin. Auth.,
Ser. A, 5.25%, 6/15/33, FGIC	06/11 @ 100	2,655,125
BBB	1,445	New York Cntys. Tobacco Trust III,
6.00%, 6/01/43	06/13 @ 100	1,402,734
		New York Dorm. Auth.,
AA-	2,465 3	City Univ., Ser. A, 5.25%, 7/01/11	N/A	2,891,001
AA-	285	City Univ., Ser. A, 5.25%, 7/01/31	07/11 @ 100	299,478
AAA	2,500	Iona Coll., 5.125%, 7/01/32, XLCA	07/12 @ 100	2,634,450
A-	3,000	Lenox Hill Hosp. Oblig. Grp., 5.50%,
7/01/30	07/11 @ 101	3,156,120
AAA	2,500	Willow Towers Inc. Proj., 5.40%,
2/01/34	08/12 @ 101	2,633,675
AAA	2,750 4	New York Env. Facs. Corp., Mun. Wtr.
Proj., Ser. D, 5.125%, 6/15/31	06/12 @ 100	2,908,978
Aa1	2,980	New York Mtg. Agcy., Ser. 101, 5.40%,
4/01/32	10/11 @ 100	3,059,953
AA	5,000	New York Urban Dev. Corp., Ser. A,
5.25%, 3/15/32	03/12 @ 100	5,271,750
		Port Auth. of NY & NJ,
AAA	2,750	Ser. 126, 5.25%, 5/15/37, FGIC	05/12 @ 101	2,899,792
Caa2	2,600	Spec. Oblig., Cont’l/Eastern
Proj. LaGuardia, 9.125%, 12/01/15	04/04 @ 100	2,603,666
A	500	Suffolk Cnty. Indl. Dev. Agcy., Keyspan
Port Jefferson Proj., 5.25%, 6/01/27	06/13 @ 100	510,100
A3	3,000	TSASC Inc., Tobacco Settlement Rev.,
Ser. 1, 5.75%, 7/15/32	07/12 @ 100	2,962,920
				48,028,907
		Delaware—6.4%
NR 5	2,500 6	Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	2,686,550
		Puerto Rico—33.1%
BBB	3,650	Children’s Trust Fund, Tobacco
Settlement Rev., 5.625%, 5/15/43	05/12 @ 100	3,403,150
A-	2,750	Puerto Rico, GO, Ser. A, 5.125%,
7/01/31	07/11 @ 100	2,857,883
A-	2,000	Puerto Rico Elec. Pwr. Auth., Ser.
2, 5.25%, 7/01/31	07/12 @ 101	2,123,140
A	2,500	Puerto Rico Hwy. & Transp. Auth.,
Ser. D, 5.25%, 7/01/38	07/12 @ 100	2,629,300
A-	2,700	Puerto Rico Pub. Bldgs. Auth., Gov’t.
Facs., Ser. D, 5.25%, 7/01/27	07/12 @ 100	2,858,895
				13,872,368
		Trust Territories—1.5%
Ba3	635	Northern Mariana Islands Commerce,
Ser. A, 6.75%, 10/01/33	10/13 @ 100	654,482
		Total Investments—155.5%
(cost $61,661,544)		$ 65,242,307
		Other assets in excess of liabilities—2.2%		914,901
		Preferred shares at redemption value,
including dividends payable—(57.7)%		(24,201,494)
		Net Assets Applicable to Common
Shareholders—100%		$ 41,955,714

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | This bond is prerefunded. Securities,
held in escrow, are used to pay interest on this security, as well as retire the
bond in full at the maturity date indicated, typically at a premium to par. |
| 4 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 5 | Security is deemed to be of investment
grade quality by the investment advisor. |
| 6 | Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.4% of its net assets, with a current market value of
$2,686,550, in securities restricted as to resale. |

KEY TO ABBREVIATIONS

| FGIC — Financial
Guaranty Insurance Company |
| --- |
| GO — General
Obligation |

See Notes to Financial Statements.

36

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock New York Municipal Income Trust II (BFY)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM
INVESTMENTS—155.9%
		New
York—143.0%
Aaa	$1,750	Clarence
Indl. Dev. Agcy., Civic Fac. Rev., Bristol Village Proj., 6.00%, 1/20/44	01/13
@ 102	$
1,927,940
AA	6,000	Dutchess
Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40	08/11
@ 101	6,419,880
BBB	625	Essex
Cnty. Indl. Dev. Agcy., Solid Wst. Disp. Rev., Intl. Paper Co. Proj., Ser. A, 5.50%,
10/01/26	10/12
@ 100	636,688
A	3,250	Geneva
Indl. Dev. Agcy., Civic Fac. Rev., Hobart & William Smith Proj., Ser. A, 5.375%,
2/01/33	02/13
@ 100	3,433,105
BBB-	385	Herkimer
Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg.,
6.25%, 8/01/34	08/13 @ 100	397,097
AAA	3,515	Long
Island Pwr. Auth., Elec. Sys. Rev., Ser. A, Zero Coupon, 6/01/28, FSA	No
Opt. Call	1,100,722
		Met.
Transp. Auth., Ser. A,
AAA	2,000	5.25%,
11/15/31, FGIC	11/12
@ 100	2,146,080
AA-	5,000	Ded.
Tax Fund, 5.00%, 11/15/30	11/12
@ 100	5,179,050
AA-	5,000	Svc.
Contract Rev., 5.125%, 1/01/29	07/12
@ 100	5,212,000
A	5,000	New
York City, GO, Ser. B, 5.75%, 12/01/22	12/11
@ 100	5,456,300
		New
York City Indl. Dev. Agcy., Ser. A,
AA+	1,000	Eger
Harbor Proj., 4.95%, 11/20/32	11/12
@ 101	1,019,980
AA+	1,000	Eger
Harbor Proj., 5.875%, 5/20/44	11/12
@ 105	1,121,750
A	1,500	Lycee
Francais de Proj., 5.375%, 6/01/23, ACA	12/12
@ 100	1,579,830
AA	5,000	New
York City Mun. Wtr. Fin. Auth., Ser. A, 5.125%, 6/15/34	06/12
@ 100	5,256,950
AAA	5,000	New
York City Trans. Auth., Met. Transp. Auth., Triborough Brdg. & Tunl. Auth.,
COP, Ser. A, 5.25%, 1/01/29, AMBAC	01/10 @ 101	5,301,600
AA+	5,000	New
York City Trans. Fin. Auth., Ser. B, 5.00%, 11/01/27	11/12
@ 100	5,222,250
BBB	2,535	New
York Cntys. Tobacco Trust III, 6.00%, 6/01/43	06/13
@ 100	2,460,851
		New
York Dorm. Auth.,
AAA	2,500	Brooklyn
Law School, Ser. B, 5.125%, 7/01/30, XLCA	07/13
@ 100	2,642,025
Aa3	2,000	Kateri
Residence, 5.00%, 7/01/22	07/13
@ 100	2,053,460
AA	5,000	Memorial
Sloan Kettering Ctr., Ser. 1, 5.00%, 7/01/34	07/13
@ 100	5,160,500
AA	2,000	Mount
St. Mary Coll., 5.00%, 7/01/32, RAA	07/13
@ 100	2,075,960
AAA	2,425	New
York Univ., 5.00%, 7/01/31, MBIA	07/11
@ 100	2,524,449
AAA	2,500 3	St.
Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC	08/12
@ 100	2,615,600
AA-	5,000 4	Univ.
Dorm. Facs., 5.00%, 7/1/12	N/A	5,775,700
A+	5,500	New
York Energy Res. & Dev. Auth., Facs. Rev., 4.70%, 6/01/36	10/05
@ 100	5,556,650
AA	5,000	New
York Urban Dev. Corp., Ser. C-1, 5.00%, 3/15/33	03/13
@ 100	5,177,550
Caa2	3,675	Port
Auth. of NY & NJ, Spec. Oblig., Cont’l/Eastern Proj. LaGuardia, 9.125%,
12/01/15	03/04
@ 100	3,680,182
A	2,500	Suffolk
Cnty. Indl. Dev. Agcy., Keyspan Port Jefferson Proj., 5.25%, 6/01/27	06/13
@ 100	2,550,500
AA	2,500	Triborough
Brdg. & Tunl. Auth., Ser. A, 5.00%, 1/01/32	01/12
@ 100	2,593,475
A3	9,000	TSASC
Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32	07/12
@ 100	8,888,760
				105,166,884
		Puerto
Rico—11.4%
BBB	1,400	Children’s
Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43	05/12
@ 100	1,305,318
A-	3,750	Puerto
Rico, GO, Ser. A, 5.125%, 7/01/31	07/11
@ 100	3,897,113
		Puerto
Rico Comnwlth. Hwy. & Transp. Auth.,
A	2,000	Ser.
D, 5.375%, 7/01/36	07/12
@ 100	2,142,200
A	1,000	Ser.
G, 5.00%, 7/01/42	07/13
@ 100	1,030,280
				8,374,911
		Trust
Territories—1.5%
Ba3	1,105	Northern
Mariana Islands Commerce, Ser. A, 6.75%, 10/01/33	10/13
@ 100	1,138,901
		Total
Long-Term Investments (cost $109,863,016)		114,680,696

See Notes to Financial Statements.

37

BlackRock New York Municipal Income Trust II (BFY) (continued)

Shares — (000)	Description	Value
	MONEY MARKET FUND—3.0%
2,200	AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $2,200,000)	$ 2,200,000
	Total Investments—158.9%
(cost $112,063,016)	$116,880,696
	Other assets in excess of liabilities—1.8%	1,336,610
	Preferred shares at redemption value,
including dividends payable—(60.7)%	(44,653,919)
	Net Assets Applicable to Common
Shareholders—100%	$ 73,563,387

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 4 | This bond is prerefunded. Securities,
held in escrow, are used to pay interest on this security, as well as retire the
bond in full at the maturity date indicated, typically at a premium to par. |

KEY TO ABBREVIATIONS

| ACA — American Capital
Access | GO — General Obligation |
| --- | --- |
| AMBAC — American
Municipal Bond Assurance Corporation | MBIA — Municipal
Bond Insurance Association |
| COP — Certificate of
Participation | RAA — Radian Asset Assurance |
| FGIC — Financial Guaranty
Insurance Company | XLCA — XL Capital Assurance |
| FSA — Financial Security
Assurance | |

See Notes to Financial Statements.

38

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 29, 2004

BlackRock Virginia Municipal Bond Trust (BHV)

	Principal — Amount		Option Call
Rating 1	(000)	Description	Provisions 2	Value
		LONG-TERM
INVESTMENTS—153.4%
		Virginia—141.0%
NR 3	$1,500	Alexandria
Redev. & Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34	04/08
@ 103	$ 1,560,960
AAA	1,500 4	Arlington
Cnty., GO, 5.00%, 2/01/21	02/11
@ 100	1,596,255
A	2,250	Arlington
Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr. Arlington Hlth. Sys.,
5.25%, 7/01/31	07/11 @ 101	2,314,508
NR	1,500	Celebrate
North Cmnty. Dev. Auth. Spl. Assmt. Rev., Ser. B, 6.75%, 3/01/34	03/14
@ 102	1,527,150
AAA	1,500	Danville
Ind. Dev. Auth., Hosp. Rev., Danville Regl. Med. Ctr, 5.25%, 10/01/28, AMBAC	No
Opt. Call	1,695,735
NR 3	1,000	Dulles
Town Ctr. Cmnty. Dev. Auth., Spl. Assmt. Tax, Dulles Town Ctr. Proj., 6.25%, 3/01/26	03/08
@ 102	1,023,570
AAA	1,500	Fairfax
Cnty. Wtr. Auth., Wtr. Rev, 5.00%, 4/01/27	04/12
@ 100	1,578,510
AA	1,000	Hampton,
GO, 5.00%, 4/01/20	04/12
@ 101	1,080,190
A-	1,500	Henrico
Cnty. Econ. Dev. Auth., Bon Secours Hlth. Sys. Inc., Ser. A, 5.60%, 11/15/30	11/12
@ 100	1,562,220
BBB	1,300	Isle
Wight Cnty. Indl. Dev. Auth., Env. Impvt. Rev., Ser. A, 5.70%, 11/01/27	11/13
@ 100	1,346,527
AAA	1,500	Met.
Arpts. Auth., Arpt. Sys. Rev., Ser. A, 5.25%, 10/01/32, FGIC	10/12
@ 100	1,577,400
AAA	1,500	Norfolk
Arpt. Auth., Ser. A, 5.125%, 7/01/31, FGIC	07/11
@ 100	1,560,750
A	5,000	Pocahontas
Pkwy. Assoc., Toll Road Rev., Ser. B, Zero Coupon, 8/15/22, ACA	08/08
@ 45.5	1,720,450
AA	1,375	Prince
William Cnty., COP, 5.00%, 12/01/21	06/12
@ 100	1,460,016
AAA	1,250	Richmond
Met. Auth., Expwy. Rev., 5.25%, 7/15/22, FGIC	No
Opt. Call	1,441,400
AAA	3,000	Richmond
Pub. Util., 5.00%, 1/15/33, FSA	01/12
@ 100	3,132,960
		Virginia
Coll. Bldg. Auth., Edl. Facs. Rev., Washington & Lee Univ. Proj., MBIA,
AAA	500	5.25%,
1/01/26	No
Opt. Call	570,785
AAA	1,000	5.25%,
1/01/31	No
Opt. Call	1,149,060
AAA	3,000	Virginia
Hsg. Dev. Auth., Comnwlth. Mtg. Rev., Ser. H, 5.375%, 7/01/36, MBIA	07/11
@ 100	3,084,780
		Virginia
Res. Auth.,
AA	1,000	Infrastructure
Rev., Ser. A, 5.00%, 5/01/22	05/11
@ 101	1,058,450
AA	635	Infrastructure
Rev., Ser. A, 5.125%, 5/01/27	05/11
@ 101	670,801
AA	1,500	Wtr.
& Swr. Sys. Rev., Frederick Cnty. Sanitation Auth. Proj., 5.20%, 10/01/28	10/10
@ 100	1,577,340
				34,289,817
		Delaware—6.6%
NR 3	1,500 5	Charter
Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52	10/14
@ 100	1,611,930
		Puerto
Rico—5.8%
BBB	1,490	Children’s
Trust Fund, Tobacco Settlement Rev., 5.375%, 5/15/33	05/12
@ 100	1,419,508
		Total
Investments—153.4% (cost $34,797,420)		$
37,321,255
		Other
assets in excess of liabilities—2.2%		529,382
		Preferred
shares at redemption value, including dividends payable—(55.6)%		(13,525,445)
		Net
Assets Applicable to Common Shareholders—100%		$ 24,325,192

| 1 | Using the higher of S&P’s,
Moody’s or Fitch’s rating. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates. |
| 3 | Security is deemed to be of investment
grade quality by the investment advisor. |
| 4 | Entire or partial principal amount
pledged as collateral for financial futures contracts. |
| 5 | Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.6% of its net assets, with a current market value of
$1,611,930, in securities restricted as to resale. |

KEY TO ABBREVIATIONS

| ACA — American Capital
Access | FSA — Financial Security
Assurance |
| --- | --- |
| AMBAC — American
Municipal Bond Assurance Corporation | GO — General
Obligation |
| COP — Certificate of
Participation | MBIA — Municipal Bond
Insurance Association |
| FGIC — Financial Guaranty
Insurance Company | |

See Notes to Financial Statements.

39

STATEMENTS OF ASSETS AND LIABILITIES (unaudited) February 29, 2004

	Insured			California — Insured
	Municipal	Municipal	Municipal	Municipal
	Income Trust	Bond Trust	Income Trust II	Income Trust
	(BYM)	(BBK)	(BLE)	(BCK)
Assets
Investments
at value 1	$625,321,571	$246,837,603	$541,347,604	$123,208,524
Cash	504,420	545,252	517,299	506,645
Receivable
from investments sold	—	—	—	—
Interest
receivable	6,440,900	3,238,169	7,554,020	1,447,116
Other
assets	51,139	7,068	49,154	8,378
	632,318,030	250,628,092	549,468,077	125,170,663
Liabilities
Payable
to custodian	—	—	—	—
Variation
margin payable	631,750	232,750	536,813	134,750
Dividends
payable — common shares	2,042,917	874,379	1,907,915	395,030
Investment
advisory fee payable	171,422	77,997	170,471	33,939
Deferred
Trustees fees	21,129	11,009	20,212	3,158
Other
accrued expenses	90,036	125,930	87,848	42,480
	2,957,254	1,322,065	2,723,259	609,357
Preferred
Shares at Redemption Value
$.001
par value per share and $25,000 liquidation value
per share, including dividends payable 2	229,006,446	90,509,006	205,571,978	46,508,035
Net
Assets Applicable to Common Shareholders	$400,354,330	$158,797,021	$341,172,840	$ 78,053,271
Composition
of Net Assets Applicable to Common Shareholders:
Par
value	$ 26,149	$ 10,123	$ 22,781	$ 5,267
Paid-in
capital in excess of par	371,097,993	143,571,298	323,306,246	74,673,578
Undistributed
(distributions in excess of) net investment
income	2,144,534	2,525,034	2,756,520	431,298
Accumulated
net realized gain (loss)	(9,063,000)	(614,361)	(7,848,908)	(448,547)
Net
unrealized appreciation	36,148,654	13,304,927	22,936,201	3,391,675
Net
assets applicable to common shareholders, February
29, 2004	$400,354,330	$158,797,021	$341,172,840	$ 78,053,271
Net
asset value per common share 3	$15.31	$15.69	$14.98	$14.82
1 Investments at cost	$588,855,964	$233,415,896	$518,142,075	$119,749,319
2 Preferred
shares outstanding	9,159	3,620	8,222	1,860
3 Common shares outstanding	26,149,334	10,123,055	22,781,072	5,267,067

See Notes to Financial Statements.

40

	California	California	Florida — Insured	Florida	Maryland	New Jersey
	Municipal	Municipal	Municipal	Municipal	Municipal	Municipal
	Bond Trust	Income Trust II	Income Trust	Bond Trust	Bond Trust	Bond Trust
	(BZA)	(BCL)	(BAF)	(BIE)	(BZM)	(BLJ)
Assets
Investments
at value 1	$79,890,753	$184,635,692	$204,551,843	$80,719,961	$48,521,596	$54,950,626
Cash	507,429	512,416	532,579	371,856	540,463	—
Receivable
from investments sold	—	5,150	—	—	—	—
Interest
receivable	1,036,450	2,788,216	2,951,750	1,282,688	613,661	650,626
Other
assets	1,442	16,416	14,794	5,269	5,404	7,829
	81,436,074	187,957,890	208,050,966	82,379,774	49,681,124	55,609,081
Liabilities
Payable
to custodian	—	—	—	—	—	300,080
Variation
margin payable	82,687	223,125	188,125	64,750	38,320	59,063
Dividends
payable — common shares	266,939	648,507	653,912	257,504	143,729	178,331
Investment
advisory fee payable	22,045	58,185	56,304	22,297	13,460	14,992
Deferred
Trustees fees	4,884	5,559	6,171	3,927	4,599	5,285
Other
accrued expenses	62,828	40,114	61,532	60,448	31,729	43,624
	439,383	975,490	966,044	408,926	231,837	601,375
Preferred Shares
at Redemption Value
$.001 par
value per share and $25,000 liquidation value per share, including dividends payable 2	29,980,179	71,956,487	76,011,621	29,778,001	18,000,963	20,228,093
Net Assets Applicable to Common Shareholders	$51,016,512	$115,025,913	$131,073,301	$52,192,847	$31,448,324	$34,779,613
Composition
of Net Assets Applicable to Common Shareholders:
Par value	$ 3,351	$ 7,982	$ 8,719	$ 3,309	$ 2,014	$ 2,269
Paid-in
capital in excess of par	47,456,833	113,214,438	123,687,058	46,855,683	28,485,946	32,099,779
Undistributed
(distributions in excess of) net investment income	783,933	(56,351)	476,364	691,130	452,338	453,199
Accumulated
net realized gain (loss)	(269,141)	(3,624,633)	(578,641)	(212,116)	(227,028)	25,113
Net unrealized
appreciation	3,041,536	5,484,477	7,479,801	4,854,841	2,735,054	2,199,253
Net assets applicable to
common shareholders, February 29, 2004	$51,016,512	$115,025,913	$131,073,301	$52,192,847	$31,448,324	$34,779,613
Net asset value per common
share 3	$15.22	$14.41	$15.03	$15.77	$15.61	$15.33
1 Investments at cost	$76,807,824	$179,039,249	$196,977,572	$75,832,770	$45,766,131	$52,721,818
2 Preferred shares
outstanding	1,199	2,878	3,040	1,191	720	809
3 Common shares outstanding	3,351,150	7,981,621	8,718,823	3,309,483	2,014,422	2,269,366

41

STATEMENTS OF ASSETS AND LIABILITIES (unaudited) (continued) February 29, 2004

	New York — Insured	New York	New York	Virginia
	Municipal	Municipal	Municipal	Municipal
	Income Trust	Bond Trust	Income Trust II	Bond Trust
	(BSE)	(BQH)	(BFY)	(BHV)
Assets
Investments
at value 1	$151,567,438	$65,242,307	$116,880,696	$37,321,255
Cash	545,937	390,324	510,403	217,460
Interest receivable	1,639,764	852,124	1,381,393	485,821
Other
assets	9,592	424	10,020	2,604
	153,762,731	66,485,179	118,782,512	38,027,140
Liabilities
Variation
margin payable	139,563	53,375	94,500	35,875
Dividends
payable — common shares	482,740	208,244	388,652	110,085
Investment advisory
fee payable	41,691	18,035	36,827	10,289
Deferred
Trustees fees	3,347	4,119	3,839	3,912
Other accrued
expenses	50,965	44,198	41,388	16,342
	718,306	327,971	565,206	176,503
Preferred
Shares at Redemption Value
$.001
par value per share and $25,000 liquidation value
per share, including dividends payable 2	56,002,765	24,201,494	44,653,919	13,525,445
Net
Assets Applicable to Common Shareholders	$ 97,041,660	$41,955,714	$ 73,563,387	$24,325,192
Composition
of Net Assets Applicable to Common Shareholders:
Par
value	$ 6,437	$ 2,701	$ 4,935	$ 1,520
Paid-in
capital in excess of par	91,279,438	38,226,462	69,973,071	21,476,225
Undistributed
(distributions in excess of) net
investment income	250,442	503,625	(125,577)	434,714
Accumulated
net realized gain (loss)	(616,397)	(331,117)	(1,059,271)	(93,218)
Net
unrealized appreciation	6,121,740	3,554,043	4,770,229	2,505,951
Net
assets applicable to common shareholders, February
29, 2004	$97,041,660	$41,955,714	$ 73,563,387	$24,325,192
Net
asset value per common share 3	$15.08	$15.53	$14.91	$16.00
1 Investments
at cost	$145,375,754	$61,661,544	$112,063,016	$34,797,420
2 Preferred
shares outstanding	2,240	968	1,786	541
3 Common
shares outstanding	6,436,539	2,700,991	4,935,268	1,519,916

See Notes to Financial Statements.

42

STATEMENTS OF OPERATIONS (unaudited) February 29, 2004

	Insured			California — Insured
	Municipal	Municipal	Municipal	Municipal
	Income Trust	Bond Trust	Income Trust II	Income Trust
	(BYM)	(BBK)	(BLE)	(BCK)
Investment
Income
Interest
income	$15,411,794	$ 6,955,467	$15,044,696	$ 3,034,352
Expenses
Investment
advisory	1,671,792	786,102	1,454,974	330,564
Transfer
agent	7,462	7,462	7,462	7,462
Custodian	48,920	28,673	57,067	9,834
Reports
to shareholders	32,838	16,129	26,374	11,412
Trustees	27,118	10,556	22,568	6,552
Registration	15,707	19,365	6,234	10,774
Independent
accountants	21,814	20,358	21,812	19,779
Legal	20,240	9,401	20,065	5,860
Insurance	25,540	9,045	19,711	4,115
Auction
agent	294,130	121,107	273,270	61,037
Miscellaneous	22,291	15,157	20,388	10,648
Total
expenses	2,187,852	1,043,355	1,929,925	478,037
Less
fees waived by Advisor	(607,924)	(362,817)	(396,811)	(120,205)
Less
fees paid indirectly	(1,211)	(1,593)	(5,015)	(2,463)
Net
expenses	1,578,717	678,945	1,528,099	355,369
Net
investment income	13,833,077	6,276,522	13,516,597	2,678,983
Realized
and Unrealized Gain (Loss)
Net
realized gain (loss) on:
Investments	(2,814,834)	1,180,366	1,385,407	(8,282)
Futures	(2,058,938)	(760,393)	(1,747,837)	(440,223)
	(4,873,772)	419,973	(362,430)	(448,505)
Net
change in unrealized appreciation/depreciation on:
Investments	48,235,104	14,789,670	38,249,181	9,570,001
Futures	(316,953)	(116,780)	(269,328)	(67,530)
	47,918,151	14,672,890	37,979,853	9,502,471
Net
gain	43,044,379	15,092,863	37,617,423	9,053,966
Dividends
and Distributions to Preferred Shareholders
from:
Net
investment income	(1,023,807)	(405,125)	(942,472)	(186,424)
Net
realized gains	—	—	—	(5,802)
Total
dividends and distributions	(1,023,807)	(405,125)	(942,472)	(192,226)
Net
Increase in Net Assets Applicable to Common
Shareholders Resulting from Operations	$55,853,649	$20,964,260	$50,191,548	$11,540,723

See Notes to Financial Statements.

43

STATEMENTS OF OPERATIONS (unaudited) (continued) February 29, 2004

	California	California — Municipal	Florida — Insured	Florida
	Municipal	Income	Municipal	Municipal
	Bond Trust	Trust II	Income Trust	Bond Trust
	(BZA)	(BCL)	(BAF)	(BIE)
Investment
Income
Interest income	$2,191,362	$ 4,890,216	$ 5,033,427	$2,166,534
Expenses
Investment
advisory	255,576	496,969	552,718	258,872
Transfer
agent	7,462	7,462	7,462	7,462
Custodian	11,010	16,038	35,181	10,569
Reports
to shareholders	7,452	14,014	14,280	7,462
Trustees	6,370	8,008	9,100	6,370
Registration	11,435	2,144	10,824	11,278
Independent
accountants	19,514	20,038	19,671	19,510
Legal	5,991	7,916	7,972	5,989
Insurance	2,924	6,744	7,729	2,984
Auction
agent	39,902	100,566	97,460	37,159
Miscellaneous	10,334	11,714	12,226	10,336
Total
expenses	377,970	691,613	774,623	377,991
Less
fees waived by Advisor	(117,958)	(135,537)	(200,988)	(119,479)
Less
fees paid indirectly	(1,537)	(2,061)	(20,985)	(1,096)
Net
expenses	258,475	554,015	552,650	257,416
Net
investment income	1,932,887	4,336,201	4,480,777	1,909,118
Realized
and Unrealized Gain (Loss)
Net
realized gain (loss) on:
Investments	122,561	192,614	122,757	(324,375)
Futures	(269,854)	(728,906)	(615,042)	(212,017)
	(147,293)	(536,292)	(492,285)	(536,392)
Net
change in unrealized appreciation/depreciation on:
Investments	5,281,520	13,720,837	12,343,391	4,568,277
Futures	(41,393)	(111,966)	(94,470)	(32,350)
	5,240,127	13,608,871	12,248,921	4,535,927
Net
gain	5,092,834	13,072,579	11,756,636	3,999,535
Dividends
and Distributions to Preferred Shareholders
from:
Net
investment income	(105,657)	(319,901)	(300,022)	(131,954)
Net
realized gains	(18,799)	—	(61,378)	(6,733)
Total
dividends and distributions	(124,456)	(319,901)	(361,400)	(138,687)
Net
Increase in Net Assets Applicable to Common
Shareholders Resulting from Operations	$6,901,265	$17,088,879	$15,876,013	$5,769,966

See Notes to Financial Statements.

44

	Maryland	New Jersey	New York — Insured	New York	New York	Virginia
	Municipal	Municipal	Municipal	Municipal	Municipal	Municipal
	Bond Trust	Bond Trust	Income Trust	Bond Trust	Income Trust II	Bond Trust
	(BZM)	(BLJ)	(BSE)	(BQH)	(BFY)	(BHV)
Investment
Income
Interest income	$1,257,655	$1,497,259	$ 3,695,637	$1,748,603	$2,929,036	$ 975,328
Expenses
Investment
advisory	156,165	173,069	406,275	208,956	314,881	118,750
Transfer
agent	7,462	7,462	7,462	7,462	7,462	7,462
Custodian	9,559	10,601	24,985	10,145	8,994	9,595
Reports
to shareholders	6,518	7,403	12,388	7,434	8,596	5,431
Trustees	6,188	6,188	6,734	6,370	6,552	6,188
Registration	605	699	10,790	11,435	1,296	440
Independent
accountants	19,343	19,368	19,682	19,432	19,685	10,745
Legal	5,294	5,303	5,841	5,329	5,795	5,278
Insurance	1,797	2,107	5,397	2,427	4,259	1,450
Auction
agent	24,957	27,735	72,891	32,694	60,525	19,372
Miscellaneous	9,138	8,266	11,131	10,248	10,608	5,826
Total
expenses	247,026	268,201	583,576	321,932	448,653	190,537
Less
fees waived by Advisor	(72,076)	(79,878)	(147,737)	(96,441)	(85,878)	(54,809)
Less
fees paid indirectly	(335)	(1,319)	(16,158)	(1,045)	(1,334)	(371)
Net expenses	174,615	187,004	419,681	224,446	361,441	135,357
Net investment income	1,083,040	1,310,255	3,275,956	1,524,157	2,567,595	839,971
Realized and
Unrealized Gain (Loss)
Net
realized gain (loss) on:
Investments	(110,340)	218,156	(98,869)	(14,032)	(28,034)	(62,790)
Futures	(124,463)	(192,953)	(459,489)	(174,348)	(308,552)	(117,743)
	(234,803)	25,203	(558,358)	(188,380)	(336,586)	(180,533)
Net
change in unrealized appreciation/depreciation on:
Investments	2,635,277	3,492,190	10,915,628	3,772,790	7,959,674	2,408,994
Futures	(20,412)	(29,555)	(69,944)	(26,720)	(47,451)	(17,884)
	2,614,865	3,462,635	10,845,684	3,746,070	7,912,223	2,391,110
Net gain	2,380,062	3,487,838	10,287,326	3,557,690	7,575,637	2,210,577
Dividends and Distributions
to Preferred Shareholders from:
Net
investment income	(79,784)	(78,448)	(225,408)	(83,914)	(198,389)	(52,856)
Net realized
gains	—	(9,757)	—	—	—	—
Total dividends and distributions	(79,784)	(88,205)	(225,408)	(83,914)	(198,389)	(52,856)
Net Increase in Net Assets
Applicable to Common Shareholders Resulting from Operations	$3,383,318	$4,709,888	$13,337,874	$4,997,933	$9,944,843	$2,997,692

45

STATEMENTS OF CHANGES IN NET ASSETS For the six months ended February 29, 2004 (unaudited), and for the period 1 ended August 31, 2003

| | Insured
Municipal Income Trust — (BYM) | | Municipal
Bond Trust — (BBK) | |
| --- | --- | --- | --- | --- |
| | 2004 | 2003 | 2004 | 2003 |
| Increase (Decrease) in Net Assets Applicable
to | | | | |
| Common
Shareholders | | | | |
| Operations | | | | |
| Net investment
income | $ 13,833,077 | $ 21,617,620 | $ 6,276,522 | $ 12,879,742 |
| Net realized
gain (loss) | (4,873,772) | (4,190,174) | 419,973 | (805,556) |
| Net change
in unrealized appreciation/ | | | | |
| depreciation | 47,918,151 | (11,769,497) | 14,672,890 | (6,670,938) |
| Dividends
and distributions to preferred | | | | |
| shareholders
from: | | | | |
| Net
investment income | (1,023,807) | (1,705,605) | (405,125) | (995,851) |
| Net
realized gains | — | — | — | (68,481) |
| Net increase
(decrease) in net assets resulting | | | | |
| from
operations | 55,853,649 | 3,952,344 | 20,964,260 | 4,338,916 |
| Dividends and Distributions to | | | | |
| Common
Shareholders from: | | | | |
| Net investment
income | (12,257,500) | (18,333,305) | (5,246,268) | (10,290,066) |
| Net realized
gains | — | — | — | (529,092) |
| Total dividends and distributions | (12,257,500) | (18,333,305) | (5,246,268) | (10,819,158) |
| Capital Share Transactions: | | | | |
| Net proceeds
from the issuance of | | | | |
| common
shares | — | 343,210,001 | — | — |
| Net proceeds
from the underwriters’ | | | | |
| over-allotment
option exercised | — | 28,590,000 | — | — |
| Underwriting
discounts and unused (additional) | | | | |
| offering
costs relating to the issuance of | | | | |
| preferred
shares | (2,051) | (2,657,181) | 128,162 | — |
| Reinvestment
of common dividends | 322,573 | 1,675,800 | — | 178,549 |
| Net proceeds from capital share transactions | 320,522 | 370,818,620 | 128,162 | 178,549 |
| Total increase (decrease) | 43,916,671 | 356,437,659 | 15,846,154 | (6,301,693) |
| Net Assets Applicable to | | | | |
| Common
Shareholders: | | | | |
| Beginning of period | 356,437,659 | — | 142,950,867 | 149,252,560 |
| End of period | $ 400,354,330 | $ 356,437,659 | $ 158,797,021 | $ 142,950,867 |
| End of period undistributed net investment
income | $ 2,144,534 | $ 1,592,764 | $ 2,525,034 | $ 1,899,905 |
| 1 Commencements
of investment operations for the Insured Trusts were October 31, 2002.
This information includes the initial investments by BlackRock Funding,
Inc. The other Trusts’ statements are for a full year. | | | | |

See Notes to Financial Statements.

46

| | Municipal Income
Trust II | | California
Insured — Municipal
Income Trust | | California
Municipal — Bond
Trust | |
| --- | --- | --- | --- | --- | --- | --- |
| | (BLE) | | (BCK) | | (BZA) | |
| | 2004 | 2003 | 2004 | 2003 | 2004 | 2003 |
| Increase (Decrease) in Net Assets Applicable
to | | | | | | |
| Common
Shareholders | | | | | | |
| Operations | | | | | | |
| Net investment
income | $ 13,516,597 | $ 25,913,002 | $ 2,678,983 | $ 4,154,466 | $ 1,932,887 | $ 3,923,657 |
| Net realized
gain (loss) | (362,430) | (7,486,568) | (448,505) | 73,698 | (147,293) | 333,162 |
| Net change
in unrealized appreciation/ | | | | | | |
| depreciation | 37,979,853 | (16,689,310) | 9,502,471 | (6,110,796) | 5,240,127 | (4,389,282) |
| Dividends
and distributions to preferred | | | | | | |
| shareholders
from: | | | | | | |
| Net
investment income | (942,472) | (2,206,764) | (186,424) | (309,490) | (105,657) | (285,766) |
| Net
realized gains | — | — | (5,802) | — | (18,799) | (36,465) |
| Net increase
(decrease) in net assets resulting | | | | | | |
| from
operations | 50,191,548 | (469,640) | 11,540,723 | (2,192,122) | 6,901,265 | (454,694) |
| Dividends and Distributions to | | | | | | |
| Common
Shareholders from: | | | | | | |
| Net investment
income | (11,447,483) | (22,875,695) | (2,369,969) | (3,551,261) | (1,601,633) | (3,151,958) |
| Net realized
gains | — | — | (67,945) | — | (223,187) | (278,186) |
| Total dividends and
distributions | (11,447,483) | (22,875,695) | (2,437,914) | (3,551,261) | (1,824,820) | (3,430,144) |
| Capital Share Transactions: | | | | | | |
| Net proceeds
from the issuance of | | | | | | |
| common
shares | — | — | — | 71,605,001 | — | — |
| Net proceeds
from the underwriters’ | | | | | | |
| over-allotment
option exercised | (9,000) | 4,288,500 | — | 3,573,750 | — | — |
| Underwriting
discounts and unused (additional) | | | | | | |
| offering
costs relating to the issuance of | | | | | | |
| preferred
shares | — | (2,294,668) | — | (609,518) | — | (21,849) |
| Reinvestment
of common dividends | 101,149 | 205,295 | 40,555 | 84,057 | — | 12,499 |
| Net proceeds from
capital share transactions | 92,149 | 2,199,127 | 40,555 | 74,653,290 | — | (9,350) |
| Total increase (decrease) | 38,836,214 | (21,146,208) | 9,143,364 | 68,909,907 | 5,076,445 | (3,894,188) |
| Net Assets Applicable to | | | | | | |
| Common
Shareholders: | | | | | | |
| Beginning of period | 302,336,626 | 323,482,834 | 68,909,907 | — | 45,940,067 | 49,834,255 |
| End of period | $ 341,172,840 | $ 302,336,626 | $ 78,053,271 | $ 68,909,907 | $ 51,016,512 | $ 45,940,067 |
| End of period undistributed net
investment income | $ 2,756,520 | $ 1,629,878 | $ 431,298 | $ 308,708 | $ 783,933 | $ 558,336 |

47

STATEMENTS OF CHANGES IN NET ASSETS (continued) For the six months ended February 29, 2004 (unaudited), and for the period 1 ended August 31, 2003

| | California — Municipal
Income Trust II | | Florida
Insured — Municipal
Income Trust | |
| --- | --- | --- | --- | --- |
| | (BCL) | | (BAF) | |
| | 2004 | 2003 | 2004 | 2003 |
| Increase (Decrease) in Net Assets Applicable
to | | | | |
| Common
Shareholders | | | | |
| Operations | | | | |
| Net investment
income | $ 4,336,201 | $ 8,139,709 | $ 4,480,777 | $ 6,649,133 |
| Net realized
gain (loss) | (536,292) | (3,089,325) | (492,285) | 632,254 |
| Net change
in unrealized appreciation/ | | | | |
| depreciation | 13,608,871 | (8,940,916) | 12,248,921 | (4,769,120) |
| Dividends
and distributions to preferred | | | | |
| shareholders
from: | | | | |
| Net
investment income | (319,901) | (699,743) | (300,022) | (563,529) |
| Net
realized gains | — | — | (61,378) | — |
| Net increase (decrease) in net assets resulting | | | | |
| from operations | 17,088,879 | (4,590,275) | 15,876,013 | 1,948,738 |
| Dividends and Distributions to | | | | |
| Common
Shareholders from: | | | | |
| Net investment
income | (3,890,461) | (7,764,974) | (3,923,470) | (5,881,358) |
| Net realized
gains | — | — | (657,399) | — |
| Total dividends and distributions | (3,890,461) | (7,764,974) | (4,580,869) | (5,881,358) |
| Capital Share Transactions: | | | | |
| Net proceeds
from the issuance of | | | | |
| common
shares | — | — | — | 114,493,001 |
| Net proceeds
from the underwriters’ | | | | |
| over-allotment
option exercised | (4,500) | 2,144,250 | — | 10,006,500 |
| Underwriting
discounts and additional offering | | | | |
| costs
relating to the issuance of preferred | | | | |
| shares | — | (849,475) | — | (944,848) |
| Reinvestment
of common dividends | 93,848 | 222,296 | — | 156,124 |
| Net proceeds from capital share transactions | 89,348 | 1,517,071 | — | 123,710,777 |
| Total increase (decrease) | 13,287,766 | (10,838,178) | 11,295,144 | 119,778,157 |
| Net Assets Applicable to | | | | |
| Common
Shareholders: | | | | |
| Beginning of period | 101,738,147 | 112,576,325 | 119,778,157 | — |
| End of period | $ 115,025,913 | $ 101,738,147 | $ 131,073,301 | $ 119,778,157 |
| End of period undistributed (distributions
in excess) | | | | |
| of net
investment income | $ (56,351) | $ (182,190) | $ 476,364 | $ 219,079 |
| 1 Commencements
of investment operations for the Insured Trusts were October 31, 2002.
This information includes the initial investments by BlackRock Funding,
Inc. The other Trusts’ statements are for a full year. | | | | |

See Notes to Financial Statements.

48

| | Florida — Municipal Bond
Trust | | Maryland — Municipal
Bond Trust | | New Jersey — Municipal
Bond Trust | |
| --- | --- | --- | --- | --- | --- | --- |
| | (BIE) | | (BZM) | | (BLJ) | |
| | 2004 | 2003 | 2004 | 2003 | 2004 | 2003 |
| Increase (Decrease) in Net Assets Applicable
to | | | | | | |
| Common
Shareholders | | | | | | |
| Operations | | | | | | |
| Net investment
income | $ 1,909,118 | $ 3,763,594 | $ 1,083,040 | $ 2,158,263 | $ 1,310,255 | $ 2,593,490 |
| Net realized
gain (loss) | (536,392) | 617,109 | (234,803) | 93,425 | 25,203 | 192,616 |
| Net change
in unrealized appreciation/ | | | | | | |
| depreciation | 4,535,927 | (2,067,781) | 2,614,865 | (1,028,809) | 3,462,635 | (2,102,018) |
| Dividends
and distributions to preferred | | | | | | |
| shareholders
from: | | | | | | |
| Net
investment income | (131,954) | (294,203) | (79,784) | (192,706) | (78,448) | (194,504) |
| Net
realized gains | (6,733) | (25,515) | — | (11,022) | (9,757) | (16,272) |
| Net increase (decrease) in net assets resulting | | | | | | |
| from operations | 5,769,966 | 1,993,204 | 3,383,318 | 1,019,151 | 4,709,888 | 473,312 |
| Dividends and Distributions to | | | | | | |
| Common
Shareholders from: | | | | | | |
| Net investment
income | (1,545,024) | (3,038,237) | (862,266) | (1,696,742) | (1,069,986) | (2,110,955) |
| Net realized
gains | (74,132) | (186,453) | — | (72,550) | (111,653) | (143,682) |
| Total dividends and distributions | (1,619,156) | (3,224,690) | (862,266) | (1,769,292) | (1,181,639) | (2,254,637) |
| Capital Share Transactions: | | | | | | |
| Net proceeds
from the issuance of | | | | | | |
| common
shares | — | — | — | — | — | — |
| Net proceeds
from the underwriters’ | | | | | | |
| over-allotment
option exercised | — | — | — | — | — | — |
| Underwriting
discounts and additional offering | | | | | | |
| costs
relating to the issuance of preferred | | | | | | |
| shares | — | (28,492) | — | (50,675) | — | (48,427) |
| Reinvestment
of common dividends | — | 18,121 | 4,619 | 18,519 | 25,241 | 75,007 |
| Net proceeds from capital share transactions | — | (10,371) | 4,619 | (32,156) | 25,241 | 26,580 |
| Total increase (decrease) | 4,150,810 | (1,241,857) | 2,525,671 | (782,297) | 3,553,490 | (1,754,745) |
| Net Assets Applicable to | | | | | | |
| Common
Shareholders: | | | | | | |
| Beginning of period | 48,042,037 | 49,283,894 | 28,922,653 | 29,704,950 | 31,226,123 | 32,980,868 |
| End of period | $ 52,192,847 | $ 48,042,037 | $ 31,448,324 | $ 28,922,653 | $ 34,779,613 | $ 31,226,123 |
| End of period undistributed (distributions
in excess) | | | | | | |
| of net
investment income | $ 691,130 | $ 458,990 | $ 452,338 | $ 311,348 | $ 453,199 | $ 291,378 |

49

STATEMENTS OF CHANGES IN NET ASSETS (continued) For the six months ended February 29, 2004 (unaudited), and for the period 1 ended August 31, 2003

| | New
York Insured — Municipal
Income Trust | | New
York — Municipal
Bond Trust | |
| --- | --- | --- | --- | --- |
| | (BSE) | | (BQH) | |
| | 2004 | 2003 | 2004 | 2003 |
| Increase (Decrease) in Net Assets Applicable
to | | | | |
| Common
Shareholders | | | | |
| Operations | | | | |
| Net investment
income | $ 3,275,956 | $ 4,829,121 | $ 1,524,157 | $ 3,032,080 |
| Net realized
gain (loss) | (558,358) | (58,730) | (188,380) | (143,156) |
| Net change
in unrealized appreciation/ | | | | |
| depreciation | 10,845,684 | (4,723,944) | 3,746,070 | (1,803,841) |
| Dividends
and distributions to preferred | | | | |
| shareholders
from: | | | | |
| Net
investment income | (225,408) | (420,505) | (83,914) | (249,849) |
| Net
realized gains | — | — | — | (21,352) |
| Net increase (decrease) in net assets resulting | | | | |
| from operations | 13,337,874 | (374,058) | 4,997,933 | 813,882 |
| Dividends and Distributions to | | | | |
| Common
Shareholders from: | | | | |
| Net investment
income | (2,895,837) | (4,327,194) | (1,249,459) | (2,475,984) |
| Net realized
gains | — | — | — | (155,250) |
| Total dividends and distributions | (2,895,837) | (4,327,194) | (1,249,459) | (2,631,234) |
| Capital Share Transactions: | | | | |
| Net proceeds
from issuance of common shares | — | 85,901,501 | — | — |
| Net proceeds
from the underwriters’ | | | | |
| over-allotment
option exercised | — | 5,718,000 | — | — |
| Underwriting
discounts and additional offering | | | | |
| costs
relating to the issuance of preferred | | | | |
| shares | — | (711,970) | — | (37,459) |
| Reinvestment
of common dividends | 168,608 | 224,736 | — | — |
| Net proceeds from capital share transactions | 168,608 | 91,132,267 | — | (37,459) |
| Total increase (decrease) | 10,610,645 | 86,431,015 | 3,748,474 | (1,854,811) |
| Net Assets Applicable to | | | | |
| Common
Shareholders: | | | | |
| Beginning of period | 86,431,015 | — | 38,207,240 | 40,062,051 |
| End of period | $ 97,041,660 | $ 86,431,015 | $ 41,955,714 | $ 38,207,240 |
| End of period undistributed (distributions
in excess) | | | | |
| of net
investment income | $ 250,442 | $ 95,731 | $ 503,625 | $ 312,841 |
| 1 Commencements
of investment operations for the Insured Trusts were October 31, 2002.
This information includes the initial investments by BlackRock Funding,
Inc. The other Trusts’ statements are for a full year. | | | | |

See Notes to Financial Statements.

50

| | Municipal Income
Trust II | | Virginia — Municipal
Bond Trust | |
| --- | --- | --- | --- | --- |
| | (BFY) | | (BHV) | |
| | 2004 | 2003 | 2004 | 2003 |
| Increase (Decrease) in Net Assets Applicable
to | | | | |
| Common
Shareholders | | | | |
| Operations | | | | |
| Net investment
income | $ 2,567,595 | $ 4,857,157 | $ 839,971 | $ 1,655,091 |
| Net realized
gain (loss) | (336,586) | (722,685) | (180,533) | 237,709 |
| Net change
in unrealized appreciation/ | | | | |
| depreciation | 7,912,223 | (3,853,513) | 2,391,110 | (910,742) |
| Dividends
and distributions to preferred | | | | |
| shareholders
from: | | | | |
| Net
investment income | (198,389) | (476,593) | (52,856) | (121,007) |
| Net
realized gains | — | — | — | (22,888) |
| Net increase (decrease) in net assets resulting | | | | |
| from operations | 9,944,843 | (195,634) | 2,997,692 | 838,163 |
| Dividends and Distributions to | | | | |
| Common
Shareholders from: | | | | |
| Net investment
income | (2,331,912) | (4,661,882) | (659,923) | (1,289,511) |
| Net realized
gains | — | — | — | (151,377) |
| Total dividends and distributions | (2,331,912) | (4,661,882) | (659,923) | (1,440,888) |
| Capital Share Transactions: | | | | |
| Net proceeds
from issuance of common shares | — | — | — | — |
| Net proceeds
from the underwriters’ | | | | |
| over-allotment
option exercised | (2,250) | 1,072,125 | — | — |
| Underwriting
discounts and additional offering | | | | |
| costs
relating to the issuance of preferred | | | | |
| shares | — | (567,282) | — | (58,033) |
| Reinvestment
of common dividends | — | 29,662 | 43,558 | 60,042 |
| Net proceeds from capital share transactions | (2,250) | 534,505 | 43,558 | 2,009 |
| Total increase (decrease) | 7,610,681 | (4,323,011) | 2,381,327 | (600,716) |
| Net Assets Applicable to | | | | |
| Common
Shareholders: | | | | |
| Beginning of period | 65,952,706 | 70,275,717 | 21,943,865 | 22,544,581 |
| End of period | $ 73,563,387 | $ 65,952,706 | $ 24,325,192 | $ 21,943,865 |
| End of period undistributed (distributions
in excess) | | | | |
| of net
investment income | $ (125,577) | $ (162,871) | $ 434,714 | $ 307,522 |

51

FINANCIAL HIGHLIGHTS

BlackRock Insured Municipal Income Trust (BYM)

	Six Months Ended	For the period — October 31, 2002 1
	February 29, 2004	through
	(unaudited)	August 31, 2003
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 13.64	$ 14.33 2
Investment
operations:
Net
investment income	0.53	0.83
Net
realized and unrealized gain (loss)	1.65	(0.62)
Dividends
to preferred shareholders from net investment income	(0.04)	(0.07)
Net
increase from investment operations	2.14	0.14
Dividends
to common shareholders from net investment income	(0.47)	(0.70)
Capital
charges with respect to issuance of:
Common
shares	—	(0.03)
Preferred
shares	—	(0.10)
Total
capital charges	—	(0.13)
Net
asset value, end of period	$ 15.31	$ 13.64
Market
price, end of period	$ 14.70	$ 13.51
TOTAL
INVESTMENT RETURN 3	12.43%	(5.39)%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4, 5
Expenses
after fees waived and paid indirectly	0.83%	0.77%
Expenses before
fees waived and paid indirectly	1.15%	1.10%
Net investment income after fees
waived and paid indirectly and before preferred
share dividends	7.28%	6.95%
Preferred share
dividends	0.54%	0.55%
Net investment income available
to common shareholders	6.74%	6.40%
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$382,289	$372,269
Portfolio turnover	24%	46%
Net assets of common shareholders, end of period (000)	$400,354	$356,438
Preferred shares
value outstanding (000)	$228,975	$228,975
Asset coverage per preferred
share, end of period	$ 68,715	$
63,919

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial
Highlights represents the unaudited operating performance for a common
share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

See Notes to Financial Statements.

52

FINANCIAL HIGHLIGHTS

BlackRock Municipal Bond Trust (BBK)

	Six Months Ended		For the period — April 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 14.12	$ 14.76	$ 14.33 2
Investment
operations:
Net
investment income	0.62	1.28	0.31
Net
realized and unrealized gain (loss)	1.50	(0.74)	0.52
Dividends
and distributions to preferred shareholders: Net
investment income	(0.04)	(0.10)	(0.03)
Net
realized gains	—	(0.01)	—
Net
increase from investment operations	2.08	0.43	0.80
Dividends
and distributions to common shareholders: Net
investment income	(0.52)	(1.02)	(0.25)
Net
realized gains	—	(0.05)	—
Total
dividends and distributions	(0.52)	(1.07)	(0.25)
Capital
changes with respect to issuance of:
Common
shares	—	—	(0.03)
Preferred
shares	0.01	—	(0.09)
Total
capital changes	0.01	—	(0.12)
Net
asset value, end of period	$ 15.69	$ 14.12	$ 14.76
Market
price, end of period	$ 15.01	$ 13.66	$ 14.90
TOTAL
INVESTMENT RETURN 3	13.79%	(1.20)%	1.07%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	0.89% 5	0.91%	0.90% 5
Expenses before fees waived and
paid indirectly	1.37% 5	1.41%	1.32% 6
Net investment
income after fees waived and paid indirectly and
before preferred share dividends	8.27% 5	8.66%	6.35% 5
Preferred share dividends	0.53% 5	0.67%	0.53% 5
Net investment
income available to common shareholders	7.74% 5	7.99%	5.82% 5
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$152,707	$148,670	$144,196
Portfolio turnover	23%	21%	22%
Net assets
of common shareholders, end of period (000)	$158,797	$142,951	$149,253
Preferred shares value outstanding
(000)	$ 90,500	$ 90,500	$ 90,500
Asset coverage
per preferred share, end of period	$ 68,869	$ 64,491	$
66,233

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

53

FINANCIAL HIGHLIGHTS

BlackRock Municipal Income Trust II (BLE)

	Six Months Ended		For the period — July 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 13.28	$ 14.40	$ 14.33 2
Investment
operations:
Net
investment income	0.59	1.14	0.03
Net
realized and unrealized gain (loss)	1.65	(1.06)	0.07
Dividends
to preferred shareholders from net investment income	(0.04)	(0.10)	—
Net
increase (decrease) from investment operations	2.20	(0.02)	0.10
Dividends
to common shareholders from net investment income	(0.50)	(1.00)	—
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.03)
Preferred
shares	—	(0.10)	—
Total
capital charges	—	(0.10)	(0.03)
Net
asset value, end of period	$ 14.98	$ 13.28	$ 14.40
Market
price, end of period	$ 14.53	$ 13.11	$ 15.00
TOTAL
INVESTMENT RETURN 3	14.84%	(6.00)%	0.00%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	0.94% 5	0.92%	0.65% 6
Expenses before
fees waived and paid indirectly	1.19% 5	1.17%	0.80% 6
Net investment income after fees
waived and paid indirectly and before preferred
share dividends	8.33% 5	8.15%	2.82% 6
Preferred share
dividends	0.58% 5	0.69%	—% 6
Net investment income available
to common shareholders	7.75% 5	7.46%	2.82% 6
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$326,439	$318,014	$307,165
Portfolio turnover	25%	118%	—%
Net assets of common shareholders, end of period (000)	$341,173	$302,337	$323,483
Preferred shares
value outstanding (000)	$205,550	$205,550	$ —
Asset coverage per preferred
share, end of period	$ 66,498	$ 61,774	$ —

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| 6 | These annualized ratios are not indicative
of future expense ratios, due to the short operating history of the Trust. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

54

FINANCIAL HIGHLIGHTS

BlackRock California Insured Municipal Income Trust (BCK)

	Six Months Ended	For the period — October 31, 2002 1
	February 29, 2004	through
	(unaudited)	August 31, 2003
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 13.09	$ 14.33 2
Investment
operations:
Net
investment income	0.51	0.79
Net
realized and unrealized gain (loss)	1.72	(1.15)
Dividends
to preferred shareholders from net investment income	(0.04)	(0.06)
Net
increase (decrease) from investment operations	2.19	(0.42)
Dividends
to common shareholders: Net investment income	(0.45)	(0.67)
Net
realized gains	(0.01)	—
Total
dividends and distributions	(0.46)	(0.67)
Capital
charges with respect to issuance of:
Common
shares	—	(0.03)
Preferred
shares	—	(0.12)
Total
capital charges	—	(0.15)
Net
asset value, end of period	$ 14.82	$ 13.09
Market
price, end of period	$ 14.34	$ 13.01
TOTAL
INVESTMENT RETURN 3	13.91%	(8.98)%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4, 5
Expenses
after fees waived and paid indirectly	0.96%	0.92%
Expenses before
fees waived and paid indirectly	1.29%	1.27%
Net investment income after fees
waived and paid indirectly and before preferred
share dividends	7.24%	6.69%
Preferred share
dividends	0.50%	0.50%
Net investment income available
to common shareholders	6.74%	6.19%
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$ 74,366	$ 74,302
Portfolio turnover	—%	41%
Net assets of common shareholders, end of period (000)	$ 78,053	$ 68,910
Preferred shares
value outstanding (000)	$ 46,500	$ 46,500
Asset coverage per preferred
share, end of period	$ 66,968	$ 62,052

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial
Highlights represents the unaudited operating performance for a common
share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

See Notes to Financial Statements.

55

FINANCIAL HIGHLIGHTS

BlackRock California Municipal Bond Trust (BZA)

	Six Months Ended		For the period — April 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 13.71	$ 14.87	$ 14.33 2
Investment
operations:
Net
investment income	0.58	1.18	0.28
Net
realized and unrealized gain (loss)	1.52	(1.21)	0.63
Dividends
and distributions to preferred shareholders: Net
investment income	(0.03)	(0.09)	(0.02)
Net
realized gains	(0.01)	(0.01)	—
Net
increase (decrease) from investment operations	2.06	(0.13)	0.89
Dividends
and distributions to common shareholders: Net
investment income	(0.48)	(0.94)	(0.23)
Net
realized gains	(0.07)	(0.08)	—
Total
dividends and distributions	(0.55)	(1.02)	(0.23)
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.03)
Preferred
shares	—	(0.01)	(0.09)
Total
capital charges	—	(0.01)	(0.12)
Net
asset value, end of period	$ 15.22	$ 13.71	$ 14.87
Market
price, end of period	$ 14.23	$ 13.15	$ 14.58
TOTAL
INVESTMENT RETURN 3	12.49%	(2.92)%	(1.23)%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	1.06% 5	1.06%	1.12% 4
Expenses before fees waived and
paid indirectly	1.55% 5	1.54%	1.53% 4
Net investment
income after fees waived and paid indirectly and
before preferred share dividends	7.92% 5	7.99%	5.75% 5
Preferred share dividends	0.43% 5	0.58%	0.49% 5
Net investment
income available to common shareholders	7.49% 5	7.41%	5.26% 5
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$ 49,096	$ 49,107	$ 47,390
Portfolio turnover	10%	22%	18%
Net assets
of common shareholders, end of period (000)	$ 51,017	$ 45,940	$ 49,834
Preferred shares value outstanding
(000)	$ 29,975	$ 29,975	$ 29,975
Asset coverage
per preferred share, end of period	$ 67,554	$ 63,318	$ 66,569

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

56

FINANCIAL HIGHLIGHTS

BlackRock California Municipal Income Trust II (BCL)

	Six Months Ended		For the period — July 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 12.76	$ 14.42	$ 14.33 2
Investment
operations:
Net
investment income	0.55	1.02	0.02
Net
realized and unrealized gain (loss)	1.63	(1.51)	0.10
Dividends
to preferred shareholders from net investment income	(0.04)	(0.09)	—
Net
increase (decrease) from investment operations	2.14	(0.58)	0.12
Dividends
to common shareholders from net investment income	(0.49)	(0.97)	—
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.03)
Preferred
shares	—	(0.11)	—
Total
capital charges	—	(0.11)	(0.03)
Net
asset value, end of period	$ 14.41	$ 12.76	$ 14.42
Market
price, end of period	$ 13.96	$ 13.01	$ 15.01
TOTAL
INVESTMENT RETURN 3	11.16%	(6.94)%	0.07%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	1.02% 5	0.97%	1.05% 6
Expenses before
fees waived and paid indirectly	1.27% 5	1.23%	1.20% 6
Net investment income after fees
waived and paid indirectly and before preferred
share dividends	7.94% 5	7.38%	1.35% 6
Preferred share
dividends	0.59% 5	0.63%	—% 6
Net investment income available
to common shareholders	7.35% 5	6.75%	1.35% 6
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$109,759	$110,286	$105,895
Portfolio turnover	13%	85%	—%
Net assets of common shareholders, end of period (000)	$115,026	$101,738	$112,576
Preferred shares
value outstanding (000)	$ 71,950	$ 71,950	$ —
Asset coverage per preferred
share, end of period	$ 64,970	$ 60,353	$ —

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| 6 | These annualized ratios are not indicative
of future expense ratios, due to the short operating history of the Trust. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

57

FINANCIAL HIGHLIGHTS

BlackRock Florida Insured Municipal Income Trust (BAF)

	Six Months Ended	For the period — October 31, 2002 1
	February 29, 2004	through
	(unaudited)	August 31, 2003
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 13.74	$ 14.33 2
Investment
operations:
Net
investment income	0.51	0.75
Net
realized and unrealized gain (loss)	1.35	(0.47)
Dividends
and distributions to preferred shareholders: Net
investment income	(0.03)	(0.06)
Net
realized gains	(0.01)	—
Net
increase from investment operations	1.82	0.22
Dividends
and distributions to common shareholders: Net
investment income	(0.45)	(0.67)
Net
realized gains	(0.08)	—
Total
dividends and distributions	(0.53)	(0.67)
Capital
charges with respect to issuance of:
Common
shares	—	(0.03)
Preferred
shares	—	(0.11)
Total
capital charges	—	(0.14)
Net
asset value, end of period	$ 15.03	$ 13.74
Market
price, end of period	$ 14.95	$ 13.20
TOTAL
INVESTMENT RETURN 3	17.45%	(7.78)%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4, 5
Expenses
after fees waived and paid indirectly	0.88%	0.83%
Expenses before fees waived and
paid indirectly	1.24%	1.17%
Net investment
income after fees waived and paid indirectly and
before preferred share dividends	7.15%	6.39%
Preferred share dividends	0.48%	0.54%
Net investment
income available to common shareholders	6.67%	5.85%
SUPPLEMENTAL DATA:
Average
net assets of common shareholders (000)	$126,093	$124,543
Portfolio turnover	1%	50%
Net assets
of common shareholders, end of period (000)	$131,073	$119,778
Preferred shares value outstanding
(000)	$ 76,000	$ 76,000
Asset coverage
per preferred share, end of period	$ 68,120	$ 64,404

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

58

FINANCIAL HIGHLIGHTS

BlackRock Florida Municipal Bond Trust (BIE)

	Six Months Ended		For the period — April 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 14.52	$ 14.90	$ 14.33 2
Investment
operations:
Net
investment income	0.58	1.14	0.26
Net
realized and unrealized gain (loss)	1.20	(0.43)	0.68
Dividends
and distributions to preferred shareholders: Net
investment income	(0.04)	(0.09)	(0.02)
Net
realized gains	—	(0.01)	—
Net
increase from investment operations	1.74	0.61	0.92
Dividends
and distributions to common shareholders: Net
investment income	(0.47)	(0.92)	(0.23)
Net
realized gains	(0.02)	(0.06)	—
Total
dividends and distributions	(0.49)	(0.98)	(0.23)
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.03)
Preferred
shares	—	(0.01)	(0.09)
Total
capital charges	—	(0.01)	(0.12)
Net
asset value, end of period	$ 15.77	$ 14.52	$ 14.90
Market
price, end of period	$ 15.04	$ 13.55	$ 14.92
TOTAL
INVESTMENT RETURN 3	14.76%	(2.90)%	1.03%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	1.03% 5	1.05%	1.12% 5
Expenses before fees waived and
paid indirectly	1.51% 5	1.53%	1.54% 5
Net investment
income after fees waived and paid indirectly and
before preferred share dividends	7.63% 5	7.54%	5.36% 5
Preferred share dividends	0.53% 5	0.59%	0.49% 5
Net investment
income available to common shareholders	7.10% 5	6.95%	4.87% 5
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$ 50,315	$ 49,915	$ 46,792
Portfolio turnover	4%	19%	—%
Net assets
of common shareholders, end of period (000)	$ 52,193	$ 48,042	$ 49,284
Preferred shares value outstanding
(000)	$ 29,775	$ 29,775	$ 29,775
Asset coverage
per preferred share, end of period	$ 68,825	$
65,340	$ 66,383

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

59

FINANCIAL HIGHLIGHTS

BlackRock Maryland Municipal Bond Trust (BZM)

	Six Months Ended		For the period — April 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 14.36	$ 14.76	$ 14.33 2
Investment
operations:
Net
investment income	0.54	1.07	0.25
Net
realized and unrealized gain (loss)	1.18	(0.45)	0.53
Dividends
and distributions to preferred shareholders: Net
investment income	(0.04)	(0.10)	(0.03)
Net
realized gains	—	(0.01)	—
Net
increase from investment operations	1.68	0.51	0.75
Dividends
and distributions to common shareholders: Net
investment income	(0.43)	(0.84)	(0.21)
Net
realized gains	—	(0.04)	—
Total
dividends and distributions	(0.43)	(0.88)	(0.21)
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.02)
Preferred
shares	—	(0.03)	(0.09)
Total
capital charges	—	(0.03)	(0.11)
Net
asset value, end of period	$ 15.61	$ 14.36	$ 14.76
Market
price, end of period	$ 15.69	$ 13.90	$ 14.95
TOTAL
INVESTMENT RETURN 3	16.18%	(1.32)%	1.10%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	1.16% 5	1.15%	1.12% 5
Expenses before fees waived and
paid indirectly	1.64% 5	1.63%	1.54% 5
Net investment
income after fees waived and paid indirectly and
before preferred share dividends	7.18% 5	7.18%	5.30% 5
Preferred share dividends	0.53% 5	0.64%	0.54% 5
Net investment
income available to common shareholders	6.65% 5	6.54%	4.76% 5
SUPPLEMENTAL DATA:
Average
net assets of common shareholders (000)	$ 30,315	$ 30,069	$ 28,153
Portfolio turnover	7%	14%	1%
Net assets
of common shareholders, end of period (000)	$ 31,448	$ 28,923	$ 29,705
Preferred shares value outstanding
(000)	$ 18,000	$ 18,000	$ 18,000
Asset coverage
per preferred share, end of period	$ 68,680	$
65,172	$ 66,259

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

60

FINANCIAL HIGHLIGHTS

BlackRock New Jersey Municipal Bond Trust (BLJ)

	Six Months Ended		For the period — April 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 13.77	$ 14.58	$ 14.33 2
Investment
operations:
Net
investment income	0.57	1.15	0.25
Net
realized and unrealized gain (loss)	1.54	(0.85)	0.37
Dividends
and distributions to preferred shareholders: Net
investment income	(0.03)	(0.09)	(0.02)
Net
realized gains	—	(0.01)	—
Net
increase from investment operations	2.08	0.20	0.60
Dividends
and distributions to common shareholders: Net
investment income	(0.47)	(0.93)	(0.23)
Net
realized gains	(0.05)	(0.06)	—
Total
dividends and distributions	(0.52)	(0.99)	(0.23)
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.03)
Preferred
shares	—	(0.02)	(0.09)
Total
capital charges	—	(0.02)	(0.12)
Net
asset value, end of period	$ 15.33	$ 13.77	$ 14.58
Market
price, end of period	$ 14.93	$ 13.64	$ 14.65
TOTAL
INVESTMENT RETURN 3	13.44%	(0.10)%	(0.75)%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	1.13% 5	1.14%	1.15% 5
Expenses before fees waived and
paid indirectly	1.62% 5	1.62%	1.57% 5
Net investment
income after fees waived and paid indirectly and
before preferred share dividends	7.91% 5	7.94%	5.29% 5
Preferred share dividends	0.47% 5	0.60%	0.45% 5
Net investment
income available to common shareholders	7.44% 5	7.34%	4.84% 5
SUPPLEMENTAL DATA:
Average
net assets of common shareholders (000)	$ 33,320	$ 32,652	$ 31,611
Portfolio turnover	7%	20%	17%
Net assets
of common shareholders, end of period (000)	$ 34,780	$ 31,226	$ 32,981
Preferred shares value outstanding
(000)	$ 20,225	$ 20,225	$ 20,225
Asset coverage
per preferred share, end of period	$ 67,995	$
63,602	$ 65,771

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each year indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

61

FINANCIAL HIGHLIGHTS

BlackRock New York Insured Municipal Income Trust (BSE)

	Six Months Ended	For the period — October 31, 2002 1
	February 29, 2004	through
	(unaudited)	August 31, 2003
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 13.45	$ 14.33 2
Investment
operations:
Net
investment income	0.51	0.75
Net
realized and unrealized gain (loss)	1.61	(0.75)
Dividends
to preferred shareholders from net investment income	(0.04)	(0.07)
Net
increase (decrease) from investment operations	2.08	(0.07)
Dividends
to common shareholders from net investment income	(0.45)	(0.67)
Capital
charges with respect to issuance of:
Common
shares	—	(0.03)
Preferred
shares	—	(0.11)
Total
capital charges	—	(0.14)
Net
asset value, end of period	$ 15.08	$ 13.45
Market
price, end of period	$ 14.66	$ 13.28
TOTAL
INVESTMENT RETURN 3	13.90%	(7.13)%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4, 5
Expenses
after fees waived and paid indirectly	0.91%	0.87%
Expenses before
fees waived and paid indirectly	1.27%	1.22%
Net investment income after fees
waived and paid indirectly and before preferred
share dividends	7.12%	6.35%
Preferred share
dividends	0.49%	0.55%
Net investment income available
to common shareholders	6.63%	5.80%
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$ 92,548	$ 90,967
Portfolio turnover	7%	80%
Net assets of common shareholders, end of period (000)	$ 97,042	$ 86,431
Preferred shares
value outstanding (000)	$ 56,000	$ 56,000
Asset coverage per preferred
share, end of period	$ 68,323	$ 63,587

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial
Highlights represents the unaudited operating performance for a common
share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined
based upon financial information provided in the financial statements
and market
price data for the Trust’s common shares. | |

See Notes to Financial Statements.

62

FINANCIAL HIGHLIGHTS

BlackRock New York Municipal Bond Trust (BQH)

	Six Months Ended		For the period — April 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 14.15	$ 14.83	$ 14.33 2
Investment
operations:
Net
investment income	0.56	1.12	0.25
Net
realized and unrealized gain (loss)	1.31	(0.71)	0.62
Dividends
and distributions to preferred shareholders: Net
investment income	(0.03)	(0.09)	(0.02)
Net
realized gains	—	(0.01)	—
Net
increase from investment operations	1.84	0.31	0.85
Dividends
and distributions to common shareholders: Net
investment income	(0.46)	(0.92)	(0.23)
Net
realized gains	—	(0.06)	—
Total
dividends and distributions	(0.46)	(0.98)	(0.23)
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.03)
Preferred
shares	—	(0.01)	(0.09)
Total
capital charges	—	(0.01)	(0.12)
Net
asset value, end of period	$ 15.53	$ 14.15	$ 14.83
Market
price, end of period	$ 14.52	$ 13.35	$ 14.50
TOTAL
INVESTMENT RETURN 3	12.37%	(1.26)%	(1.78)%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	1.12% 5	1.12%	1.12% 5
Expenses before fees waived and
paid indirectly	1.60% 5	1.60%	1.54% 5
Net investment
income after fees waived and paid indirectly and
before preferred share dividends	7.58% 5	7.57%	5.24% 5
Preferred share dividends	0.42% 5	0.62%	0.50% 5
Net investment
income available to common shareholders	7.16% 5	6.95%	4.74% 5
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$ 40,447	$ 40,072	$ 38,183
Portfolio turnover	8%	7%	15%
Net assets
of common shareholders, end of period (000)	$ 41,956	$ 38,207	$ 40,062
Preferred shares value outstanding
(000)	$ 24,200	$ 24,200	$ 24,200
Asset coverage
per preferred share, end of period	$ 68,344	$
64,473	$ 66,390

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

63

FINANCIAL HIGHLIGHTS

BlackRock New York Municipal Income Trust II (BFY)

	Six Months Ended		For the period — July 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 13.36	$ 14.47	$ 14.33 2
Investment
operations:
Net
investment income	0.52	0.98	0.02
Net
realized and unrealized gain (loss)	1.54	(0.94)	0.15
Dividends
to preferred shareholders from net investment income	(0.04)	(0.10)	—
Net
increase (decrease) from investment operations	2.02	(0.06)	0.17
Dividends
to common shareholders from net investment income	(0.47)	(0.94)	—
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.03)
Preferred
shares	—	(0.11)	—
Total
capital charges	—	(0.11)	(0.03)
Net
asset value, end of period	$ 14.91	$ 13.36	$ 14.47
Market
price, end of period	$ 14.47	$ 13.12	$ 15.10
TOTAL
INVESTMENT RETURN 3	14.07%	(6.93)%	0.67%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	1.03% 5	1.00%	1.43% 6
Expenses before
fees waived and paid indirectly	1.28% 5	1.27%	1.58% 6
Net investment income after fees
waived and paid indirectly and before preferred
share dividends	7.33% 5	6.95%	1.77% 6
Preferred share
dividends	0.57% 5	0.68%	—% 6
Net investment income available
to common shareholders	6.76% 5	6.27%	1.77% 6
SUPPLEMENTAL
DATA:
Average
net assets of common shareholders (000)	$ 70,483	$ 69,863	$ 64,673
Portfolio turnover	5%	40%	—%
Net assets of common shareholders, end of period (000)	$ 73,563	$ 65,953	$ 70,276
Preferred shares
value outstanding (000)	$ 44,650	$ 44,650	$ —
Asset coverage per preferred
share, end of period	$ 66,191	$ 61,930	$ —

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| 6 | These annualized ratios are not indicative
of future expense ratios, due to the short operating history of the Trust. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

64

FINANCIAL HIGHLIGHTS

BlackRock Virginia Municipal Bond Trust (BHV)

	Six Months Ended		For the period — April 30, 2002 1
	February 29, 2004	Year Ended	through
	(unaudited)	August 31, 2003	August 31, 2002
PER
COMMON SHARE OPERATING PERFORMANCE:
Net
asset value, beginning of period	$ 14.46	$ 14.90	$ 14.33 2
Investment
operations:
Net
investment income	0.54	1.09	0.27
Net
realized and unrealized gain (loss)	1.46	(0.44)	0.65
Dividends
and distributions to preferred shareholders: Net
investment income	(0.03)	(0.08)	(0.03)
Net
realized gains	—	(0.02)	—
Net
increase from investment operations	1.97	0.55	0.89
Dividends
and distributions to common shareholders: Net
investment income	(0.43)	(0.85)	(0.21)
Net
realized gains	—	(0.10)	—
Total
dividends and distributions	(0.43)	(0.95)	(0.21)
Capital
charges with respect to issuance of:
Common
shares	—	—	(0.02)
Preferred
shares	—	(0.04)	(0.09)
Total
capital charges	—	(0.04)	(0.11)
Net
asset value, end of period	$ 16.00	$ 14.46	$ 14.90
Market
price, end of period	$ 16.40	$ 14.40	$ 15.20
TOTAL
INVESTMENT RETURN 3	17.15%	0.94%	2.81%
RATIOS
TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 4
Expenses
after fees waived and paid indirectly	1.17% 5	1.17%	1.12% 5
Expenses before fees waived and
paid indirectly	1.65% 5	1.64%	1.54% 5
Net investment
income after fees waived and paid indirectly and before preferred
share dividends	7.28% 5	7.23%	5.70% 5
Preferred share dividends	0.46% 5	0.53%	0.54% 5
Net investment
income available to common shareholders	6.82% 5	6.70%	5.16% 5
SUPPLEMENTAL DATA:
Average
net assets of common shareholders (000)	$ 23,215	$ 22,896	$ 21,321
Portfolio turnover	14%	18%	8%
Net assets
of common shareholders, end of period (000)	$ 24,325	$ 21,944	$ 22,545
Preferred shares value outstanding
(000)	$ 13,525	$ 13,525	$ 13,525
Asset coverage
per preferred share, end of period	$ 69,964	$ 65,562	$
66,674

| 1 | Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share. |
| 3 | Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results. |
| 4 | Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders. |
| 5 | Annualized. |
| The information in the above Financial Highlights
represents the unaudited operating performance for a common share outstanding,
total investment returns, ratios to average net assets and other supplemental
data for each period indicated. This information has been determined based
upon financial information provided in the financial statements and market
price data for the Trust’s common shares. | |

65

NOTES TO FINANCIAL STATEMENTS (unaudited)

Note 1. Organization &Accounting Policies

BlackRock Insured Municipal Income Trust (“Insured Municipal”), BlackRock California Insured Municipal Income Trust (“California Insured”), BlackRock Florida Insured Municipal Income Trust (“Florida Insured”), BlackRock New York Insured Municipal Income Trust (“New York Insured”) (collectively the “Insured Trusts”), BlackRock Municipal Bond Trust (“Municipal Bond”), BlackRock California Municipal Bond Trust (“California Bond”), BlackRock Florida Municipal Bond Trust (“Florida Bond”), BlackRock Maryland Municipal Bond Trust (“Maryland Bond”), BlackRock New Jersey Municipal Bond Trust (“New Jersey Bond”), BlackRock New York Municipal Bond Trust (“New York Bond”), BlackRock Virginia Municipal Bond Trust (“Virginia Bond”) (collectively the “Bond Trusts”), BlackRock Municipal Income Trust II (“Municipal Income II”), BlackRock California Municipal Income Trust II (“California Income II”) and BlackRock New York Municipal Income Trust II (“New York Income II”) (collectively the “Income II Trusts”) (collectively the “Trusts”) are organized as Delaware statutory trusts. The Insured Trusts were organized on August 19, 2002. They had no transactions until October 19, 2002, when each of the Insured Trusts sold 8,028 common shares for $115,001 to BlackRock Funding, Inc. Investment operations for the Insured Trusts commenced on October 31, 2002. Insured Municipal, Municipal Bond and Municipal Income II are registered as diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. California Insured, California Bond, California Income II, Florida Insured, Florida Bond, Maryland Bond, New Jersey Bond, New York Insured, New York Bond, New York Income II and Virginia Bond are registered as non-diversified closed-end management investment companies under the Investment Company Act of 1940, as amended.

The following is a summary of significant accounting policies followed by the Trusts.

Securities Valuation: Municipal securities (including commitments to purchase such securities on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust’s Board of Trustees or Board of Directors as the case may be (each, a “Board”). In determining the value of a particular security, pricing services may use certain information with respect to transactions in such securities, quotations from bond dealers, market transactions in comparable securities and various relationships between securities. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term investments may be valued at amortized cost. Investments in other investment companies are valued at net asset value. Any securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board.

Securities Transactions and Investment Income: Securities transactions are recorded on trade date. Realized and unrealized gains and losses are calculated on the identified cost basis. Each Trust also records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking-to-market” on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract.

Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.

Segregation: In cases in which the Investment Company Act of 1940, as amended, and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust segregate assets in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Federal Income Taxes: It is each Trust’s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net income to shareholders. For this reason and because substantially all of the gross income of each Trust consists of tax-exempt interest, no Federal income tax provisions are required.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 4.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by the Trust’s Board, non-interested Trustees/Directors (“Trustees”) are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end trusts selected by the Trustees. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.

66

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations.

Note 2. Agreements

Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the “Advisor”), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to each Trust. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The investment management agreement covers both investment advisory and administration services.

Each Trust’s investment advisory fee paid to the Advisor is computed weekly, accrued daily and payable monthly based on an annual rate, 0.55% for the Insured Trusts and Income II Trusts and 0.65% for the Bond Trusts, of each Trust’s average weekly managed assets. “Managed assets” means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses of each Trust. With respect to the Insured Trusts the waiver, as a percentage of managed assets, is as follows: 0.20% for the first 5 years of each Trust’s operations, 0.15% in year 6, 0.10% in year 7, and 0.05% in year 8. With respect to the Bond Trusts the waiver, as a percentage of managed assets, is as follows: 0.30% for the first 5 years of each Trust’s operations, 0.25% in year 6, 0.20% in year 7, 0.15% in year 8, 0.10% in year 9 and 0.05% in year 10. With respect to the Income II Trusts the waiver, as a percentage of managed assets, is as follows: 0.15% for the first 5 years of each Trust’s operations, 0.10% in year 6 through year 7, 0.05% in year 8 through year 10.

Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for certain operational support services provided to each Trust.

Pursuant to the terms of each Trust’s custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees.

Note 3. Portfolio Securities

Purchases and sales of investment securities, other than short-term investments, for the period ended February 29, 2004, were as follows:

Trust	Purchases	Sales	Trust	Purchases	Sales
Insured
Municipal	$147,204,582	$140,894,975	Florida Bond	$3,061,883	$4,535,224
Municipal Bond	52,666,573	66,026,459	Maryland Bond	3,273,748	3,844,615
Municipal Income
II	126,686,511	131,647,513	New Jersey Bond	4,823,537	3,805,865
California Insured	—	3,000,000	New York Insured	8,181,541	8,500,950
California
Bond	7,507,184	10,428,814	New York Bond	5,237,378	4,894,945
California Income II	22,919,235	25,729,433	New York Income Trust II	6,040,273	7,978,215
Florida Insured	1,955,883	4,901,525	Virginia Bond	5,123,960	5,039,241

Details of open financial futures contracts at February 29, 2004 were as follows:

	Number of		Expiration	Value at Trade	Value at — February 29,	Unrealized
Trust	Contracts	Type	Date	Date	2004	Depreciation
Short Positions:
Insured Municipal	1,444	10 Yr. U.S. T-Note	June ’04	$164,118,547	$164,435,500	$316,953
Municipal Bond	532	10 Yr. U.S. T-Note	June ’04	60,464,720	60,581,500	116,780
Municipal Income
II	1,227	10 Yr. U.S. T-Note	June ’04	139,455,297	139,724,625	269,328
California Insured	308	10 Yr. U.S. T-Note	June ’04	35,005,970	35,073,500	67,530
California
Bond	189	10 Yr. U.S. T-Note	June ’04	21,480,982	21,522,375	41,393
California Income II	510	10 Yr. U.S. T-Note	June ’04	57,964,284	58,076,250	111,966
Florida Insured	430	10 Yr. U.S. T-Note	June ’04	48,871,780	48,966,250	94,470
Florida Bond	148	10 Yr. U.S. T-Note	June ’04	16,821,150	16,853,500	32,350
Maryland Bond	91	10 Yr. U.S. T-Note	June ’04	10,342,213	10,362,625	20,412
New Jersey Bond	135	10 Yr. U.S. T-Note	June ’04	15,343,570	15,373,125	29,555
New York Insured	319	10 Yr. U.S. T-Note	June ’04	36,256,181	36,326,125	69,944
New York Bond	122	10 Yr. U.S. T-Note	June ’04	13,866,030	13,892,750	26,720
New York Income
II	216	10 Yr. U.S. T-Note	June ’04	24,549,549	24,597,000	47,451
Virginia Bond	82	10 Yr. U.S. T-Note	June ’04	9,319,866	9,337,750	17,884

67

Note 4. Distributions to Shareholders

The tax character of distributions paid during the period ended February 29, 2004 and the year ended August 31, 2003 were as follows:

| | Period
ended February 29, 2004 | | | | Year ended August
31, 2003 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | Long-term | | | | Long-term | |
| | Tax-exempt | Ordinary | Capital | Total | Tax-exempt | Ordinary | Capital | Total |
| Trust | Income | Income | Gain | Distributions | Income | Income | Gain | Distributions |
| Insured
Municipal | $13,281,307 | $ — | $ — | $13,281,307 | $20,038,910 | $ — | $ — | $20,038,910 |
| Municipal Bond | 5,651,393 | — | — | 5,651,393 | 11,285,917 | 597,573 | — | 11,883,490 |
| Municipal Income II | 12,389,955 | — | — | 12,389,955 | 25,082,459 | — | — | 25,082,459 |
| California
Insured | 2,556,393 | 73,747 | — | 2,630,140 | 3,860,751 | — | — | 3,860,751 |
| California Bond | 1,707,290 | 232,979 | 9,007 | 1,949,276 | 3,437,724 | 314,651 | — | 3,752,375 |
| California
Income II | 4,210,362 | — | — | 4,210,362 | 8,464,717 | — | — | 8,464,717 |
| Florida Insured | 4,223,492 | 718,777 | — | 4,942,269 | 6,444,887 | — | — | 6,444,887 |
| Florida Bond | 1,676,978 | 80,865 | — | 1,757,843 | 3,332,440 | 211,968 | — | 3,544,408 |
| Maryland Bond | 942,050 | — | — | 942,050 | 1,889,448 | 83,572 | — | 1,973,020 |
| New Jersey
Bond | 1,148,434 | 121,410 | — | 1,269,844 | 2,305,459 | 159,954 | — | 2,465,413 |
| New York Insured | 3,121,245 | — | — | 3,121,245 | 4,747,699 | — | — | 4,747,699 |
| New York Bond | 1,333,373 | — | — | 1,333,373 | 2,725,833 | 176,602 | — | 2,902,435 |
| New York Income II | 2,530,301 | — | — | 2,530,301 | 5,138,475 | — | — | 5,138,475 |
| Virginia Bond | 712,779 | — | — | 712,779 | 1,410,518 | 174,265 | — | 1,584,783 |

As of February 29, 2004, the components of distributable earnings on a tax basis were as follows:

	Undistributed — Tax-exempt	Undistributed — Long-term	Unrealized Net
Trust	Income	Gain (Loss)	Appreciation
Insured Municipal	$2,126,387	$ —	$36,165,844
Municipal Bond	2,519,763	—	13,308,313
Municipal Income II	2,729,020	—	22,963,937
California Insured	432,505	—	3,390,461
California Bond	781,590	—	3,043,857
California Income II	—	—	5,488,860
Florida Insured	475,782	—	7,479,738
Florida Bond	672,272	—	4,873,699
Maryland Bond	450,333	—	2,737,028
New Jersey Bond	444,940	25,128	2,207,497
New York Insured	248,780	—	6,122,711
New York Bond	495,691	—	3,561,052
New York Income II	—	—	4,771,218
Virginia Bond	408,080	—	2,532,385

Note 5. Capital

There are an unlimited number of $0.001 par value common shares of beneficial interest authorized for each Trust. Each Trust may classify or reclassify any unissued common shares into one or more series of Auction Market Preferred Shares (“preferred shares”). At February 29, 2004, the shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:

	Common — Shares	Common		Common — Shares	Common
Trust	Outstanding	Shares Owned	Trust	Outstanding	Shares Owned
Insured Municipal	26,149,334	8,028	Florida Municipal	3,309,483	7,679
Municipal Bond	10,123,055	7,679	Maryland Municipal	2,014,422	7,679
Municipal Income II	22,781,072	8,027	New Jersey Municipal	2,269,366	7,679
California Insured	5,267,067	8,028	New York Insured	6,436,539	8,028
California Municipal	3,351,150	7,679	New York Bond	2,700,991	7,679
California Municipal II	7,981,621	8,027	New York Income II	4,935,268	8,027
Florida Insured	8,718,823	8,028	Virginia Bond	1,519,916	7,679

68

During the period ended February 29, 2004, Insured Municipal, Municipal Income II, California Insured, California Income II, Maryland Bond, New Jersey Bond, New York Insured and Virginia Bond issued additional shares under their dividend reinvestment plans of 23,876, 7,680, 3,042, 7,208, 301, 1,848, 12,431 and 2,875, respectively. Transactions in common shares of beneficial interest for the year ended August 31, 2003, were as follows:

| | Shares
from | | | |
| --- | --- | --- | --- | --- |
| | Initial | | | |
| | Public Offering | Underwriters’ Exercising | Reinvestment | Net Increase in |
| Trust | October 31, 2002 | the Over-allotment Option | of Dividends | Shares Outstanding |
| Insured
Municipal | 24,008,028 | 2,000,000 | 117,430 | 26,125,458 |
| Municipal Bond | — | — | 12,096 | 12,096 |
| Municipal Income II | — | 300,000 | 15,364 | 315,364 |
| California
Insured | 5,008,028 | 250,000 | 5,997 | 5,264,025 |
| California Bond | — | — | 840 | 840 |
| California
Income II | — | 150,000 | 16,385 | 166,385 |
| Florida Insured | 8,008,028 | 700,000 | 10,795 | 8,718,823 |
| Florida Bond | — | — | 1,232 | 1,232 |
| Maryland Bond | — | — | 1,240 | 1,240 |
| New Jersey
Bond | — | — | 5,212 | 5,212 |
| New York Insured | 6,008,028 | 400,000 | 16,080 | 6,424,108 |
| New York Bond | — | — | — | — |
| New York Income II | — | 75,000 | 2,240 | 77,240 |
| Virginia Bond | — | — | 4,017 | 4,017 |

Offering costs incurred in connection with the Trusts’ offering of common shares have been charged against the proceeds from the initial common share offering of the common shares were as follows:

Trust	Offering Costs
Insured Municipal	$765,000
California Insured	142,500
Florida Insured	246,000
New York Insured	177,000

As of February 29, 2004, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.

Trust	Series	Shares	Trust	Series	Shares
Insured
Municipal	M7	3,053	California Income II	T7	1,439
	R7	3,053		R7	1,439
	F7	3,053	Florida Insured	M7	3,040
Municipal Bond	T7	1,810	Florida Bond	W7	1,191
	R7	1,810	Maryland Bond	R7	720
Municipal Income II	M7	2,055	New Jersey Bond	M7	809
	T7	2,056	New York Insured	R7	2,240
	W7	2,055	New York Bond	T7	968
	R7	2,056	New York Income II	W7	1,786
California Insured	F7	1,860	Virginia Bond	R7	541
California
Bond	F7	1,199

69

Underwriting discounts and offering costs incurred in connection with the preferred share offerings for the period ended February 29, 2004, and the year ended August 31, 2003 have been charged to paid-in capital in excess of par of the common shares as follows.

	Underwriting	Offering		Underwriting	Offering
Trust	Discount	Cost	Trust	Discount	Cost
Insured
Municipal	2,289,750	369,482	Florida Bond	—	28,492
Municipal Bond	—	(128,162)	Maryland Bond	—	50,675
Municipal Income II	2,055,500	239,168	New Jersey Bond	—	48,427
California
Insured	465,000	144,518	New York Insured	560,000	151,970
California Bond	—	21,849	New York Bond	—	37,459
California
Income II	719,500	129,975	New York Income II	446,500	120,782
Florida Insured	760,000	184,848	Virginia Bond	—	58,033

Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The dividend ranges on the preferred shares for each of the Trusts for the period ended February 29, 2004, were as follows:

Trust	Low	High	Trust	Low	High
Insured
Municipal	0.63%	1.30%	Florida Bond	0.70%	1.40%
Municipal Bond	0.45	1.35	Maryland Bond	0.60	1.30
Municipal Income
II	0.45	1.40	New Jersey Bond	0.40	2.10
California Insured	0.54	1.01	New York Insured	0.45	1.20
California
Bond	0.40	1.93	New York Bond	0.40	0.90
California Income II	0.50	1.40	New York Income II	0.80	1.10
Florida Insured	0.75	1.97	Virginia Bond	0.40	1.03

A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares would be less than 200%.

The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust’s Declaration of Trust, are not satisfied.

The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the Investment Company Act of 1940, as amended, requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trust’s subclassification as a closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company.

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Note 6. Dividends

Subsequent to February 29, 2004, the Board of each Trust declared dividends from undistributed earnings per common share payable April 1, 2004, to shareholders of record on March 15, 2004. The per share common dividends declared were as follows:

| Trust | Common
Dividend — Per Share | Trust | Common Dividend — Per Share |
| --- | --- | --- | --- |
| Insured
Municipal | $0.078125 | Florida Bond | 0.077808 |
| Municipal Bond | 0.086375 | Maryland Bond | 0.071350 |
| Municipal Income II | 0.083750 | New Jersey Bond | 0.078582 |
| California
Insured | 0.075000 | New York Insured | 0.075000 |
| California Bond | 0.079656 | New York Bond | 0.077099 |
| California
Income II | 0.081250 | New York Income II | 0.078750 |
| Florida Insured | 0.075000 | Virgina Bond | 0.072428 |

The dividends declared on preferred shares for the period March 1, 2004 to March 31, 2004, for each of the Trusts were as follows:

Trust	Series	Dividends — Declared	Trust	Series	Dividends — Declared
Insured
Municipal	M7	$66,647	California Income II	T7	$28,305
	R7	47,525		R7	22,434
	F7	66,586	Florida Insured	M7	52,622
Municipal Bond	T7	33,612	Florida Bond	W7	17,496
	R7	30,535	Maryland Bond	R7	10,109
Municipal Income
II	M7	42,497	New Jersey Bond	M7	14,950
	T7	41,449	New York Insured	R7	35,034
	W7	34,503	New York Bond	T7	19,089
	R7	31,169	New York Income II	W7	24,915
California
Insured	F7	38,242	Virginia Bond	R7	4,317
California Bond	F7	24,136

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DIVIDEND REINVESTMENT PLANS

Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by EquiServe Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent.

The Plan Agent serves as agent for the shareholders in administering the Plan. After a Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as “market premium”), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at 150 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.

ADDITIONAL INFORMATION ( unaudited )

Quarterly performance and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com/funds/cefunds/index.html. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRock’s website into this report.

Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or Sub-Advisor: Robert S. Kapito—Director and Vice Chairman of the Advisor and the Sub-Advisor, Kevin M. Klingert, Henry Gabbay and Anne Ackerley—Managing Directors of the Advisor and the Sub-Advisor, Richard M. Shea and James Kong—Managing Directors of the Sub-Advisor, Vincent B. Tritto—Director of the Sub-Advisor, and Brian P. Kindelan—Director of the Advisor.

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BlackRock Closed-End Funds

Trustees Ralph L. Schlosstein, Chairman Andrew F. Brimmer Richard E. Cavanagh Kent Dixon Frank J. Fabozzi Robert S. Kapito James Clayburn La Force, Jr. Walter F. Mondale Officers Robert S. Kapito, President Henry Gabbay, Treasurer Anne Ackerley, Vice President Kevin M. Klingert, Vice President Richard M. Shea, Vice President/Tax James Kong, Assistant Treasurer Vincent B. Tritto, Secretary Brian P. Kindelan, Assistant Secretary Investment Advisor BlackRock Advisors, Inc. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM Sub-Advisor BlackRock Financial Management, Inc. 40 East 52nd Street New York, NY 10022 Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110 Transfer Agent EquiServe Trust Company, N.A. 150 Royall Street Canton, MA 02021 (800) 699-1BFM Auction Agent 1 Bank of New York 100 Church Street, 8th Floor New York, NY 10286 Auction Agent 2 Deutsche Bank Trust Company Americas 60 Wall Street, 27th Floor New York, NY 10005 Independent Accountants Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, NY 10036 Legal Counsel – Independent Trustees Debevoise & Plimpton, LLP 919 Third Avenue New York, NY 10022 This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. BlackRock Closed-End Funds c/o BlackRock Advisors, Inc. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM

1 For the Insured Trusts and Bond Trusts.

2 For the Income II Trusts.

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 227-7BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor’s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1236. These policies and procedures are also available on the website of the Securities and Exchange Commission at http://www.sec.gov.

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. CEF-SEMI-1

ITEM 2. CODE OF ETHICS. Not applicable for semi-annual reports.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable for semi-annual reports.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable for semi-annual reports.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable for semi-annual reports.

ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable for reports for periods ending on or before July 9, 2004.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable for semi-annual reports.

ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable for reports covering periods ending on or before June 15, 2004.

ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable.

ITEM 10. CONTROLS AND PROCEDURES.

(a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the Registrant's disclosure controls and procedures are effective, as of a date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

ITEM 11. EXHIBITS.

(a)(1) Not applicable.

(a)(2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(a)(3) Not applicable.

(b) Certification of Principal Executive Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

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.

(Registrant) BlackRock Virginia Municipal Bond Trust

By: /s/ Henry Gabbay ---------------------------------------------------------------------------------------------------------------- Name: Henry Gabbay Title: Treasurer Date: May 6, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ Robert S. Kapito ---------------------------------------------------------------------------------------------------------------- Name: Robert S. Kapito Title: Principal Executive Officer Date: May 6, 2004

By: /s/ Henry Gabbay ---------------------------------------------------------------------------------------------------------------- Name: Henry Gabbay Title: Principal Financial Officer Date: May 6, 2004

3