BLACKROCK VIRGINIA MUNICIPAL BOND TRUST

Regulatory Filings • May 3, 2007

N-CSRS 1 c48133_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 Virginia Municipal Bond Trust

40 East 52nd Street, New York, NY 10022
(Name and address of agent for service)

Registrant’s telephone number, including area code: 888-825-2257

Date of fiscal year end: August 31, 2007

Date of reporting period: February 28, 2007

Item 1. Reports to Shareholders.

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

ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES FIXED INCOME LIQUIDITY REAL ESTATE

Closed-End Funds
SEMI-ANNUAL REPORT | FEBRUARY 28, 2007
(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
Trusts’ Summaries	2
Financial Statements
Portfolios
of Investments	16
Statements
of Assets and Liabilities	52
Statements
of Operations	55
Statements
of Changes in Net Assets	58
Financial Highlights	64
Notes to Financial Statements	78
Dividend Reinvestment Plans	85
Additional Information	86

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We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublic personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

LETTER TO SHAREHOLDERS

February 28, 2007

Dear Shareholder:

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

The portfolio management team continuously monitors the municipal bond market and adjusts the Trust investments 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 28, 2007.

Trust (Ticker)	Current Yield 1	Tax- Equivalent Yield 2	Closing Market Price	NAV
BlackRock Insured
Municipal Income Trust (BYM)	4.86 %	7.48 %	$ 15.06	$ 15.79
BlackRock Municipal Bond
Trust (BBK)	5.53	8.51	18.76	16.65
BlackRock Municipal Income
Trust II (BLE)	5.26	8.09	17.35	16.13
BlackRock California
Insured Municipal Income Trust (BCK)	4.65	7.15	14.97	15.57
BlackRock California
Municipal Bond Trust (BZA)	5.31	8.17	18.00	16.37
BlackRock California
Municipal Income Trust II (BCL)	4.94	7.60	15.90	16.08
BlackRock Florida Insured
Municipal Income Trust (BAF)	4.89	7.52	14.24	15.32
BlackRock Florida
Municipal Bond Trust (BIE)	5.57	8.57	16.75	16.12
BlackRock Maryland Municipal
Bond Trust (BZM)	4.64	7.14	18.45	15.98
BlackRock New Jersey
Municipal Bond Trust (BLJ)	4.98	7.66	18.95	16.61
BlackRock New York Insured
Municipal Income Trust (BSE)	4.66	7.17	14.92	15.48
BlackRock New York
Municipal Bond Trust (BQH)	5.11	7.86	18.11	16.14
BlackRock New York
Municipal Income Trust II (BFY)	4.75	7.31	14.98	15.70
BlackRock Virginia
Municipal Bond Trust (BHV)	4.51	6.94	19.26	16.41

| 1 | Yields are based on closing
market price. These yields may increase/decrease due to an increase/decrease
in the monthly distribution per common share. Past performance does not
guarantee future results. |
| --- | --- |
| 2 | Tax-equivalent yield assumes
the maximum Federal tax rate of 35%. |

On September 29, 2006, BlackRock, Inc. (“BlackRock”) and Merrill Lynch Investment Managers, L.P. united to form one of the largest asset management firms in the world. Now with more than $1 trillion in assets under management, over 4,500 employees in 18 countries and representation in key markets worldwide, BlackRock’s global presence means greater depth and scale to serve you.

BlackRock, a world leader in asset management, has a proven commitment to the municipal bond market. As of February 28, 2007, BlackRock and its affiliates managed over $37 billion in municipal bonds, including 14 open-end and 68 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, LLC, and its affiliates, BlackRock Financial Management, Inc. and BlackRock Investment Management, LLC, which manage the Trusts, are wholly owned subsidiaries 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	Ralph L. Schlosstein
Chief Executive Officer	President
BlackRock Advisors, LLC	BlackRock Advisors, LLC

1

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07: | $ 15.06 |
| Net Asset Value as of
2/28/07: | $ 15.79 |
| Yield on Closing Market
Price as of 2/28/07 ($15.06): 1 | 4.86 % |
| Current Monthly
Distribution per Common Share: 2 | $ 0.0610 |
| Current Annualized
Distribution per Common Share: 2 | $ 0.7320 |
| Leverage as of 2/28/07: 3 | 36 % |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06		High	Low
Market Price	$ 15.06	$ 14.65	2.80 %	$ 15.14	$ 14.37
NAV	$ 15.79	$ 15.54	1.61 %	$ 15.96	$ 15.45

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

Sector Breakdown

Sector — Transportation	24 %	24 %
Water & Sewer	20	22
City, County & State	11	8
Education	10	10
Tax Revenue	10	10
Power	9	10
Hospitals	6	5
Tobacco	5	6
Industrial & Pollution
Control	3	3
Lease Revenue	2	2

Credit Breakdown 4

Credit Rating — AAA/Aaa	88 %	90 %
AA/Aa	2	2
A	3	—
BBB/Baa	7	8

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

2

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07: | $ 18.76 |
| Net Asset Value as of
2/28/07: | $ 16.65 |
| Yield on Closing Market
Price as of 2/28/07($18.76): 1 | 5.53 % |
| Current Monthly
Distribution per Common Share: 2 | $ 0.086375 |
| Current Annualized
Distribution per Common Share: 2 | $ 1.036500 |
| Leverage as of 2/28/07: 3 | 35 % |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06		High	Low
Market Price	$ 18.76	$ 17.89	4.86 %	$ 19.50	$ 17.03
NAV	$ 16.65	$ 16.35	1.83 %	$ 16.78	$ 16.31

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

Sector Breakdown

Sector — Hospitals	22 %	22 %
City, County & State	16	15
Industrial & Pollution
Control	14	17
Housing	13	13
Transportation	9	7
Tax Revenue	7	7
Education	6	6
Power	5	5
Water & Sewer	5	5
Tobacco	3	3

Credit Breakdown 4

| Credit
Rating — AAA/Aaa | 36 | % | 35 % |
| --- | --- | --- | --- |
| AA/Aa | 7 | | 8 |
| A | 18 | | 18 |
| BBB/Baa | 22 | | 21 |
| BB/Ba | 6 | | 6 |
| B | 5 | | 6 |
| Not Rated | 6 | 5 | 6 |

| 4 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 5 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of February 28, 2007, the market value of these securities was
$3,173,679 representing 1.3% of the Trust’s long-term investments. |

3

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07:	$ 17.35
Net Asset Value as of
2/28/07:	$ 16.13
Yield on Closing Market
Price as of 2/28/07 ($17.35): 1	5.26 %
Current Monthly
Distribution per Common Share: 2	$ 0.0760
Current Annualized
Distribution per Common Share: 2	$ 0.9120
Leverage as of 2/28/07: 3	36 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 17.35	$ 17.22	0.75 %	$ 17.95	$ 16.39
NAV	$ 16.13	$ 15.82	1.96 %	$ 16.24	$ 15.77

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

| Sector
Breakdown — Sector | February
28, 2007 | August 31,
2006 |
| --- | --- | --- |
| Hospitals | 24 % | 23 % |
| Industrial & Pollution
Control | 18 | 20 |
| City, County & State | 14 | 14 |
| Transportation | 10 | 9 |
| Tax Revenue | 8 | 8 |
| Housing | 7 | 7 |
| Water & Sewer | 7 | 6 |
| Education | 4 | 3 |
| Tobacco | 4 | 4 |
| Power | 3 | 5 |
| Lease Revenue | 1 | 1 |
| Credit Breakdown 4 | | |
| Credit
Rating | February 28, 2007 | August 31, 2006 |
| AAA/Aaa | 33 % | 32 % |
| AA/Aa | 10 | 11 |
| A | 14 | 14 |
| BBB/Baa | 25 | 24 |
| BB/Ba | 3 | 3 |
| B | 4 | 4 |
| CCC/Caa | 1 | 2 |
| Not Rated 5 | 10 | 10 |

| 4 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 5 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of February 28, 2007 and August 31, 2006, the market value of
these securities was $25,040,351 representing 4.4% and $15,978,589
representing 2.8%, respectively, of the Trust’s long-term investments. |

4

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07:	$ 14.97
Net Asset Value as of
2/28/07:	$ 15.57
Yield on Closing Market
Price as of 2/28/07 ($14.97): 1	4.65 %
Current Monthly
Distribution per Common Share: 2	$ 0.058
Current Annualized
Distribution per Common Share: 2	$ 0.696
Leverage as of 2/28/07: 3	36 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 14.97	$ 14.61	2.46 %	$ 15.42	$ 14.51
NAV	$ 15.57	$ 15.24	2.17 %	$ 15.68	$ 15.14

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
Water & Sewer	29 %	29 %
Education	24	25
City, County & State	13	15
Lease Revenue	11	9
Power	10	10
Transportation	6	7
Hospitals	2	3
Housing	2	2
Industrial & Pollution
Control	2	—
Tax Revenue	1	—
Credit Breakdown 4
Credit
Rating	February 28, 2007	August 31, 2006
AAA/Aaa	98 %	98 %
A	2	2

4 Using the highest of S&P’s, Moody’s or Fitch’s ratings.

5

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07:	$ 18.00
Net Asset Value as of
2/28/07:	$ 16.37
Yield on Closing Market
Price as of 2/28/07 ($18.00): 1	5.31 %
Current Monthly
Distribution per Common Share: 2	$ 0.079656
Current Annualized
Distribution per Common Share: 2	$ 0.955872
Leverage as of 2/28/07: 3	35 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 18.00	$ 18.05	(0.28)%	$ 18.69	$ 17.25
NAV	$ 16.37	$ 16.28	0.55%	$ 16.48	$ 16.10

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
Education	28 %	26 %
Hospitals	21	21
Housing	15	14
City, County & State	11	12
Tobacco	9	4
Transportation	6	9
Industrial & Pollution
Control	5	4
Water & Sewer	3	3
Lease Revenue	2	7
Credit Breakdown 4
Credit
Rating	February 28, 2007	August 31, 2006
AAA/Aaa	30 %	37 %
AA/Aa	10	10
A	33	26
BBB/Baa	19	20
B	2	2
Not Rated	6	5

4 Using the highest of S&P’s, Moody’s or Fitch’s ratings.

6

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07:	$ 15.90
Net Asset Value as of
2/28/07:	$ 16.08
Yield on Closing Market
Price as of 2/28/07 ($15.90): 1	4.94 %
Current Monthly
Distribution per Common Share: 2	$ 0.0655
Current Annualized
Distribution per Common Share: 2	$ 0.7860
Leverage as of 2/28/07: 3	36 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 15.90	$ 15.40	3.25%	$ 16.18	$ 15.00
NAV	$ 16.08	$ 15.72	2.29%	$ 16.22	$ 15.66

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

| Sector
Breakdown — Sector | February 28, 2007 | August 31, 2006 |
| --- | --- | --- |
| City, County & State | 21 % | 23 % |
| Tobacco | 14 | 9 |
| Transportation | 12 | 14 |
| Education | 11 | 13 |
| Hospitals | 11 | 12 |
| Housing | 10 | 5 |
| Lease Revenue | 6 | 11 |
| Industrial & Pollution
Control | 5 | 4 |
| Power | 4 | 5 |
| Water & Sewer | 4 | 4 |
| Tax Revenue | 2 | — |
| Credit Breakdown 4 | | |
| Credit
Rating | February 28, 2007 | August 31, 2006 |
| AAA/Aaa | 46 % | 51 % |
| AA/Aa | 4 | 4 |
| A | 20 | 19 |
| BBB/Baa | 16 | 12 |
| B | 1 | 1 |
| Not Rated | 13 | 13 |

4 Using the highest of S&P’s, Moody’s or Fitch’s ratings.

7

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07:	$ 14.24
Net Asset Value as of
2/28/07:	$ 15.32
Yield on Closing Market
Price as of 2/28/07 ($14.24): 1	4.89 %
Current Monthly
Distribution per Common Share: 2	$ 0.058
Current Annualized
Distribution per Common Share: 2	$ 0.696
Leverage as of 2/28/07: 3	36 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 14.24	$ 13.88	2.59%	$ 14.25	$ 13.61
NAV	$ 15.32	$ 15.24	0.52%	$ 15.44	$ 15.11

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
Tax Revenue	24 %	24 %
City, County & State	19	20
Education	16	16
Power	12	12
Hospitals	8	7
Transportation	8	8
Water & Sewer	7	7
Tobacco	5	5
Industrial & Pollution
Control	1	—
Housing	—	1
Credit Breakdown 4
Credit
Rating	February 28, 2007	August 31, 2006
AAA/Aaa	83 %	83 %
AA/Aa	3	3
A	5	5
BBB/Baa	5	5
Not Rated 5	4	4

| 4 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 5 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of February 28, 2007 and August 31, 2006, the market value of
these securities was $4,135,155 representing 2.0% and $4,363,040 representing
2.1%, respectively, of the Trust’s long-term investments. |

8

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07:	$ 16.75
Net Asset Value as of
2/28/07:	$ 16.12
Yield on Closing Market
Price as of 2/28/07 ($16.75): 1	5.57 %
Current Monthly
Distribution per Common Share: 2	$ 0.077808
Current Annualized
Distribution per Common Share: 2	$ 0.933696
Leverage as of 2/28/07: 3	36 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

Market Price	$ 16.75	$ 16.70	Change — 0.30%	$ 17.50	$ 16.03
NAV	$ 16.12	$ 16.22	(0.62)%	$ 16.31	$ 15.99

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
Hospitals	30 %	27 %
Tax Revenue	17	17
City, County & State	15	15
Education	7	7
Power	7	10
Water & Sewer	7	8
Housing	6	7
Lease Revenue	5	4
Industrial & Pollution
Control	3	2
Transportation	3	3

| Credit Breakdown 4 — Credit
Rating | February 28, 2007 | August 31, 2006 |
| --- | --- | --- |
| AAA/Aaa | 39 % | 39 % |
| AA/Aa | 15 | 17 |
| A | 20 | 18 |
| BBB/Baa | 11 | 11 |
| BB/Ba | 2 | 2 |
| Not Rated 5 | 13 | 13 |

| 4 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 5 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of February 28, 2007 and August 31, 2006, the market value of
these securities was $1,577,104 representing 1.9% and $1,661,600 representing
2.0%, respectively, of the Trust’s long-term investments. |

9

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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
2/28/07:	$ 18.45
Net Asset Value as of
2/28/07:	$ 15.98
Yield on Closing Market
Price as of 2/28/07 ($18.45): 1	4.64 %
Current Monthly
Distribution per Common Share: 2	$ 0.07135
Current Annualized
Distribution per Common Share: 2	$ 0.85620
Leverage as of 2/28/07: 3	36 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 18.45	$ 17.45	5.73%	$ 18.64	$ 17.00
NAV	$ 15.98	$ 15.98	—%	$ 16.13	$ 15.82

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
City, County & State	21 %	21 %
Education	21	21
Hospitals	18	17
Water & Sewer	12	12
Transportation	8	9
Lease Revenue	7	7
Housing	5	5
Power	4	4
Tobacco	4	4

| Credit Breakdown 4 — Credit
Rating | February 28, 2007 | August 31, 2006 |
| --- | --- | --- |
| AAA/Aaa | 37 % | 38 % |
| AA/Aa | 8 | 8 |
| A | 27 | 27 |
| BBB/Baa | 16 | 16 |
| Not Rated | 12 | 11 |

4 Using the highest of S&P’s, Moody’s or Fitch’s ratings.

10

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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 2/28/07:	$ 18.95
Net Asset
Value as of 2/28/07:	$ 16.61
Yield on
Closing Market Price as of 2/28/07 ($18.95): 1	4.98 %
Current
Monthly Distribution per Common Share: 2	$ 0.078582
Current
Annualized Distribution per Common Share: 2	$ 0.942984
Leverage as
of 2/28/07: 3	35 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 18.95	$ 18.30	3.55%	$ 19.75	$ 17.11
NAV	$ 16.61	$ 16.33	1.71%	$ 16.68	$ 16.31

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
Hospitals	32 %	28 %
Transportation	11	11
City, County
& State	9	10
Housing	9	13
Tobacco	9	8
Education	8	9
Industrial
& Pollution Control	7	6
Tax Revenue	7	7
Power	4	4
Lease
Revenue	2	4
Water &
Sewer	2	—

Credit Breakdown 4 — Credit Rating	February 28, 2007	August 31, 2006
AAA/Aaa	35 %	29 %
A	15	16
BBB/Baa	40	46
B	4	4
Not Rated	6	5

4 Using the highest of S&P’s, Moody’s or Fitch’s ratings.

11

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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 2/28/07: | $ 14.92 |
| Net Asset
Value as of 2/28/07: | $ 15.48 |
| Yield on
Closing Market Price as of 2/28/07 ($14.92): 1 | 4.66 % |
| Current
Monthly Distribution per Common Share: 2 | $ 0.058 |
| Current
Annualized Distribution per Common Share: 2 | $ 0.696 |
| Leverage as
of 2/28/07: 3 | 36 % |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 14.92	$ 14.70	1.50%	$ 15.25	$ 14.38
NAV	$ 15.48	$ 15.34	0.91%	$ 15.66	$ 15.24

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
Transportation	32 %	30 %
Education	29	30
Hospitals	14	14
Tax Revenue	8	8
Tobacco	6	12
City, County
& State	4	3
Water &
Sewer	4	2
Power	2	—
Housing	1	1

Credit Breakdown 4 — Credit Rating	February 28, 2007	August 31, 2006
AAA/Aaa	92 %	85 %
AA/Aa	—	2
A	5	5
BBB/Baa	3	8

4 Using the highest of S&P’s, Moody’s or Fitch’s ratings.

12

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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 2/28/07:	$ 18.11
Net Asset
Value as of 2/28/07:	$ 16.14
Yield on
Closing Market Price as of 2/28/07 ($18.11): 1	5.11 %
Current
Monthly Distribution per Common Share: 2	$ 0.077099
Current
Annualized Distribution per Common Share: 2	$ 0.925188
Leverage as
of 2/28/07: 3	35 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 18.11	$ 16.81	7.73%	$ 18.59	$ 16.56
NAV	$ 16.14	$ 16.02	0.75%	$ 16.28	$ 15.99

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
Transportation	15 %	12 %
Housing	13	13
Education	12	14
Hospitals	10	7
Water &
Sewer	10	8
Industrial
& Pollution Control	9	9
Tobacco	9	13
Tax Revenue	8	8
City, County
& State	6	9
Lease
Revenue	4	4
Power	3	3
Other	1	—

Credit Breakdown 4 — Credit Rating	February 28, 2007	August 31, 2006
AAA/Aaa	40 %	38 %
AA/Aa	24	22
A	10	10
BBB/Baa	17	20
BB/Ba	—	1
B	5	4
CCC/Caa	4	4
Not Rated	—	1

4 Using the highest of S&P’s, Moody’s or Fitch’s ratings.

13

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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 2/28/07:	$ 14.98
Net Asset
Value as of 2/28/07:	$ 15.70
Yield on
Closing Market Price as of 2/28/07 ($14.98): 1	4.75 %
Current
Monthly Distribution per Common Share: 2	$ 0.05925
Current
Annualized Distribution per Common Share: 2	$ 0.71100
Leverage as
of 2/28/07: 3	37 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 14.98	$ 14.38	4.17%	$ 15.25	$ 14.19
NAV	$ 15.70	$ 15.47	1.49%	$ 15.81	$ 15.45

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

Sector Breakdown

Sector	February 28, 2007	August 31, 2006
Transportation	21 %	18 %
Industrial
& Pollution Control	19	18
Education	15	16
Tobacco	12	12
Housing	9	9
Hospitals	7	10
City, County
& State	5	7
Water &
Sewer	5	5
Tax Revenue	4	4
Other	2	—
Power	1	1

Credit Breakdown 4 — Credit Rating	February 28, 2007	August 31, 2006
AAA/Aaa	41 %	35 %
AA/Aa	31	37
A	12	12
BBB/Baa	9	8
BB/Ba	—	1
B	4	4
CCC/Caa	3	3

4 Using the highest of S&P’s, Moody’s or Fitch’s ratings.

14

TRUST SUMMARIES (unaudited) FEBRUARY 28, 2007

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 2/28/07:	$ 19.26
Net Asset
Value as of 2/28/07:	$ 16.41
Yield on
Closing Market Price as of 2/28/07 ($19.26): 1	4.51 %
Current
Monthly Distribution per Common Share: 2	$ 0.072428
Current
Annualized Distribution per Common Share: 2	$ 0.869136
Leverage as
of 2/28/07: 3	35 %

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. |
| 3 | As a percentage of managed
assets (as defined in Note 2 of the Notes to Financial Statements). |

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

	2/28/07	8/31/06	Change	High	Low
Market Price	$ 19.26	$ 18.45	4.39%	$ 20.76	$ 18.27
NAV	$ 16.41	$ 16.35	0.37%	$ 16.64	$ 16.25

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

Sector Breakdown — Sector	February 28, 2007	August 31, 2006
Transportation	20 %	18 %
Hospitals	19	17
Housing	17	16
Water &
Sewer	17	18
City, County
& State	10	14
Industrial
& Pollution Control	5	4
Education	4	5
Lease
Revenue	4	3
Tobacco	4	5

Credit Breakdown 4 — Credit Rating	February 28, 2007	August 31, 2006
AAA/Aaa	44 %	45 %
AA/Aa	12	12
A	19	16
BBB/Baa	12	13
Not Rated 5	13	14

| 4 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 5 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of February 28, 2007 and August 31, 2006, the market value of
these securities was $1,499,357 representing 3.9% and $1,417,827 representing 3.8%,
respectively, of the Trust’s long-term investments. |

15

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock Insured Municipal Income Trust (BYM)

(Percentages shown are based on Net Assets)

Rating 1			Description		Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—153.6%
			Alabama—0.7%
A+	$ 2,800		Cnty. of
Jefferson, Sch.. Impvts. Sales Tax RB, Ser. A, 4.75%, 1/01/25		01/14 @ 100	$ 2,875,516
			Arizona—2.6%
AAA	10,000		Phoenix Civic
Impvt. Corp., Pub. Impvts. Sales Tax RB, Civic Plaza Expansion Proj., 5.00%,
7/01/41, FGIC		07/15 @ 100	10,600,900
			California—32.4%
AAA	2,000		Arcadia Unified
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Zero Coupon, 8/01/28		02/17 @ 33.207	417,520
AAA	3,380		Chabot-Las
Positas Cmnty. Coll. Dist., Univ. & Coll. Impvts. Ad Valorem GO,
Election 2004B Proj., Zero Coupon,
8/01/25, AMBAC		08/16 @ 64.511	1,432,174
Aaa	14,000	3	Dept. of Wtr.
Recs. Cash Flow Mgmt., Elec., Pwr. & Lt. RB, Ser. A, 5.375%, 5/01/12		N/A	15,307,180
			Golden St.
Tobacco Sec. Corp.,
BBB	6,500		Misc. Purps.
Tobacco Settlement Funded RB, Ser. A-1, 6.625%, 6/01/40		06/13 @ 100	7,405,060
BBB	14,500		Misc. Purps.
Tobacco Settlement Funded RB, Ser. A-1, 6.75%, 6/01/39		06/13 @ 100	16,618,160
AAA	10,100	3	Infrastructure
& Econ. Dev. Bank, Hwy. Impvts. Tolls RB, Bay Area Toll Brdgs. Proj.,
Ser. A, 5.00%, 1/01/28, AMBAC		N/A	11,565,005
AAA	17,500		Met. Wtr. Dist.
of Southern California, Wtr. Util. Impvts. RB, Ser. B-1, 5.00%, 10/01/33,
FGIC	.	10/13 @ 100	18,494,175
AAA	2,700		Sacramento City
Unified Sch. Dist., Sch. Impvts. Ad Valorem GO, Election of 2002 Proj.,
5.00%, 7/01/30, MBIA		07/15 @ 100	2,891,754
AAA	15,000		San Francisco
City & Cnty. Pub. Utils. Comm., Wtr. Util. Impvts. RB, Ser. A, 5.00%,
11/01/31, FSA		11/11 @ 100	15,633,000
AAA	53,000		San Joaquin Hills
Transp. Corridor Agcy., Hwy. Tolls RB, Ser. A, Zero Coupon, 1/15/31, MBIA		No Opt. Call	18,833,020
			Univ. of
California, Univ. & Coll. Impvts. RB,
AAA	10,000		Ser. C, 4.75%,
5/15/37, MBIA		05/13 @ 101	10,357,500
AAA	3,330		Ser. G, 4.75%,
5/15/31, MBIA		05/13 @ 101	3,455,374
AAA	10,910	3	Ser. O, 5.00%,
9/01/10, FGIC		N/A	11,505,468
						133,915,390
			District of Columbia—2.5%
BBB	9,500		Tobacco
Settlement Fing. Corp., Tobacco Settlement Funded RB, 6.75%, 5/15/40		05/11 @ 101	10,462,730
			Florida—7.0%
AAA	3,600		City of Tampa,
Wtr. Util. Impvts. Wtr. RB, 4.625%, 10/01/36, MBIA		10/16 @ 100	3,671,172
			Cnty. of
Miami-Dade,
AAA	9,500		Port, Arpt. &
Marina RB, Miami Intl. Arpt. Proj., Ser. B, 5.00%, 10/01/37, FGIC		10/14 @ 100	10,020,885
AAA	25,520		Recreational Fac.
Impvts. Misc. RB, Ser. A, Zero Coupon, 10/01/38, MBIA		10/15 @ 30.363	5,259,927
AAA	5,485		Cnty. of Orange,
Sales Tax RB, 4.75%, 10/01/32, XLCA		10/16 @ 100	5,674,068
A+	2,300		Highlands Cnty.
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Adventist Bolingbrook Hlth. Sys. Proj., 5.125%,
11/15/32		11/16 @ 100	2,428,639
AAA	1,880		JEA, Wtr. Util.
Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/36, MBIA		04/11 @ 100	1,919,856
						28,974,547
			Georgia—3.9%
			City of Atlanta,
AAA	800		Port, Arpt. &
Marina Impvts. RB, Ser. J, 5.00%, 1/01/34, FSA		01/15 @ 100	844,528
AAA	9,555		Wtr. RB, Ser. A,
5.00%, 11/01/38, FGIC		05/09 @ 101	9,782,982
AAA	2,000		Wtr. Util.
Impvts. RB, 5.00%, 11/01/34, FSA		11/14 @ 100	2,120,100
AAA	3,235		Wtr. Util.
Impvts. RB, 5.00%, 11/01/37, FSA		11/14 @ 100	3,429,262
						16,176,872
			Illinois—15.7%
AAA	11,550		City of Chicago,
Hwy. Impvts. RB, 5.25%, 1/01/27, AMBAC		01/11
@ 101	12,225,675
			Met. Pier &
Exposition Auth.,
AAA	24,010		Pub. Impvts.
Sales Tax RB, McCormick Place Expansion Proj., Ser. A, 5.00%, 12/15/28, MBIA		06/12 @ 101	25,251,557
AAA	15,000		Sales Tax RB,
McCormick Place Expansion Proj., Ser. B, Zero Coupon, 6/15/28, MBIA		No Opt. Call	6,061,650
AAA	6,165		Mun. Elec. Agcy.,
Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC		02/16 @ 100	6,205,381

See Notes to Financial Statements.

16

BlackRock Insured Municipal Income Trust (BYM) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			Illinois —(cont’d)
AAA	$ 14,875		Vlg. of
Bolingbrook, Ad Valorem Ppty. Tax GO, Ser. A, 4.75%, 1/01/38, MBIA	01/15 @ 100	$ 15,335,827
					65,080,090
			Indiana—1.2%
AAA	4,725		Mun. Pwr. Agcy.
Pwr. Sply. Sys., Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.50%, 1/01/32,
AMBAC	01/16 @ 100	4,769,415
			Kansas—0.4%
A	1,750		Univ. of Kansas Hosp.
Auth., Hlth., Hosp. & Nursing Home RB, Univ. of Kansas Hlth. Sys. Proj.,
5.00%, 9/01/36	09/16 @ 100	1,825,338
			Louisiana—3.9%
			State of
Louisiana,
AAA	10,000		Hwy. Impvts. Fuel
Sales Tax RB, Ser. A, 4.75%, 5/01/39, FSA	05/16 @ 100	10,345,300
AAA	5,450		Hwy. Impvts.
Sales Tax RB, Ser. A, 5.00%, 5/01/35, FGIC	05/15 @ 100	5,787,464
					16,132,764
			Massachusetts—7.5%
AAA	24,000		Tpke. Auth. Met.
Hwy. Sys., Hwy. Tolls RB, Ser. A, 5.00%, 1/01/39, AMBAC	01/09 @ 101	24,572,640
AA	5,985		Wtr. Recs. Auth.,
Wtr. RB, Ser. A, 5.00%, 8/01/41	08/16 @ 100	6,373,486
					30,946,126
			Michigan—0.4%
AAA	1,415		Detroit, Swr.
Impvts. Swr. RB, 5.00%, 7/01/32, FSA	07/13 @ 100	1,488,637
			Missouri—1.0%
AAA	4,100		Joint Mun. Elec.
Util. Comm., Elec., Pwr. & Lt. Impvts. RB, Plum Point Proj., 4.60%,
1/01/36, MBIA	01/16 @ 100	4,176,752
			Nebraska—1.1%
AA	4,280		Omaha Pub. Pwr.
Dist., Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.75%, 2/01/44	02/14 @ 100	4,383,876
			Nevada—9.6%
AAA	6,000	3	Reno, Misc. Taxes
RB, Reno Transp. Proj., 5.125%, 6/01/12, AMBAC	N/A	6,401,880
			Truckee Meadows
Wtr. Auth.,
AAA	10,000		Wtr. RB, 4.875%,
7/01/34, XLCA	07/16 @ 100	10,414,500
AAA	10,000	3	Wtr. Util.
Impvts. RB, Ser. A, 5.00%, 7/01/11, FSA	N/A	10,532,900
AAA	6,500	3	Wtr. Util.
Impvts. RB, Ser. A, 5.125%, 7/01/11, FSA	N/A	6,878,755
AAA	5,000	3	Wtr. Util.
Impvts. RB, Ser. A, 5.25%, 7/01/11, FSA	N/A	5,316,200
					39,544,235
			New York—4.4%
AAA	7,305		New York City
Mun. Wtr. Fin. Auth., Wtr. RB, Ser. C, 5.00%, 6/15/35, AMBAC	06/14 @ 100	7,743,957
AAA	10,000		New York City
Trust for Cultural Recs., Recreational RB, American Museum of Natural History
Proj., Ser. A, 5.00%, 7/01/44, MBIA	07/14 @ 100	10,548,200
					18,292,157
			Ohio—2.5%
AAA	10,000		Air Qual. Dev.
Auth., Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34,
FGIC	07/15 @ 100	10,371,000
			Pennsylvania—2.0%
BBB	2,500		Lebanon Cnty.
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Good Samaritan Hosp.
Proj., 6.00%, 11/15/35	11/12 @ 101	2,730,050
AAA	5,200	3	City of
Philadelphia, Natural Gas Util. Impvts. RB, Ser. 3, 5.125%, 8/01/11, FSA	N/A	5,499,780
					8,229,830
			Puerto Rico—0.5%
A-	1,750		Comnwlth. Hwy.
& Transp. Auth., Hwy. Tolls RB, Ser. CC, 5.50%, 7/01/31	No Opt. Call	2,073,750
			South Carolina—8.8%
AAA	5,000	3	Pub. Svc. Auth.,
Elec., Pwr. & Lt. RB, Ser. B, 5.50%, 1/01/12, FSA	N/A	5,402,250
AAA	4,000		Scago Edl. Facs.
Corp. for Colleton Sch. Dist., Sch. Impvts. Lease Appropriation RB,Pickens Cnty.
Proj., 5.00%, 12/01/31, FSA	12/16 @ 100	4,250,480
			Transp.
Infrastructure Bank,
AAA	12,750		Fuel Sales Tax
RB, Ser. A, 5.00%, 10/01/33, AMBAC	10/12 @ 100	13,382,783
AAA	12,660	3	Trans. Impvts.
RB, Ser. B, 5.125%, 10/01/11, AMBAC	N/A	13,436,944
					36,472,457

See Notes to Financial Statements.

17

BlackRock Insured Municipal Income Trust (BYM) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			Tennessee—4.6%
			Knox Cnty. Hlth.
Edl. & Hsg. Facs. Brd., Hlth., Hosp. & Nursing Home RB, Covenant
Hlth. Proj.,
A	$ 10,000		Zero Coupon,
1/01/41	01/17 @ 30.07	$ 1,851,300
AAA	11,705		Ser. A, Zero
Coupon, 1/01/22, FSA	01/13 @ 59.566	5,419,298
AAA	9,260		Ser. A, Zero
Coupon, 1/01/23, FSA	01/13 @ 56.016	4,024,859
AAA	8,500		Ser. A, Zero
Coupon, 1/01/24, FSA	01/13 @ 52.749	3,475,055
AAA	6,850		Ser. A, Zero
Coupon, 1/01/25, FSA	01/13 @ 49.712	2,636,291
AAA	5,000		Ser. A, Zero
Coupon, 1/01/26, FSA	01/13 @ 46.781	1,804,650
					19,211,453
			Texas—27.2%
			City of San
Antonio, Wtr. RB,
AAA	9,350		5.125%, 5/15/29,
FGIC	05/14 @ 100	9,950,457
AAA	10,000		5.125%, 5/15/34,
FGIC	05/14 @ 100	10,610,200
			Cnty. of Harris,
AAA	7,485		Ad Valorem Ppty.
Tax GO, Zero Coupon, 8/15/25, MBIA	No Opt. Call	3,412,262
AAA	10,915		Ad Valorem Ppty.
Tax GO, Zero Coupon, 8/15/28, MBIA	No Opt. Call	4,342,969
AAA	5,510		Hwy. Tolls RB,
5.00%, 8/15/30, FSA	08/12 @ 100	5,777,951
AAA	10,030		Coppell Indpt.
Sch. Dist., Ad Valorem Ppty. Tax GO, Zero Coupon, 8/15/30, PSF	No Opt. Call	3,654,029
AAA	2,350	3	Dallas Area Rapid
Trans., Sales Tax RB, 5.00%, 12/01/11, AMBAC	N/A	2,484,138
			Harris Cnty.
Houston Sports Auth.,
AAA	5,785		Hotel Occupancy
Tax RB, Ser. H, Zero Coupon, 11/15/38, MBIA	11/31 @ 64.91	1,220,924
AAA	6,160		Hotel Occupancy
Tax RB, Ser. H, Zero Coupon, 11/15/39, MBIA	11/31 @ 60.976	1,218,633
AAA	26,890		Lease RB, Ser.
A-3, Zero Coupon, 11/15/38, MBIA	11/24 @ 43.826	5,311,313
AAA	27,675		Lease RB, Ser.
A-3, Zero Coupon, 11/15/39, MBIA	11/24 @ 41.258	5,138,141
AAA	2,000		Hlth. Care Facs.
Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Care Svcs. Proj.,
4.50%, 10/01/35, FGIC	10/16 @ 100	2,003,020
AAA	5,315		Lewisville Indpt.
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Zero Coupon, 8/15/24, FGIC	08/15 @ 66.003	2,388,614
AAA	6,000		Lower Colorado
River Auth., Misc. RB, 4.75%, 5/15/36, AMBAC	05/11 @ 100	6,100,380
AAA	1,045		Montgomery Cnty.
Mun. Util. Dist. No. 46, Pub. Impvts. Ad Valorem Ppty. Tax GO, 4.75%,
3/01/30, MBIA	03/14 @ 100	1,071,282
AAA	9,500		Northside Indpt.
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, 5.125%, 6/15/29, PSF	06/14 @ 100	10,116,170
AAA	3,000		Pearland, Ad
Valorem Ppty. Tax GO, 4.75%, 3/01/29, FGIC	03/16 @ 100	3,111,300
AAA	30,145		Tpke. Auth., Hwy.
Impvts. Tolls RB, Ser. A, 5.00%, 8/15/42, AMBAC	08/12 @ 100	31,520,516
BBB+	3,000		Tyler Hlth. Facs.
Dev. Corp., Hlth., Hosp. & Nursing Home Impvts. RB, Mother Frances Hosp. Proj., 6.00%, 7/01/31	07/12 @ 100	3,214,290
					112,646,589
			Virginia—3.4%
			Chesterfield
Cnty. Indl. Dev. Auth.,
Baa1	3,000		Indl. Impvts. RB,
Elec. & Pwr. Co. Proj., Ser. A, 5.875%, 6/01/17	11/10 @ 102	3,225,840
Baa1	4,000		Indl. RB, Elec.
& Pwr. Co. Proj., Ser. B, 5.875%, 6/01/17	11/10 @ 102	4,321,200
A-	6,000		Stafford Cnty.
Econ. Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Medicorp Hlth. Sys. Oblig. Proj., 5.25%, 6/15/37	06/16 @ 100	6,380,580
					13,927,620
			Washington—10.0%
AAA	9,610		Central
Washington Univ., Coll. & Univ. RB, 5.00%, 5/01/34, FGIC	05/14 @ 100	10,130,189
AAA	3,655		Chelan Cnty. Pub.
Util. Dist. No. 1, Elec., Pwr. & Lt. RB, Chelan Hydro Sys. Proj., Ser. C,
5.125%, 7/01/33, AMBAC	07/12 @ 100	3,828,064
AAA	9,500		City of Seattle,
Pkg. Fac. Impvts. Ad Valorem Ppty. Tax GO, Ser. F, 5.125%, 12/15/28, MBIA	12/08 @ 100	9,686,295
AAA	2,200		Cnty. of King,
Swr. RB, 5.00%, 1/01/36, FSA	01/16 @ 100	2,342,120
AAA	4,110		Hlth. Care Facs.
Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Care Svcs. Proj.,
Ser. A, 4.625%, 10/01/34, FGIC	10/16 @ 100	4,152,703
AAA	4,500		Port of Seattle,
Port, Arpt. & Marina RB, Ser. A, 5.00%, 4/01/31, FGIC	10/11 @ 100	4,675,410
AAA	6,380		Pub. Impvts.
Misc. GO, Ser. A, 5.00%, 7/01/25, FSA	07/11 @ 100	6,647,131
					41,461,912

See Notes to Financial Statements.

18

BlackRock Insured Municipal Income Trust (BYM) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description		Value
			West
Virginia—0.3%
AAA	$ 1,295		Econ. Dev. Auth.,
Correctional Fac. Impvts. Lease RB, Correctional Juvenile Safety Proj., Ser.
A, 5.00%, 6/01/29, MBIA	06/14 @ 100	$ 1,372,454
			Total
Long-Term Investments (cost $590,119,678)		635,412,410
Shares
(000)
			MONEY MARKET FUND—1.5%
NR	6,300	4,5	Merrill Lynch
Institutional Tax Exempt Fund, 3.49% (cost $6,300,000)	N/A	6,300,000
			Total
Investments—155.1% (cost $596,419,678 6 )		$ 641,712,410
			Other assets in
excess of liabilities—0.3%		1,124,868
			Preferred shares
at redemption value, including dividends payable—(55.4)%	.	(229,050,251	)
			Net
Assets Applicable to Common Shareholders—100%		$ 413,787,027

| 1 | Using
the highest of S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date
(month/year) and price of the earliest optional call or redemption. There may
be other call provisions at varying prices at later dates. |
| 3 | This
bond is prerefunded. U.S. government securities, held in escrow, are used to
pay interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par. |
| 4 | Represents
an investment in an affiliate. |
| 5 | Represents
current yield as of February 28, 2007. |
| 6 | Cost
for federal income tax purposes is $596,397,483. The net unrealized
appreciation on a tax basis is $45,314,927, consisting of $45,336,969 gross
unrealized appreciation and $22,042 gross unrealized depreciation. |

The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represents approximately 86.5% of the Trust’s managed assets.

AMBAC	—	21.9
FGIC	—	20.5 %
FSA	—	16.4 %
MBIA	—	22.0 %
PSF	—	2.2 %
XCLA	—	2.5 %
Other	—	1.0 %

| KEY TO ABBREVIATIONS — AMBAC | — | American Municipal Bond
Assurance Corp. | MBIA | — | Municipal Bond Insurance
Assoc. |
| --- | --- | --- | --- | --- | --- |
| FGIC | — | Financial Guaranty Insurance
Co. | PSF | — | Public School Fund
Guaranteed |
| FSA | — | Financial Security Assurance | RB | — | Revenue Bond |
| GO | — | General Obligation | XLCA | — | XL Capital Assurance |

See Notes to Financial Statements.

19

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			LONG-TERM
INVESTMENTS—148.3%
			Alabama—6.2%
AAA	$ 470		Birmingham Wtr.
Wks. & Swr. Brd., Wtr. Util. Impvt. Wtr. RB, Ser. A, 4.50%, 1/01/35, FSA	01/16 @ 100	$ 474,418
A2	7,500		Huntsville Hlth.
Care Auth., Hlth., Hosp. & Nursing Home RB, Ser. A, 5.75%, 6/01/31	06/11 @ 101	8,014,275
			Spl. Care Facs.
Fing. Auth. Birmingham, Hlth., Hosp. & Nursing Home RB, Ascension Hlth.
Proj.,
AA+	1,135		Ser. C-2, 5.00%,
11/15/36	11/16 @ 100	1,191,035
AA+	815		Ser. C-2, 5.00%,
11/15/39	11/16 @ 100	853,003
					10,532,731
			Arizona—0.7%
			San Luis Fac.
Dev. Corp., Correctional Fac. Impvts. Misc. RB, Regl. Detention Ctr. Proj.,
NR	300		6.25%, 5/01/15	05/10 @ 107	305,088
NR	300		7.00%, 5/01/20	05/10 @ 107	305,394
NR	600		7.25%, 5/01/27	05/10 @ 107	614,118
					1,224,600
			California—4.0%
A+	1,800		California GO,
5.00%, 6/01/34	12/14 @ 100	1,900,494
			Cnty. Tobacco
Sec. Agcy., Tobacco Settlement Funded RB,
BBB-	850		Ser. B, Zero
Coupon, 6/01/46	06/16 @ 17.602	87,610
BB	4,500		Ser. C, Zero
Coupon, 6/01/55	06/16 @ 8.9	226,305
NR	5,750		Stanislaus Cnty. Proj.,
Ser. D, Zero Coupon, 6/01/55	06/16 @ 6.219	191,417
AA-	2,660		Univ. of
California, Univ. & Coll. Impvts. RB, Ser. B, 4.75%, 5/15/38	05/13 @ 101	2,741,715
NR	1,585		Val Verde Unified
Sch. Dist. ST, 6.25%, 10/01/28	10/13 @ 102	1,683,254
					6,830,795
			Colorado—0.8%
AAA	635		City of Colorado
Springs, Mult. Util. Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA	11/15 @ 100	674,091
Baa2	635		Park Creek Met.
Dist., Ppty. Tax Misc. RB, 5.50%, 12/01/37	12/15 @ 101	679,558
					1,353,649
			District of Columbia—11.0%
			Dist. of
Columbia,
AAA	6,000		Econ. Impvts. TA,
Gallary Place Proj., 5.40%, 7/01/31, FSA	07/12 @ 100	6,398,280
A	595		Misc. RB,
Friendship Pub. Charter Sch. Proj., 5.25%, 6/01/33, ACA	06/14 @ 100	628,742
AAA	33,450		Univ. & Coll.
Impvts. RB, Georgetown Univ. Proj., Ser. A, Zero Coupon, 4/01/38, MBIA	04/11 @ 20.243	5,655,392
BBB	5,580		Tobacco
Settlement Fing. Corp., Tobacco Settlement Funded RB, 6.75%, 5/15/40	05/11 @ 101	6,145,477
					18,827,891
			Florida—19.6%
AAA	1,845		Cnty. of Orange,
Sales Tax RB, 4.75%, 10/01/32, XLCA	10/16 @ 100	1,908,597
BBB+	1,535		Halifax Hosp.
Med. Ctr., Hlth., Hosp. & Nursing Home RB, Ser. A, 5.00%, 6/01/38	06/16 @ 100	1,578,425
AAA	770		JEA, Wtr. Util.
Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/36, MBIA	04/11 @ 100	786,324
BB+	6,200		Martin Cnty.
Indl. Dev. Auth., Indl. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%,
12/15/25, AMT	04/07 @ 100	6,265,472
BB+	2,810		Miami Beach Hlth.
Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai Med. Ctr.
Proj., 6.75%, 11/15/21	11/14 @ 100	3,217,984
A+	10,000	3	Orange Cnty.
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Adventist
Hlth. Sys. Proj., 5.625%, 11/15/12	N/A	11,042,000
AAA	7,255		Palm Beach Cnty.
Hsg. Fin. Auth., Multi-Fam. Hsg. RB, Indian Trace Apts. Proj., Ser. A,
5.625%, 1/01/44, FSA, AMT	01/12 @ 100	7,503,991
NR	990		Stevens
Plantation Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. A, 7.10%, 5/01/35	05/14 @ 100	1,080,922
					33,383,715
			Georgia—3.9%
			City of Atlanta,
AAA	1,250		Port, Arpt. &
Marina Impvts. RB, Ser. J, 5.00%, 1/01/34, FSA	01/15 @ 100	1,319,575
AAA	5,000		Wtr. Util.
Impvts. RB, 5.00%, 11/01/37, FSA	11/14 @ 100	5,300,250
					6,619,825

See Notes to Financial Statements.

20

BlackRock Municipal Bond Trust (BBK) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			Illinois—22.6%
NR	$ 1,150	4	Centerpoint
Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23	No Opt. Call	$ 1,194,781
			City of Chicago,
Ad Valorem Ppty. Tax GO,
AAA	4,285	3	5.50%, 1/01/11,
MBIA	N/A	4,602,219
AAA	1,540		5.50%, 1/01/38,
MBIA	01/11 @ 101	1,639,746
AAA	55	3	Ser. A, 5.50%,
1/01/11, MBIA	N/A	59,072
BBB	6,000	3	Edl. Facs. Auth.,
Univ. & Coll. Impvts. RB, Student Hsg. Edl. Advancement Fund Univ. Ctr.
Proj., 6.25%, 5/01/07	N/A	6,024,720
			Fin. Auth.,
BBB	1,065		Coll. & Univ.
RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/25	11/16 @ 100	1,095,384
BBB	850		Coll. & Univ.
RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/30	11/16 @ 100	870,918
BB+	420		Hlth., Hosp.
& Nursing Home RB, Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%,
2/15/37	02/15 @ 100	434,553
Baa2	525		Univ. & Coll.
Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. A, 5.125%, 6/01/35	06/14 @ 100	542,462
Baa3	425		Univ. & Coll.
Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. B, 5.375%, 6/01/35	06/14 @ 100	439,008
A	6,000		Hlth. Facs.
Auth., Hlth., Hosp. & Nursing Home RB, Lake Forest Hosp. Proj., Ser. A,
5.75%, 7/01/29	07/12 @ 100	6,458,340
			Met. Pier &
Exposition Auth., Pub. Impvts. Sales Tax RB, McCormick Place Expansion Proj.,
AAA	10,000		Ser. A, Zero
Coupon, 6/15/35, MBIA	No Opt. Call	2,959,000
AAA	10,000		Ser. A, Zero
Coupon, 12/15/36, MBIA	No Opt. Call	2,774,000
AAA	10,000		Ser. A, Zero
Coupon, 12/15/37, MBIA	No Opt. Call	2,649,200
AAA	2,535		Mun. Elec. Agcy.,
Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC	02/16 @ 100	2,551,604
AAA	23,065		Vlg. of
Bolingbrook, Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. B, Zero Coupon,
1/01/36, FGIC	01/12 @ 23.018	4,302,314
					38,597,321
			Indiana—2.3%
Aa2	1,955		Multi-Fam. Hsg.,
Loc. Hsg. RB, Canterbury House Apts. Proj., Ser. 1, 5.90%, 12/01/34, AMT	12/11 @ 100	2,022,663
AAA	1,950		Mun. Pwr. Agcy.,
Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.50%, 1/01/32, AMBAC	01/16 @ 100	1,968,330
					3,990,993
			Kansas—3.1%
A-	5,000		Wichita Arpt.
Auth., Port, Arpt. & Marina Impvts. RB, Cessna Citation Svc. Ctr. Proj.,
Ser. A, 6.25%, 6/15/32, AMT	06/12 @ 101	5,363,850
			Maryland—3.3%
NR	1,250		City of
Baltimore, Pub. Impvts. Tax Incr./Alloc. ST, Harborview Lot No. 2 Proj.,
6.50%, 7/01/31	07/13 @ 101	1,367,700
NR	3,000		Frederick Cnty.,
Pub. Impvt. ST, Urbana Cmnty. Dev. Auth. Proj., Ser. B, 6.25%, 7/01/30	07/07 @ 102	3,074,430
A3	1,040		Hlth. &
Higher Edl. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Medstar
Hlth., Inc. Proj., 5.50%, 8/15/33	08/14 @ 100	1,116,201
					5,558,331
			Massachusetts—0.9%
AA	1,450		Wtr. Recs. Auth.,
Wtr. RB, Ser. A, 5.00%, 8/01/41	08/16 @ 100	1,544,120
			Michigan—0.7%
A1	1,065		Hosp. Fin. Auth.,
Hlth., Hosp. & Nursing Home RB, Henry Ford Hlth. Sys. Proj., Ser. A, 5.25%, 11/15/46	11/16 @ 100	1,133,778
			Mississippi—0.9%
BBB+	1,605		Business Fin.
Comm., Indl. Impvts. RB, Northrop Grumman Ship Sys. Proj., 4.55%, 12/01/28	12/16 @ 100	1,619,525
			Multi-State—7.1%
Baa1	10,500	4	Charter Mac
Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	12,169,185
			Nebraska—1.1%
AA	1,760		Omaha Pub. Pwr.
Dist., Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.75%, 2/01/44	02/14 @ 100	1,802,715
			Nevada—2.9%
A+	1,325		Cnty. of Clark,
Private Schs. RB, Alexander Dawson Sch. Proj., 5.00%, 5/15/29	05/16 @ 100	1,391,780
NR	1,395		Las Vegas Spl.
Dist. No. 809, Pub. Impvts. SA, Summerlin Area Proj., 5.65%, 6/01/23	06/07 @ 103	1,440,589
AAA	2,000		Truckee Meadows
Wtr. Auth., Wtr. RB, 4.875%, 7/01/34, XLCA	07/16 @ 100	2,082,900
					4,915,269

See Notes to Financial Statements.

21

BlackRock Municipal Bond Trust (BBK) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			New Jersey—9.8%
			Econ. Dev. Auth.,
BBB	$ 1,500		Econ. Impvts.
Cigarette Tax RB, 5.50%, 6/15/31	06/14 @ 100	$ 1,594,515
BBB-	1,500		Hlth., Hosp.
& Nursing Home RB, Marcus L. Ward Home Proj., Ser. A, 5.80%, 11/01/31	11/14 @ 100	1,634,205
B	3,000		Port, Arpt. &
Marina Impvts. RB, Contl. Airlines, Inc. Proj., 7.20%, 11/15/30, AMT	11/10 @ 101	3,267,660
Baa3	7,500		SA, Kapkowski Rd.
Landfill Proj., 6.50%, 4/01/28	No Opt. Call	9,266,025
NR	915		Middlesex Cnty.
Impvt. Auth., Pub. Impvts. Hotel Occupancy Tax RB, Heldrich Associates LLC
Proj., Ser. B, 6.25%, 1/01/37	01/15 @ 100	951,307
					16,713,712
			New York—10.2%
NR	455		Albany Indl. Dev.
Agcy., Sch. Impvts. Lease Approp. RB, New Covenant Charter Sch. Proj., Ser.
A, 7.00%, 5/01/35	05/15 @ 102	454,936
AAA	1,330		Env. Facs. Corp.,
Swr. Impvts. Misc. RB, NYC Mun. Wtr. Proj., Ser. B, 5.00%, 6/15/31	06/12 @ 100	1,392,204
AA-	2,610		Liberty Dev.
Corp., Indl. Impvts. Misc. RB, Goldman Sachs Group, Inc. Proj., 5.25%,
10/01/35	No Opt. Call	3,063,566
AAA	1,760		Met. Transp.
Auth., Misc. RB, Ser. A, 5.00%, 7/01/30, AMBAC	07/12 @ 100	1,843,811
			Nanuet Union Free
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO.,
AAA	1,085		4.30%, 6/15/29,
FSA	06/15 @ 100	1,092,476
AAA	1,130		4.30%, 6/15/30,
FSA	06/15 @ 100	1,136,215
B	6,165		New York City
Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines, Inc./JFK Intl.
Arpt. Proj., 7.75%, 8/01/31, AMT	08/16 @ 101	7,491,215
AAA	820		Syracuse Indl.
Dev. Agcy., Indl. Impvts. RB, Crousel Ctr. Proj., Ser. A, 5.00%, 1/01/36	01/17@ 100	864,944
					17,339,367
			North Carolina—1.9%
NR 5	2,945		Gaston Cnty.
Indl. Facs. & Poll. Ctrl. Fing. Auth., Indl. Impvts. RB, 5.75%, 8/01/35,
AMT	08/15 @ 100	3,173,679
			Ohio—2.6%
AAA	4,220		Air Qual. Dev.
Auth., Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34,
FGIC	07/15 @ 100	4,376,562
			Oklahoma—1.2%
B	1,725		Tulsa Mun. Arpt.
Trust, Port, Arpt. & Marina Impvts. RB, Ser. A, 7.75%, 6/01/35, AMT	No Opt. Call	2,059,236
			Oregon—0.3%
Aa2	550		Multi-Fam. Hsg.,
Local Hsg. RB, Pacific Tower Apts. Proj., Ser. 6, 6.05%, 11/01/34, AMT	12/11 @ 100	570,856
			Pennsylvania—2.5%
BB-	3,870		Econ. Dev. Fing.
Auth., Elec., Pwr. & Lt. Impvts. RB, Reliant Energy Conv. Proj., Ser. A,6.75%, 12/01/36,
AMT	06/11 @ 103	4,274,222
			Puerto Rico—3.0%
			Comnwlth.,
BBB	2,650		Ad Valorem Ppty.
Tax GO, Ser. B, 5.00%, 7/01/35	07/16 @ 100	2,805,979
AAA	1,070		Hwy. Impvts.
Tolls RB, Ser. N, 5.25%, 7/01/34	No Opt. Call	1,255,452
AAA	900		Hwy. Impvts.
Tolls RB, Ser. N, 5.25%, 7/01/36	No Opt. Call	1,061,046
					5,122,477
			South Carolina—0.7%
BBB+	1,000	3	Jobs Econ. Dev.
Auth., Hlth., Hosp. & Nursing Home RB, Palmetto Hlth. Proj., Ser. C,
7.00%, 8/01/13	N/A	1,183,313
			Texas—17.4%
			Dallas Area Rapid
Trans., Sales Tax RB,
AAA	1,200		4.50%, 12/01/26,
AMBAC	12/16 @ 100	1,223,688
AAA	940	3	5.00%, 12/01/11,
AMBAC	N/A	993,655
AAA	11,690		Harris Cnty.
Houston Sports Auth., Hotel Occupancy Tax RB, Ser. G, Zero Coupon, 11/15/41,
MBIA	11/31 @ 53.779	2,039,204
AAA	605		Lower Colorado
River Auth., Misc. RB, Ser. A, 5.00%, 5/15/31, MBIA	05/13 @ 100	633,550
AAA	430		Montgomery Cnty.
Mun. Util. Dist. No. 46, Pub. Impvts. Ad Valorem Ppty. Tax GO, 4.75%, 3/01/30,
MBIA	03/14 @ 100	440,815
Aa2	2,590		Multi-Fam. Hsg.,
Local Hsg. RB, Copperwood Ranch Apts. Proj., Ser. 9, 5.95%, 11/01/35, AMT	12/11 @ 100	2,690,777
			Tpke. Auth.,
AAA	60,000		Central Sys. RB,
Zero Coupon, 8/15/35, AMBAC	08/12 @ 25.665	12,088,800
AAA	2,115		Hwy. Impvts.
Tolls RB, Ser. A, 5.00%, 8/15/42, AMBAC	08/12 @ 100	2,211,507
BBB+	6,840		Tyler Hlth. Facs.
Dev. Corp., Hlth., Hosp. & Nursing Home Impvts. RB, Mother Frances Hosp.
Proj., 6.00%, 7/01/31	07/12 @ 100	7,328,581
					29,650,577

See Notes to Financial Statements.

22

BlackRock Municipal Bond Trust (BBK) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			Washington—1.9%
AAA	$ 905		Cnty. of King,
Swr. RB, 5.00%, 1/01/36, FSA	01/16 @ 100	$ 963,463
AAA	2,220		Hlth. Care Facs.
Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Care Svcs. Proj.,
Ser. A, 4.625%, 10/01/34, FGIC	10/16 @ 100	2,243,066
					3,206,529
			West Virginia—0.3%
AAA	520		Econ. Dev. Auth.,
Correctional Fac. Impvts. Lease RB, Correctional Juvenile Safety Proj., Ser.
A, 5.00%, 6/01/29, MBIA	06/14 @ 100	551,101
			Wisconsin—5.4%
			Hlth. & Edl.
Facs. Auth., Hlth., Hosp. & Nursing Home RB,
A-	1,350		Aurora Hlth. Care
Proj., 6.40%, 4/15/33	04/13 @ 100	1,509,286
A-	7,000	3	Wheaton
Franciscan Svcs. Proj., 5.75%, 2/15/12	N/A	7,700,210
					9,209,496
			Total
Long-Term Investments (cost $229,723,040)		252,899,420
Shares
(000)
			MONEY MARKET FUND—5.5%
NR	9,300	6,7	Merrill Lynch
Institutional Tax Exempt Fund, 3.46% (cost $9,300,000)	N/A	9,300,000
			Total
Investments—153.8% (cost $239,023,040 8 )		$ 262,199,420
			Liabilities in
excess of other assets—(0.7)%		(1,184,377	)
			Preferred shares
at redemption value, including dividends payable—(53.1)%		(90,530,248	)
			Net
Assets Applicable to Common Shareholders—100%		$ 170,484,795

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 4 | 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 28, 2007, the Trust held 7.8% of its net
assets, with a current market value of $13,363,966, in securities restricted
as to resale. |
| 5 | Security is deemed to be of
investment grade quality by the investment advisor. |
| 6 | Represents an
investment in an affiliate. |
| 7 | Represents current yield as
of February 28, 2007. |
| 8 | Cost for federal income tax
purposes is $239,027,520. The net unrealized appreciation on a tax basis is
$23,171,900, consisting of $23,177,442 gross unrealized appreciation and
$5,542 gross unrealized depreciation. |

| KEY TO ABBREVIATIONS — ACA | — | American Capital Access | MBIA | — | Municipal Bond Insurance
Assoc. |
| --- | --- | --- | --- | --- | --- |
| AMBAC | — | American Municipal Bond
Assurance Corp. | RB | — | Revenue Bond |
| AMT | — | Subject to Alternative
Minimum Tax | SA | — | Special Assessment |
| FGIC | — | Financial Guaranty Insurance
Co. | ST | — | Special Tax |
| FSA | — | Financial Security Assurance | TA | — | Tax Allocation |
| GO | — | General Obligation | XLCA | — | XL Capital Assurance |

See Notes to Financial Statements.

23

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—153.2%
			Alabama—1.5%
AAA	$ 1,010		Birmingham Wtr.
Wks. & Swr. Brd., Wtr. Util. Impvt. Wtr. RB, Ser. A, 4.50%, 1/01/35, FSA	01/16 @ 100	$ 1,019,494
			Spl. Care Facs.
Fing. Auth. Birmingham, Hlth., Hosp. & Nursing Home RB, Ascension Hlth.
Proj.,
AA+	2,525		Ser. C-2, 5.00%,
11/15/36	11/16 @ 100	2,649,659
AA+	1,825		Ser. C-2, 5.00%,
11/15/39	11/16 @ 100	1,910,100
					5,579,253
			California—7.1%
A	2,250		Agua Caliente
Band of Cahuilla Indians, Casinos Parimutuel Betting RB, 6.00%, 7/01/18	07/13 @ 100	2,447,437
A+	2,700		California GO,
5.00%, 6/01/34	12/14 @ 100	2,850,741
			Cnty. Tobacco
Sec. Agcy., Tobacco Settlement Funded RB,
BBB-	1,840		Ser. B, Zero
Coupon, 6/01/46	06/16 @ 17.602	189,649
BB	9,710		Ser. C, Zero
Coupon, 6/01/55	06/16 @ 8.9	488,316
NR	12,410		Ser. D,
Stanislaus Cnty. Proj., Zero Coupon, 6/01/55	06/16 @ 6.219	413,129
A	3,500		Mobilehome Park
Fing. Auth., St. Single-Fam. Hsg. RB, Millenium Hsg. Corp. Proj., Ser. A,
5.25%, 3/15/34, ACA	03/13 @ 102	3,726,555
NR	4,620		San Francisco
City & Cnty. Redev. Agcy., Pub. Impvts. ST, Mission Bay South Pub. Proj.,
6.625%, 8/01/27	08/11 @ 101	4,998,979
A+	5,000		Statewide Cmntys.
Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mem. Hlth. Svcs.
Proj., Ser. A, 5.50%, 10/01/33	04/13 @ 100	5,321,100
AA-	5,755		Univ. of
California, Univ. & Coll. Impvts. RB, Ser. B, 4.75%, 5/15/38	05/13 @ 101	5,931,793
					26,367,699
			Colorado—4.8%
AAA	1,375		City of Colorado
Springs, Mult. Util. Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA	11/15 @ 100	1,459,645
AA	10,000	3	Hlth. Facs.
Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Catholic Hlth. Initiatives
Proj., Ser. A, 5.50%, 3/01/32	ETM	10,768,600
AAA	4,000		Northwest Pkwy.
Pub. Hwy. Auth., Hwy. Tolls RB, Ser. A, 5.25%, 6/15/41, FSA	06/11 @ 102	4,257,920
Baa2	1,375		Park Creek Met.
Dist., Ppty. Tax Misc. RB, 5.50%, 12/01/37	12/15 @ 101	1,471,484
					17,957,649
			District of Columbia—6.2%
A	1,265		Misc. RB,
Friendship Pub. Charter Sch. Proj., 5.25%, 6/01/33, ACA	06/14 @ 100	1,336,738
			Tobacco
Settlement Fing. Corp., Tobacco Settlement Funded RB,
BBB	7,500		6.50%, 5/15/33	No Opt. Call	8,938,275
BBB	11,500		6.75%, 5/15/40	05/11 @ 101	12,665,410
					22,940,423
			Florida—14.6%
BBB+	2,650		City of Leesburg,
Hlth., Hosp. & Nursing Home Impvts. RB, Leesburg Regl. Med. Ctr. Proj.,
5.50%, 7/01/32	07/12 @ 100	2,771,847
AAA	3,990		Cnty. of Orange,
Sales Tax RB, 4.75%, 10/01/32, XLCA	10/16 @ 100	4,127,535
NR	15		Fishhawk Cmnty.
Dev. Dist. II, Pub. Impvts. SA TA, Ser. B, 5.00%, 11/01/07	No Opt. Call	15,001
AAA	1,670		JEA, Wtr. Util.
Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/36, MBIA	04/11 @ 100	1,705,404
NR	4,735		Lakes by the Bay
South Cmnty. Dev. Dist., Pub. Impvts. SA RB, Ser. A, 6.25%, 5/01/34	05/14 @ 101	5,109,112
NR 4	3,125		Live Oak Comm.
Dev. Dist. No. 1, Pub. Impvts. SA, Ser. A, 6.30%, 5/01/34	05/13 @ 101	3,354,437
BB+	6,230		Miami Beach Hlth.
Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai Med. Ctr.
Proj., 6.75%, 11/15/21	11/14 @ 100	7,134,534
A+	6,850	5	Orange Cnty.
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Adventist
Hlth. Sys. Proj., 5.625%, 11/15/12	N/A	7,563,770
AA-	14,000	5	Pinellas Cnty.
Hlth. Fac. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Baycare Hlth.
Sys., Inc. Proj., 5.50%, 5/15/13	N/A	15,354,080
NR	2,065		Stevens
Plantation Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. A, 7.10%, 5/01/35	05/14 @ 100	2,254,650
NR	4,520		Sumter Cnty.
Indl. Dev. Auth., Indl. Impvts. RB, No. Sumter Util. Co. LLC Proj., 6.90%,
10/01/34, AMT	10/09 @ 100	4,727,197
					54,117,567

See Notes to Financial Statements.

24

BlackRock Municipal Income Trust II (BLE) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			Georgia—1.5%
AAA	$ 205		City of Atlanta,
Port, Arpt. & Marina Impvts. RB, Ser. J, 5.00%, 1/01/34, FSA	01/15 @ 100	$ 216,410
BBB	5,000		Milledgeville
& Baldwin Cnty. Dev. Auth., Univ. & Coll. Impvts. RB, Georgia Coll.
& St. Univ. Fndtn. Proj., 5.625%, 9/01/30	09/14 @ 101	5,447,500
					5,663,910
			Illinois—19.6%
NR	2,470	6	Centerpoint
Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23	No Opt. Call	2,566,182
AAA	4,290		Chicago O’Hare
Intl. Arpt., Port, Arpt. & Marina RB, Ser. C-2, 5.25%, 1/01/30, FSA, AMT	01/14 @ 100	4,539,506
			Fin. Auth.,
A+	7,500	5	Cash Flow Mgmt.
Hlth., Hosp. & Nursing Home RB, Adventist Hlth. Sys. Sunbelt Oblig.
Proj., 5.65%, 11/15/09	N/A	7,947,750
BBB	2,310		Coll. & Univ.
RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/25	11/16 @ 100	2,375,904
BBB	1,845		Coll. & Univ.
RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/30	11/16 @ 100	1,890,405
BB+	910		Hlth., Hosp.
& Nursing Home RB, Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%,
2/15/37	02/15 @ 100	941,532
AA+	1,880		Hlth., Hosp.
& Nursing Home RB, Northwestern Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43	08/14 @ 100	2,055,310
Baa2	1,125		Univ. & Coll.
Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. A, 5.125%, 6/01/35	06/14 @ 100	1,162,418
Baa3	900		Univ. & Coll.
Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. B, 5.375%, 6/01/35	06/14 @ 100	929,664
A	8,000		Hlth. Facs.
Auth., Hlth., Hosp. & Nursing Home RB, Elmhurst Mem. Hosp. Proj., 5.50%,
1/01/22	01/13 @ 100	8,541,840
			Met. Pier &
Exposition Auth., Pub. Impvts. St. Tax RB, McCormick Place Expansion Proj.,
AAA	45,190		Ser. A, Zero
Coupon, 6/15/33, MBIA	No Opt. Call	14,648,790
AAA	5,000		Ser. A, Zero
Coupon, 6/15/40, MBIA	No Opt. Call	1,185,350
AAA	5,490		Mun. Elec. Agcy.,
Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC	02/16 @ 100	5,525,960
AAA	15,000		Sports Facs.
Auth., Ded. St. Tax Supported RB, Zero Coupon, 6/15/30, AMBAC	06/15 @ 101	14,104,800
AAA	4,000	5	Vlg. of
Bolingbrook, Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. A, 5.375%, 1/01/12,
FGIC	N/A	4,299,800
					72,715,211
			Indiana—8.3%
AA+	5,000		Hlth. Fac. Fing.
Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Ascension Hlth. Proj.,
Ser. F, 5.375%, 11/15/25	No Opt. Call	5,451,850
AAA	19,735	5	Indianapolis
Local Pub. Impvt. Bond Bank, Wtr. Util. Impvts. RB, Wtr. Wks. Proj., Ser. A,
5.25%, 7/01/12, MBIA	N/A	21,214,336
AAA	4,200		Mun. Pwr. Agcy.,
Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.50%, 1/01/32, AMBAC	01/16 @ 100	4,239,480
					30,905,666
			Maryland—1.8%
NR	3,000		Frederick Cnty.,
Pub. Impvts. ST, Urbana Cmnty. Dev. Auth. Proj., Ser. A, 5.95%, 7/01/30	07/07 @ 102	3,073,830
			Hlth. &
Higher Edl. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB,
A3	2,240		Medstar Hlth.,
Inc. Proj., 5.50%, 8/15/33	08/14 @ 100	2,404,125
A	1,000		Union Hosp. of
Cecil Cnty. Proj., 5.625%, 7/01/32	07/12 @ 100	1,070,950
					6,548,905
			Massachusetts—0.9%
AA	3,145		Wtr. Recs. Auth.,
Wtr. RB, Ser. A, 5.00%, 8/01/41	08/16 @ 100	3,349,142
			Michigan—0.7%
A1	2,305		Hosp. Fin. Auth.,
Hlth., Hosp. & Nursing Home RB, Henry Ford Hlth. Sys. Proj., Ser. A,
5.25%, 11/15/46	11/16 @ 100	2,453,857
			Mississippi—1.6%
BBB	4,950		Lowndes Cnty.,
Indl. RB, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22	No Opt. Call	6,071,621
			Missouri—1.8%
NR	6,000		370 Missouri
Bottom Rd. Taussig Rd. Transp. Dev. Dist. Hazelwood, Pub. Impvts. Sales Tax
RB, 7.20%, 5/01/33	05/13 @ 100	6,690,600
			Multi-State—3.7%
			Charter Mac
Equity Issuer Trust,
A3	1,000	6	Ser. A, 5.75%,
10/31/15	No Opt. Call	1,078,800
A3	3,500	6	Ser. A, 6.00%,
4/30/19	No Opt. Call	3,906,035
Baa1	5,000	6	Ser. B, 6.00%,
4/30/15	No Opt. Call	5,437,800
Baa1	3,000	6	Ser. B, 6.30%,
4/30/19	No Opt. Call	3,395,100
					13,817,735

See Notes to Financial Statements.

25

BlackRock Municipal Income Trust II (BLE) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description		Option Call Provisions 2	Value
			Nevada—2.8%
A+	$ 2,855		Cnty. of Clark,
Private Schs. RB, Alexander Dawson Sch. Proj., 5.00%, 5/15/29		05/16 @ 100	$ 2,998,892
NR	2,565		Henderson Local
Impvt. Dist. No. T-14, Pub. Impvts. SA, 5.80%, 3/01/23		09/07 @ 103	2,652,698
AAA	4,400		Truckee Meadows
Wtr. Auth., Wtr. RB, 4.875%, 7/01/34, XLCA		07/16 @ 100	4,582,380
						10,233,970
			New Jersey—12.4%
			Econ. Dev. Auth.,
BBB	9,000		Econ. Impvts.
Cigarette Tax RB, 5.50%, 6/15/31		06/14 @ 100	9,567,090
Baa3	10,000		Econ. Impvts.
Elec., Pwr. & Lt. RB, New Jersey Metromall Urban Renewal Proj., 6.50%,
4/01/31, AMT		No Opt. Call	12,038,800
BBB	4,000		Econ. Impvts.
Misc. RB, Cigarette Tax Proj., 5.75%, 6/15/34		06/14 @ 100	4,313,720
B	10,100		Port, Arpt. &
Marina Impvts. RB, Contl. Airlines, Inc. Proj., 7.20%, 11/15/30, AMT		11/10 @ 101	11,001,122
Baa3	7,475		SA, Kapkowski Rd.
Landfill Proj., 6.50%, 4/01/28		No Opt. Call	9,235,138
						46,155,870
			New Mexico—1.5%
Baa1	5,200		Hsg. Auth., St.
Multi-Fam. Hsg. RB, Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38	.	01/13 @ 102	5,464,680
			New York—8.6%
NR	985		Albany Indl. Dev.
Agcy., Sch. Impvts. Lease Appropriation RB, New Covenant Charter Sch. Proj.,
Ser. A, 7.00%, 5/01/35		05/15 @ 102	984,862
AAA	2,845		Env. Facs. Corp.,
Swr. Impvts. Misc. RB, NYC Mun. Wtr. Proj., Ser. B, 5.00%, 6/15/31		06/12 @ 100	2,978,061
AA-	5,425		Liberty Dev.
Corp., Indl. Impvts. Misc. RB, Goldman Sachs Group, Inc. Proj., 5.25%,
10/01/35		No Opt. Call	6,367,756
AAA	3,775		Met. Transp.
Auth., Misc. RB, Ser. A, 5.00%, 7/01/30, AMBAC		07/12 @ 100	3,954,766
B	6,700		New York City
Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines,
Inc./JFK Intl. Arpt. Proj., 7.75%, 8/01/31, AMT		08/16 @ 101	8,141,304
Caa1	7,325		Port Auth. of New
York & New Jersey, Port, Arpt. & Marina Impvts. RB, Contl./Eastn.
LaGuardia Proj., 9.00%, 12/01/10, AMT		04/07 @ 100	7,483,879
AAA	1,810		Syracuse Indl.
Dev. Agy., Indl. Impvts. RB, Crousel Ctr. Proj., Ser. A, 5.00%, 1/01/36		01/17@ 100	1,909,206
						31,819,834
			North Carolina—2.2%
NR 4	7,500		Gaston Cnty.
Indl. Facs. & Poll. Control Fing. Auth., Indl. Impvts. RB, 5.75%,
8/01/35, AMT	.	08/15 @ 100	8,082,375
			Ohio—2.5%
AAA	9,140		Air Qual. Dev.
Auth., Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34,
FGIC	.	07/15 @ 100	9,479,094
			Oklahoma—1.3%
B	3,925		Tulsa Mun. Arpt.
Trust, Port, Arpt. & Marina Impvts. RB, Ser. A, 7.75%, 6/01/35, AMT		No Opt. Call	4,685,508
			Pennsylvania—5.5%
			Econ. Dev. Fing.
Auth.,
BB-	8,425		Elec., Pwr. &
Lt. Impvts. RB, Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36, AMT	.	06/11 @ 103	9,304,991
A3	5,175		Trans. Impvts.
Lease Renewal RB, Amtrak Proj., Ser. A, 6.375%, 11/01/41, AMT		05/11 @ 101	5,549,463
BBB+	5,000		Monroe Cnty.
Hosp. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Pocono Med. Ctr.
Proj., 6.00%, 1/01/43		01/14 @ 100	5,413,550
						20,268,004
			Puerto Rico—3.0%
			Comnwlth.,
BBB	5,755		Ad Valorem Ppty.
Tax GO, Ser. B, 5.00%, 7/01/35		07/16 @ 100	6,093,739
AAA	4,370		Hwy. & Trans.
Auth., Hwy. Impvts. Tolls RB, Ser. N, 5.25%, 7/01/36		No Opt. Call	5,151,968
						11,245,707
			South Carolina—5.3%
			Greenwood Cnty.,
Hlth., Hosp. & Nursing Home Impvts. RB, Self Mem. Hosp. Facs. Proj.,
A	3,280		5.50%, 10/01/26		10/11 @ 100	3,473,094
A	3,250		5.50%, 10/01/31		10/11 @ 100	3,432,975
			Jobs-Econ. Dev.
Auth.,
AA	3,750		Hlth., Hosp.
& Nursing Home Impvts. RB, Georgetown Mem. Hosp. Proj., 5.375%, 2/01/30,
RAA		08/11 @ 100	3,932,287
BBB+	5,000	5	Hlth., Hosp.
& Nursing Home RB, Palmetto Hlth. Alliance Proj., 6.875%, 8/01/13		N/A	5,882,729
BBB+	2,640		Hlth., Hosp.
& Nursing Home RB, Palmetto Hlth. Alliance Proj., Ser. A, 6.25%, 8/01/31	.	08/13 @ 100	2,967,175
						19,688,260

See Notes to Financial Statements.

26

BlackRock Municipal Income Trust II (BLE) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			Tennessee—2.7%
AAA	$ 20,405		Knox Cnty. Hlth.
Edl. & Hsg. Facs. Brd., Hlth., Hosp. & Nursing Home RB, Ser. A, Zero
Coupon, 1/01/21, FSA	01/13 @ 63.44	$ 10,073,336
			Texas—18.7%
			Dallas Area Rapid
Trans., Sales Tax RB,
AAA	2,600		4.50%, 12/01/26,
AMBAC	12/16 @ 100	2,651,324
AAA	2,015	5	5.00%, 12/01/11,
AMBAC	N/A	2,130,016
BBB	20,000		Gulf Coast Wst.
Disp. Auth., Indl. RB, Intl. Paper Co. Proj., Ser. A, 6.10%, 8/01/24, AMT	08/12 @ 100	21,594,200
AAA	25,375		Harris Cnty.
Houston Sports Auth., Lease RB, Ser. A-3, Zero Coupon, 11/15/36, MBIA	11/24 @ 49.423	5,662,177
			Lower Colorado
River Auth., Misc. RB,
AAA	5	5	Ser. A, 5.00%,
5/15/13, MBIA	N/A	5,358
AAA	1,300		Ser. A, 5.00%,
5/15/31, MBIA	05/13 @ 100	1,361,347
AAA	930		Montgomery Cnty.
Mun. Util. Dist. No. 46, Pub. Impvts. Ad Valorem Ppty. Tax GO, 4.75%,
3/01/30, MBIA	03/14 @ 100	953,390
			Tpke. Auth., Hwy.
Impvts. Tolls RB,
AAA	73,370		Zero Coupon,
8/15/36, AMBAC	08/12 @ 24.171	13,921,224
AAA	65,000		Zero Coupon,
8/15/37, AMBAC	08/12 @ 22.708	11,586,900
AAA	27,600		Zero Coupon,
8/15/38, AMBAC	08/12 @ 21.384	4,632,936
AAA	4,575		Ser. A, 5.00%,
8/15/42, AMBAC	08/12 @ 100	4,783,757
					69,282,629
			Virginia—6.3%
NR 4	13,065		Alexandria Redev.
& Hsg. Auth., Local Hsg. RB, 3001 Park Ctr. Apts. Proj., Ser. A, 6.375%,
4/01/34	04/08 @ 103	13,603,539
AAA	9,000		Halifax Cnty.
Indl. Dev. Auth., Indl. RB, Old Dominion Elec. Coop. Proj., 5.625%, 6/01/28, AMBAC, AMT	06/13 @ 101	9,892,260
					23,495,799
			Washington—1.9%
AAA	1,960		Cnty. of King,
Swr. RB, 5.00%, 1/01/36, FSA	01/16 @ 100	2,086,616
AAA	4,820		Hlth. Care Facs.
Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Care Svcs. Proj.,
Ser. A, 4.625%, 10/01/34, FGIC	10/16 @ 100	4,870,080
					6,956,696
			West Virginia—1.7%
AAA	1,115		Econ. Dev. Auth.,
Correctional Fac. Impvts. Lease RB, Correctional Juvenile Safety Proj., Ser.
A, 5.00%, 6/01/29, MBIA	06/14 @ 100	1,181,688
BBB+	5,000		Mason Cnty., Rec.
Recovery Impvts. RB, Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22	10/11 @ 100	5,175,750
					6,357,438
			Wisconsin—2.7%
			Hlth. & Edl.
Facs. Auth., Hlth., Hosp. & Nursing Home RB,
A-	3,930		Aurora Hlth. Care
Proj., 6.40%, 4/15/33	04/13 @ 100	4,393,701
A-	5,000	5	Wheaton
Franciscan Svcs. Proj., 5.75%, 2/15/12	N/A	5,471,550
					9,865,251
			Total
Long-Term Investments (cost $517,020,409)		568,333,689
	Shares (000)
			MONEY MARKET FUND—2.9%
NR	10,700	7,8	Merrill Lynch
Institutional Tax Exempt Fund, 3.46% (cost $10,700,000)	N/A	10,700,000
			Total
Investments—156.1% (cost $527,720,409 9 )		$ 579,033,689
			Liabilities in
excess of other assets—(0.7)%		(2,558,059)
			Preferred shares
at redemption value, including dividends payable—(55.4)%		(205,629,717)
			Net Assets
Applicable to Common Shareholders—100%		$ 370,845,913

See Notes to Financial Statements.

27

BlackRock Municipal Income Trust II (BLE) (continued)

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | Security is
collateralized by Municipal or U.S. Treasury obligations. |
| 4 | Security is deemed to be of
investment grade quality by the investment adviser. |
| 5 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 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 28, 2007, the Trust held 4.4% of its net
assets, with a current market value of $16,383,917, in securities restricted
as to resale. |
| 7 | Represents an investment in
an affiliate. |
| 8 | Represents current yield as
of February 28, 2007. |
| 9 | Cost for federal income tax
purposes is $527,699,504. The net unrealized appreciation on a tax basis is
$51,334,185, consisting of $51,354,501 gross unrealized appreciation and
$20,316 gross unrealized depreciation. |

KEY TO ABBREVIATIONS — ACA	—	American Capital Access	RAA	—	Radian Asset Assurance
AMBAC	—	American Municipal Bond
Assurance Corp.	RB	—	Revenue Bond
AMT	—	Subject to Alternative
Minimum Tax	SA	—	Special Assessment
FGIC	—	Financial Guaranty Insurance
Co.	PSF	—	Public School Fund
Guaranteed
FSA	—	Financial Security Assurance	ST	—	Special Tax
GO	—	General Obligation	TA	—	Tax Allocation
MBIA	—	Municipal Bond Insurance
Assoc.	XLCA	—	XL Capital Assurance

See Notes to Financial Statements.

28

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock California Insured Municipal Income Trust (BCK)

(Percentages shown are based on Net Assets)

Rating 1	Principal Amount (000)		Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—153.6%
			California—153.6%
AAA	$ 6,500		Benicia Unified
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Ser. B, Zero Coupon, 8/01/23,
MBIA	No Opt. Call	$ 3,257,800
AAA	4,000		California GO,
5.00%, 6/01/31, AMBAC	12/14 @ 100	4,258,800
AAA	1,000		California St.
Univ., Coll. & Univ. RB, Ser. C, 5.00%, 11/01/38, MBIA	11/15 @ 100	1,068,850
			Ceres Unified
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO,
AAA	3,055		Ser. B, Zero
Coupon, 8/01/30, FGIC	08/12 @ 34.887	843,883
AAA	3,180		Ser. B, Zero
Coupon, 8/01/31, FGIC	08/12 @ 32.868	827,595
AAA	3,300		Ser. B, Zero
Coupon, 8/01/32, FGIC	08/12 @ 30.966	809,127
AAA	3,440		Ser. B, Zero
Coupon, 8/01/33, FGIC	08/12 @ 29.174	794,640
AAA	3,575		Ser. B, Zero
Coupon, 8/01/34, FGIC	08/12 @ 27.782	786,393
AAA	3,275		Ser. B, Zero
Coupon, 8/01/35, FGIC	08/12 @ 26.186	679,071
			City of Los
Angeles, Swr. RB,
AAA	5,000		Ser. A, 5.00%,
6/01/27, MBIA	06/13 @ 100	5,271,300
AAA	6,025		Ser. A, 5.00%,
6/01/32, FGIC	06/12 @ 100	6,319,442
AAA	11,125		City of Santa
Rosa, Swr. Impvts. RB, Ser. B, Zero Coupon, 9/01/27, AMBAC	No Opt. Call	4,602,746
AAA	1,495		Contra Costa
Cnty. Pub. Fing., Pub. Impvts. Lease RB, Ser. A, 4.50%, 6/01/27, MBIA	06/17 @ 100	1,524,481
Aaa	6,500	3	Dept. of Wtr.
Recs., Elec., Pwr. & Lt. RB, Ser. A, 5.25%, 5/01/12	N/A	7,068,815
AAA	2,385		Edl. Facs. Auth.,
Univ. & Coll. Impvts. RB, Scripps Coll. Proj., 5.00%, 8/01/31, MBIA	08/11 @ 100	2,477,824
AAA	2,915		Eureka Unified
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Election 2002 Proj., Zero
Coupon, 8/01/34, MBIA	No Opt. Call	860,217
AAA	2,750		Hollister Joint
Pwrs. Fing. Auth., Swr. Impvts. RB, Refing. & Impvt. Proj., Ser. 1,
5.00%, 6/01/32, FSA	06/16 @ 100	2,942,417
AAA	4,500		Infrastructure
& Econ. Dev. Bank, Pub. Impvts. Misc. RB, Rand Corp. Proj., Ser. A,
5.25%, 4/01/42, AMBAC	04/12 @ 100	4,745,205
A3	2,600	3	Kaweah Delta
Hlth. Care Dist., Hlth., Hosp. & Nursing Home RB, 6.00%, 8/01/12	N/A	2,943,668
AAA	2,000		Long Beach
Unified Sch. Dist., Sch. Impvts. Ad Valorem Tax GO, Ser. D, 5.00%, 8/01/31, FSA	08/10 @ 101	2,080,320
			Los Angeles Dept.
of Wtr. & Pwr.,
AAA	5,000		Wtr. RB, Ser. A,
5.00%, 7/01/43, FGIC	07/12 @ 100	5,233,200
AAA	5,000		Wtr. Util.
Impvts. RB, Ser. A, 5.125%, 7/01/41, FGIC	07/11 @ 100	5,211,150
AAA	5,000	3	Los Angeles
Unified Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Ser. E, 5.125%, 7/01/12,
MBIA	N/A	5,377,350
AAA	2,500	3	North Orange
Cnty. Cmnty. Coll. Dist., Univ. & Coll. Impvts. Ad Valorem Ppty. Tax GO,
Ser. A, 5.00%, 8/01/12,
MBIA	N/A	2,691,625
AAA	5,000		Northern
California Pwr. Agcy., Elec., Pwr. & Lt. RB, Hydroelec. Proj., Ser. A,
5.00%, 7/01/28, MBIA	07/08 @ 101	5,115,150
AAA	1,250		Poway Redev.
Agcy. TA, 5.00%, 6/15/33, MBIA	06/17 @ 100	1,344,737
			Pub. Wks. Brd.,
AAA	5,000		Pub. Impvts.
Lease Abatement RB, Ser. A, 5.00%, 12/01/27, AMBAC	12/12 @ 100	5,251,950
AAA	1,000		Pub. Impvts.
Lease RB, Off. Emergency Svc. Proj., Ser. A, 5.00%, 3/01/32, FGIC	03/17 @ 100	1,075,527
AAA	5,000		Riverside Unified
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Ser. A, 5.00%, 2/01/27,
FGIC	02/12 @ 101	5,258,600
AAA	5,295		San Diego Cnty.
Wtr. Auth., Wtr. Util. Impvts. Wtr. COP, Ser. A, 5.00%, 5/01/32, MBIA	05/12 @ 101	5,578,918
AAA	4,805		San Diego Redev.
Agcy. TA, Ctr. City Proj., Ser. A, 5.00%, 9/01/28, MBIA	09/11 @ 101	5,033,478
AAA	4,000		San Diego St.
Univ. RB, Ser. A, 5.00%, 3/01/37, MBIA	03/12 @ 100	4,187,280
AAA	20,000		San Joaquin Hills
Transp. Corridor Agcy., Hwy. Tolls RB, Ser. A, Zero Coupon, 1/15/31, MBIA	No Opt. Call	7,106,800
AAA	6,000		San Jose Fing.
Auth., Lease Abatement RB, Civic Ctr. Proj., Ser. B, 5.00%, 6/01/37, AMBAC	06/12 @ 100	6,258,480
AAA	3,000		Tustin Unified
Sch. Dist., Sch. Impvts. ST, Cmnty. Facs. Dist. 97-1 Proj., Ser. A, 5.00%, 9/01/38,
FSA	09/12 @ 100	3,131,910
AAA	4,000		Westlands Wtr.
Dist., Wtr. Util. Impvts. Wtr. COP, 5.00%, 9/01/34, MBIA	09/12 @ 101	4,199,840
			Total
Long-Term Investments (cost $117,922,719)		126,218,589

See Notes to Financial Statements.

29

BlackRock Municipal Income Trust II (BCK) (continued)

(Percentages shown are based on Net Assets)

Shares (000)		Description	Value
		MONEY MARKET FUND—5.1%
4,200	4,5	CMA California
Mun. Money Fund, 3.03% (cost $4,200,000)	$ 4,200,000
		Total
Investments—158.7% (cost $122,122,719 6 )	$ 130,418,589
		Liabilities in
excess of other assets—(2.1)%	(1,760,970	)
		Preferred shares
at redemption value, including dividends payable—(56.6)%	(46,511,846	)
		Net
Assets Applicable to Common Shareholders—100%	$ 82,145,773

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 4 | Represents an investment in
an affiliate. |
| 5 | Represents current yield as
of February 28, 2007. |
| 6 | Cost for federal income tax
purposes is $122,127,358. The net unrealized appreciation on a tax basis is
$8,291,231, consisting of $8,291,231 gross unrealized appreciation and $0
gross unrealized depreciation. |
| | The value (market value plus
accrued interest) of securities that are covered by insurance, which ensures
the payment of principal and interest, represent approximately 94.5% of the
Trust’s managed assets. |

AMBAC	— 19.7%
FGIC	— 21.8%
FSA	— 6.4%
MBIA	— 43.3%
Other	— 3.3%

| KEY TO ABBREVIATIONS — AMBAC | — American Municipal Bond
Assurance Corp. | MBIA | — Municipal Bond Insurance
Assoc. |
| --- | --- | --- | --- |
| COP | — Certificate of
Participation | RB | — Revenue Bond |
| FGIC | — Financial Guaranty
Insurance Co. | ST | — Special Tax |
| FSA | — Financial Security
Assurance | TA | — Tax Allocation |
| GO | — General Obligation | | |

See Notes to Financial Statements.

30

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock California Municipal Bond Trust (BZA)

(Percentages shown are based on Net Assets)

Rating 1	Principal Amount (000)		Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—148.9%
			California—139.7%
AAA	$ 5,000		Anaheim Pub.
Fing. Auth., Recreational Fac. Impvts. Lease Abatement RB, Pub. Impvt. Proj.,
Ser. C, Zero Coupon, 9/01/32, FSA	No Opt. Call	$ 1,614,900
A+	2,000		California, Pub.
Impvts. GO, 5.00%, 12/01/25	12/16 @ 100	2,150,120
A+	1,175		City of Chula
Vista, Indl. Dev. RB, San Diego Gas & Elec. Proj., 5.00%, 12/01/27, AMT	12/15 @ 102	1,247,251
			Edl. Facs. Auth.,
Baa3	1,000		Univ. & Coll.
Impvts. RB, Coll. & Univ. Fing Prog., 5.00%, 2/01/26	02/17 @ 100	1,043,710
A2	4,000		Univ. & Coll.
Impvts. RB, Univ. of San Diego Proj., Ser. A, 5.25%, 10/01/30	10/12 @ 100	4,199,080
BBB	3,845		Foothill Eastn.
Transp. Corridor Agcy., Hwy. Tolls RB, 5.75%, 1/15/40	01/10 @ 101	4,043,287
			Golden St.
Tobacco Sec. Corp.,
BBB	2,000		Misc. Purps.
Tobacco Settlement Funded RB, Ser. A-1, 6.625%, 6/01/40	06/13 @ 100	2,278,480
BBB	1,000		Misc. Purps.
Tobacco Settlement Funded RB, Ser. A-1, 6.75%, 6/01/39	06/13 @ 100	1,146,080
AAA	2,500	3	Misc. Purps.
Tobacco Settlement Funded RB, Ser. B, 5.50%, 6/01/13	N/A	2,747,725
AAA	1,300	3	Misc. Purps.
Tobacco Settlement Funded RB, Ser. B, 5.625%, 6/01/13	N/A	1,437,813
A+	3,270		Hlth. Facs. Fin.
Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Valleycare Medical Ctr.
Proj., Ser. A, 5.375%, 5/01/27	05/12 @ 100	3,456,979
			Infrastructure
& Econ. Dev. Bank,
A	3,750		Hlth., Hosp.
& Nursing Home Impvts. RB, The J. David Gladstone Proj., 5.25%, 10/01/34	10/11 @ 101	3,943,725
AAA	3,500		Pub. Impvts.
Misc. RB, Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC	04/12 @ 100	3,690,715
AAA	3,000	3	Rec. Facs.
Impvts. Lease RB, Asian Museum Fndtn. of San Francisco Proj., 5.25%, 6/01/07,
MBIA	N/A	3,042,630
A3	1,745	3	Kaweah Delta
Hlth. Care Dist., Hlth., Hosp. & Nursing Home RB, 6.00%, 8/01/12	N/A	1,975,654
			Lathrop Fing.
Auth., Wtr. Util. Impvts. Wtr. RB,
NR	655		5.90%, 6/01/27	06/13 @ 100	693,134
NR	1,180		6.00%, 6/01/35	06/13 @ 100	1,256,322
			Live Oak Unified
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO,
AAA	705		Ser. B, Zero
Coupon, 8/01/29, XLCA	08/18 @ 55.976	240,553
AAA	795		Ser. B, Zero
Coupon, 8/01/30, XLCA	08/18 @ 52.942	256,268
AAA	830		Ser. B, Zero
Coupon, 8/01/31, XLCA	08/18 @ 50.064	252,727
AAA	865		Ser. B, Zero
Coupon, 8/01/32, XLCA	08/18 @ 47.332	248,731
AAA	905		Ser. B, Zero
Coupon, 8/01/33, XLCA	08/18 @ 44.74	245,717
AAA	945		Ser. B, Zero
Coupon, 8/01/34, XLCA	08/18 @ 42.283	242,204
B	1,680		Los Angeles Regl.
Arpts. Impvt. Corp., Port, Arpt. & Marina Impvts. RB, American Airlines, Inc.
Proj., Ser. C, 7.50%, 12/01/24, AMT	12/12 @ 102	1,936,754
			Multi-Fam. Hsg.
Pass-Through Certs., Local Hsg. RB,
Aa2	2,180		San Lucas Apts.
LP Proj., Ser. 5, 5.95%, 11/01/34, AMT	12/11 @ 100	2,253,575
Aa2	2,365		Westgate
Courtyard Apts. LP Proj., Ser. 3, 5.80%, 11/01/34, AMT	12/11 @ 100	2,433,963
AAA	2,400	3	Orange Cnty.
Cmnty. Facs. Dist., Pub. Impvts. ST, Ladera Ranch Proj., Ser. A, 6.00%, 8/15/10	N/A	2,610,456
A-	3,000		Palm Springs,
Local Hsg. RB, Millenium Hsg. Corp. Proj., 5.75%, 5/15/37	05/12 @ 102	3,198,210
BBB	530		Poll. Ctrl. Fing.
Agcy., Rec. Recovery Impvts. RB, Central Valley Wst. Svc. Proj., Ser. A-2, 5.40%,
4/01/25, AMT	04/15 @ 101	568,928
NR	2,500		San Francisco
City & Cnty. Redev. Agcy., Cmnty. Facs. Dist. No. 6 Pub. Impvts. ST, Mission Bay South
Proj., 6.25%, 8/01/33	08/11 @ 101	2,669,300
AAA	15,000		Santa Ana Unified
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax COP, Zero Coupon, 4/01/29, FSA	No Opt. Call	5,466,300
AAA	2,500	3	Santa Clara
Valley Wtr. Dist., Wtr. Util. Impvts. RB, Ser. A, 5.125%, 6/01/10, FGIC	N/A	2,619,225
			Statewide Cmntys.
Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB,
BBB+	1,500		Daughters of
Charity Proj., Ser. A, 5.25%, 7/01/30	07/15 @ 100	1,584,915
A+	5,000		Kaiser Hosp.
Asset Mgmt. Proj., Ser. A, 5.50%, 11/01/32	11/12 @ 100	5,288,150
AA-	3,250		Sutter Hlth.
Oblig. Grp. Proj., Ser. B, 5.625%, 8/15/42	08/12 @ 100	3,515,135
A+	1,500		Torrance, Hlth.,
Hosp. & Nursing Home RB, Torrance Mem. Med. Ctr. Proj., Ser. A, 5.50%,
6/01/31	06/11 @ 101	1,586,700
					77,185,416

See Notes to Financial Statements.

31

BlackRock California Municipal Bond Trust (BZA) (continued)

(Percentages shown are based on Net Assets)

Rating 1	Principal Amount (000)		Description	Option Call Provisions 2	Value
			Multi-State—7.3%
Baa1	$ 3,500	4	Charter Mac
Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	$ 4,056,395
			Puerto Rico—1.9%
BBB+	1,000		Comnwlth. Hwy.
& Transp. Auth., Hwy. Impvts. Tolls RB, Ser. M, 5.00%, 7/01/23	07/17 @ 100	1,063,900
			Total
Long-Term Investments (cost $74,667,299)		82,305,711
	Shares (000)
			MONEY MARKET FUND—6.1%
NR	3,400	5,6	CMA California
Mun. Money Fund, 3.03% (cost $3,400,000)	N/A	3,400,000
			Total
Investments—155.0% (cost $78,067,299 7 )		$ 85,705,711
			Liabilities in
excess of other assets—(0.8)%		(467,416	)
			Preferred shares
at redemption value, including dividends payable—(54.2)%		(29,977,215	)
			Net
Assets Applicable to Common Shareholders—100%		$ 55,261,080

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 4 | 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 28, 2007, the Trust held 7.3% of its net
assets, with a current market value of $4,056,395, in securities restricted
as to resale. |
| 5 | Represents an investment in
an affiliate. |
| 6 | Represents current yield as
of February 28, 2007. |
| 7 | Cost for federal income tax
purposes is $78,059,375. The net unrealized appreciation on a tax basis is
$7,646,336, consisting of $7,646,336 gross unrealized appreciation and $0
gross unrealized depreciation. |

| KEY TO ABBREVIATIONS — AMBAC | — American Municipal Bond
Assurance Corp. | GO | — General Obligation |
| --- | --- | --- | --- |
| AMT | — Subject to Alternative
Minimum Tax | MBIA | — Municipal Bond Insurance
Assoc. |
| COP | — Certificate of
Participation | RB | — Revenue Bond |
| FGIC | — Financial Guaranty
Insurance Co. | ST | — Special Tax |
| FSA | — Financial Security
Assurance | XLCA | — XL Capital Assurance |

See Notes to Financial Statements.

32

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock California Municipal Income Trust II (BCL)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—150.5%
			California—143.5%
			Anaheim Pub.
Fing. Auth., Recreational Fac. Impvts. Lease Abatement RB, Pub. Impvt. Proj.,
AAA	$ 15,000		Ser. C, Zero
Coupon, 9/01/34, FSA	No Opt. Call	$ 4,410,150
AAA	10,000		Ser. C, Zero
Coupon, 9/01/36, FSA	No Opt. Call	2,697,500
AAA	4,500		Campbell Redev.
Agcy., Pub. Impvts. Tax Incr./Alloc. TA, Campbell Redev. Proj., Ser. A,
5.00%, 10/01/32	10/15 @ 100	4,794,975
A+	8,000		Cash Flow Mgmt.,
Ad Valorem Ppty. Tax GO, 5.50%, 11/01/33	11/13 @ 100	8,740,480
			City of Chula
Vista, Indl. Dev. RB,
A+	4,330		5.00%, 12/01/27,
AMT	12/15 @ 102	4,596,252
A+	2,690		San Diego Gas
& Elec. Proj., 5.00%, 12/01/27, AMT	12/15 @ 102	2,855,408
AAA	2,685		City of Santa
Rosa, Swr. Impvts. RB, Ser. B, Zero Coupon, 9/01/25, AMBAC	No Opt. Call	1,221,729
AAA	2,000	3	City of Vernon,
Elec., Pwr. & Lt. Impvts. RB, Malburg Generating Station Proj., 5.50%,
4/01/08	N/A	2,042,200
NR	6,000		Cnty. of San
Bernardino, Pub. Impvts. ST, 5.90%, 9/01/33	09/12 @ 102	6,417,600
AAA	6,000		Corona-Norca
Unified Sch. Dist., Sch. Impvts. ST, Cmnty. Facs. Dist. No. 98-1 Proj.,
5.10%, 9/01/32, AMBAC	09/12 @ 100	6,312,480
Aaa	6,000	3	Dept. of Wtr.
Recs., Elec., Pwr. & Lt. RB, Ser. A, 5.375%, 5/01/12	N/A	6,560,220
Baa3	1,300		Edl. Facs Auth.,
Univ. & Coll. Impvts. RB, Coll. & Univ. Fing Prog., 5.00%, 2/01/26	02/17 @ 100	1,356,823
			Foothill Eastn.
Transp. Corridor Agcy., Hwy. Impvts. Tolls RB,
BBB	6,550		Zero Coupon,
1/15/30	01/10 @ 30.966	1,767,779
AAA	15,470	4	Ser. A, Zero
Coupon, 1/01/26	ETM	6,978,517
AAA	4,890	4	Ser. A, Zero
Coupon, 1/01/30	ETM	1,842,161
			Golden St. Tobacco
Sec. Corp.,
BBB	2,900		Misc. Purps.
Tobacco Settlement Funded RB, Ser. A-1, 6.625%, 6/01/40	06/13 @ 100	3,303,796
BBB	11,100		Misc. Purps.
Tobacco Settlement Funded RB, Ser. A-1, 6.75%, 6/01/39	06/13 @ 100	12,721,488
AAA	5,650	3	Misc. Purps.
Tobacco Settlement Funded RB, Ser. B, 5.50%, 6/01/13	N/A	6,209,858
AAA	3,000	3	Misc. Purps.
Tobacco Settlement Funded RB, Ser. B, 5.625%, 6/01/13	N/A	3,318,030
			Infrastructure
& Econ. Dev. Bank,
A+	1,735		Hlth., Hosp.
& Nursing Home Impvts. RB, Kaiser Asst. Corp. Proj., Ser. A, 5.55%,
8/01/31	08/11 @ 102	1,847,758
AAA	2,500		Pub. Impvts.
Misc. RB, Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC	04/12 @ 100	2,636,225
AAA	5,000		La Quinta Redev. Agcy.,
Pub. Impvts. TA, Redev. Area No. 1 Proj., 5.125%, 9/01/32, AMBAC	09/12 @ 102	5,348,300
AAA	5,500		Los Angeles Dept.
of Wtr. & Pwr., Wtr. Util. Impvts. RB, Ser. A, 5.125%, 7/01/41, FGIC	07/11 @ 100	5,732,265
B	1,785		Los Angeles Regl.
Arpts. Impvt. Corp., Port, Arpt. & Marina Impvts. RB, American Airlines,
Inc. Proj., Ser. C, 7.50%, 12/01/24, AMT	12/12 @ 102	2,057,802
A	3,500		Mobilehome Park
Fing. Auth., St. Sngl.-Fam. Hsg. RB, Millenium Hsg. Corp. Proj., Ser. A,
5.25%, 3/15/34, ACA	03/13 @ 102	3,726,555
			Oxnard, Pub.
Impvt. SA, 1 Rice Ave. Proj.,
NR	1,910		5.625%, 9/02/27	09/07 @ 103	1,974,080
NR	1,905		5.70%, 9/02/32	09/07 @ 103	1,969,675
BBB	1,180		Poll. Ctrl. Fing.
Agcy., Rec. Recovery Impvts. RB, Central Valley Wst. Svc. Proj., Ser. A-2,
5.40%, 4/01/25, AMT	04/15 @ 101	1,266,671
			Poway Unified
Sch. Dist., Pub. Impvts. ST, Cmnty. Facs. Dist. No. 6 Proj.,
NR	1,500		5.50%, 9/01/25	09/10 @ 102	1,550,700
NR	1,700		5.60%, 9/01/33	09/10 @ 102	1,762,764
A+	2,470		Rohnert Park
Fing. Auth., Local Hsg. RB, Millenium Hsg. Corp. Proj., Ser. A, 5.625%,
9/15/28	09/13 @ 100	2,651,323
AAA	5,000	3	Sacramento City
Fing. Auth., Wtr. Util. Impvts. Lease Appropriation RB, Ser. A, 5.00%,
6/01/11, AMBAC	N/A	5,277,850
AAA	8,665		San Diego Unified
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Ser. D, 5.25%, 7/01/23,
FGIC	07/12 @ 101	9,394,506
NR	5,000		San Francisco
City & Cnty. Redev. Agcy., Cmnty. Facs. Dist. No. 6 Pub. Impvts. ST,
Mission Bay South Proj., 6.25%, 8/01/33	08/11 @ 101	5,338,600
AAA	30,000		San Joaquin Hills
Transp. Corridor Agcy., Hwy. Tolls RB, Ser. A, Zero Coupon, 1/15/34,MBIA	No Opt. Call	9,336,300

See Notes to Financial Statements.

33

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

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			California—(cont’d)
			Santa Clarita,
Cmnty. Facs. Dist. ST, Valencia Town Ctr. Proj.,
NR	$ 1,640		5.80%, 11/15/25	11/10 @ 102	$ 1,717,638
NR	1,500		5.85%, 11/15/32	11/10 @ 102	1,585,395
BBB	2,200		South Tahoe,
Joint Pwrs. Fing. Auth. TA, South Tahoe Redev. Proj., 5.45%, 10/01/33	10/13 @ 100	2,321,836
			Statewide Cmntys.
Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB,
A+	5,000		Kaiser Hosp.
Asset Mgmt. Proj., Ser. A, 5.50%, 11/01/32	11/12 @ 100	5,288,150
A+	7,000		Mem. Hlth. Svcs.
Proj., Ser. A, 5.50%, 10/01/33	04/13 @ 100	7,449,540
AA-	8,000		Sutter Hlth.
Oblig. Corp. Proj., Ser. B, 5.50%, 8/15/34	08/12 @ 100	8,616,160
AAA	1,600	3	Tobacco Sec.
Auth. of Southern California, Misc. Purps. Tobacco Settlement Funded RB, Ser.
A, 5.625%, 6/01/12	N/A	1,751,456
NR	2,000		Tustin Unified
Sch. Dist., Sch. Impvts. ST, Cmnty. Facs. Dist. 97-1 Proj., Ser. B, 5.60%,
9/01/29	09/12 @ 101	2,080,360
AAA	2,000		Univ. of
California, Coll. & Univ. RB, Ser. A, 5.00%, 5/15/33, AMBAC	05/13 @ 100	2,107,840
NR	1,170		Val Verde Unified
Sch. Dist. ST, 6.25%, 10/01/28	10/13 @ 102	1,242,528
					184,179,723
			Multi-State—3.4%
			Charter Mac
Equity Issuer Trust,
A3	500	5	Ser. A, 5.75%,
4/30/15	No Opt. Call	539,400
A3	1,000	5	Ser. A, 6.00%,
4/30/19	No Opt. Call	1,116,010
Baa1	1,500	5	Ser. B, 6.00%,
4/30/15	No Opt. Call	1,631,340
Baa1	1,000	5	Ser. B, 6.30%, 4/30/19	No Opt. Call	1,131,700
					4,418,450
			Puerto Rico—3.6%
BBB+	4,300		Comnwlth. Hwy.
& Transp. Auth., Hwy. Impvts. Tolls RB, Ser. M, 5.00%, 7/01/23	07/17 @ 100	4,574,770
			Total
Long-Term Investments (cost $173,674,969)		193,172,943
			SHORT-TERM INVESTMENTS—8.0%
			California—7.8%
			Hsg. Fin. Agcy.,
A-1+	2,200	6	Multi-Fam. Local
Hsg. RB, Home Mtg. Proj., Ser. M, 3.67%, 3/01/07, FRDD, AMT	N/A	2,200,000
A-1+	1,930	6	RB, Home Mtg.
Proj., Ser. R, 3.67%, 3/01/07, AMBAC, FRDD	N/A	1,930,000
A-1+	2,440	6	Sngl.-Fam. Local
Hsg. RB, Home Mtg. Proj., Ser. F, 3.62%, 3/01/07, FRDD, AMT	N/A	2,440,000
A-1+	3,500	6	Sngl.-Fam. Local
Hsg. RB, Home Mtg. Proj., Ser. F, 3.62%, 3/01/07, AMBAC, FRDD	N/A	3,500,000
					10,070,000
Shares
(000)
			Money Market Fund—0.2%
NR	200	7,8	CMA California
Mun. Money Fund, 3.03%	N/A	200,000
			Total
Short-Term Investments (cost $10,270,000)		10,270,000
			Total
Investments—158.5% (cost $183,944,969 9 )		$ 203,442,943
			Liabilities in
excess of other assets—(2.4)%		(3,082,757	)
			Preferred shares
at redemption value, including dividends payable—(56.1)%		(71,971,086	)
			Net
Assets Applicable to Common Shareholders—100%		$ 128,389,100

See Notes to Financial Statements.

34

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

| 1 | Using
the highest of S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date
(month/year) and price of the earliest optional call or redemption. There may
be other call provisions at varying prices at later dates. |
| 3 | This
bond is prerefunded. U.S. government securities, held in escrow, are used to
pay interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par. |
| 4 | Security
is collateralized by Municipal or U.S. Treasury obligations. |
| 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 28, 2007, the Trust held 3.4%
of its net assets, with a current market value of $4,418,450, in securities
restricted as to resale. |
| 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.
Rate shown is rate as of February 28, 2007. |
| 7 | Represents
an investment in an affiliate. |
| 8 | Represents
current yield as of February 28, 2007. |
| 9 | Cost
for federal income tax purposes is $183,922,685. The net unrealized
appreciation on a tax basis is $19,520,258, consisting of $19,520,258 gross
unrealized appreciation and $0 gross unrealized depreciation. |

| KEY TO ABBREVIATIONS — AMBAC | — | American Municipal Bond
Assurance Corp. | GO | — | General Obligation |
| --- | --- | --- | --- | --- | --- |
| AMT | — | Subject to Alternative
Minimum Tax | MBIA | — | Municipal Bond Insurance
Assoc. |
| COP | — | Certificate of Participation | RB | — | Revenue Bond |
| FGIC | — | Financial Guaranty
Insurance Co. | ST | — | Special Tax |
| FSA | — | Financial Security
Assurance | XLCA | — | XL Capital Assurance |

See Notes to Financial Statements.

35

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock Florida Insured Municipal Income Trust (BAF)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—154.1%
			Florida—146.7%
			Brd. of Ed.,
AAA	$ 8,640		Sch. Impvts.
Misc. RB, Ser. C, 5.00%, 1/01/22, MBIA	01/13 @ 101	$ 9,186,739
AAA	9,000		Sch. Impvts.
Misc. Tax GO, Ser. A, 5.00%, 6/01/27, FSA	06/12 @ 101	9,488,340
AAA	8,695	3	City of
Gainesville, Mult. Util. Impvts. RB, Ser. A, 5.00%, 10/01/13, FSA	N/A	9,361,124
			City of
Jacksonville,
AAA	9,500		Pub. Impvts.
Sales Tax RB, 5.00%, 10/01/27, MBIA	10/13 @ 100	10,039,695
AAA	9,500		Pub. Impvts.
Sales Tax RB, 5.00%, 10/01/31, MBIA	10/11 @ 100	9,846,180
AAA	8,000		Pub. Impvts.
Sales Tax RB, Ser. B, 5.00%, 10/01/26, AMBAC	10/12 @ 100	8,380,640
AAA	2,865		Recreational Fac.
Impvts. RB, Ser. A, 5.00%, 10/01/30, AMBAC	10/12 @ 100	2,991,117
			City of Palm Bay,
Wtr. Util. Impvts. Wtr. RB,
AAA	4,015		Zero Coupon,
10/01/28, FGIC	No Opt. Call	1,507,432
AAA	5,570		Zero Coupon,
10/01/31, FGIC	No Opt. Call	1,821,279
AAA	500		City of Tampa,
Wtr. Util. Impvts. Wtr. RB, 4.625%, 10/01/36, MBIA	10/16 @ 100	509,885
			Cnty. of
Miami-Dade,
AAA	10,000		Recreational Fac.
Impvts. Misc. RB, Ser. A, Zero Coupon, 10/01/39, MBIA	10/15 @ 28.762	1,951,300
AAA	10,000		Recreational Fac.
Impvts. Misc. RB, Ser. A, Zero Coupon, 10/01/40, MBIA	10/15 @ 27.307	1,855,200
AAA	26,935		Recreational Fac.
Impvts. Misc. Taxes RB, Ser. B, Zero Coupon, 10/01/31, MBIA	04/08 @ 28.079	7,208,345
			Cnty. of Orange,
AAA	9,250		Recreational Fac.
Impvts. Misc. RB, 5.125%, 10/01/30, AMBAC	04/12 @ 100	9,724,802
AAA	7,975		Sales Tax RB,
Ser. B, 5.125%, 1/01/32, FGIC	01/13 @ 100	8,433,562
AAA	9,500		Cnty. of
Pinellas, Swr. Impvts. RB, 5.00%, 10/01/32, FSA	10/13 @ 100	10,039,695
AAA	5,000		Cnty. of Polk,
Wtr. Util. Impvts. Wtr. RB, 5.00%, 10/01/29, FGIC	10/13 @ 100	5,284,050
AAA	2,945		Cnty. of
Sarasota, Wtr. RB, Ser. C, 5.25%, 10/01/22, FGIC	10/12 @ 100	3,145,967
NR	3,830		Colonial Cntry.
Club Cmnty. Dev. Dist., Econ. Impvts. SA, 6.40%, 5/01/33	05/13 @ 101	4,131,306
AAA	7,000		Fuel Sales Tax
GO, 5.00%, 7/01/27, FSA	07/12 @ 101	7,384,300
A+	8,500	3	Highlands Cnty.
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Adventist Hlth. Sys./
Sunbelt Proj., Ser. A, 6.00%, 11/15/11	N/A	9,397,855
AAA	7,580		Hillsborough
Cnty. Sch. Brd., Lease Renewal COP, Ser. A, 5.00%, 7/01/25, MBIA	07/10 @ 100	7,833,703
A+	1,000		Jacksonville
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Baptist Med.
Ctr. Proj., Ser. A, 5.00%, 8/15/37	08/17 @ 100	1,040,500
AAA	2,000		JEA, Wtr. Util.
Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/41, MBIA	04/11 @ 100	2,042,400
AAA	1,480		Julington Creek
Plantation, Cmnty. Dev. Dist. SA, 5.00%, 5/01/29, MBIA	05/12 @ 101	1,552,757
AAA	9,000		Lake Cnty. Sch.
Brd., Sch. Impvts. Lease Renewal COP, Ser. A, 5.00%, 7/01/28, AMBAC	07/13 @ 100	9,442,710
AAA	2,000		Orange Cnty. Sch.
Brd., Sch. Impvts. Lease Renewal COP, Ser. A, 5.00%, 8/01/27, MBIA	08/12 @ 100	2,088,680
AAA	4,000		Osceola Cnty.
Sch. Brd., Sch. Impvts. Lease Appropriation COP, Ser. A, 5.25%, 6/01/27,
AMBAC	06/12 @ 101	4,275,080
AAA	9,200		Palm Beach Cnty.
Sch. Brd., Lease Renewal COP, Ser. D, 5.00%, 8/01/28, FSA	08/12 @ 100	9,594,220
AA-	5,000	3	Pinellas Cnty.
Hlth. Fac. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Baycare Hlth. Sys., Inc. Proj., 5.50%, 5/15/13	N/A	5,483,600
AAA	825	3	Port St. Lucie,
Swr. Impvts. Mult. Util. RB, 5.125%, 9/01/11, MBIA	N/A	874,813
AAA	950		South Florida
Wtr. Mgmt. Dist., Wtr. Util. Impvts. Lease Appropriation COP, 5.00%,
10/01/36, AMBAC	10/16 @ 100	1,012,548
AAA	3,500	3	St. Petersburg,
Wtr. Util. Impvts. Wtr. RB, Ser. A, 5.00%, 10/01/09, FSA	N/A	3,649,345
AAA	1,000		Tohopekaliga Wtr.
Auth., Wtr. Util. Impvts. Wtr. RB, Ser. B, 5.00%, 10/01/23, FSA	10/13 @ 100	1,059,190
NR 4	3,815		Vlg. Cmnty. Dev.
Dist. No. 5, Pub. Impvts. SA, Ser. A, 6.50%, 5/01/33	05/13 @ 101	4,135,155
AAA	10,000		Vlg. Ctr. Cmnty.
Dev. Dist., Recreational Fac. Impvts. RB, Ser. A, 5.00%, 11/01/32, MBIA	11/13 @ 101	10,561,300
					196,334,814
			Puerto Rico—7.4%
BBB	9,405		Children’s Trust
Fund, Tobacco Settlement Funded RB, 5.625%, 5/15/43	05/12 @ 100	9,863,964
			Total
Long-Term Investments (cost $195,502,415)		206,198,778

See Notes to Financial Statements.

36

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

(Percentages shown are based on Net Assets)

Shares (000)		Description	Value
		MONEY MARKET FUND—1.3%
1,800	5,6	CMA Florida Mun. Money Fund, 2.99% (cost
$1,800,000)	$ 1,800,000
		Total Investments—155.4% (cost
$197,302,415 7 )	$ 207,998,778
		Other assets in excess of
liabilities—1.4%	1,819,942
		Preferred shares at redemption value, including
dividends
payable—(56.8)%.	(76,014,366	)
		Net Assets Applicable to Common
Shareholders—100%	$ 133,804,354

| 1 | Using
the highest of S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date
(month/year) and price of the earliest optional call or redemption. There may
be other call provisions at varying prices at later dates. |
| 3 | This
bond is prerefunded. U.S. government securities, held in escrow, are used to
pay interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par. |
| 4 | Security
is deemed to be of investment grade quality by the investment advisor. |
| 5 | Represents
an investment in an affiliate. |
| 6 | Represents
yield as of February 28, 2007. |
| 7 | Cost
for federal income tax purposes is $197,302,346. The net unrealized
appreciation on a tax basis is $10,696,432, consisting of $10,696,432 gross
unrealized appreciation and $0 gross unrealized depreciation. |

The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 84.0% of the Trust’s managed assets.

AMBAC	—	17.3
FGIC	—	9.8 %
FSA	—	24.4 %
MBIA	—	31.6 %
Other	—	0.9 %

| KEY TO ABBREVIATIONS — AMBAC | — | American Municipal Bond
Assurance Corp. | GO | — | General Obligation |
| --- | --- | --- | --- | --- | --- |
| COP | — | Certificate of
Participation | MBIA | — | Municipal Bond Insurance
Assoc. |
| FGIC | — | Financial Guaranty
Insurance Co. | RB | — | Revenue Bond |
| FSA | — | Financial Security
Assurance | SA | — | Special Assessment |

See Notes to Financial Statements.

37

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock Florida Municipal Bond Trust (BIE)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2
			LONG-TERM
INVESTMENTS—152.4%
			Florida—140.7%
A	$ 1,000		Boynton Beach,
Local Hsg. RB, C/HP Cove, Inc. Proj., 5.30%, 1/01/23, ACA	01/13 @ 100	$ 1,054,390
A2	3,000	3	City of Lakeland,
Hlth., Hosp. & Nursing Home RB, Lakeland Regl. Hlth. Sys. Proj., 5.50%,
11/15/12	N/A	3,293,460
AAA	3,630		City of Palm Bay,
Wtr. Util. Impvts. Wtr. RB, Zero Coupon, 10/01/28, FGIC	No Opt. Call	1,362,883
AAA	1,250		Cnty. of Bay,
Pub. Impvts. Sales Tax RB, 5.125%, 9/01/32, AMBAC	09/12 @ 100	1,318,900
NR	890		Cnty. of Madison,
Correctional Fac. Impvts. RB, Twin Oaks Juvenile Dev. Proj., Ser. A, 6.00%,
7/01/25	07/15 @ 100	925,831
			Cnty. of
Miami-Dade,
AAA	5,500		Misc. Tax RB,
Ser. A, Zero Coupon, 10/01/26, MBIA	04/08 @ 37.301	1,957,835
AAA	10,000		Recreational Fac.
Impvts. Misc. Taxes RB, Ser. B, Zero Coupon, 10/01/30, MBIA	04/08 @ 29.688	2,829,200
AAA	5,410		Recreational Fac.
Impvts. Misc. Taxes RB, Ser. B, Zero Coupon, 10/01/32, MBIA	04/08 @ 26.494	1,365,809
AAA	3,350		Cnty. of Orange,
Recreational Fac. Impvts. Misc. RB, 5.125%, 10/01/30, AMBAC	04/12 @ 100	3,521,955
AAA	3,105		Cnty. of Osceola,
Recreational Fac. Impvts. RB, Ser. A, 5.00%, 10/01/32, FGIC	10/12 @ 100	3,239,012
NR	1,625		Colonial Cntry.
Club Cmnty. Dev. Dist., Econ. Impvts. SA, 6.40%, 5/01/33	05/13 @ 101	1,752,839
NR	255		Gateway Svcs.
Cmnty. Dev. Dist., Pub. Impvts. SA, Stoneybrook Proj., 5.50%, 7/01/08	No Opt. Call	255,564
AAA	2,100		Greater Orlando
Aviation Auth., Port, Arpt. & Marina RB, Orlando Arpt. Facs. Proj., Ser.
A, 5.125%, 10/01/32, FSA	10/12 @ 100	2,197,965
A+	4,900	3	Highlands Cnty.
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Adventist Hlth. Sys./
Sunbelt Proj., Ser. A, 6.00%, 11/15/11	N/A	5,417,587
BBB+	1,810		Hillsborough
Cnty. Indl. Dev. Auth., Elec., Pwr. & Lt. RB, Tampa Elec. Co. Proj.,
5.50%, 10/01/23	10/12 @ 100	1,920,555
AA	3,500		Jacksonville
Econ. Dev. Comm., Hlth., Hosp. & Nursing Home Impvts. RB, Mayo Clinic
Jacksonville Proj., Ser. B, 5.50%, 11/15/36	11/11 @ 101	3,744,230
A+	1,000		Jacksonville
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Baptist Med.
Ctr. Proj., Ser. A, 5.00%, 8/15/37	08/17 @ 100	1,040,500
			JEA,
Aa2	3,000	3	Elec., Pwr. &
Lt. Impvts. RB, Ser. A, 5.50%, 10/01/07	N/A	3,032,970
AAA	5,425		Wtr. Util.
Impvts. Wtr. RB, Ser. A, 5.375%, 10/01/30, MBIA	04/07 @ 100	5,432,269
BBB-	1,000		Lee Cnty. Indl.
Dev. Auth., Hlth., Hosp. & Nursing Home RB, Shell Point/Alliance Oblig.
Grp. Proj., 5.125%, 11/15/36	11/16 @ 100	1,028,840
BB+	1,500		Miami Beach Hlth.
Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai Med. Ctr.
Proj., 6.75%, 11/15/21	11/14 @ 100	1,717,785
AAA	3,150		Mun. Loan
Council, Ad Valorem Ppty. Tax RB, Ser. A, 5.125%, 5/01/32, MBIA	05/12 @ 101	3,339,661
NR	750		New River Cmnty.
Dev. Dist., Pub. Impvts. SA, Ser. B, 5.00%, 5/01/13	No Opt. Call	750,735
A	5,000	3	Orange Cnty.
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Orlando Regl.
Healthcare Proj., 5.75%, 12/01/12	N/A	5,491,550
			Orange Cnty.
Hlth. Facs. Auth., Misc. RB, Orlando Lutheran Towers Proj.,
NR	340		5.375%, 7/01/20	07/15 @ 100	345,457
NR	305		5.70%, 7/01/26	07/15 @ 100	317,118
AAA	3,000		Palm Beach Cnty.
Sch. Brd., Sch. Impvts. Lease Appropriation COP, Ser. C, 5.00%, 8/01/27, FSA	08/12 @ 100	3,133,020
AAA	1,500	3	Port St. Lucie,
Swr. Impvts. Mult. Util. RB, 5.125%, 9/01/11, MBIA	N/A	1,590,570
AA-	2,000		South Broward
Hosp. Dist., Hlth., Hosp. & Nursing Home Impvts. RB, 5.60%, 5/01/27	05/12 @ 101	2,163,260
AAA	380		South Florida
Wtr. Mgmt. Dist., Wtr. Util. Impvts. Lease Appropriation COP, 5.00%,10/01/36,
AMBAC	10/16 @ 100	405,019
NR	1,655		Stevens
Plantation Impvt. Proj. Dependent Spl. Dist., Pub. Impvts. Misc. RB, 6.375%,
5/01/13	No Opt. Call	1,716,748
NR	2,740		Sumter Cnty.
Indl. Dev. Auth., Indl. Impvts. RB, North Sumter Util. Co. LLC Proj.,
6.80%,10/01/32, AMT	10/09 @ 100	2,846,860
AAA	250		Univ. of Central
Florida, Lease COP, Univ. of Central Florida Convocation Corp. Proj., Ser. A,
5.00%, 10/01/35, FGIC	10/15 @ 100	263,590
NR 4	1,455		Vlg. Cmnty. Dev.
Dist. No. 5, Pub. Impvts. SA, Ser. A, 6.50%, 5/01/33	05/13 @ 101	1,577,104

See Notes to Financial Statements.

38

BlackRock Florida Municipal Bond Trust (BIE) (continued)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			Florida—(cont’d)
			Volusia Cnty. Edl. Fac. Auth., Univ. & Coll.
Impvts. RB, Embry-Riddle Aeronautical Proj.,
AA	$ 1,250		5.20%, 10/15/26, RAA	10/13 @ 100	$ 1,322,962
AA	1,610		5.20%, 10/15/33, RAA	10/13 @ 100	1,698,825
					75,372,858
			Multi-State—6.5%
Baa1	3,000	5	Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%,
10/31/52	10/14 @ 100	3,476,910
			Puerto
Rico—5.2%
BBB	2,565	3	Pub. Bldgs. Auth., Pub. Impvts. Lease RB, Ser. D,
5.25%, 7/01/12	N/A	2,758,555
			Total Long-Term Investments (cost
$75,604,638)		81,608,323
Shares (000)
			MONEY
MARKET FUND—1.6%
NR	900	6,7	CMA Florida Mun. Money Fund, 2.99% (cost $900,000)	N/A	900,000
			Total Investments —154.0% (cost
$76,504,638 8 )		$ 82,508,323
			Other assets in excess of liabilities —1.6%		842,335
			Preferred shares at redemption value, including
dividends payable —(55.6)%		(29,795,271)
			Net Assets Applicable to Common
Shareholders—100%		$ 53,555,387

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 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 28, 2007, the Trust held 6.5% of its net
assets, with a current market value of $3,476,910, in securities restricted
as to resale. |
| 6 | Represents and investment in
an affiliate. |
| 7 | Represents current yield as
of February 28, 2007. |
| 8 | Cost for federal income tax
purposes is $76,454,239. The net unrealized appreciation on a tax basis is
$6,054,084, consisting of $6,054,084 gross unrealized appreciation and $0
gross unrealized depreciation. |

KEY TO ABBREVIATIONS — ACA	—	American Capital Access	FSA	—	Financial Security Assurance
AMBAC	—	American Municipal Bond
Assurance Corp.	MBIA	—	Municipal Bond Insurance
Assoc.
AMT	—	Subject to Alternative
Minimum Tax	RAA	—	Radian Asset Assurance
COP	—	Certificate of Participation	RB	—	Revenue Bond
FGIC	—	Financial Guaranty Insurance
Co.	SA	—	Special Assessment

See Notes to Financial Statements.

39

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock Maryland Municipal Bond Trust (BZM)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—153.5%
			Maryland—122.6%
NR	$ 500		City of
Annapolis, Pkg. Fac. Impvts. Tax Incr./Alloc. RB, Park Place Proj., Ser. A, 5.35%,
7/01/34	01/15 @ 101	$ 517,040
			City of
Baltimore,
NR	1,000		Pub. Impvts. Tax
Incr./Alloc. ST, Harborview Lot No. 2 Proj., 6.50%, 7/01/31	07/13 @ 101	1,094,160
AAA	2,000		Swr. RB, Wstwtr.
Proj., Ser. A, 5.125%, 7/01/42, FGIC	07/12 @ 100	2,105,180
AAA	3,500		Swr. RB, Wstwtr.
Proj., Ser. A, 5.20%, 7/01/32, FGIC	07/12 @ 100	3,710,385
A3	2,870		Cnty. of Anne
Arundel, Univ. & Coll. Impvts. RB, Anne Arundel Cmnty. Coll. Proj.,
5.25%, 9/01/28	09/12 @ 102	3,072,737
			Cnty. of
Baltimore,
AAA	2,000		Ad Valorem Ppty.
Tax GO, Met. 67th Dist., 5.00%, 6/01/22	06/11 @ 101	2,104,820
AAA	2,000		SA GO, Met 68th
Dist. Proj., 5.00%, 8/01/28	08/12 @ 100	2,097,600
			Cnty. of
Montgomery, Trans. Impvts. Lease Abatement RB, Metrorail Garage Proj.,
AA	500		5.00%, 6/01/23	06/12 @ 100	524,195
AA	1,435		5.00%, 6/01/24	06/12 @ 100	1,504,439
NR	1,500		Cnty. of Prince
Georges, Port, Arpt. & Marina Impvts. Spl. Tax SO, 5.20%, 7/01/34	07/15 @ 100	1,538,670
NR	1,000		Frederick Cnty.,
Pub. Impvts. ST, Urbana Cmnty. Dev. Auth. Proj., 6.625%, 7/01/25	07/07 @ 102	1,026,930
			Hlth. &
Higher Edl. Facs. Auth.,
AA	2,000		Coll. & Univ.
RB, Johns Hopkins Univ. Proj., Ser. B, 5.00%, 7/01/41	07/11 @ 100	2,066,800
BBB+	1,990		Hlth., Hosp.
& Nursing Home Impvts. RB, Carroll Cnty. Gen. Hosp. Proj., 6.00%, 7/01/37	07/12 @ 100	2,154,732
NR	500		Hlth., Hosp.
& Nursing Home Impvts. RB, King Farm Presbyterian Cmnty. Proj., 5.00%,
1/01/17	01/09 @ 100	501,710
A	2,000		Hlth., Hosp.
& Nursing Home Impvts. RB, Union Hosp. of Cecil Cnty. Proj., 5.625%,
7/01/32	07/12 @ 100	2,141,900
A	2,000		Hlth., Hosp.
& Nursing Home Impvts. RB, Univ. of Maryland Med. Sys. Proj., 5.25%,
7/01/34	07/11 @ 100	2,083,240
A	2,000		Pub. Impvts.
Misc. RB, Brd. of Child Care Proj., 5.375%, 7/01/32	07/12 @ 100	2,109,820
A	2,000		Univ. & Coll.
Impvts. RB, Loyola Coll. Issue Proj., 5.00%, 10/01/39	10/09 @ 101	2,058,800
			Indl. Dev. Fing.
Auth.,
NR	1,000		Private Primary
Sch. RB, Our Lady of Good Counsel Sch. Proj., Ser. A, 6.00%, 5/01/35	05/15 @ 100	1,076,770
A+	1,905		Recreational Fac.
Impvts. RB, Nat. Aquarium Baltimore Fac. Proj., Ser. B, 5.20%, 11/01/26	11/12 @ 100	2,012,804
			St. Mary’s Coll.
of Maryland, Univ. & Coll. Impvts. RB, Academic & Auxil. Fees Proj.,
AAA	1,000		Ser. A, 5.00%,
9/01/27, AMBAC	09/12 @ 101	1,057,980
AAA	1,000		Ser. A, 5.00%,
9/01/32, AMBAC	09/12 @ 101	1,057,980
AAA	2,000		Transp. Auth.,
Port, Arpt. & Marina Impvts. Auto Pkg. RB, Baltimore/Washington Intl.
Arpt. Proj., Ser. B, 5.125%, 3/01/24, AMBAC, AMT	03/12 @ 101	2,108,180
					39,726,872
			Multi-State—7.1%
Baa1	2,000	3	Charter Mac
Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	2,317,940
			Puerto Rico—23.8%
BBB	1,750		Children’s Trust
Fund, Tobacco Settlement Funded RB, 5.50%, 5/15/39	05/12 @ 100	1,827,840
AAA	2,060		Elec. Pwr. Auth.,
Elec., Pwr. & Lt. Impvts. RB, Ser. HH, 5.25%, 7/01/29, FSA	07/10 @ 101	2,168,315
AAA	2,000	4	Hwy. &
Transp. Auth., Hwy. Impvts. Tolls RB, Ser. D, 5.25%, 7/01/12	N/A	2,157,960
			Pub. Bldgs.
Auth., Pub. Impvts. Lease RB,
BBB	1,100	4	Ser. D, 5.375%,
7/01/12	N/A	1,189,617
BBB	350		Ser. D, 5.375%,
7/01/33	07/12 @ 100	371,882
					7,715,614
			Total
Long-Term Investments (cost $46,335,423)		49,760,426
Shares (000)
			MONEY MARKET FUND—1.0%
	300	5,6	Merrill Lynch
Institutional Tax Exempt Fund, 3.46% (cost $300,000)		$ 300,000
			Total
Investments —154.5% (cost $46,635,423 7 )		$ 50,060,426
			Other assets in
excess of liabilities —1.1%		361,673
			Preferred shares
at redemption value, including dividends payable —(55.6)%		(18,009,912	)
			Net
Assets Applicable to Common Shareholders—100%		$ 32,412,187

See Notes to Financial Statements.

40

BlackRock Maryland Municipal Bond Trust (BZM) (continued)

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | 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 28, 2007, the Trust held 7.2% of its net assets, with
a current market value of $2,317,607, in securities restricted as to resale. |
| 4 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 5 | Represents an investment in
an affiliate. |
| 6 | Represents current yield as
of February 28, 2007. |
| 7 | Cost for federal income tax
purposes is $46,629,099. The net unrealized appreciation on a tax basis is
$3,431,327, consisting of $3,431,327 gross unrealized appreciation and $0
gross unrealized depreciation. |

| KEY TO ABBREVIATIONS — AMBAC | — | American Municipal Bond
Assurance Corp. | RB | — | Revenue Bond |
| --- | --- | --- | --- | --- | --- |
| AMT | — | Subject to Alternative
Minimum Tax | SA | — | Special Assessment |
| FGIC | — | Financial Guaranty Insurance
Co. | SO | — | Special Obligation |
| FSA | — | Financial Security Assurance | ST | — | Special Tax |
| GO | — | General Obligation | | | |

See Notes to Financial Statements.

41

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock New Jersey Municipal Bond Trust (BLJ)

(Percentages shown are based on Net Assets)

Rating 1	Principal Amount (000)		Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—152.3%
			Multi-State—6.1%
Baa1	$ 2,000	3	Charter Mac
Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	$ 2,317,940
			New Jersey—131.4%
			City of Vineland,
Elec., Pwr. & Lt. Impvts. Ad Valorem Ppty. Tax GO,
AAA	1,000		5.30%, 5/15/29,
MBIA, AMT	05/10 @ 101	1,044,810
AAA	1,500		5.375%, 5/15/32,
MBIA, AMT	05/10 @ 101	1,570,380
			Econ. Dev. Auth.,
BBB	2,000		Econ. Impvts.
Misc. RB, Cigarette Tax Proj., 5.75%, 6/15/34	06/14 @ 100	2,156,860
NR	150		Hlth., Hosp.
& Nursing Home Impvts. RB, Lions Gate Proj., Ser. A, 5.75%, 1/01/25	01/13 @ 102	156,324
NR	265		Hlth., Hosp.
& Nursing Home Impvts. RB, Lions Gate Proj., Ser. A, 5.875%, 1/01/37	01/13 @ 102	278,520
BBB-	2,500		Hlth., Hosp.
& Nursing Home RB, Marcus L. Ward Home Proj., Ser. A, 5.80%, 11/01/31	11/14 @ 100	2,723,675
NR	470		Hlth., Hosp.
& Nursing Home RB, Seabrook Vlg., Inc. Proj., 5.25%, 11/15/36	11/16 @ 100	477,830
BBB-	2,000		Local Hsg. RB,
Fellowship Vlg. Proj., Ser. A, 5.50%, 1/01/25	01/08 @ 102	2,037,700
Aaa	1,710		Local Hsg. RB,
Victoria Hlth. Corp. Proj., Ser. A, 5.20%, 12/20/36	12/11 @ 103	1,835,035
B	2,335		Port, Arpt. &
Marina Impvts. RB, Contl. Airlines, Inc. Proj., 7.00%, 11/15/30, AMT	11/10 @ 101	2,532,588
AAA	400		RB, Cigarette Tax
Proj., 5.75%, 6/15/29	06/14 @ 100	446,308
BBB	1,000		Rec. Recovery
Impvts. RB, Wst. Mgmt., Inc. Proj., Ser. A, 5.30%, 6/01/15, AMT	No Opt. Call	1,062,480
Baa3	2,250		SA, Kapkowski Rd.
Landfill Proj., 6.50%, 4/01/28	No Opt. Call	2,779,807
			Edl. Facs. Auth.,
BBB-	500		Local Hsg. RB,
Fairleigh Dickinson Univ. Proj., Ser. C, 5.50%, 7/01/23	07/14 @ 100	537,400
BBB-	1,000		Local Hsg. RB,
Fairleigh Dickinson Univ. Proj., Ser. C, 6.00%, 7/01/20	07/14 @ 100	1,111,310
BBB-	1,000		Univ. & Coll.
Impvts. RB, Fairleigh Dickinson Univ. Proj., Ser. D, 6.00%, 7/01/25	07/13 @ 100	1,093,420
BBB+	630		Univ. & Coll.
Impvts. RB, Georgian Court Coll. Proj., Ser. C, 6.50%, 7/01/33	07/13 @ 100	711,768
AAA	4,000		Garden St.
Presvtn. Trust, Recreational Fac. Impvts. RB, Ser. B, Zero Coupon, 11/01/27,
			FSA	No Opt. Call	1,680,080
			Hlth. Care Facs.
Fing. Auth.,
A+	2,000		Hlth., Hosp.
& Nursing Home Impvts. RB, Catholic Hlth. East Proj., Ser. A, 5.375%,
11/15/33	11/12 @ 100	2,112,420
A2	2,000		Hlth., Hosp.
& Nursing Home Impvts. RB, Kennedy Hlth. Sys. Proj., 5.625%, 7/01/31	07/11 @ 100	2,123,320
Baa1	2,500	4	Hlth., Hosp.
& Nursing Home Impvts. RB, South Jersey Hosp. Sys. Proj., 6.00%, 7/01/12	N/A	2,763,500
A	2,000		Hlth., Hosp.
& Nursing Home RB, Atlantic City Med. Ctr. Proj., 5.75%, 7/01/25	07/12 @ 100	2,161,720
Baa1	500		Hlth., Hosp.
& Nursing Home RB, South Jersey Hosp., Inc. Proj., 5.00%, 7/01/46	07/16 @ 100	518,790
BBB	7,160		Hlth., Hosp.
& Nursing Home RB, St. Barnabas Corp. Proj., Zero Coupon, 7/01/38	01/17 @ 33.653	1,477,752
NR	2,500		Middlesex Cnty.
Impvt. Auth., Pub. Impvts. Hotel Occupancy Tax RB, Heldrich Associates LLC
			Proj., Ser. B,
6.25%, 1/01/37	01/15 @ 100	2,599,200
AAA	725		Newark Hsg.
Auth., Lease RB, Newark Redev. Proj., 4.375%, 1/01/37, MBIA	01/17 @ 100	723,166
			Port Auth. of New
York & New Jersey, Port, Arpt. & Marina Impvts. RB,
AAA	1,500		Ser. 125, 5.00%,
4/15/32, FSA	04/12 @ 101	1,584,705
AAA	2,250		Ser. 126, 5.25%,
5/15/37, FGIC, AMT	05/12 @ 101	2,385,158
Caa1	130		Contl. Airlines
Proj., 9.125%, 12/01/15, AMT	04/07 @ 100	135,407
			Rahway Valley
Swr. Auth., Swr. Impvts. RB, Cap. Apprec. Proj.,
AAA	1,250		Ser. A, Zero
Coupon, 9/01/30, MBIA	No Opt. Call	461,900
AAA	650		Ser. A, Zero
Coupon, 9/01/33, MBIA	No Opt. Call	209,352
			Tobacco
Settlement Fing. Corp.,
AAA	4,000	4	Pub. Impvts.
Tobacco Settlement Funded RB, 6.125%, 6/01/12	N/A	4,463,440
BBB	750		Tobacco
Settlement Funded RB, Ser. 1A, 5.00%, 6/01/41	06/17 @ 100	733,103
BBB	1,000		Tobacco
Settlement Funded RB, Ser. 1B, Zero Coupon, 6/01/41	06/17 @ 26.257	148,360
AAA	1,000		Univ. of Medicine
& Dentistry of New Jersey, Univ. & Coll. Impvts. RB, Ser. A, 5.00%,
			12/01/31, AMBAC	12/12 @ 100	1,051,970
					49,889,558
			Puerto Rico—14.8%
BBB+	100		Comnwlth. Hwy.
& Transp. Auth., Hwy. Toll Impvts. RB, Ser. M, 5.00%, 7/01/46	07/17 @ 100	105,866
A3	2,250		Elec. Pwr. Auth.,
Elec., Pwr. & Lt. Impvts. RB, Ser. 2, 5.25%, 7/01/31	07/12 @ 101	2,392,110
AAA	2,100	4	Hwy. &
Transp. Auth., Hwy. Impvts. Tolls RB, Ser. D, 5.25%, 7/01/12	N/A	2,265,858
AAA	1,000		Infrastructure
Fing. Auth., Swr. Impvts. Sales Tax RB, Ser. A, Zero Coupon, 7/01/43, AMBAC	No Opt. Call	205,990

See Notes to Financial Statements.

42

BlackRock New Jersey Municipal Bond Trust (BLJ) (continued)

(Percentages shown are based on Net Assets)

Rating 1	Principal Amount (000)		Description	Option Call Provisions 2	Value
			Puerto
Rico—(cont’d)
BBB	$ 615		Pub. Bldgs. Auth. Gov’t. Facs., Pub. Impvts. Lease
RB, Ser. D, 5.25%, 7/01/27	07/12 @ 100	$ 651,002
					5,620,826
			Total Long-Term Investments (cost $52,837,445)		57,828,324
	Shares (000)
			MONEY
MARKET FUND—0.5%
NR	200	5,6	CMA New Jersey Mun. Money Fund, 3.07% (cost $200,000)	N/A	200,000
			Total Investments —152.8% (cost $53,037,445 7 )		$ 58,028,324
			Other assets in excess of liabilities —0.5%		177,850
			Preferred shares at redemption value, including
dividends payable —(53.3)%		(20,228,213	)
			Net Assets Applicable to Common Shareholders—100%.		$ 37,977,961

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. |
| 3 | 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 28, 2007, the Trust held 6.1% of its net
assets, with a current market value of $2,317,940, in securities restricted
as to resale. |
| 4 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 5 | Represents an investment in
an affiliate. |
| 6 | Represents current yield as
of February 28, 2007. |
| 7 | Cost for federal income tax
purposes is $53,014,693. The net unrealized appreciation on a tax basis is
$5,013,631, consisting of $5,029,033 gross unrealized appreciation and
$15,402 gross unrealized depreciation. |

| KEY TO ABBREVIATIONS — AMBAC | — American Municipal Bond
Assurance Corp. | GO | — General Obligation |
| --- | --- | --- | --- |
| AMT | — Subject to Alternative
Minimum Tax | MBIA | — Municipal Bond Insurance
Assoc. |
| FGIC | — Financial Guaranty
Insurance Co. | RB | — Revenue Bond |
| FSA | — Financial Security
Assurance | SA | — Special Assessment |

See Notes to Financial Statements.

43

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock New York Municipal Bond Trust (BSE)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			LONG-TERM
INVESTMENTS—155.0%
			New
York—148.7%
BBB	$ 3,320		Cntys. Tobacco
Trust III, Misc. Tobacco Settlement Funded RB, 6.00%, 6/01/43	06/13 @ 100	$ 3,577,499
AAA	5,000		Convention Ctr.
Operating Corp., Recreational Fac. Impvts. Hotel Occupancy Tax RB, Hotel Unit
Fee Secured Proj., 5.00%, 11/15/44, AMBAC	11/15 @ 100	5,309,300
			Dorm. Auth.,
AAA	2,000		Ad Valorem Ppty.
Tax RB, Sch. Dist. Fin. Proj., Ser. A, 5.00%, 4/01/31, MBIA	10/12 @ 100	2,104,360
AAA	1,000		Coll. & Univ.
RB, Univ. of Rochester Proj., Ser. C, 4.25%, 7/01/39, AMBAC	01/17 @ 100	984,040
AAA	7,000		Hlth., Hosp.
& Nursing Home Impvts. RB, Lutheran Med. Ctr. Proj., 5.00%, 8/01/31, MBIA	02/13 @ 100	7,380,940
AAA	10,000	3	Hlth., Hosp.
& Nursing Home Impvts. RB, Memorial Sloan Kettering Ctr. Proj., Ser. 1, Zero Coupon,
7/01/30, MBIA	ETM	3,755,600
AAA	5,000		Hlth., Hosp.
& Nursing Home RB, New York & Presbyterian Hosp. Proj., 5.00%,
8/01/32, AMBAC	02/08 @ 101	5,097,150
AAA	7,000		Hlth., Hosp.
& Nursing Home RB, St. Barnabas Hosp. Proj., Ser. A, 5.00%, 2/01/31,
AMBAC	08/12 @ 100	7,355,530
AAA	2,000		Hlth., Hosp.
& Nursing Home RB, Winthrop Univ. Hosp. Assoc. Proj., Ser. A, 5.25%,
7/01/31, AMBAC	07/11 @ 101	2,121,220
AAA	3,500		Sch. Impvts. Ad
Valorem Ppty. Tax RB, Sch. Dist. Fin. Proj., Ser. D, 5.00%, 10/01/30, MBIA	10/12 @ 100	3,682,630
AAA	5,000		Univ. & Coll.
Impvts. RB, Brooklyn Law Sch. Proj., Ser. B, 5.125%, 7/01/30, XLCA	07/13 @ 100	5,297,700
AAA	2,500		Univ. & Coll.
Impvts. RB, Insured Fit Student Hsg. Corp. Proj., 5.125%, 7/01/34, FGIC	07/14 @ 100	2,674,800
AAA	3,160		Univ. & Coll.
Impvts. RB, Iona Coll. Proj., 5.00%, 7/01/27, XLCA	07/12 @ 100	3,308,931
AAA	3,000		Univ. & Coll.
Impvts. RB, Joachim & Ann Residence Proj., 5.25%, 7/01/27	07/12 @ 100	3,160,890
AAA	7,000		Univ. & Coll.
Impvts. RB, New York Univ. Proj., Ser. 2, 5.00%, 7/01/41, AMBAC	07/11 @ 100	7,242,200
Aaa	250		Greece Central
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, 4.00%, 6/15/22, FSA	06/17 @ 100	249,420
BBB-	1,000		Herkimer Cnty.
Indl. Dev. Agcy., Univ. & Coll. Impvts. RB, Herkimer Coll. Fndtn. Proj.,
6.25%, 8/01/34	08/13 @ 100	1,086,790
AAA	5,600		Hudson Yards
Infrastructure Corp., Trans. Impvts. Misc. RB, Ser. A, 4.50%, 2/15/47, MBIA	02/17 @ 100	5,635,224
AAA	4,000		Long Island Pwr.
Auth., Elec., Pwr. & Lt. RB, Ser. F, 4.25%, 5/01/33, MBIA	11/16 @ 100	3,974,760
			Met. Transp.
Auth.,
AAA	10,000		Misc. RB, Ser. A,
5.00%, 7/01/30, AMBAC	07/12 @ 100	10,476,200
AAA	4,000	4	Trans. Impvts.
RB, Ser. A, 5.00%, 11/15/11, FGIC	N/A	4,242,360
AAA	1,085		Trans. RB, Ser.
A, 5.00%, 11/15/25, FGIC	11/12 @ 100	1,146,107
AAA	8,470		Trans. RB, Ser.
A, 5.00%, 11/15/30, FSA	11/12 @ 100	8,898,328
AAA	5,000		Trans. RB, Ser.
A, 5.25%, 11/15/31, FGIC	11/12 @ 100	5,342,450
AAA	2,660		Trans. RB, Ser.
E, 5.25%, 11/15/31, FGIC	11/12 @ 100	2,842,184
			New York City
Indl. Dev. Agcy.,
A	2,500		Private Primary
Schs. Lease RB, Lycee Francais de New York Proj., Ser. A, 5.375%, 6/01/23, ACA	12/12 @ 100	2,648,700
AAA	500		Recreational Fac.
Impvts. RB, Queens Baseball Stad. Proj., 5.00%, 1/01/46, AMBAC	01/17 @ 100	536,055
AAA	3,500		New York City
Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. RB, Ser. D, 5.00%, 6/15/39, AMBAC	06/15 @ 100	3,724,244
AAA	6,000		New York City
Transl. Fin. Auth., Pub. Impvts. Income Tax RB, Ser. B, 5.00%, 5/01/30, AMBAC	11/11 @ 101	6,295,380
AAA	5,000		New York City
Trust for Cultural Recs., Recreational RB, American Museum of Natural History
Proj., Ser. A, 5.00%, 7/01/44, MBIA	07/14 @ 100	5,274,100
AAA	6,000		Sales Tax Asset
Receivables Corp., Pub. Impvts. Sales Tax RB, Ser. A, 5.00%, 10/15/32, AMBAC	10/14 @ 100	6,394,980
AAA	10,000		Triborough Brdg.
& Tunl. Auth., Hwy. Tolls RB, Ser. E, 5.00%, 11/15/32, MBIA	11/12 @ 100	10,531,800
AAA	6,000	4	TSASC, Inc., Rec.
Recovery Impvts. Tobacco Settlement Funded RB, Ser.1, 5.75%, 7/15/12	N/A	6,604,080
					148,955,952
			Puerto Rico—6.3%
AAA	1,000		Comnwlth. Hwy.
& Transp. Auth., Hwy. Impvts. Tolls RB, Ser. N, 5.25%, 7/01/39, FGIC	No Opt. Call	1,202,900
A	5,000		Indl. Tourist
Edl. Med. & Env. Ctrl. Facs. Fing. Auth., Coll. & Univ. RB,
Polytechnic Univ.of Puerto Rico Proj., Ser. A, 5.00%, 8/01/32, ACA	08/12 @ 100	5,143,200
					6,346,100
			Total
Long-Term Investments (cost $147,318,564)		155,302,052

See Notes to Financial Statements.

44

BlackRock New York Municipal Bond Trust (BSE) (continuted)

(Percentages shown are based on Net Assets)

Rating 1			Description
			SHORT-TERM
INVESTMENT—2.1%
			New
York—2.1%
A-1+	$ 2,100	5	New York City
Mun. Wtr. Fin. Auth., Mult. Util. Impvts. Wtr & Swr. RB, Ser. A, 3.60%,
3/01/07, FRDD (cost $2,100,000)	$ 2,100,000
			Total Investments
—157.1% (cost $149,418,564 6 )	$ 157,402,052
			Liabilities in
excess of other assets —(1.2)%	(1,220,861	)
			Preferred shares
at redemption value, including dividends payable —(55.9)%	(56,026,688	)
			Net
Assets Applicable to Common Shareholders—100%	$ 100,154,503

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | Security is collateralized
by Municipal or U.S. Treasury obligations. |
| 4 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 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. Rate shown is rate as of
February 28, 2007. |
| 6 | Cost for federal income tax
purposes is $149,428,500. The net unrealized appreciation on a tax basis is
$7,973,552, consisting of $7,973,552 gross unrealized appreciation and $0
gross unrealized depreciation. |
| | The value (market value plus
accrued interest) of securities that are covered by insurance, which ensures
the payment of principal and interest, represent approximately 92.3% of the
Trust’s managed assets. |

ACA	—	5.0
AMBAC	—	35.9 %
FGIC	—	12.6 %
FSA	—	5.9 %
MBIA	—	27.3 %
XLCA	—	5.6 %

| KEY TO ABBREVIATIONS — ACA | — | American Capital Access | AMBAC | — | American Municipal Bond
Assurance Corp. |
| --- | --- | --- | --- | --- | --- |
| ETM | — | Escrowed to Maturity | FGIC | — | Financial Guaranty Insurance
Co. |
| FRDD | — | Floating Rate Daily Demand | FSA | — | Financial Security Assurance |
| GO | — | General Obligation | MBIA | — | Municipal Bond Insurance
Assoc. |
| RB | — | Revenue Bond | XLCA | — | XL Capital Assurance |

See Notes to Financial Statements.

45

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock New York Municipal Bond Trust (BHQ)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—153.7%
			Multi-State—6.6%
Baa1	$ 2,500	3	Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%,
10/31/52	10/14
@ 100	$ 2,897,425
			New York—123.0%
			Albany Indl. Dev. Agcy., Sch. Impvts. Lease Approp.
RB, New Covenant
Charter Sch. Proj.,
NR	200		Ser. A, 7.00%, 5/01/25	05/15
@ 102	201,418
NR	130		Ser. A, 7.00%, 5/01/35	05/15
@ 102	129,982
AA-	2,040		City of New York, Pub. Impvts. Ad Valorem Ppty. Tax
GO, Ser. D,
5.375%, 6/01/32	06/12
@ 100	2,174,681
BBB	1,445		Cntys. Tobacco Trust III, Misc. Tobacco Settlement
Funded RB, 6.00%,
6/01/43	06/13
@ 100	1,557,074
			Dorm. Auth.,
AA	2,000		Hlth., Hosp. & Nursing Home
Impvts. RB, New York Hosp. Med. Ctr.
Queens Proj., 4.75%, 2/15/37	02/17
@ 100	2,036,540
BBB	500		Hlth., Hosp. & Nursing Home
RB, Mt. Sinai Hosp. Proj., 5.50%,
7/01/26	07/08
@ 100	508,560
AAA	2,500		Hlth., Hosp. & Nursing Home
RB, Willow Towers, Inc. Proj., 5.40%,
2/01/34	08/12
@ 101	2,690,525
AA-	2,465	4	Univ. & Coll. Impvts. RB, City
Univ. Proj., Ser. A, 5.25%, 7/01/11	N/A	2,628,035
AAA	2,500		Univ. & Coll. Impvts. RB, Iona
Coll. Proj., 5.125%, 7/01/32, XLCA	07/12
@ 100	2,632,700
AA-	425		Univ. & Coll. Impvts. RB,
Mental Hlth. Svcs. Facs. Proj., 5.00%,
2/15/37	02/17
@ 100	453,870
AA	2,000		Dutchess Cnty. Indl. Dev. Agcy., Univ. & Coll.
Impvts. Lease RB,
Vassar Coll. Proj., 5.35%, 9/01/40	08/11
@ 101	2,129,760
AAA	2,750		Env. Facs. Corp., Misc. RB, Ser. D, 5.125%,
6/15/31	06/12
@ 100	2,897,538
AAA	1,600		Hudson Yards Infrastructure Corp., Trans. Impvts.
Misc. RB, Ser. A,
4.50%, 2/15/47, MBIA	02/17
@ 100	1,610,064
B3	385		Liberty Dev. Corp., Recreational Fac. Impvts. RB,
Nat. Sports Museum
Proj., Ser. A, 6.125%, 2/15/19	02/16
@ 100	406,606
A	3,000		Met. Transp. Auth., Trans. RB, Ser. A, 5.125%,
11/15/31	11/12
@ 100	3,159,720
Aa1	2,980		Mtg. Agcy., Local Hsg. RB, Ser. 101, 5.40%,
4/01/32, AMT	10/11
@ 100	3,083,257
A2	1,100		New York City Hlth. & Hosp. Corp., Hlth., Hosp.
& Nursing Home
Impvts. RB, Ser. A, 5.375%, 2/15/26	02/12
@ 100	1,158,608
AA	2,500		New York City Hsg. Dev. Corp., Multi-Fam. Hsg.
Local Hsg. RB, Ser. A,
5.50%, 11/01/34, AMT	05/12
@ 100	2,603,575
			New York City Indl. Dev. Agcy.,
B	1,250		Port, Arpt. & Marina Impvts. RB, American
Airlines, Inc./JFK Intl.
Arpt. Proj., 7.625%, 8/01/25, AMT	08/16
@ 101	1,502,000
B	1,000		Port, Arpt. & Marina Impvts. RB, American
Airlines, Inc./JFK Intl.
Arpt. Proj., 7.75%, 8/01/31, AMT	08/16
@ 101	1,215,120
			New York City Mun. Wtr. Fin. Auth., Wtr. & Swr.
Sys. RB, Second
Gen. Resolution Proj.,
AAA	650		Ser. A, 4.50%, 6/15/37,
MBIA	06/16
@ 100	657,852
AAA	2,500		Ser. A, 5.25%, 6/15/33,
FGIC	06/11
@ 100	2,633,200
AA	1,000		Ser. AA, 4.50%, 6/15/37	06/16
@ 100	1,009,030
			Port Auth. of New York & New Jersey, Port,
Arpt. & Marina
Impvts. RB,
Caa1	2,600		Contl. Airlines Proj., 9.125%,
12/01/15, AMT	04/07
@ 100	2,708,193
AAA	2,750		Ser. 126, 5.25%, 5/15/37, FGIC,
AMT	05/12
@ 101	2,915,134
			Suffolk Cnty. Indl. Dev. Agcy.,
BBB-	260		Hlth., Hosp. & Nursing Home
RB, Active Retirement Cmnty. Proj.,
5.00%, 11/01/28	11/16
@ 100	268,031
A	500		Indl. Impvts. RB, Keyspan-Port
Jefferson Proj., 5.25%, 6/01/27, AMT	06/13
@ 100	528,595
AAA	3,000	4	TSASC, Inc., Rec. Recovery Impvts. Tobacco
Settlement Funded RB, Ser.
1, 5.75%, 7/15/12	N/A	3,302,040
AAA	5,000	4	Urban Dev. Corp., Correctional Fac. Impvts. Income
Tax RB, Ser. A,
5.25%, 3/15/12	N/A	5,377,550
					54,179,258
			Puerto Rico—24.1%
BBB	1,400		Children’s Trust Fund, Tobacco Settlement
Funded RB, 5.625%, 5/15/43	05/12
@ 100	1,468,320
			Comnwlth.,
BBB+	100		Hwy. & Transp. Auth., Hwy.
Toll Impvts. RB, Ser. M, 5.00%, 7/01/46	07/17
@ 100	105,866
BBB	1,825		Pub. Impvts. Fuel Sales Tax GO,
Ser. A, 5.125%, 7/01/31	07/11
@ 100	1,891,995
A3	2,000		Elec. Pwr. Auth., Elec., Pwr. & Lt. Impvts. RB,
Ser. 2, 5.25%,
7/01/31	07/12
@ 101	2,126,320
AAA	2,000	4	Hwy. & Transp. Auth., Hwy. Impvts. Tolls RB,
Ser. D, 5.25%,
7/01/12	N/A	2,157,960

See Notes to Financial Statements.

46

BlackRock New York Municipal Bond Trust (BHQ) (continued)

(Percentages shown are based on Net Assets)

Rating 1	Principal Amount (000)		Description	Option Call Provisions 2	Value
			Puerto Rico—(cont’d)
			Pub. Bldgs. Auth., Pub. Impvts. Lease RB,
BBB	$ 1,980	4	Ser. D, 5.25%, 7/01/12	N/A	$ 2,129,411
BBB	720		Ser. D, 5.25%, 7/01/27	07/12
@ 100	762,149
					10,642,021
			Total Long-Term Investments (cost
$62,848,865)		67,718,704
	Shares (000)
			MONEY MARKET FUND—1.4%	N/A	600,000
NR	600	5,6	CMA New York Mun. Money Fund, 3.10% (cost
$600,000)		$ 68,318,704
			Total Investments —155.1% (cost
$63,448,865 7 )		(70,902	)
			Liabilities in excess of other assets
—(0.2)%		(24,201,989	)
			Preferred shares at redemption value, including
dividends payable
—(54.9)%		$ 44,045,813
			Net Assets Applicable to Common
Shareholders—100%

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | 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 28, 2007, the Trust held 6.6% of its net
assets, with a current market value of $2,897,425, in securities restricted
as to resale. |
| 4 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 5 | Represents an investment in
an affiliate. |
| 6 | Represents current yield as
of February 28, 2007. |
| 7 | Cost for federal income tax
purposes is $63,441,157. The net unrealized appreciation on a tax basis is
$4,877,547, consisting of $4,877,547 gross unrealized appreciation and $0
gross unrealized depreciation. |

| KEY TO ABBREVIATIONS — AMT | — | Subject to Alternative
Minimum Tax | FGIC | — | Financial Guaranty
Insurance Co. |
| --- | --- | --- | --- | --- | --- |
| GO | — | General Obligation | MBIA | — | Municipal Bond Insurance
Assoc. |
| RB | — | Revenue Bond | XLCA | — | XL Capital Assurance |

See Notes to Financial Statements.

47

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock New York Insured Municipal Income Trust II (BFY)

(Percentages shown are based on Net Assets)

Rating 1	Principal Amount (000)		Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—156.9%
			Multi-State—5.7%
			Charter Mac
Equity Issuer Trust,
A3	$ 500	3	Ser. A, 5.75%,
4/30/15	No Opt. Call	$ 539,400
A3	1,000	3	Ser. A, 6.00%,
4/30/19	No Opt. Call	1,116,010
Baa1	1,500	3	Ser. B, 6.00%,
4/30/15	No Opt. Call	1,631,340
Baa1	1,000	3	Ser. B, 6.30%,
4/30/19	No Opt. Call	1,131,700
					4,418,450
			New York—146.3%
			Albany Indl. Dev.
Agcy., Sch. Impvts. Lease Appropriation RB, New Covenant Charter Sch. Proj.,
NR	345		Ser. A, 7.00%,
5/01/25	05/15 @ 102	347,446
NR	220		Ser. A, 7.00%,
5/01/35	05/15 @ 102	219,969
AA-	4,000	4	City of New York,
Recreational Fac. Impvts. Hotel Occupancy Tax GO, Ser. B, 5.75%, 12/01/11	N/A	4,372,760
Aaa	1,715		Clarence Indl.
Dev. Agcy., Indl. Impvts. RB, Bristol Vlg., Inc. Proj., 6.00%, 1/20/44	01/13 @ 102	1,916,770
BBB	2,535		Cntys. Tobacco
Trust III, Misc. Tobacco Settlement Funded RB, 6.00%, 6/01/43	06/13 @ 100	2,731,615
			Dorm. Auth.,
AA	1,000		Hlth., Hosp.
& Nursing Home Impvts. RB, New York Hosp. Med. Ctr. Queens Proj., 4.75%, 2/15/37	02/17 @ 100	1,018,270
Aa3	2,000		Hlth., Hosp.
& Nursing Home RB, Kateri Residence Proj., 5.00%, 7/01/22	07/13 @ 100	2,107,500
BBB	750		Hlth., Hosp.
& Nursing Home RB, Mt. Sinai Hosp. Proj., 5.50%, 7/01/26	07/08 @ 100	762,840
AAA	2,500		Hlth., Hosp.
& Nursing Home RB, St. Barnabas Hosp. Proj., Ser. A, 5.00%, 2/01/31, AMBAC	08/12 @ 100	2,626,975
AAA	2,500		Univ. & Coll.
Impvts. RB, Brooklyn Law Sch. Proj., Ser. B, 5.125%, 7/01/30, XLCA	07/13 @ 100	2,648,850
AA-	750		Univ. & Coll.
Impvts. RB, Mental Hlth. Svcs. Facs. Proj., 5.00%, 2/15/37	02/17 @ 100	797,722
AA	2,000		Univ. & Coll.
Impvts. RB, Mount St. Mary Coll. Proj., 5.00%, 7/01/32, RAA	07/13 @ 100	2,094,960
AAA	2,425		Univ. & Coll.
Impvts. RB, New Sch. Univ. Proj., 5.00%, 7/01/31, MBIA	07/11 @ 100	2,517,708
AA	4,000		Dutchess Cnty.
Indl. Dev. Agcy., Univ. & Coll. Impvts. Lease RB, Vassar Coll. Proj., 5.35%, 9/01/40	08/11 @ 101	4,259,520
A+	5,500		Energy Research.
& Dev. Auth., Elec., Pwr. & Lt. Impvts. RB, Consolidated Edison Co. Proj., 4.70%,
6/01/36, AMT	04/07 @ 100	5,502,365
			Essex Cnty. Indl.
Dev. Agcy.,
BBB	650		Indl. Impvts. RB,
Intl. Paper Co. Proj., Ser. A, 4.60%, 12/01/30, AMT	12/11 @ 100	646,796
BBB	625		Indl. RB, Intl.
Paper Co. Proj., Ser. A, 5.50%, 10/01/26, AMT	10/12 @ 100	651,175
A	3,250		Geneva Indl. Dev.
Agcy., Univ. & Coll. Impvts. RB, Hobart & Williams Smith Proj., Ser. A, 5.375%,
2/01/33	02/13 @ 100	3,480,035
BBB-	385		Herkimer Cnty.
Indl. Dev. Agcy., Univ. & Coll. Impvts. RB, Herkimer Coll. Fndtn. Proj., 6.25%, 8/01/34	08/13 @ 100	418,414
AAA	4,500		Hudson Yards
Infrastructure Corp., Trans. Impvts. Misc. RB, Ser. A, 4.50%, 2/15/47, MBIA	02/17 @ 100	4,528,305
			Liberty Dev.
Corp.,
AA-	4,000		Indl. Impvts.
Misc. RB, Goldman Sachs Group, Inc. Proj., 5.25%, 10/01/35	No Opt. Call	4,695,120
B3	675		Recreational Fac.
Impvts. RB, Nat. Sports Museum Proj., Ser. A, 6.125%, 2/15/19	02/16 @ 100	712,881
AAA	3,515		Long Island Pwr.
Auth., Elec., Pwr. & Lt. RB, Ser. A, Zero Coupon, 6/01/28, FSA	No Opt. Call	1,449,691
			Met. Transp.
Auth.,
AA-	5,000		Misc. RB, Ser. A,
5.125%, 1/01/29	07/12 @ 100	5,267,850
AA	5,000		Trans. RB, Ser.
A, 5.00%, 11/15/30	11/12 @ 100	5,226,850
AAA	2,000		Trans. RB, Ser.
A, 5.25%, 11/15/31, FGIC	11/12 @ 100	2,136,980
			New York City
Indl. Dev. Agcy.,
BBB-	1,000		Econ. Impvts. RB,
IAC/Interactive Corp. Proj., 5.00%, 9/01/35	09/15 @ 100	1,040,400
AA+	1,000		Local Hsg. RB,
Eger Harbor House, Inc. Proj., Ser. A, 4.95%, 11/20/32	11/12 @ 101	1,044,510
AA+	1,000		Local Hsg. RB,
Eger Harbor House, Inc. Proj., Ser. A, 5.875%, 5/20/44	11/12 @ 105	1,126,530
B	1,600		Port, Arpt. &
Marina Impvts. RB, American Airlines, Inc./JFK Intl. Arpt. Proj., 7.625%, 8/01/25,
AMT	08/16 @ 101	1,922,560
B	1,500		Port, Arpt. &
Marina Impvts. RB, American Airlines, Inc./JFK Intl. Arpt. Proj., 7.75%, 8/01/31,
AMT	08/16 @ 101	1,822,680
A	1,500		Private Primary
Schs. Lease RB, Lycee Francais de New York Proj., Ser. A, 5.375%, 6/01/23,
ACA	12/12 @ 100	1,589,220

See Notes to Financial Statements.

48

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

(Percentages shown are based on Net Assets)

| Rating 1 | Principal Amount (000) | | Description | Option
Call Provisions 2 | Value | |
| --- | --- | --- | --- | --- | --- | --- |
| | | | New York—(cont’d) | | | |
| | | | New York City
Mun. Wtr. Fin. Auth., | | | |
| AA+ | $ 5,000 | | Wtr. RB, Ser. A,
5.125%, 6/15/34 | 06/12 @ 100 | $ 5,260,950 | |
| AAA | 1,100 | | Wtr. & Swr.
Sys., RB, Second Gen. Resolution Proj., Ser. A, 4.50%, 6/15/37, MBIA | 06/16 @ 100 | 1,113,288 | |
| AAA | 5,000 | 4 | New York City
Trans. Auth. Met. Transp. Auth. Triborough Brdg. & Tunl., Trans. Impvts. COP, Ser. A,
5.25%, 1/01/10, AMBAC | N/A | 5,270,050 | |
| AAA | 5,000 | | New York City
Transl. Fin. Auth., Income Tax RB, Ser. B, 5.00%, 11/01/27 | 11/12 @ 100 | 5,256,500 | |
| AAA | 3,000 | | New York
Convention Ctr. Operating Corp., Recreational Fac. Impvts. Hotel Occupancy Tax RB, 5.00%,
11/15/35, AMBAC | 11/15 @ 100 | 3,202,770 | |
| Caa1 | 3,675 | | Port Auth. of New
York & New Jersey, Port, Arpt. & Marina Impvts. RB, Contl. Airlines Proj., 9.125%,
12/01/15, AMT | 04/07 @ 100 | 3,827,843 | |
| | | | Suffolk Cnty.
Indl. Dev. Agcy., | | | |
| BBB- | 450 | | Hlth., Hosp.
& Nursing Home RB, Active Retirement Cmnty. Proj., 5.00%, 11/01/28 | 11/16 @ 100 | 463,901 | |
| A | 2,500 | | Indl. Impvts. RB,
Keyspan-Port Jefferson Proj., 5.25%, 6/01/27, AMT | 06/13 @ 100 | 2,642,975 | |
| AAA | 1,500 | | Syracuse Indl.
Dev. Agcy., Indl. Impvts. RB, Crousel Ctr. Proj., Ser. A, 5.00%, 1/01/36 | 01/17@ 100 | 1,582,215 | |
| | | | Triborough Brdg.
& Tunl. Auth., Hwy. Tolls RB, | | | |
| AAA | 850 | 4 | Ser. A, 5.00%,
1/01/12 | N/A | 902,402 | |
| AA | 150 | | Ser. A, 5.00%,
1/01/32 | 01/12 @ 100 | 156,335 | |
| AAA | 9,000 | 4 | TSASC, Inc., Rec.
Recovery Impvts. Tobacco Settlement Funded RB, Ser. 1, 5.75%, 7/15/12 | N/A | 9,906,120 | |
| AAA | 2,000 | | Urban Dev. Corp.,
Pub. Impvts. Income Tax RB, Ser. B, 5.00%, 3/15/35 | 03/15 @ 100 | 2,130,740 | |
| | | | | | 113,401,356 | |
| | | | Puerto Rico—4.9% | | | |
| BBB | 1,400 | | Children’s Trust
Fund, Tobacco Settlement Funded RB, 5.625%, 5/15/43 | 05/12 @ 100 | 1,468,320 | |
| BBB+ | 200 | | Comnwlth. Hwy.
& Transp. Auth., Hwy. Toll Impvts. RB, Ser. M, 5.00%, 7/01/46 | 07/17 @ 100 | 211,732 | |
| AAA | 2,004 | | Hwy. &
Transp. Auth., Hwy. Impvts. Tolls RB, Ser. D, 5.375%, 7/01/12 | N/A | 2,170,000 | |
| | | | | | 3,850,052 | |
| | | | Total Long-Term
Investments (cost $114,511,210) | | 121,669,858 | |
| | Shares (000) | | | | | |
| | | | MONEY MARKET FUND—0.8% | | | |
| NR | 600 | 5,6 | CMA New York Mun.
Money Fund, 3.10% (cost $600,000) | N/A | 600,000 | |
| | | | Total Investments
—157.7% (cost $115,111,210 7 ) | | $ 122,269,858 | |
| | | | Liabilities in
excess of other assets —(0.1)% | | (73,247 | ) |
| | | | Preferred shares
at redemption value, including dividends payable —(57.6)% | | (44,675,433 | ) |
| | | | Net Assets
Applicable to Common Shareholders—100% | | $ 77,521,178 | |

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. |
| 3 | 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 28, 2007, the Trust held 5.7% of its net
assets, with a current market value of $4,418,450, in securities restricted
as to resale. |
| 4 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 5 | Represents an investment in
an affiliate. |
| 6 | Represents current yield as
of February 28, 2007. |
| 7 | Cost for federal income tax
purposes is $115,106,473. The net unrealized appreciation on a tax basis is
$7,163,385, consisting of $7,166,590 gross unrealized appreciation and $3,205
gross unrealized depreciation. |

| KEY
TO ABBREVIATIONS — ACA | — American Capital Access | AMBAC | — American Municipal Bond
Assurance Corp. |
| --- | --- | --- | --- |
| AMT | — Subject to Alternative
Minimum Tax | COP | — Certificate of
Participation |
| FGIC | — Financial Guaranty
Insurance Co. | FSA | — Financial Security
Assurance |
| GO | — General Obligation | MBIA | — Municipal Bond Insurance
Assoc. |
| RAA | — Radian Asset Assurance | RB | — Revenue Bond |
| XLCA | — XL Capital Assurance | | |

See Notes to Financial Statements.

49

PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2007

BlackRock Virginia Municipal Bond Trust (BHV)

(Percentages shown are based on Net Assets)

Rating 1			Description	Option Call Provisions 2	Value
			LONG-TERM INVESTMENTS—151.5%
			District of Columbia—6.2%
AAA	$ 1,500		Met. Washington
Arpts. Auth., Port, Arpt. & Marina RB, Ser. A, 5.25%, 10/01/32, FGIC, AMT	10/12 @ 100	$ 1,580,760
			Multi-State—6.9%
Baa1	1,500	3	Charter Mac
Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52	10/14 @ 100	1,738,455
			Puerto Rico—5.7%
BBB	1,380		Children’s Trust
Fund, Tobacco Settlement Funded RB, 5.375%, 5/15/33	05/12 @ 100	1,440,610
			Virginia—132.7%
NR 4	1,440		Alexandria Redev.
& Hsg. Auth., Local Hsg. RB, 3001 Park Ctr. Apts. Proj., Ser. A, 6.375%,
4/01/34	04/08 @ 103	1,499,357
A	2,150	5	Arlington Cnty.
Indl. Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Virginia Hosp.
Ctr. Arlington Hlth. Sys. Proj., 5.25%, 7/01/11	N/A	2,298,974
NR	1,500		Celebrate North
Cmnty. Dev. Auth., Wtr. Util. Impvts. SA, Ser. B, 6.75%, 3/01/34	03/14 @ 102	1,612,890
AA	1,000		City of Hampton,
Pub. Impvts. Ad Valorem Ppty. Tax GO, 5.00%, 4/01/20	04/12 @ 101	1,061,390
AAA	3,000		City of Richmond,
Natural Gas RB, 5.00%, 1/15/33, FSA	01/12 @ 100	3,131,700
AA+	1,275		Cnty. of Prince
William, Pub. Impvts. Lease Approp. RB, 5.00%, 12/01/21	06/12 @ 100	1,336,697
AAA	1,500	6	Danville Indl.
Dev. Auth., Hlth., Hosp. & Nursing Home RB, Danville Regl. Med. Ctr.
Proj., 5.25%, 10/01/28, AMBAC	ETM	1,705,620
NR	990		Dulles Town Ctr.
Cmnty. Dev. Auth., Pub. Impvts. SA, Dulles Town Ctr. Proj., 6.25%, 3/01/26	03/08 @ 102	1,026,422
AAA	1,205		Fairfax Cnty.
Wtr. Auth., Wtr. RB, 5.00%, 4/01/27	04/12 @ 100	1,258,839
A-	1,500		Henrico Cnty.
Econ. Dev. Auth., Hlth., Hosp. & Nursing Home RB, Bon Secours Hlth. Sys.,
Inc. Proj., Ser. A, 5.60%, 11/15/30	11/12 @ 100	1,596,660
AAA	3,000		Hsg. Dev. Auth.,
Local Hsg. RB, Ser. H, 5.375%, 7/01/36, MBIA	07/11 @ 100	3,168,870
BBB	1,300		Isle Wight Cnty.
Indl. Dev. Auth., Mult. Util. Impvts. Misc. RB, Int. Paper Co. Proj., Ser. A,
5.70%, 11/01/27, AMT	11/13 @ 100	1,377,922
AAA	185		James City Cnty.
Econ. Dev. Auth., Sch. Impvts. Lease Appropriation RB, Pub. Fac. Proj.,
5.00%, 6/15/26, FSA	06/17 @ 100	200,153
NR	500		Lynchburg Indl.
Dev. Auth., Hlth., Hosp. & Nursing Home RB, Westminster Canterbury Proj.,
5.00%, 7/01/31	07/17 @ 100	503,985
AAA	1,500		Norfolk Arpt.
Auth., Port, Arpt. & Marina Impvts. RB, Ser. A, 5.125%, 7/01/31, FGIC	07/11 @ 100	1,561,890
NR	500		Peninsula Ports
Auth., Hlth., Hosp. & Nursing Home RB, Baptist Homes Proj., Ser. C,
5.40%, 12/01/33	12/16 @ 100	519,170
A	5,000	5	Pocahontas Pkwy.
Assoc., Highway Tolls RB, Ser. B, Zero Coupon, 8/15/08, ACA	N/A	2,152,400
AAA	1,000		Port Auth., Port,
Arpt. & Marina Impvts. RB, 4.75%, 7/01/31, FGIC, AMT	07/13 @ 100	1,018,580
			Recs. Auth., Wtr.
Util. Impvts. Misc. RB,
AA	1,500	5	Frederick Cnty.
San. Auth. Proj., 5.20%, 10/01/10	N/A	1,579,095
AA	635		Ser. A, 5.125%,
5/01/27	05/11 @ 101	668,141
AAA	1,250		Richmond Met.
Auth., Hwy. Tolls RB, 5.25%, 7/15/22, FGIC	No Opt. Call	1,439,050
A-	1,000		Stafford Cnty.
Econ. Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Medicorp Hlth.
Sys. Oblig. Proj., 5.25%, 6/15/37	06/16 @ 100	1,063,430
			Virginia Coll.
Bldg. Auth., Coll. & Univ. RB, Washington & Lee Univ. Proj.,
AAA	500		5.25%, 1/01/26,
MBIA	No Opt. Call	577,710
AAA	1,000		5.25%, 1/01/31,
MBIA	No Opt. Call	1,174,640
					33,533,585
			Total Investments —151.5% (cost
$35,290,514 7 )		$ 38,293,410
			Other assets in
excess of liabilities —2.0%		511,594
			Preferred shares
at redemption value, including dividends payable —(53.5)%		(13,532,670	)
			Net Assets Applicable to Common
Shareholders—100%		$ 25,272,334

See Notes to Financial Statements.

50

BlackRock Virginia Municipal Bond Trust (BHV) (continued)

| 1 | Using the highest of
S&P’s, Moody’s or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price
of the earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. |
| 3 | 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 28, 2007, the Trust held 6.9% of its net
assets, with a current market value of $1,738,455, in securities restricted
as to resale. |
| 4 | Security is deemed to be of
investment grade quality by the investment advisor. |
| 5 | This bond is prerefunded.
U.S. government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 6 | Security is collateralized
by Municipal or U.S. Treasury obligations. |
| 7 | Cost for federal income tax
purposes is $35,221,382. The net unrealized appreciation on a tax basis is
$3,072,028, consisting of $3,072,028 gross unrealized appreciation and $0
gross unrealized depreciation. |

| KEY TO ABBREVIATIONS — ACA | — | American Capital Access | AMBAC | — | American Municipal Bond
Assurance Corp. |
| --- | --- | --- | --- | --- | --- |
| AMT | — | Subject to Alternative
Minimum Tax | ETM | — | Escrowed to Maturity |
| FGIC | — | Financial Guaranty Insurance
Co. | FSA | — | Financial Security Assurance |
| GO | — | General Obligation | MBIA | — | Municipal Bond Insurance
Assoc. |
| RB | — | Revenue Bond | SA | — | Special Assessment |

See Notes to Financial Statements.

51

| STATEMENTS OF ASSETS AND
LIABILITIES (unaudited) |
| --- |
| February 28, 2007 |

	Insured Municipal Income Trust (BYM)			Municipal Income Trust II (BLE)
Assets
Investments at value, unaffiliated 1	$ 635,412,410	$	252,899,420	$ 568,333,689	$	126,218,589
Investments at value, affiliated 2	6,300,000		9,300,000	10,700,000		4,200,000
Investments in affiliates	65,865		28,537	59,553		11,196
Cash	1,438		229,090	64,530		40,652
Receivable from investments sold	4,833,763		1,354,935	1,715,627		—
Unrealized appreciation on forward starting swaps	5,339		—	4,477		1,149
Interest receivable	6,639,775		2,672,264	6,711,369		1,308,468
Other assets	46,569		16,341	49,300		17,186
	653,305,159		266,500,587	587,638,545		131,797,240
Liabilities
Payable for investments purchased	6,816,768		3,473,468	7,651,767		2,583,847
Unrealized depreciation on forward starting swaps	1,656,660		908,469	1,386,256		159,855
Dividends payable—common shares	1,598,438		883,722	1,746,974		306,017
Investment advisory fee payable	171,554		79,749	176,025		34,352
Deferred Trustees’fees	65,865		28,537	59,553		11,196
Payable to affiliates	34,040		15,289	28,367		6,362
Other accrued expenses	124,556		96,310	113,973		37,992
	10,467,881		5,485,544	11,162,915		3,139,621
Preferred Shares at Redemption Value
$25,000 liquidation value per share, including dividends
payable 3	229,050,251		90,530,248	205,629,717		46,511,846
Net Assets Applicable to Common Shareholders	$ 413,787,027	$	170,484,795	$ 370,845,913	$	82,145,773
Composition of Net Assets Applicable to Common
Shareholders:
Par value 4	$ 26,204	$	10,236	$ 22,998	$	5,276
Paid-in capital in excess of par	371,940,567		145,452,728	326,757,536		74,807,848
Undistributed net investment income	1,781,637		1,869,658	1,406,775		350,368
Accumulated net realized gain (loss)	(3,602,792	)	884,262	(7,272,897	)	(1,154,883	)
Net unrealized appreciation	43,641,411		22,267,911	49,931,501		8,137,164
Net assets applicable to common shareholders, February 28,
2007	$ 413,787,027	$	170,484,795	$ 370,845,913	$	82,145,773
Net asset value per common share 5	$ 15.79	$	16.65	$ 16.13	$	15.57
1 Investments at cost,
unaffiliated	$ 590,119,678	$	229,723,040	$ 517,020,409	$	117,922,719
2 Investments at cost,
affiliated	$ 6,300,000	$	9,300,000	$ 10,700,000	$	4,200,000
3 Preferred shares
outstanding	9,159		3,620	8,222		1,860
4 Par value per share	$ 0.001	$	0.001	$ 0.001	$	0.001
5 Common shares outstanding	26,203,900		10,236,360	22,997,796		5,276,156

See Notes to Financial Statements.

52

California Municipal Bond Trust (BZA) — $ 82,305,711	$	203,242,943	$	206,198,778	$	81,608,323	$	49,760,426	$	57,828,324
3,400,000		200,000		1,800,000		900,000		300,000		200,000
13,717		17,225		18,608		11,384		13,556		14,528
54,316		89,550		81,227		58,497		36,782		42,442
—		—		—		—		—		—
—		1,891		—		—		—		—
951,264		2,563,700		2,842,124		1,242,096		610,606		652,815
9,697		21,298		20,233		9,657		1,865		2,131
86,734,705		206,136,607		210,960,970		83,829,957		50,723,235		58,740,240
1,050,970		4,519,171		—		—		—		204,211
94,820		585,114		499,780		138,347		82,989		69,157
268,770		522,998		506,575		258,378		144,679		179,608
22,742		61,160		56,042		22,304		13,479		15,543
13,717		17,225		18,608		11,384		13,556		14,528
4,982		10,252		12,907		5,008		2,171		1,467
40,409		60,501		48,338		43,878		44,262		49,552
1,496,410		5,776,421		1,142,250		479,299		301,136		534,066
29,977,215		71,971,086		76,014,366		29,795,271		18,009,912		20,228,213
$ 55,261,080	$	128,389,100	$	133,804,354	$	53,555,387	$	32,412,187	$	37,977,961
$ 3,376	$	7,987	$	8,734	$	3,322	$	2,028	$	2,286
47,865,254		113,290,672		123,914,893		47,051,191		28,713,945		32,386,224
637,143		485,881		774,273		892,824		504,602		654,430
(788,285	)	(4,310,191	)	(1,090,129	)	(257,288	)	(150,402	)	13,299
7,543,592		18,914,751		10,196,583		5,865,338		3,342,014		4,921,722
$ 55,261,080	$	128,389,100	$	133,804,354	$	53,555,387	$	32,412,187	$	37,977,961
$ 16.37	$	16.08	$	15.32	$	16.12	$	15.98	$	16.61
$ 74,667,299	$	183,744,969	$	195,502,415	$	75,604,638	$	46,335,423	$	52,837,445
$ 3,400,000	$	200,000	$	1,800,000	$	900,000	$	300,000	$	200,000
1,199		2,878		3,040		1,191		720		809
$ 0.001	$	0.001	$	0.001	$	0.001	$	0.001	$	0.001
3,375,895		7,986,765		8,734,048		3,321,574		2,028,454		2,286,445

See Notes to Financial Statements.

53

STATEMENTS OF ASSETS AND LIABILITIES (unaudited) (continued) February 28, 2007

	New York Insured Municipal Income Trust (BSE)	New York Municipal Bond Trust (BQH)
Assets
Investments at value,
unaffiliated 1	$ 157,402,052	$ 67,718,704	$	121,669,858	$	38,293,410
Investments at value,
affiliated 2	—	600,000		600,000		—
Investments in affiliates	11,462	12,679		13,270		11,794
Cash	9,807	6,754		84,554		259,541
Unrealized appreciation on
forward starting swaps	—	—		790		—
Interest receivable	1,547,261	821,605		1,405,152		506,364
Other assets	18,272	9,074		11,477		1,432
	158,988,854	69,168,816		123,785,101		39,072,541
Liabilities
Payable for investments
purchased	2,035,811	552,930		1,000,268		—
Unrealized depreciation on
forward starting swaps	299,059	77,905		185,940		94,243
Dividends payable—common
shares	375,247	210,291		292,556		111,485
Investment advisory fee
payable	41,675	18,257		37,335		10,373
Deferred Trustees’fees	11,462	12,679		13,270		11,794
Payable to affiliates	1,728	3,401		6,040		1,989
Other accrued expenses	42,681	45,551		53,081		37,653
	2,807,663	921,014		1,588,490		267,537
Preferred
Shares at Redemption Value
$25,000 liquidation value per share, including dividends
payable 3	56,026,688	24,201,989		44,675,433		13,532,670
Net
Assets Applicable to Common Shareholders	$ 100,154,503	$ 44,045,813	$	77,521,178	$	25,272,334
Composition of Net Assets
Applicable to
Common Shareholders:
Par value 4	$ 6,470	$ 2,729	$	4,938	$	1,540
Paid-in capital in excess of par	91,773,953	38,685,976		70,007,203		21,814,794
Undistributed net investment income	686,703	609,160		567,996		600,615
Accumulated net realized gain (loss)	2,948	(43,986	)	(32,457	)	(53,268	)
Net unrealized appreciation	7,684,429	4,791,934		6,973,498		2,908,653
Net assets applicable to common shareholders, February 28,
2007	$ 100,154,503	$ 44,045,813	$	77,521,178	$	25,272,334
Net asset value per common
share 5	$ 15.48	$ 16.14	$	15.70	$	16.41
1 Investments at
cost, unaffiliated	$ 149,418,564	$ 62,848,865	$	114,511,210	$	35,290,514
2 Investments at
cost, affiliated	$ —	$ 600,000	$	600,000	$	—
3 Preferred
shares outstanding	2,240	968		1,786		541
4 Par value per
share	$ 0.001	$ 0.001	$	0.001	$	0.001
5 Common shares
outstanding	6,469,766	2,729,277		4,937,652		1,539,999

See Notes to Financial Statements.

54

STATEMENTS OF OPERATIONS (unaudited) For the six months ended February 28, 2007

	Insured Municipal Income Trust (BYM)
Investment Income
Interest income	$ 15,136,423	$	6,893,714	$	15,145,631	$	2,974,174
Affiliated income	1,492		2,128		1,975		1,411
Income from affiliates	1,593		662		1,447		201
Total investment income	15,139,508		6,896,504		15,149,053		2,975,786
Expenses
Investment advisory	1,743,458		803,529		1,562,427		348,379
Transfer agent	7,043		6,732		6,682		4,571
Custodian	45,474		34,668		50,918		19,841
Reports to shareholders	45,732		19,661		43,264		9,271
Directors/Trustees	15,856		7,635		14,750		4,745
Registration	10,677		10,692		5,486		10,611
Independent accountants	20,495		18,816		20,180		18,425
Legal	37,213		15,840		32,038		10,058
Insurance	17,351		7,039		15,523		3,456
Auction agent	292,974		118,997		264,660		60,864
Deferred Trustees’fees	1,593		662		1,447		201
Miscellaneous	33,336		24,363		26,494		13,580
Total expenses excluding interest expense	2,271,202		1,068,634		2,043,869		504,002
Interest expense	988		424		913		1,613
Total expenses	2,272,190		1,069,058		2,044,782		505,615
Less fees waived by Advisor	(633,985	)	(385,900	)	(426,112	)	(126,682	)
Less fees paid indirectly	(5,391	)	(10,658	)	(4,456	)	(11,165	)
Net expenses	1,632,814		672,500		1,614,214		367,768
Net investment income	13,506,694		6,224,004		13,534,839		2,608,018
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments	(2,243,588	)	(137,257	)	(1,746,309	)	(341,510	)
Swaps	—		314,043		—		—
	(2,243,588	)	176,786		(1,746,309	)	(341,510	)
Net
change in unrealized appreciation/depreciation on:
Investments	10,407,014		3,991,623		10,237,368		1,929,579
Swaps	(459,165	)	(485,105	)	(397,824	)	99,348
	9,947,849		3,506,518		9,839,544		2,028,927
Net gain	7,704,261		3,683,304		8,093,235		1,687,417
Dividends and Distributions to Preferred
Shareholders from:
Net investment income	(3,449,467	)	(1,571,584	)	(3,543,173	)	(731,584	)
Net realized gains	(372,156	)	—		—		—
Total dividends and distributions	(3,821,623	)	(1,571,584	)	(3,543,173	)	(731,584	)
Net Increase in Net Assets Applicable to Common
Shareholders Resulting from Operations	$ 17,389,332	$	8,335,724	$	18,084,901	$	3,563,851

See Notes to Financial Statements.

55

STATEMENTS OF OPERATIONS (unaudited) (continued) For the six months ended February 28, 2007

	California Municipal Bond Trust (BZA)
Investment Income
Interest income	$ 2,175,700	$	4,873,510	$	5,015,229	$	2,179,082
Affiliated income	1,021		67		451		221
Income from affiliates	225		360		487		131
Total investment income	2,176,946		4,873,937		5,016,167		2,179,434
Expenses
Investment advisory	262,672		542,884		570,628		258,284
Transfer agent	6,334		6,441		6,589		6,275
Custodian	15,932		28,966		26,856		15,041
Reports to shareholders	6,981		13,535		15,832		7,212
Directors/Trustees	4,010		6,174		6,593		4,000
Registration	10,634		1,836		10,619		10,634
Independent accountants	18,231		18,703		18,759		18,234
Legal	5,290		15,116		15,287		5,263
Insurance	2,305		5,379		5,700		2,276
Auction agent	39,674		94,275		97,478		39,472
Deferred Trustees’fees	225		360		487		131
Miscellaneous	12,361		15,078		15,772		12,362
Total expenses excluding interest expense	384,649		748,747		790,600		379,184
Interest expense	—		424		596		—
Total expenses	384,649		749,171		791,196		379,184
Less fees waived by Advisor	(126,155	)	(148,057	)	(207,499	)	(124,062	)
Less fees paid indirectly	(10,748	)	(12,364	)	(11,850	)	(8,852	)
Net expenses	247,746		588,750		571,847		246,270
Net investment income	1,929,200		4,285,187		4,444,320		1,933,164
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments	(70,569	)	257,040		(835,501	)	(186,970	)
Swaps	—		—		—		—
	(70,569	)	257,040		(835,501	)	(186,970	)
Net change in unrealized appreciation/depreciation on:
Investments	470,189		2,747,743		1,583,511		7,400
Swaps	58,625		(165,564	)	(141,590	)	(19,081	)
	528,814		2,582,179		1,441,921		(11,681	)
Net gain (loss)	458,245		2,839,219		606,420		(198,651	)
Dividends and Distributions to Preferred
Shareholders from:
Net investment income	(490,485	)	(1,155,073	)	(1,313,345	)	(511,247	)
Net realized gains	—		—		—		—
Total dividends and distributions	(490,485	)	(1,155,073	)	(1,313,345	)	(511,247	)
Net Increase in Net Assets Applicable to Common
Shareholders Resulting from Operations	$ 1,896,960	$	5,969,333	$	3,737,395	$	1,223,266

See Notes to Financial Statements.

56

Maryland Municipal Bond Trust (BZM) — $ 1,265,586	$	1,511,379	$	3,685,037	$	1,772,729	$	3,023,839	$	985,977
85		50		—		153		289		—
190		242		182		182		232		153
1,265,861		1,511,671		3,685,219		1,773,064		3,024,360		986,130
155,965		179,115		424,401		210,798		331,926		120,065
6,311		6,303		6,525		6,321		6,385		6,347
13,378		15,338		19,933		15,263		21,632		15,364
5,777		5,868		12,928		6,526		9,850		4,597
3,778		3,795		4,206		3,809		4,619		3,753
530		614		10,594		10,634		1,076		391
18,096		18,122		18,546		18,167		18,390		12,391
4,919		4,990		10,365		5,102		9,990		4,798
1,371		1,569		4,232		1,848		3,302		1,052
24,811		27,573		72,655		32,507		57,782		19,256
190		242		182		182		232		153
11,617		11,295		13,107		11,820		13,443		11,385
246,743		274,824		597,674		322,977		478,627		199,552
—		—		958		—		—		—
246,743		274,824		598,632		322,977		478,627		199,552
(74,912	)	(86,025	)	(154,326	)	(101,247	)	(90,525	)	(57,671	)
(10,211	)	(11,157	)	(9,343	)	(8,584	)	(9,484	)	(11,198	)
161,620		177,642		434,963		213,146		378,618		130,683
1,104,241		1,334,029		3,250,256		1,559,918		2,645,742		855,447
(159,841	)	(181,104	)	(109,854	)	213,895		25,463		(19,091	)
—		47,480		89,476		—		—		—
(159,841	)	(133,624	)	(20,378	)	213,895		25,463		(19,091	)
223,046		791,404		1,218,759		169,347		919,886		256,841
(7,302	)	36,684		(105,978	)	16,583		(4,855	)	(29,069	)
215,744		828,088		1,112,781		185,930		915,031		227,772
55,903		694,464		1,092,403		399,825		940,494		208,681
(303,415	)	(327,681	)	(754,115	)	(382,343	)	(702,980	)	(198,218	)
(724	)	—		(114,611	)	—		—		(26,231	)
(304,139	)	(327,681	)	(868,726	)	(382,343	)	(702,980	)	(224,449	)
$ 856,005	$	1,700,812	$	3,473,933	$	1,577,400	$	2,883,256	$	839,679

See Notes to Financial Statements.

57

STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended February
28, 2007 (unaudited) and for the year ended August 31, 2006

	Insured Municipal Income Trust (BYM) — 2007	2006		2007		2006
Increase in Net Assets Applicable to Common Shareholders
Operations:
Net investment income	$ 13,506,694	$	26,984,919	$	6,224,004	$	12,404,175
Net realized gain (loss)	(2,243,588	)	2,922,771		176,786		3,892,279
Net change in unrealized appreciation/depreciation	9,947,849		(5,245,337	)	3,506,518		(2,036,069	)
Dividends and distributions to preferred shareholders
from:
Net investment income	(3,449,467	)	(6,755,122	)	(1,571,584	)	(2,574,142	)
Net realized gains	(372,156	)	—		—		(231,342	)
Net increase in net assets applicable to common shareholders
resulting
from operations	17,389,332		17,907,231		8,335,724		11,454,901
Dividends and Distributions to Common Shareholders from:
Net investment income	(9,590,625	)	(19,628,929	)	(5,297,245	)	(10,542,723	)
Net realized gains	(1,349,789	)	—		—		(926,334	)
Total dividends and distributions	(10,940,414	)	(19,628,929	)	(5,297,245	)	(11,469,057	)
Capital Share Transactions:
Reinvestment of common dividends	—		419,066		551,450		1,045,811
Total increase (decrease)	6,448,918		(1,302,632	)	3,589,929		1,031,655
Net Assets Applicable to Common Shareholders
Beginning of period	407,338,109		408,640,741		166,894,866		165,863,211
End of period	$ 413,787,027	$	407,338,109	$	170,484,795	$	166,894,866
End of period undistributed net investment income	$ 1,781,637	$	1,315,035	$	1,869,658	$	2,514,483

See Notes to Financial Statements.

58

Municipal Income Trust II (BLE) — 2007	2006		2007		2006		2007		2006
$ 13,534,839	$	27,132,544	$	2,608,018	$	5,193,317	$	1,929,200	$	3,856,991
(1,746,309	)	7,808,346		(341,510	)	1,094,689		(70,569	)	579,065
9,839,544		(4,201,140	)	2,028,927		(1,142,339	)	528,814		(48,209	)
(3,543,173	)	(6,317,513	)	(731,584	)	(1,289,460	)	(490,485	)	(876,737	)
—		—		—		—		—		—
18,084,901		24,422,237		3,563,851		3,856,207		1,896,960		3,511,110
(11,006,518	)	(22,977,915	)	(1,836,100	)	(3,761,809	)	(1,611,287	)	(3,209,548	)
—		—		—		—		—		—
(11,006,518	)	(22,977,915	)	(1,836,100	)	(3,761,809	)	(1,611,287	)	(3,209,548	)
1,159,987		2,143,077		—		34,661		174,116		234,330
8,238,370		3,587,399		1,727,751		129,059		459,789		535,892
362,607,543		359,020,144		80,418,022		80,288,963		54,801,291		54,265,399
$ 370,845,913	$	362,607,543	$	82,145,773	$	80,418,022	$	55,261,080	$	54,801,291
$ 1,406,775	$	2,421,627	$	350,368	$	310,034	$	637,143	$	809,715

59

STATEMENTS OF CHANGES IN NET ASSETS (continued) For the six months ended February 28, 2007 (unaudited) and for the year ended August 31, 2006

	California Municipal Income Trust II (BCL) — 2007	2006		2007		2006
Increase in Net Assets Applicable to
Common Shareholders
Operations:
Net investment income	$ 4,285,187	$	8,636,789	$	4,444,320	$	8,891,830
Net realized gain (loss)	257,040		1,752,542		(835,501	)	1,645,015
Net change in unrealized appreciation/depreciation	2,582,179		(525,041	)	1,441,921		(2,224,194	)
Dividends and distributions to preferred shareholders
from:
Net investment income	(1,155,073	)	(1,983,073	)	(1,313,345	)	(2,277,559	)
Net realized gains	—		—		—		—
Net increase in net assets applicable to common shareholders
resulting
from operations	5,969,333		7,881,217		3,737,395		6,035,092
Dividends and Distributions to Common Shareholders
from:
Net investment income	(3,138,110	)	(6,275,960	)	(3,039,447	)	(6,227,177	)
Net realized gains	—		—		—		—
Total dividends and distributions	(3,138,110	)	(6,275,960	)	(3,039,447	)	(6,227,177	)
Capital Share Transactions:
Reinvestment of common dividends	32,863		—		—		77,965
Total increase (decrease)	2,864,086		1,605,257		697,948		(114,120	)
Net Assets Applicable to Common Shareholders
Beginning of period	125,525,014		123,919,757		133,106,406		133,220,526
End of period	$ 128,389,100	$	125,525,014	$	133,804,354	$	133,106,406
End of period undistributed net investment income	$ 485,881	$	493,877	$	774,273	$	682,745

See Notes to Financial Statements.

60

Florida Municipal Bond Trust (BIE) — 2007	2006		2007		2006		2007		2006
$ 1,933,164	$	3,875,241	$	1,104,241	$	2,169,137	$	1,334,029	$	2,654,971
(186,970	)	542,590		(159,841	)	364,521		(133,624	)	526,070
(11,681	)	(710,343	)	215,744		(524,780	)	828,088		(144,958	)
(511,247	)	(906,591	)	(303,415	)	(533,685	)	(327,681	)	(548,600	)
—		—		(724	)	—		—		(37,909	)
1,223,266		2,800,897		856,005		1,475,193		1,700,812		2,449,574
(1,549,606	)	(3,093,699	)	(867,561	)	(1,729,913	)	(1,076,978	)	(2,145,616	)
—		—		(2,108	)	—		—		(145,350	)
(1,549,606	)	(3,093,699	)	(869,669	)	(1,729,913	)	(1,076,978	)	(2,290,966	)
83,346		101,681		72,188		116,586		91,393		176,459
(242,994	)	(191,121	)	58,524		(138,134	)	715,227		335,067
53,798,381		53,989,502		32,353,663		32,491,797		37,262,734		36,927,667
$ 53,555,387	$	53,798,381	$	32,412,187	$	32,353,663	$	37,977,961	$	37,262,734
$ 892,824	$	1,020,513	$	504,602	$	571,337	$	654,430	$	725,060

See Notes to Financial Statements.

61

STATEMENTS OF CHANGES IN NET ASSETS (continued) For the six months ended February 28, 2007 (unaudited) and for the year ended August 31, 2006

	New York Insured Municipal Income Trust (BSE) — 2007	2006		2007			2006
Increase in Net Assets Applicable to Common
Shareholders
Operations:
Net investment income	$ 3,250,256	$	6,480,361	$	1,559,918	$	3,079,389
Net realized gain (loss)	(20,378	)	1,038,354		213,895		401,202
Net change in unrealized
appreciation/depreciation	1,112,781		(1,122,849	)	185,930		(478,013	)
Dividends and distributions to preferred
shareholders from:
Net investment income	(754,115	)	(1,540,963	)	(382,343	)	(688,573	)
Net realized gains	(114,611	)	—		—		—
Net increase in net assets applicable to common shareholders
resulting from operations	3,473,933		4,854,903		1,577,400		2,314,005
Dividends and Distributions to Common Shareholders
from:
Net investment income	(2,251,477	)	(4,612,545	)	(1,260,174	)	(2,505,339	)
Net realized gains	(322,647	)	—		—		—
Total dividends and distributions	(2,574,124	)	(4,612,545	)	(1,260,174	)	(2,505,339	)
Capital Share Transactions:
Reinvestment of common dividends	—		158,868		187,095		272,447
Total increase	899,809		401,226		504,321		81,113
Net Assets Applicable to Common Shareholders
Beginning of period	99,254,694		98,853,468		43,541,492		43,460,379
End of period	$ 100,154,503	$	99,254,694	$	44,045,813	$	43,541,492
End of period undistributed net investment income	$ 686,703	$	442,039	$	609,160	$	691,759

See Notes to Financial Statements.

62

New York Municipal Income Trust II (BFY) — 2007	2006		2007		2006
$ 2,645,742	$	5,213,375	$	855,447	$	1,690,588
25,463		840,244		(19,091	)	372,142
915,031		(102,448	)	227,772		(334,498	)
(702,980	)	(1,240,545	)	(198,218	)	(396,092	)
—		—		(26,231	)	—
2,883,256		4,710,626		839,679		1,332,140
(1,755,329	)	(3,510,658	)	(668,253	)	(1,331,262	)
—		—		(80,656	)	—
(1,755,329	)	(3,510,658	)	(748,909	)	(1,331,262	)
—		—		84,575		130,321
1,127,927		1,199,968		175,345		131,199
76,393,251		75,193,283		25,096,989		24,965,790
$ 77,521,178	$	76,393,251	$	25,272,334	$	25,096,989
$ 567,996	$	380,563	$	600,615	$	611,639

See Notes to Financial Statements.

63

FINANCIAL HIGHLIGHTS

BlackRock Insured Municipal Income Trust (BYM)

| | Six
Months Ended February 28, 2007 (unaudited) | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | 2006 | | 2005 | | 2004 | | | | |
| PER COMMON SHARE OPERATING PERFORMANCE: | | | | | | | | | | |
| Net asset value, beginning
of period | $ 15.54 | $ | 15.61 | $ | 14.62 | $ | 13.64 | $ | 14.33 | 2 |
| Investment operations: | | | | | | | | | | |
| Net investment income | 0.52 | | 1.03 | | 1.03 | | 1.06 | | 0.83 | |
| Net realized and unrealized gain (loss) | 0.29 | | (0.09 | ) | 1.07 | | 0.94 | | (0.62 | ) |
| Dividends and distributions
to preferred shareholders from: | | | | | | | | | | |
| Net investment income | (0.13 | ) | (0.26 | ) | (0.17 | ) | (0.08 | ) | (0.07 | ) |
| Net realized gains | (0.01 | ) | — | | — | | — | | — | |
| Net increase from investment
operations | 0.67 | | 0.68 | | 1.93 | | 1.92 | | 0.14 | |
| Dividends and distributions
to common shareholders from: | | | | | | | | | | |
| Net investment income | (0.37 | ) | (0.75 | ) | (0.94 | ) | (0.94 | ) | (0.70 | ) |
| Net realized gains | (0.05 | ) | — | | — | | — | | — | |
| Total dividends and
distributions | (0.42 | ) | (0.75 | ) | (0.94 | ) | (0.94 | ) | (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 | $ 15.79 | $ | 15.54 | $ | 15.61 | $ | 14.62 | $ | 13.64 | |
| Market price, end of period | $ 15.06 | $ | 14.65 | $ | 15.43 | $ | 13.97 | $ | 13.51 | |
| TOTAL
INVESTMENT RETURNS: 3 | | | | | | | | | | |
| At net asset value 4 | 4.47 | % | 4.92 | % | 13.77 | % | 14.61 | % | 0.03 | % |
| At market price | 5.70 | % | 0.07 | % | 17.69 | % | 10.57 | % | (5.39 | )% |
| RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5 | | | | | | | | | | |
| Expenses after fees waived
and paid indirectly | 0.80 | % 6 | 0.84 | % | 0.83 | % | 0.84 | % | 0.77 | % 6 |
| Expenses after fees waived
and before fees paid indirectly | 0.81 | % 6 | 0.84 | % | 0.83 | % | 0.84 | % | 0.79 | % 6 |
| Expenses before fees waived
and paid indirectly | 1.12 | % 6 | 1.18 | % | 1.15 | % | 1.16 | % | 1.10 | % 6 |
| Net
investment income after fees waived and paid indirectly and before preferred
share dividends | 6.64 | % 6 | 6.75 | % | 6.83 | % | 7.30 | % | 6.95 | % 6 |
| Preferred share dividends | 1.70 | % 6 | 1.69 | % | 1.09 | % | 0.57 | % | 0.55 | % 6 |
| Net investment income
available to common shareholders | 4.94 | % 6 | 5.06 | % | 5.74 | % | 6.73 | % | 6.40 | % 6 |
| SUPPLEMENTAL
DATA: | | | | | | | | | | |
| Average net assets of common
shareholders (000) | $ 410,264 | $ | 399,904 | $ | 394,876 | $ | 380,007 | $ | 372,269 | |
| Portfolio turnover | 7 | % | 60 | % | 57 | % | 57 | % | 46 | % |
| Net
assets applicable to common shareholders, end of period (000) | $ 413,787 | $ | 407,338 | $ | 408,641 | $ | 382,265 | $ | 356,438 | |
| Preferred shares value
outstanding, end of period (000) | $ 228,975 | $ | 228,975 | $ | 228,975 | $ | 228,975 | $ | 228,975 | |
| Asset coverage per preferred
share, end of period | $ 70,186 | $ | 69,485 | $ | 69,622 | $ | 66,739 | $ | 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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

64

FINANCIAL HIGHLIGHTS

BlackRock Municipal Bond Trust (BBK)

| | Six
Months Ended February 28, 2007 (unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
Ended August 31, | | | | | | | | | | |
| | | 2006 | | 2005 | | 2004 | | 2003 | | | | |
| PER COMMON SHARE OPERATING PERFORMANCE: 1 | | | | | | | | | | | | |
| Net
asset value, beginning of period | $ 16.35 | $ | 16.36 | $ | 15.00 | $ | 14.12 | $ | 14.76 | $ | 14.33 | 2 |
| Investment
operations: | | | | | | | | | | | | |
| Net investment income | 0.61 | | 1.21 | | 1.21 | | 1.25 | | 1.28 | | 0.31 | |
| Net realized and unrealized gain (loss) | 0.36 | | 0.18 | | 1.36 | | 0.74 | | (0.74 | ) | 0.52 | |
| Dividends and distributions to preferred
shareholders from: | | | | | | | | | | | | |
| Net investment income | (0.15 | ) | (0.25 | ) | (0.17 | ) | (0.08 | ) | (0.10 | ) | (0.03 | ) |
| Net realized gains | — | | (0.02 | ) | — | | — | | (0.01 | ) | — | |
| Net
increase from investment operations | 0.82 | | 1.12 | | 2.40 | | 1.91 | | 0.43 | | 0.80 | |
| Dividends
and distributions to common shareholders from: | | | | | | | | | | | | |
| Net investment income | (0.52 | ) | (1.04 | ) | (1.04 | ) | (1.04 | ) | (1.02 | ) | (0.25 | ) |
| Net realized gains | — | | (0.09 | ) | — | | — | | (0.05 | ) | — | |
| Total
dividends and distributions | (0.52 | ) | (1.13 | ) | (1.04 | ) | (1.04 | ) | (1.07 | ) | (0.25 | ) |
| 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 | $ 16.65 | $ | 16.35 | $ | 16.36 | $ | 15.00 | $ | 14.12 | $ | 14.76 | |
| Market
price, end of period | $ 18.76 | $ | 17.89 | $ | 17.18 | $ | 14.61 | $ | 13.66 | $ | 14.90 | |
| TOTAL INVESTMENT RETURNS: 3 | | | | | | | | | | | | |
| At
net asset value 4 | 4.89 | % | 7.18 | % | 16.63 | % | 14.01 | % | 3.17 | % | 4.84 | % |
| At
market price | 8.01 | % | 11.55 | % | 25.75 | % | 14.87 | % | (1.20 | )% | 1.07 | % |
| RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5 | | | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 0.80 | % 6 | 0.86 | % | 0.87 | % | 0.89 | % | 0.91 | % | 0.90 | % 6 |
| Expenses
after fees waived and before fees paid
indirectly | 0.82 | % 6 | 0.88 | % | 0.88 | % | 0.90 | % | 0.92 | % | 0.91 | % 6 |
| Expenses
before fees waived and paid indirectly | 1.28 | % 6 | 1.37 | % | 1.35 | % | 1.37 | % | 1.41 | % | 1.32 | % 6 |
| Net
investment income after fees waived and paid indirectly
and before preferred share dividends | 7.43 | % 6 | 7.58 | % | 7.73 | % | 8.28 | % | 8.66 | % | 6.35 | % 6 |
| Preferred
share dividends | 1.88 | % 6 | 1.57 | % | 1.08 | % | 0.55 | % | 0.67 | % | 0.53 | % 6 |
| Net
investment income available to common shareholders | 5.55 | % 6 | 6.01 | % | 6.65 | % | 7.73 | % | 7.99 | % | 5.82 | % 6 |
| SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Average
net assets of common shareholders (000) | $ 168,899 | $ | 163,727 | $ | 158,814 | $ | 152,200 | $ | 148,670 | $ | 144,196 | |
| Portfolio
turnover | 7 | % | 85 | % | 70 | % | 65 | % | 21 | % | 22 | % |
| Net
assets applicable to common shareholders, end of period (000) | $ 170,485 | $ | 166,895 | $ | 165,863 | $ | 151,892 | $ | 142,951 | $ | 149,253 | |
| Preferred
shares value outstanding, end of period (000) | $ 90,500 | $ | 90,500 | $ | 90,500 | $ | 90,500 | $ | 90,500 | $ | 90,500 | |
| Asset
coverage per preferred share, end of period | $ 72,104 | $ | 71,114 | $ | 70,824 | $ | 66,963 | $ | 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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

65

FINANCIAL HIGHLIGHTS

BlackRock Municipal Income Trust II (BLE)

	Six
Months Ended February
28, 2007 (unaudited)	Year
Ended August 31,
		2006		2005		2004		2003
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 15.82	$	15.75	$	14.34	$	13.28	$	14.40	$	14.33	2
Investment operations:
Net investment income	0.59		1.18		1.20		1.20		1.14		0.03
Net realized and unrealized gain (loss)	0.35		0.18		1.38		0.95		(1.06	)	0.07
Dividends to preferred shareholders from net
investment income	(0.15	)	(0.28	)	(0.17	)	(0.09	)	(0.10	)	—
Net increase (decrease) from investment operations	0.79		1.08		2.41		2.06		(0.02	)	0.10
Dividends to common shareholders from net investment
income	(0.48	)	(1.01	)	(1.00	)	(1.00	)	(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	$ 16.13	$	15.82	$	15.75	$	14.34	$	13.28	$	14.40
Market price, end of period	$ 17.35	$	17.22	$	15.73	$	13.92	$	13.11	$	15.00
TOTAL INVESTMENT RETURNS: 3
At net asset value 4	4.98	%	7.04	%	17.56	%	16.09	%	(0.81	)%	0.52	%
At market price	3.74	%	16.66	%	20.95	%	14.15	%	(6.00	)%	—	%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5
Expenses after fees waived and paid indirectly	0.89	% 6	0.94	%	0.93	%	0.95	%	0.92	%	0.65	% 6,7
Expenses after fees waived and before fees paid indirectly	0.89	% 6	0.94	%	0.93	%	0.95	%	0.93	%	0.65	% 6,7
Expenses before fees waived and paid indirectly	1.12	% 6	1.18	%	1.17	%	1.20	%	1.17	%	0.80	% 6,7
Net investment income after fees waived and paid indirectly and
before
preferred share dividends	7.43	% 6	7.66	%	8.00	%	8.37	%	8.15	%	2.82	% 6,7
Preferred share dividends	1.95	% 6	1.78	%	1.15	%	0.61	%	0.69	%	—	% 6,7
Net investment income available to common shareholders	5.48	% 6	5.88	%	6.85	%	7.76	%	7.46	%	2.82	% 6,7
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)	$ 367,308	$	354,032	$	342,827	$	325,680	$	318,014	$	307,165
Portfolio turnover	5	%	68	%	49	%	64	%	118	%	—	%
Net assets applicable to common shareholders, end of period
(000)	$ 370,846	$	362,608	$	359,020	$	326,770	$	302,337	$	323,483
Preferred shares value outstanding, end of period (000)	$ 205,550	$	205,550	$	205,550	$	205,550	$	205,550	$	—
Asset coverage per preferred share, end of period	$ 70,114	$	69,110	$	68,672	$	64,747	$	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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |
| 7 | 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 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 shares.

See Notes to Financial Statements.

66

FINANCIAL HIGHLIGHTS

BlackRock California Insured Municipal Income Trust (BCK)

| | Six
Months Ended February
28, 2007 (unaudited) | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
Ended August 31, | | | | | | | | |
| | | 2006 | | 2005 | | 2004 | | | | |
| PER COMMON SHARE OPERATING PERFORMANCE: | | | | | | | | | | |
| Net asset value, beginning of period | $ 15.24 | $ | 15.22 | $ | 14.01 | $ | 13.09 | $ | 14.33 | 2 |
| Investment operations: | | | | | | | | | | |
| Net investment income | 0.49 | | 0.98 | | 0.99 | | 1.02 | | 0.79 | |
| Net realized and unrealized gain (loss) | 0.33 | | (0.01 | ) | 1.27 | | 0.89 | | (1.15 | ) |
| Dividends to preferred shareholders from net
investment income | (0.14 | ) | (0.24 | ) | (0.15 | ) | (0.08 | ) | (0.06 | ) |
| Net increase (decrease) from investment operations | 0.68 | | 0.73 | | 2.11 | | 1.83 | | (0.42 | ) |
| Dividends and distributions to common shareholders from: | | | | | | | | | | |
| Net
investment
income | (0.35 | ) | (0.71 | ) | (0.90 | ) | (0.90 | ) | (0.67 | ) |
| Net realized gains | — | | — | | — | | (0.01 | ) | — | |
| Total dividends and distributions | (0.35 | ) | (0.71 | ) | (0.90 | ) | (0.91 | ) | (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 | $ 15.57 | $ | 15.24 | $ | 15.22 | $ | 14.01 | $ | 13.09 | |
| Market price, end of period | $ 14.97 | $ | 14.61 | $ | 16.08 | $ | 14.00 | $ | 13.01 | |
| TOTAL INVESTMENT RETURNS: 3 | | | | | | | | | | |
| At net asset value 4 | 4.55 | % | 5.22 | % | 15.62 | % | 14.34 | % | (4.11 | ) % |
| At market price | 4.86 | % | (4.53 | )% | 22.24 | % | 14.97 | % | (8.98 | ) % |
| RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS: 5 | | | | | | | | | | |
| Expenses after fees waived and paid indirectly | 0.91 | % 6 | 0.95 | % | 0.97 | % | 0.99 | % | 0.92 | % 6 |
| Expenses after fees waived and before fees paid indirectly | 0.94 | % 6 | 0.97 | % | 0.98 | % | 0.99 | % | 0.96 | % 6 |
| Expenses before fees waived and paid indirectly | 1.26 | % 6 | 1.28 | % | 1.30 | % | 1.32 | % | 1.27 | % 6 |
| Net investment income after fees waived and paid indirectly and
before
preferred share dividends | 6.47 | % 6 | 6.58 | % | 6.72 | % | 7.26 | % | 6.69 | % 6 |
| Preferred share dividends | 1.82 | % 6 | 1.63 | % | 1.04 | % | 0.54 | % | 0.50 | % 6 |
| Net investment income available to common shareholders | 4.65 | % 6 | 4.95 | % | 5.68 | % | 6.72 | % | 6.19 | % 6 |
| SUPPLEMENTAL DATA: | | | | | | | | | | |
| Average net assets of common shareholders (000) | $ 81,231 | $ | 78,877 | $ | 77,283 | $ | 73,679 | $ | 74,302 | |
| Portfolio turnover | 11 | % | 20 | % | 16 | % | 4 | % | 41 | % |
| Net assets applicable to common shareholders, end of period
(000) | $ 82,146 | $ | 80,418 | $ | 80,289 | $ | 73,823 | $ | 68,910 | |
| Preferred shares value outstanding, end of period (000) | $ 46,500 | $ | 46,500 | $ | 46,500 | $ | 46,500 | $ | 46,500 | |
| Asset coverage per preferred share, end of period | $ 69,171 | $ | 68,241 | $ | 68,170 | $ | 64,691 | $ | 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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

67

FINANCIAL HIGHLIGHTS

BlackRock California Municipal Bond Trust (BZA)

| | Six
Months Ended February 28, 2007 (unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | 2006 | | 2005 | | 2004 | | 2003 | | | | |
| PER COMMON SHARE OPERATING PERFORMANCE: | | | | | | | | | | | | |
| Net asset value, beginning of period | $ 16.28 | $ | 16.19 | $ | 14.67 | $ | 13.71 | $ | 14.87 | $ | 14.33 | 2 |
| Investment operations: | | | | | | | | | | | | |
| Net investment income | 0.57 | | 1.14 | | 1.13 | | 1.15 | | 1.18 | | 0.28 | |
| Net realized and unrealized gain (loss) | 0.15 | | 0.17 | | 1.50 | | 0.92 | | (1.21 | ) | 0.63 | |
| Dividends and distributions to preferred
shareholders from: | | | | | | | | | | | | |
| Net investment income | (0.15 | ) | (0.26 | ) | (0.15 | ) | (0.07 | ) | (0.09 | ) | (0.02 | ) |
| Net realized gains | — | | — | | — | | (0.01 | ) | (0.01 | ) | — | |
| Net increase (decrease) from investment operations | 0.57 | | 1.05 | | 2.48 | | 1.99 | | (0.13 | ) | 0.89 | |
| Dividends and distributions to common shareholders from: | | | | | | | | | | | | |
| Net investment income | (0.48 | ) | (0.96 | ) | (0.96 | ) | (0.96 | ) | (0.94 | ) | (0.23 | ) |
| Net realized gains | — | | — | | — | | (0.07 | ) | (0.08 | ) | — | |
| Total dividends and distributions | (0.48 | ) | (0.96 | ) | (0.96 | ) | (1.03 | ) | (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 | $ 16.37 | $ | 16.28 | $ | 16.19 | $ | 14.67 | $ | 13.71 | $ | 14.87 | |
| Market price, end of period | $ 18.00 | $ | 18.05 | $ | 16.33 | $ | 13.90 | $ | 13.15 | $ | 14.58 | |
| TOTAL INVESTMENT RETURNS: 3 | | | | | | | | | | | | |
| At net asset value 4 | 3.37 | % | 6.71 | % | 17.71 | % | 15.20 | % | (0.76 | )% | 5.48 | % |
| At market price | 2.51 | % | 17.30 | % | 25.31 | % | 13.80 | % | (2.92 | )% | (1.23 | )% |
| RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5 | | | | | | | | | | | | |
| Expenses after fees waived and paid indirectly | 0.91 | % 6 | 0.96 | % | 1.00 | % | 1.06 | % | 1.06 | % | 1.12 | % 6 |
| Expenses after fees waived and before fees paid indirectly | 0.95 | % 6 | 0.98 | % | 1.03 | % | 1.07 | % | 1.06 | % | 1.12 | % 6 |
| Expenses before fees waived and paid indirectly | 1.41 | % 6 | 1.45 | % | 1.50 | % | 1.55 | % | 1.54 | % | 1.53 | % 6 |
| Net investment income after fees waived and paid indirectly and
before
preferred share dividends | 7.10 | % 6 | 7.20 | % | 7.30 | % | 7.87 | % | 7.99 | % | 5.75 | % 6 |
| Preferred share dividends | 1.80 | % 6 | 1.64 | % | 0.98 | % | 0.49 | % | 0.58 | % | 0.49 | % 6 |
| Net investment income available to common shareholders | 5.30 | % 6 | 5.56 | % | 6.32 | % | 7.38 | % | 7.41 | % | 5.26 | % 6 |
| SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Average net assets of common shareholders (000) | $ 54,825 | $ | 53,556 | $ | 51,898 | $ | 48,928 | $ | 49,107 | $ | 47,390 | |
| Portfolio turnover | 7 | % | 16 | % | 22 | % | 24 | % | 22 | % | 18 | % |
| Net assets applicable to common shareholders, end of period
(000) | $ 55,261 | $ | 54,801 | $ | 54,265 | $ | 49,145 | $ | 45,940 | $ | 49,834 | |
| Preferred shares value outstanding, end of period (000) | $ 29,975 | $ | 29,975 | $ | 29,975 | $ | 29,975 | $ | 29,975 | $ | 29,975 | |
| Asset coverage per preferred share, end of period | $ 71,091 | $ | 70,714 | $ | 70,263 | $ | 65,990 | $ | 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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

68

FINANCIAL HIGHLIGHTS

BlackRock California Municipal Income Trust II (BCL)

| | Six
Months Ended February 28, 2007 (unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
Ended August 31, | | | | | | | | | | |
| | | 2006 | | 2005 | | 2004 | | 2003 | | | | |
| PER COMMON SHARE OPERATING PERFORMANCE: | | | | | | | | | | | | |
| Net asset value, beginning of period | $ 15.72 | $ | 15.52 | $ | 13.77 | $ | 12.76 | $ | 14.42 | $ | 14.33 | 2 |
| Investment operations: | | | | | | | | | | | | |
| Net investment income | 0.54 | | 1.08 | | 1.09 | | 1.09 | | 1.02 | | 0.02 | |
| Net realized and unrealized gain (loss) | 0.35 | | 0.16 | | 1.75 | | 0.97 | | (1.51 | ) | 0.10 | |
| Dividends to preferred shareholders from net
investment income | (0.14 | ) | (0.25 | ) | (0.15 | ) | (0.08 | ) | (0.09 | ) | — | |
| Net increase (decrease) from investment operations | 0.75 | | 0.99 | | 2.69 | | 1.98 | | (0.58 | ) | 0.12 | |
| Dividends to common shareholders from net investment
income | (0.39 | ) | (0.79 | ) | (0.94 | ) | (0.97 | ) | (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 | $ 16.08 | $ | 15.72 | $ | 15.52 | $ | 13.77 | $ | 12.76 | $ | 14.42 | |
| Market price, end of period | $ 15.90 | $ | 15.40 | $ | 14.26 | $ | 13.71 | $ | 13.01 | $ | 15.01 | |
| TOTAL INVESTMENT RETURNS: 3 | | | | | | | | | | | | |
| At net asset value 4 | 4.86 | % | 6.93 | % | 20.38 | % | 15.94 | % | (4.98 | )% | 0.66 | % |
| At market price | 5.84 | % | 14.01 | % | 11.09 | % | 13.21 | % | (6.94 | )% | 0.07 | % |
| RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5 | | | | | | | | | | | | |
| Expenses after fees waived and paid indirectly | 0.93 | % 6 | 0.98 | % | 1.01 | % | 1.05 | % | 0.97 | % | 1.05 | % 6,7 |
| Expenses after fees waived and before fees paid indirectly | 0.95 | % 6 | 1.00 | % | 1.02 | % | 1.05 | % | 0.99 | % | 1.05 | % 6,7 |
| Expenses before fees waived and paid indirectly | 1.19 | % 6 | 1.24 | % | 1.26 | % | 1.30 | % | 1.23 | % | 1.20 | % 6,7 |
| Net investment income after fees waived and paid indirectly and
before
preferred share dividends | 6.80 | % 6 | 7.06 | % | 7.46 | % | 7.97 | % | 7.38 | % | 1.35 | % 6,7 |
| Preferred share dividends | 1.83 | % 6 | 1.62 | % | 1.00 | % | 0.58 | % | 0.63 | % | — | % 6,7 |
| Net investment income available to common shareholders | 4.97 | % 6 | 5.44 | % | 6.46 | % | 7.39 | % | 6.75 | % | 1.35 | % 6,7 |
| SUPPLEMENTAL DATA: | | | | | | | | | | | | |
| Average net assets of common shareholders (000) | $ 127,095 | $ | 122,402 | $ | 116,754 | $ | 109,252 | $ | 110,286 | $ | 105,895 | |
| Portfolio turnover | 11 | % | 18 | % | 21 | % | 19 | % | 85 | % | — | % |
| Net assets applicable to common shareholders, end of period
(000) | $ 128,389 | $ | 125,525 | $ | 123,920 | $ | 109,952 | $ | 101,738 | $ | 112,576 | |
| Preferred shares value outstanding, end of period (000) | $ 71,950 | $ | 71,950 | $ | 71,950 | $ | 71,950 | $ | 71,950 | $ | — | |
| Asset coverage per preferred share, end of period | $ 69,618 | $ | 68,625 | $ | 68,063 | $ | 63,209 | $ | 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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |
| 7 | 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 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 shares.

See Notes to Financial Statements.

69

FINANCIAL HIGHLIGHTS

BlackRock Florida Insured Municipal Income Trust (BAF)

| | Six
Months Ended February 28, 2007 (unaudited) | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
Ended August 31, | | | | | | | | |
| | | 2006 | | 2005 | | 2004 | | | | |
| PER COMMON SHARE OPERATING PERFORMANCE: | | | | | | | | | | |
| Net asset value, beginning of period | $ 15.24 | $ | 15.26 | $ | 14.34 | $ | 13.74 | $ | 14.33 | 2 |
| Investment operations: | | | | | | | | | | |
| Net investment income | 0.51 | | 1.02 | | 1.02 | | 1.02 | | 0.75 | |
| Net realized and unrealized gain (loss) | 0.07 | | (0.07 | ) | 0.96 | | 0.64 | | (0.47 | ) |
| Dividends and distributions to preferred shareholders
from: | | | | | | | | | | |
| Net investment income | (0.15 | ) | (0.26 | ) | (0.16 | ) | (0.07 | ) | (0.06 | ) |
| Net realized gains | — | | — | | — | | (0.01 | ) | — | |
| Net increase from investment operations | 0.43 | | 0.69 | | 1.82 | | 1.58 | | 0.22 | |
| Dividends and distributions to common shareholders from: | | | | | | | | | | |
| Net investment income | (0.35 | ) | (0.71 | ) | (0.90 | ) | (0.90 | ) | (0.67 | ) |
| Net realized gains | — | | — | | — | | (0.08 | ) | — | |
| Total dividends and distributions | (0.35 | ) | (0.71 | ) | (0.90 | ) | (0.98 | ) | (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 | $ 15.32 | $ | 15.24 | $ | 15.26 | $ | 14.34 | $ | 13.74 | |
| Market price, end of period | $ 14.24 | $ | 13.88 | $ | 15.30 | $ | 14.14 | $ | 13.20 | |
| TOTAL INVESTMENT RETURNS: 3 | | | | | | | | | | |
| At net asset value 4 | 3.02 | % | 5.16 | % | 13.13 | % | 11.87 | % | 0.52 | % |
| At market price | 5.14 | % | (4.48 | )% | 15.03 | % | 14.82 | % | (7.78 | )% |
| RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5 | | | | | | | | | | |
| Expenses after fees waived and paid indirectly | 0.87 | % 6 | 0.90 | % | 0.89 | % | 0.91 | % | 0.83 | % 6 |
| Expenses after fees waived and before fees paid indirectly | 0.88 | % 6 | 0.92 | % | 0.90 | % | 0.93 | % | 0.87 | % 6 |
| Expenses before fees waived and paid indirectly | 1.20 | % 6 | 1.23 | % | 1.22 | % | 1.25 | % | 1.17 | % 6 |
| Net investment income after fees waived and paid indirectly and
before
preferred share dividends | 6.73 | % 6 | 6.79 | % | 6.85 | % | 7.13 | % | 6.39 | % 6 |
| Preferred share dividends | 1.99 | % 6 | 1.74 | % | 1.06 | % | 0.52 | % | 0.54 | % 6 |
| Net investment income available to common shareholders | 4.74 | % 6 | 5.05 | % | 5.79 | % | 6.61 | % | 5.85 | % 6 |
| SUPPLEMENTAL DATA: | | | | | | | | | | |
| Average net assets of common shareholders (000) | $ 133,219 | $ | 131,041 | $ | 129,413 | $ | 125,315 | $ | 124,543 | |
| Portfolio turnover | 3 | % | 9 | % | 2 | % | 2 | % | 50 | % |
| Net assets applicable to common shareholders, end of period
(000) | $ 133,804 | $ | 133,106 | $ | 133,221 | $ | 125,054 | $ | 119,778 | |
| Preferred shares value outstanding, end of period (000) | $ 76,000 | $ | 76,000 | $ | 76,000 | $ | 76,000 | $ | 76,000 | |
| Asset coverage per preferred share, end of period | $ 69,019 | $ | 68,792 | $ | 68,826 | $ | 66,137 | $ | 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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Annualized. |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

70

FINANCIAL HIGHLIGHTS

BlackRock Florida Municipal Bond Trust (BIE)

	Six
Months Ended February 28, 2007	Year
Ended August 31,
	(unaudited)	2006		2005		2004		2003		August
31, 2002
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning
of period	$ 16.22	$	16.31	$	15.53	$	14.52	$	14.90	$	14.33	2
Investment operations:
Net investment income	0.58		1.17		1.16		1.16		1.14		0.26
Net realized and unrealized gain (loss)	(0.06	)	(0.06	)	0.71		0.88		(0.43	)	0.68
Dividends and distributions to preferred
shareholders from:
Net investment income	(0.15	)	(0.27	)	(0.16	)	(0.08	)	(0.09	)	(0.02	)
Net realized gains	—		—		—		—		(0.01	)	—
Net increase from investment
operations	0.37		0.84		1.71		1.96		0.61		0.92
Dividends and distributions to common shareholders from:
Net investment income	(0.47	)	(0.93	)	(0.93	)	(0.93	)	(0.92	)	(0.23	)
Net realized gains	—		—		—		(0.02	)	(0.06	)	—
Total dividends and
distributions	(0.47	)	(0.93	)	(0.93	)	(0.95	)	(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	$ 16.12	$	16.22	$	16.31	$	15.53	$	14.52	$	14.90
Market price, end of period	$ 16.75	$	16.70	$	15.95	$	14.17	$	13.55	$	14.92
TOTAL
INVESTMENT RETURNS: 3
At net asset value 4	2.28	%	5.40	%	11.58	%	14.37	%	4.19	%	5.65	%
At market price	3.22	%	10.97	%	19.59	%	11.82	%	(2.90	)%	1.03	%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5
Expenses after fees waived and paid indirectly	0.93	% 6	0.98	%	1.00	%	1.02	%	1.05	%	1.12	% 6
Expenses after fees waived and before fees paid indirectly	0.96	% 6	1.00	%	1.02	%	1.03	%	1.05	%	1.12	% 6
Expenses before fees waived and paid indirectly	1.43	% 6	1.47	%	1.49	%	1.50	%	1.53	%	1.54	% 6
Net investment income after fees waived and paid indirectly and
before
preferred share dividends	7.27	% 6	7.28	%	7.24	%	7.62	%	7.54	%	5.36	% 6
Preferred share dividends	1.92	% 6	1.70	%	1.01	%	0.53	%	0.59	%	0.49	% 6
Net investment income available to common shareholders	5.35	% 6	5.58	%	6.23	%	7.09	%	6.95	%	4.87	% 6
SUPPLEMENTAL
DATA:
Average net assets of common shareholders (000)	$ 53,618	$	53,228	$	52,870	$	50,422	$	49,915	$	46,792
Portfolio turnover	7	%	6	%	2	%	10	%	19	%	—	%
Net assets applicable to common shareholders, end of period
(000)	$ 53,555	$	53,798	$	53,990	$	51,383	$	48,042	$	49,284
Preferred shares value outstanding, end of period (000)	$ 29,775	$	29,775	$	29,775	$	29,775	$	29,775	$	29,775
Asset coverage per preferred share, end of period	$ 69,984	$	70,173	$	70,343	$	68,147	$	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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

71

FINANCIAL HIGHLIGHTS

BlackRock Maryland Municipal Bond Trust (BZM)

	Six
Months Ended February 28, 2007	Year
Ended August 31,
	(unaudited)	2006		2005		2004		2003		August
31, 2002
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning
of period	$ 15.98	$	16.11	$	15.24	$	14.36	$	14.76	$	14.33	2
Investment operations:
Net investment income	0.54		1.07		1.07		1.06		1.07		0.25
Net realized and unrealized gain (loss)	0.04		(0.08	)	0.83		0.76		(0.45	)	0.53
Dividends and distributions to preferred
shareholders from:
Net investment income	(0.15	)	(0.26	)	(0.17	)	(0.08	)	(0.10	)	(0.03	)
Net realized gains	—	3	—		—		—		(0.01	)	—
Net increase from investment
operations	0.43		0.73		1.73		1.74		0.51		0.75
Dividends and distributions to common shareholders from:
Net investment income	(0.43	)	(0.86	)	(0.86	)	(0.86	)	(0.84	)	(0.21	)
Net realized gains	—		—		—		—		(0.04	)	—
Total dividends and
distributions	(0.43	)	(0.86	)	(0.86	)	(0.86	)	(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	$ 15.98	$	15.98	$	16.11	$	15.24	$	14.36	$	14.76
Market price, end of period	$ 18.45	$	17.45	$	15.96	$	14.99	$	13.90	$	14.95
TOTAL
INVESTMENT RETURNS: 4
At net asset value 5	2.58	%	4.57	%	11.73	%	12.50	%	3.26	%	4.52	%
At market price	8.46	%	15.26	%	12.53	%	14.31	%	(1.32	)%	1.10	%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5
Expenses after fees waived and paid indirectly	1.01	% 7	1.11	%	1.11	%	1.18	%	1.15	%	1.12	% 7
Expenses after fees waived and before fees paid indirectly	1.07	% 7	1.17	%	1.13	%	1.19	%	1.15	%	1.12	% 7
Expenses before fees waived and paid indirectly	1.54	% 7	1.64	%	1.60	%	1.67	%	1.63	%	1.54	% 7
Net investment income after fees waived and paid indirectly and
before
preferred share dividends	6.88	% 7	6.76	%	6.82	%	7.05	%	7.18	%	5.30	% 7
Preferred share dividends	1.89	% 7	1.66	%	1.05	%	0.54	%	0.64	%	0.54	% 7
Net investment income available to common shareholders	4.99	% 7	5.10	%	5.77	%	6.51	%	6.54	%	4.76	% 7
SUPPLEMENTAL
DATA:
Average net assets of common shareholders (000)	$ 32,355	$	32,098	$	31,676	$	30,350	$	30,069	$	28,153
Portfolio turnover	1	%	—	%	4	%	12	%	14	%	1	%
Net assets applicable to common shareholders, end of period
(000)	$ 32,412	$	32,354	$	32,492	$	30,715	$	28,923	$	29,705
Preferred shares value outstanding, end of period (000)	$ 18,000	$	18,000	$	18,000	$	18,000	$	18,000	$	18,000
Asset coverage per preferred share, end of period	$ 70,031	$	69,950	$	70,138	$	67,662	$	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 | Amounted to less than
$0.01 per common share outstanding. |
| 4 | Total investment returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 5 | Unaudited |
| 6 | 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 the common shareholders. |
| 7 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

72

FINANCIAL HIGHLIGHTS

BlackRock New Jersey Municipal Bond Trust (BLJ)

	Six
Months Ended February 28, 2007	Year
Ended August 31,
	(unaudited)	2006		2005		2004		2003		August
31, 2002
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 16.33	$	16.26	$	14.71	$	13.77	$	14.58	$	14.33	2
Investment operations:
Net investment income	0.58		1.16		1.16		1.16		1.15		0.25
Net realized and unrealized gain (loss)	0.31		0.18		1.48		0.84		(0.85	)	0.37
Dividends and distributions to preferred shareholders
from:
Net investment income	(0.14	)	(0.24	)	(0.15	)	(0.07	)	(0.09	)	(0.02	)
Net realized gains	—		(0.02	)	—		—		(0.01	)	—
Net increase from investment operations	0.75		1.08		2.49		1.93		0.20		0.60
Dividends and distributions to common shareholders from:
Net investment income	(0.47	)	(0.95	)	(0.94	)	(0.94	)	(0.93	)	(0.23	)
Net realized gains	—		(0.06	)	—		(0.05	)	(0.06	)	—
Total dividends and distributions	(0.47	)	(1.01	)	(0.94	)	(0.99	)	(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	$ 16.61	$	16.33	$	16.26	$	14.71	$	13.77	$	14.58
Market price, end of period	$ 18.95	$	18.30	$	15.98	$	13.91	$	13.64	$	14.65
TOTAL INVESTMENT RETURNS: 3
At net asset value 4	4.44	%	6.77	%	17.60	%	14.56	%	1.34	%	3.43	%
At market price	6.33	%	21.74	%	22.22	%	9.32	%	(0.10	)%	(0.75	)%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5
Expenses after fees waived and paid indirectly	0.95	% 6	1.06	%	1.08	%	1.14	%	1.14	%	1.15	% 6
Expenses after fees waived and before fees paid indirectly	1.01	% 6	1.11	%	1.10	%	1.15	%	1.14	%	1.15	% 6
Expenses before fees waived and paid indirectly	1.47	% 6	1.59	%	1.57	%	1.63	%	1.62	%	1.57	% 6
Net investment income after fees waived and paid indirectly and
before
preferred share dividends	7.15	% 6	7.24	%	7.44	%	7.93	%	7.94	%	5.29	% 6
Preferred share dividends	1.76	% 6	1.50	%	0.98	%	0.49	%	0.60	%	0.45	% 6
Net investment income available to common shareholders	5.39	% 6	5.74	%	6.46	%	7.44	%	7.34	%	4.84	%6
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)	$ 37,600	$	36,656	$	35,375	$	33,214	$	32,652	$	31,611
Portfolio turnover	12	%	—	%	12	%	20	%	20	%	17	%
Net assets applicable to common shareholders, end of period
(000)	$ 37,978	$	37,263	$	36,928	$	33,384	$	31,226	$	32,981
Preferred shares value outstanding, end of period (000)	$ 20,225	$	20,225	$	20,225	$	20,225	$	20,225	$	20,225
Asset coverage per preferred share, end of period	$ 71,948	$	71,067	$	70,649	$	66,266	$	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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Annualized. |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

73

FINANCIAL HIGHLIGHTS

BlackRock New York Insured Municipal Income Trust (BSE)

	Six
Months Ended February 28, 2007	Year
Ended August 31,
	(unaudited)	2006		2005		2004		August
31, 2003
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 15.34	$	15.30	$	14.18	$	13.45	$	14.33	2
Investment operations:
Net investment income	0.50		1.00		1.00		1.01		0.75
Net realized and unrealized gain (loss)	0.18		(0.01	)	1.16		0.69		(0.75	)
Dividends and distributions to preferred shareholders
from:
Net investment income	(0.12	)	(0.24	)	(0.14	)	(0.07	)	(0.07	)
Net realized gains	(0.02	)	—		—		—		—
Net increase (decrease) from investment operations	0.54		0.75		2.02		1.63		(0.07	)
Dividends and distributions to common shareholders from:
Net investment income	(0.35	)	(0.71	)	(0.90	)	(0.90	)	(0.67	)
Net realized gains	(0.05	)	—		—		—		—
Total dividends and distributions	(0.40	)	(0.71	)	(0.90	)	(0.90	)	(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	$ 15.48	$	15.34	$	15.30	$	14.18	$	13.45
Market price, end of period	$ 14.92	$	14.70	$	15.35	$	14.08	$	13.28
TOTAL INVESTMENT RETURNS: 3
At net asset value 4	3.65	%	5.43	%	14.72	%	12.40	%	(1.51	)%
At market price	4.25	%	0.73	%	15.92	%	13.04	%	(7.13	)%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5
Expenses after fees waived and paid indirectly	0.88	% 6	0.90	%	0.92	%	0.93	%	0.87	% 6
Expenses after fees waived and before fees paid indirectly	0.90	% 6	0.92	%	0.93	%	0.95	%	0.91	% 6
Expenses before fees waived and paid indirectly	1.21	% 6	1.25	%	1.25	%	1.27	%	1.22	% 6
Net investment income after fees waived and paid indirectly and
before
preferred share dividends	6.58	% 6	6.63	%	6.77	%	7.14	%	6.35	% 6
Preferred share dividends	1.53	% 6	1.58	%	0.96	%	0.52	%	0.55	% 6
Net investment income available to common shareholders	5.05	% 6	5.05	%	5.81	%	6.62	%	5.80	% 6
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)	$ 99,605	$	97,719	$	95,400	$	91,808	$	90,967
Portfolio turnover	9	%	9	%	21	%	11	%	80	%
Net assets applicable to common shareholders, end of period
(000)	$ 100,155	$	99,255	$	98,853	$	91,260	$	86,431
Preferred shares value outstanding, end of period (000)	$ 56,000	$	56,000	$	56,000	$	56,000	$	56,000
Asset coverage per preferred share, end of period	$ 69,857	$	69,324	$	69,138	$	65,744	$	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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment returns
for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

74

FINANCIAL HIGHLIGHTS

BlackRock New York Municipal Bond Trust (BQH)

	Six Months Ended February 28, 2007 (unaudited)
		Year Ended August 31,
		2006		2005		2004		2003
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 16.02	$	16.09	$	15.09	$	14.15	$	14.83	$	14.33	2
Investment operations:
Net investment income	0.57		1.13		1.13		1.13		1.12		0.25
Net realized and unrealized gain (loss)	0.15		(0.02	)	0.95		0.81		(0.71	)	0.62
Dividends and distributions to preferred
shareholders from:
Net investment income	(0.14	)	(0.25	)	(0.15	)	(0.07	)	(0.09	)	(0.02	)
Net realized gains	—		—		—		—		(0.01	)	—
Net increase from investment operations	0.58		0.86		1.93		1.87		0.31		0.85
Dividends and distributions to common shareholders from:
Net investment income	(0.46	)	(0.93	)	(0.93	)	(0.93	)	(0.92	)	(0.23	)
Net realized gains	—		—		—		—		(0.06	)	—
Total dividends and distributions	(0.46	)	(0.93	)	(0.93	)	(0.93	)	(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	$ 16.14	$	16.02	$	16.09	$	15.09	$	14.15	$	14.83
Market price, end of period	$ 18.11	$	16.81	$	15.85	$	13.97	$	13.35	$	14.50
TOTAL INVESTMENT RETURNS: 3
At net asset value 4	3.54	%	5.51	%	13.56	%	13.97	%	2.33	%	5.19	%
At market price	10.72	%	12.39	%	20.83	%	11.83	%	(1.26	)%	(1.78	)%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5
Expenses after fees waived and paid indirectly	0.98	% 6	1.06	%	1.06	%	1.11	%	1.12	%	1.12	% 6
Expenses after fees waived and before fees paid indirectly	1.02	% 6	1.09	%	1.08	%	1.12	%	1.12	%	1.12	% 6
Expenses before fees waived and paid indirectly	1.49	% 6	1.56	%	1.56	%	1.60	%	1.60	%	1.54	% 6
Net investment income after fees waived and paid indirectly and
before
preferred share dividends	7.17	% 6	7.16	%	7.20	%	7.57	%	7.57	%	5.24	% 6
Preferred share dividends	1.76	% 6	1.60	%	0.97	%	0.48	%	0.62	%	0.50	% 6
Net investment income available to common shareholders	5.41	% 6	5.56	%	6.23	%	7.09	%	6.95	%	4.74	% 6
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)	$ 43,857	$	43,030	$	42,217	$	40,396	$	40,072	$	38,183
Portfolio turnover	15	%	12	%	3	%	16	%	7	%	15	%
Net assets applicable to common shareholders, end of period
(000)	$ 44,046	$	43,541	$	43,460	$	40,757	$	38,207	$	40,062
Preferred shares value outstanding, end of period (000)	$ 24,200	$	24,200	$	24,200	$	24,200	$	24,200	$	24,200
Asset coverage per preferred share, end of period	$ 70,504	$	69,985	$	69,899	$	67,108	$	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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |
| The information in the above
Financial Highlights represents the 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 shares. | |

See Notes to Financial Statements.

75

FINANCIAL HIGHLIGHTS

BlackRock New York Municipal Income Trust II (BFY)

	Six Months Ended February 28, 2007 (unaudited)
		Year Ended August 31,
		2006		2005		2004		2003
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 15.47	$	15.23	$	14.16	$	13.36	$	14.47	$	14.33	2
Investment operations:
Net investment income	0.54		1.06		1.04		1.04		0.98		0.02
Net realized and unrealized gain (loss)	0.19		0.14		1.07		0.79		(0.94	)	0.15
Dividends to preferred shareholders from net
investment income	(0.14	)	(0.25	)	(0.15	)	(0.08	)	(0.10	)	—
Net increase (decrease) from investment operations	0.59		0.95		1.96		1.75		(0.06	)	0.17
Dividends to common shareholders from net investment
income	(0.36	)	(0.71	)	(0.89	)	(0.95	)	(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	$ 15.70	$	15.47	$	15.23	$	14.16	$	13.36	$	14.47
Market price, end of period	$ 14.98	$	14.38	$	14.02	$	13.70	$	13.12	$	15.10
TOTAL INVESTMENT RETURNS: 3
At net asset value 4	3.93	%	6.93	%	14.46	%	13.50	%	(1.10	)%	1.01	%
At market price	6.68	%	7.97	%	8.91	%	11.82	%	(6.93	)%	0.67	%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5
Expenses after fees waived and paid indirectly	0.99	% 6	1.02	%	1.04	%	1.07	%	1.00	%	1.43	% 6,7
Expenses after fees waived and before fees paid indirectly	1.02	% 6	1.05	%	1.05	%	1.08	%	1.03	%	1.43	% 6,7
Expenses before fees waived and paid indirectly	1.25	% 6	1.29	%	1.30	%	1.32	%	1.27	%	1.58	% 6,7
Net investment income after fees waived and paid indirectly and
before
preferred share dividends	6.92	% 6	6.96	%	7.04	%	7.36	%	6.95	%	1.77	% 6,7
Preferred share dividends	1.84	% 6	1.66	%	0.99	%	0.59	%	0.68	%	—	% 6,7
Net investment income available to common shareholders	5.08	% 6	5.30	%	6.05	%	6.77	%	6.27	%	1.77	% 6,7
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)	$ 77,050	$	74,860	$	72,767	$	70,018	$	69,863	$	64,673
Portfolio turnover	9	%	22	%	27	%	14	%	40	%	—	%
Net assets applicable to common shareholders, end of period
(000)	$ 77,521	$	76,393	$	75,193	$	69,903	$	65,953	$	70,276
Preferred shares value outstanding, end of period (000)	$ 44,650	$	44,650	$	44,650	$	44,650	$	44,650	$	—
Asset coverage per preferred share, end of period	$ 68,419	$	67,775	$	67,113	$	64,144	$	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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |
| 7 | 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 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 shares. | |

See Notes to Financial Statements.

76

FINANCIAL HIGHLIGHTS

BlackRock Virginia Municipal Bond Trust (BHV)

	Six
Months Ended February
28, 2007 (unaudited)	Year
Ended August 31,
		2006		2005		2004		2003
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 16.35	$	16.34	$	15.47	$	14.46	$	14.90	$	14.33	2
Investment operations:
Net investment income	0.55		1.10		1.10		1.09		1.09		0.27
Net realized and unrealized gain (loss)	0.14		0.04		0.80		0.86		(0.44	)	0.65
Dividends and distributions to preferred
shareholders from:
Net investment income	(0.13	)	(0.26	)	(0.16	)	(0.07	)	(0.08	)	(0.03	)
Net realized gains	(0.02	)	—		—		—		(0.02	)	—
Net increase from investment operations	0.54		0.88		1.74		1.88		0.55		0.89
Dividends and distributions to common shareholders from:
Net investment income	(0.43	)	(0.87	)	(0.87	)	(0.87	)	(0.85	)	(0.21	)
Net realized gains	(0.05	)	—		—		—		(0.10	)	—
Total dividends and distributions	(0.48	)	(0.87	)	(0.87	)	(0.87	)	(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	$ 16.41	$	16.35	$	16.34	$	15.47	$	14.46	$	14.90
Market price, end of period	$ 19.26	$	18.45	$	17.30	$	15.34	$	14.40	$	15.20
TOTAL INVESTMENT RETURNS: 3
At net asset value 4	3.05	%	5.30	%	11.52	%	13.28	%	3.41	%	5.53	%
At market price	7.18	%	12.23	%	19.07	%	12.79	%	0.94	%	2.81	%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS: 5
Expenses after fees waived and paid indirectly	1.04	% 6	1.15	%	1.18	%	1.25	%	1.17	%	1.12	% 6
Expenses after fees waived and before fees paid indirectly	1.13	% 6	1.22	%	1.20	%	1.26	%	1.17	%	1.12	% 6
Expenses before fees waived and paid indirectly	1.59	% 6	1.68	%	1.67	%	1.73	%	1.64	%	1.54	% 6
Net investment income after fees waived and paid indirectly and
before
preferred share dividends	6.83	% 6	6.83	%	6.90	%	7.15	%	7.23	%	5.70	% 6
Preferred share dividends	1.58	% 6	1.60	%	1.00	%	0.47	%	0.53	%	0.54	% 6
Net investment income available to common shareholders	5.25	% 6	5.23	%	5.90	%	6.68	%	6.70	%	5.16	% 6
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)	$ 25,241	$	24,769	$	24,303	$	23,273	$	22,896	$	21,321
Portfolio turnover	7	%	5	%	5	%	14	%	18	%	8	%
Net assets applicable to common shareholders, end of period
(000)	$ 25,272	$	25,097	$	24,966	$	23,527	$	21,944	$	22,545
Preferred shares value outstanding, end of period (000)	$ 13,525	$	13,525	$	13,525	$	13,525	$	13,525	$	13,525
Asset coverage per preferred share, end of period	$ 71,728	$	71,404	$	71,158	$	68,490	$	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 returns at
market price, which can be significantly greater or lesser than the net asset
value, may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. |
| 4 | Unaudited |
| 5 | 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 the common shareholders. |
| 6 | Annualized. |

The information in the above Financial Highlights represents the 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 shares.

See Notes to Financial Statements.

77

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”) (all, collectively the “Trusts”) are organized as Delaware statutory trusts. 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 (the “1940 Act”). 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 1940 Act.

Under the Trusts’ organizational documents, their officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. In addition, in the normal course of business, the Trusts enter into contracts with their vendors and others that provide for general indemnifications. The Trusts’ maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Trusts. However, based on experience, the Trusts consider the risk of loss from such claims to be remote.

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

Investments Valuation: Municipal investments (including commitments to purchase such investments 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 (each, a “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from bond dealers, market transactions in comparable investments and various relationships between investments. Swap quotations are provided by dealers selected under supervision of the Board. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value per share. Any investments or other assets for which such current market quotations are not readily available are valued at fair value (“Fair Value Assets”) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.

When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant.

In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications of FAS 157 and its impact on the Trusts’ financial statements, if any, has not been determined.

In addition, in February 2007, FASB issued Statement of Financial Accounting Standard No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (“FAS 159”), which is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Trusts’ financial statements, if any, has not been determined.

Investment Transactions and Investment Income: Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of the specific identification method, generally first-in, first-out, for both financial reporting and federal income tax purposes. 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.

78

Forward Starting Swaps: Forward starting swaps are an agreement for an interest rate swap asset or liability to be created or sold in the future. Interest rate swaps are an agreement in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. The Trusts close each forward starting swap before the accrual date specified in the agreement and therefore never enter into the interest rate swap underlying each forward starting swap.

During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by “marking-to-market” daily based upon quotations from market makers to reflect the market value of the swap. When the swap is terminated, a Trust will record 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, if any.

Entering into these agreements involves, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counter-party to the agreement may default on its obligation to perform and that there may be unfavorable changes in the fluctuation of interest and/or exchange rates. However, the Advisor of the Trusts monitor swaps and do not anticipate non-performance by any counterparty.

Segregation: In cases in which the 1940 Act, and the interpretive positions of the Securities and Exchange Commission (the “Commission”) require that each Trust segregate assets in connection with certain investments (e.g., when-issued securities, forward starting swaps or futures contracts), each Trust will, consistent with certain interpretive letters issued by the Commission, designate on its books and records cash or other liquid 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 and net realized capital gains, if any, to shareholders. Therefore, no federal income tax or excise tax provisions have been recorded.

On July 13, 2006, FASB released FASB Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes . FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Trusts’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable; a reduction of deferred tax asset; an increase in deferred tax liability; or a combination thereof. Adoption of FIN 48 is required for the last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact on the Trusts’ financial statements has not been determined.

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 in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 5.

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 and such differences may be material.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees (“Independent 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 Independent Trustees. These amounts are shown on the Statements of Assets and Liabilities as “Investments in affiliates”. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in such Trusts.

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 Independent Trustees in order to match its deferred compensation obligations.

Other: Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally prorated to the Trusts on the basis of relative net assets of all the BlackRock Closed-End Funds.

Note 2. Agreements and Other Transactions with Affiliates and Related Parties

Each Trust has an Investment Management Agreement with BlackRock Advisors, LLC (the“Advisor”), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc.(“BFM”), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to each Trust. BlackRock, Inc. may be presumed an affiliate of Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC Financial Services Group, Inc. (“PNC”). The investment management agreement covers both investment advisory and administration services.

79

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. Investments in affiliated money market funds are excluded from the average weekly managed assets used to calculate the investment advisory fee. For the period September 30, 2006 through November 15, 2006, the Bond Trusts’ investment advisory fee was reduced to 0.55% of each Trust’s 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, and 0.05% in year 8 through year 10.

The Advisor pays BFM fees for its sub-advisory services.

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, as well as 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 costs of employees that provide pricing, secondary market support, and compliance services to each Trust. For the six months ended February 28, 2007, the Trusts reimbursed the Advisor the following amounts, which are included in miscellaneous expenses in the Statements of Operations:

Trust — Insured Municipal	$ 11,976	Trust — Florida Bond	$ 1,525
Municipal Bond	4,728	Maryland Bond	960
Municipal Income II	10,143	New Jersey Bond	638
California Insured	2,383	New York Insured	1,730
California Bond	1,525	New York Bond	982
California Income II	3,494	New York Income II	2,239
Florida Insured	4,007	Virginia Bond	732

Pursuant to the terms of the custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees. These credits are shown on the Statements of Operations as “fees paid indirectly”.

Investments in companies considered to be an affiliate of the Trusts, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

| Trust | Portfolio
Company | Net Activity (000) | |
| --- | --- | --- | --- |
| Insured Municipal | Merrill Lynch Institutional
Tax Exempt Fund | 6,300 | $ 1,492 |
| Municipal Bond | Merrill Lynch Institutional
Tax Exempt Fund | 9,300 | 2,128 |
| Municipal Income II | Merrill Lynch Institutional
Tax Exempt Fund | 10,700 | 1,975 |
| California Insured | CMA California Mun. Money
Fund | 4,200 | 1,411 |
| California Bond | CMA California Mun. Money
Fund | 3,400 | 1,021 |
| California Income II | CMA California Mun. Money
Fund | 200 | 67 |
| Florida Insured | CMA Florida Mun. Money Fund | 1,800 | 451 |
| Florida Bond | CMA Florida Mun. Money Fund | 900 | 221 |
| Maryland Bond | Merrill Lynch Institutional
Tax Exempt Fund | 300 | 85 |
| New Jersey Bond | CMA New Jersey Mun. Money
Fund | 200 | 50 |
| New York Bond | CMA New York Mun. Money
Fund | 600 | 153 |
| New York Income II | CMA New York Mun. Money
Fund | 600 | 289 |

Note 3. Portfolio Securities

Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the six months ended February 28, 2007 were as follows:

Trust	Purchases	Sales	Trust	Purchases	Sales
Insured Municipal	$ 64,563,811	$ 40,574,364	Florida Bond	$ 5,376,976	$ 6,400,660
Municipal Bond	16,952,605	25,256,845	Maryland Bond	704,102	275,416
Municipal Income II	27,525,617	37,457,283	New Jersey Bond	7,886,823	7,040,401
California Insured	13,928,381	14,207,271	New York Insured	17,506,433	13,547,641
California Bond	6,075,156	8,650,857	New York Bond	10,395,846	10,083,931
California Income II	20,793,485	25,749,238	New York Income II	12,049,786	10,944,789
Florida Insured	6,433,156	5,803,309	Virginia Bond	2,934,456	2,674,697

There were no purchases or sales of U.S. government securities for the six months ended February 28, 2007.

80

Details of open forward starting swap agreements at February 28, 2007 were as follows:

	Notional — Amount	Fixed	Counter		Effective	Termination	Unrealized — Appreciation
Trust	(000)	Rate(a)	Party	Floating Rate	Date	Date	(Depreciation)
Insured Municipal	$ 22,500,000	3.955 %	Citibank	1-week BMA Municipal Swap
Index	03/21/07	03/21/32	$ (301,010	)
	20,000,000	3.988	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/27	(437,480	)
	22,300,000	3.815	CITSW	1-week BMA Municipal Swap
Index	03/14/07	03/14/27	5,339
	16,500,000	4.258	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	(918,170	)
							$ (1,651,321	)
Municipal Bond	$ 48,700,000	3.847 %	JP
Morgan	1-week BMA Municipal Swap
Index	04/27/07	04/27/17	$ (908,469	)
							$ (908,469	)
Municipal Income II	$ 27,000,000	3.757 %	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/16	$ (359,705	)
	18,500,000	3.955	Citibank	1-week BMA Municipal Swap
Index	03/21/07	03/21/32	(247,497	)
	18,700,000	3.815	CITSW	1-week BMA Municipal Swap
Index	03/14/07	03/14/27	4,477
	14,000,000	4.258	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	(779,054	)
							$ (1,381,779	)
California Insured	$ 5,000,000	3.955 %	Citibank	1-week BMA Municipal Swap
Index	03/21/07	03/21/32	$ (66,890	)
	4,250,000	3.988	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/27	(92,965	)
	4,800,000	3.815	CITSW	1-week BMA Municipal Swap Index	03/14/07	03/14/27	1,149
							$ (158,706	)
California Bond	$ 3,000,000	3.955 %	Citibank	1-week BMA Municipal Swap
Index	03/21/07	03/21/32	$ (40,135	)
	2,500,000	3.988	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/27	(54,685	)
							$ (94,820	)
California Income II	$ 7,750,000	3.955 %	Citibank	1-week BMA Municipal Swap
Index	03/21/07	03/21/32	$ (103,680	)
	7,000,000	3.988	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/27	(153,118	)
	7,900,000	3.815	CITSW	1-week BMA Municipal Swap
Index	03/14/07	03/14/27	1,891
	5,900,000	4.258	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	(328,316	)
							$ (583,223	)
Florida Insured	$ 6,750,000	3.955 %	Citibank	1-week BMA Municipal Swap
Index	03/21/07	03/21/32	$ (90,302	)
	6,000,000	3.988	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/27	(131,244	)
	5,000,000	4.258	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	(278,234	)
							$ (499,780	)
Florida Bond	$ 2,000,000	3.988 %	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/27	$ (43,748	)
	1,700,000	4.258	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	(94,599	)
							$ (138,347	)
Maryland Bond	$ 1,250,000	3.988 %	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/27	$ (27,343	)
	1,000,000	4.258	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	(55,646	)
							$ (82,989	)
New Jersey Bond	$ 1,850,000	4.123 %	JP Morgan	1-week BMA Municipal Swap
Index	04/27/07	04/27/37	$ (69,157	)
							$ (69,157	)
New York Insured	$ 10,000,000	4.123 %	JP
Morgan	1-week BMA Municipal Swap
Index	04/27/07	04/27/37	$ (299,059	)
							$ (299,059	)
New York Bond	$ 1,400,000	4.258 %	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	$ (77,905	)
							$ (77,905	)
New York	$ 3,500,000	3.955 %	Citibank	1-week BMA Municipal Swap
Index	03/21/07	03/21/32	$ (46,823	)
Income II	3,300,000	3.815	CITSW	1-week BMA Municipal Swap
Index	03/14/07	03/14/27	790
	2,500,000	4.258	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	(139,117	)
							$ (185,150	)
Virginia Bond	$ 1,000,000	4.258 %	CITSW	1-week BMA Municipal Swap
Index	03/20/07	03/20/37	$ (55,646	)
	1,250,000	3.955	Citibank	1-week BMA Municipal Swap
Index	03/21/07	03/21/32	(16,723	)
	1,000,000	3.988	JP
Morgan	1-week BMA Municipal Swap
Index	05/04/07	05/04/27	(21,874	)
							$ (94,243	)

(a) Trust pays fixed interest rate and receives floating interest rate.

BMA—Bond Market Association.

81

Note 4. Income Tax Information

The tax character of distributions paid during the year ended August 31, 2006 was as follows:

| Distributions
Paid From: | Year ended August 31, 2006 — Tax-exempt Income | Long-term Capital Gains | Total Distributions |
| --- | --- | --- | --- |
| Insured Municipal | $ 26,384,051 | $ — | $ 26,384,051 |
| Municipal Bond | 13,118,892 | 1,155,649 | 14,274,541 |
| Municipal Income II | 29,295,428 | — | 29,295,428 |
| California Insured | 5,051,269 | — | 5,051,269 |
| California Bond | 4,086,285 | — | 4,086,285 |
| California Income II | 8,259,033 | — | 8,259,033 |
| Florida Insured | 8,504,736 | — | 8,504,736 |
| Florida Bond | 4,000,290 | — | 4,000,290 |
| Maryland Bond | 2,263,598 | — | 2,263,598 |
| New Jersey Bond | 2,694,470 | 183,005 | 2,877,475 |
| New York Insured | 6,153,508 | — | 6,153,508 |
| New York Bond | 3,193,912 | — | 3,193,912 |
| New York Income II | 4,751,203 | — | 4,751,203 |
| Virginia Bond | 1,727,354 | — | 1,727,354 |

For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year-end (the Bond Trusts have a tax year-end of October 31st, the Insured Trusts have a tax year-end of September 30th and the Income II Trusts have a tax year-end of June 30th). These amounts may be used to offset future realized capital gains, if any:

Trust		Expires	Trust		Expires
Insured Municipal	$ 100,796	2012	Florida Insured	$ 1,331,546	2013
Municipal Income II	$ 5,770,550	2013	Florida Bond	$ 215,418	2012
California Insured	$ 8,282	2012	Maryland Bond	$ 91,148	2012
	1,371,749	2013
	$ 1,380,031		New York Insured	$ 103	2012
				140,352	2013
				$ 140,455
California Bond	$ 789,872	2012
California Income II	$ 1,441	2011	New York Bond	$ 273,288	2012
	1,163,822	2012
	3,357,448	2013	New York Income II	$ 59,598	2013
	$ 4,522,711
			Virginia Bond	$ 55,551	2012

Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward amounts.

82

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”).

During the six months ended February 28, 2007 and the year ended August 31, 2006, the following Trusts issued additional shares under their respective dividend reinvestment plan:

Trust	February 28, 2007	August 31, 2006
Insured
Municipal	—	27,142
Municipal
Bond	31,733	64,035
Municipal
Income II	70,719	136,465
California
Insured	—	2,293
California
Bond	10,136	14,609
California
Income II	2,069	—
Florida
Insured	—	5,166
Florida Bond	5,131	6,311
Maryland
Bond	4,344	7,206
New Jersey
Bond	5,175	10,753
New York
Insured	—	10,476
New York
Bond	11,231	17,055
Virginia
Bond	4,612	7,680

As of February 28, 2007, 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

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 and average on the preferred shares for each of the Trusts for the six months ended February 28, 2007 were as follows:

Trust	Series	Low	High	Average	Trust	Series	Low	High	Average
Insured
Municipal	M7	3.00 %	3.90 %	3.42 %	California
Income II	T7	2.90 %	3.95 %	3.28 %
	R7	2.95	4.70	3.34		R7	2.90	4.00	3.21
	F7	3.00	4.20	3.35	Florida
Insured	M7	3.22	3.95	3.48
Municipal
Bond	T7	3.09	3.90	3.49	Florida Bond	W7	3.14	3.95	3.46
	R7	3.19	3.90	3.51	Maryland
Bond	R7	2.00	3.90	3.41
Municipal
Income II	M7	2.89	4.00	3.41	New Jersey
Bond	M7	2.90	3.90	3.26
	T7	3.25	3.75	3.50	New York
Insured	R7	2.80	5.00	3.13
	W7	3.24	4.00	3.51	New York
Bond	T7	2.81	3.61	3.18
	R7	3.29	3.58	3.50	New York
Income II	W7	2.50	4.00	3.18
California
Insured	F7	2.60	3.90	3.17	Virginia
Bond	R7	2.50	4.50	3.36
California
Bond	F7	2.89	3.90	3.35

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/Articles Supplementary, are not satisfied.

83

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 1940 Act 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.

Note 6. Concentration Risk

The Trusts concentrate their investments in securities issued by state agencies, other governmental entities and U.S. Territories. The Trusts are more susceptible to adverse financial, social, environmental, economic, regulatory and political factors that may affect these states agencies, other governmental entities and U.S. Territories, which could seriously affect the ability of these states and their municipal subdivisions to meet continuing obligations for principle and interest payments and therefore could impact the value of the Trusts’ investments and net asset value per share, than if the Trusts were not concentrated in securities issued by state agencies, other governmental entities and U.S. Territories.

Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Portfolios of Investments.

Note 7. Subsequent Events

Subsequent to February 28, 2007, the Board of each Trust declared dividends from undistributed earnings per common share payable April 2, 2007, to shareholders of record on March 15, 2007. The per share common dividends declared were as follows:

| Trust — Insured
Municipal | $ 0.061000 | Trust — Florida Bond | $ 0.077808 |
| --- | --- | --- | --- |
| Municipal
Bond | 0.085000 | Maryland
Bond | 0.071350 |
| Municipal
Income II | 0.076000 | New Jersey
Bond | 0.078582 |
| California
Insured | 0.058000 | New York
Insured | 0.058000 |
| California
Bond | 0.077000 | New York
Bond | 0.077099 |
| California
Income II | 0.065500 | New York
Income II | 0.062500 |
| Florida
Insured | 0.058000 | Virginia
Bond | 0.072428 |

The dividends declared on preferred shares for the period March 1, 2007 to March 31, 2007 for each of the Trusts were as follows:

| Trust — Insured
Municipal | M7 | $ 201,529 | Trust — California
Income II | T7 | $ 88,642 |
| --- | --- | --- | --- | --- | --- |
| | R7 | 238,561 | | R7 | 104,774 |
| | F7 | 197,041 | Florida
Insured | M7 | 203,011 |
| Municipal
Bond | T7 | 120,184 | Florida Bond | W7 | 99,008 |
| | R7 | 150,990 | Maryland
Bond | R7 | 55,224 |
| Municipal
Income II | M7 | 137,336 | New Jersey
Bond | M7 | 48,475 |
| | T7 | 137,505 | New York
Insured | R7 | 164,282 |
| | W7 | 171,038 | New York
Bond | T7 | 57,122 |
| | R7 | 171,799 | New York
Income II | W7 | 131,432 |
| California
Insured | F7 | 108,773 | Virginia
Bond | R7 | 40,099 |
| California
Bond | F7 | 71,844 | | | |

84

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 Computershare Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who do not 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, which 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 250 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.

85

ADDITIONAL INFORMATION

Shareholder Meetings

A Joint Special Meeting of Shareholders was held on November 15, 2006 for shareholders of record as of September 29, 2006, to approve a new Investment Management Agreement for each of the following Trusts:

Approved the Investment Management Agreement as follows:

	Votes For	Votes Against	Votes Abstain
Municipal Bond	5,125,063	264,473	262,780
California Bond	1,607,321	47,428	192,723
Florida Bond	1,662,531	97,712	72,516
Maryland Bond	1,080,534	34,146	39,477
New Jersey Bond	1,238,651	51,222	41,940
New York Bond	1,359,572	60,892	86,967
Virginia Bond	876,831	18,148	59,756

Each Trust listed for trading on the New York Stock Exchange (“NYSE”) has filed with the NYSE its annual chief executive officer certification regarding compliance with the NYSE’s listing standards and each Trust listed for trading on the American Stock Exchange (“AMEX”) has filed with the AMEX its corporate governance certification regarding compliance with the AMEX’s listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such Trust’s offering and the information contained in each Trust’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in any Trust’s investment objective or policies or to any Trust’s charters or by-laws that were not approved by the shareholders or in the principle risk factors associated with investment in the Trusts.

Quarterly performance and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. 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 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, Donald Burke, Anne Ackerley, Bartholomew Battista, Vincent Tritto and Brian Kindelan—Managing Directors of the Advisor and the Sub-Advisor, Neal Andrews and James Kong—Managing Directors of the Sub-Advisor.

Important Information Regarding the BlackRock Closed-End Funds Semi-Annual Investor Update

The Semi-Annual Investor Update (“Update”) is available on the Internet and may be accessed through BlackRock’s website at http://www1.blackrock.com. The Update provides information on the fixed income markets and summaries of BlackRock closed-end funds’ investment objectives and strategies. It also contains recent news regarding the BlackRock closed-end funds.

Historically, BlackRock provided this information in materials mailed with the Funds’ semi-annual report. However, we believe that making this information available through BlackRock’s website allows us to communicate more fully and efficiently with the Funds’ shareholders.

If you would like to receive a hard copy of the BlackRock Closed-End Funds Semi-Annual Investor Update , please call (800) 699-1BFM.

86

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BlackRock Closed-End Funds

Trustees Ralph L. Schlosstein, Chairman Andrew F. Brimmer, Lead Trustee 1 Richard E. Cavanagh, Lead Trustee 2 Kent Dixon Frank J. Fabozzi Kathleen F. Feldstein R. Glenn Hubbard Robert S. Kapito 3 Officers Robert S. Kapito, President Donald C. Burke, Treasurer Bartholomew Battista, Chief Compliance Officer Anne Ackerley, Vice President Neal Andrews, Assistant Treasurer Jay Fife, Assistant Treasurer Spencer Fleming, Assistant Treasurer James Kong, Assistant Treasurer Robert Mahar, 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 Accounting Agent and Custodian State Street Bank and Trust Company 2 Avenue De Lafayette Boston, MA 02111 Transfer Agent Computershare Trust Company, N.A. 250 Royall Street Canton, MA 02021 (800) 699-1BFM Auction Agent 4 Bank of New York 101 Barclay Street, 7 West New York, NY 10286 Auction Agent 5 Deutsche Bank Trust Company Americas 60 Wall Street, 27th Floor New York, NY 10286 Independent Registered Public Accounting Firm 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, LLC. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM

| 1 | Retired, effective December
31, 2006 |
| --- | --- |
| 2 | Effective as of January 1,
2007 |
| 3 | Resigned, effective December
31, 2006 |
| 4 | For the Insured Trusts and
Bond Trusts. |
| 5 | 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) 699-1BFM.

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) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov.

Information on how proxies relating to the Trusts’ voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust’s Form N-Q will be available on the Commission’s website at http://www.sec.gov. Each Trust’s Form N-Q, may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Form N-Q may also be obtained upon request without charge by calling (800) 699-1BFM.

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.

The Registrant’s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for semi-annual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

(a) Not applicable for semi-annual reports.

(b) Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers.

Not applicable because no such purchases were made during the period covered by this report.

Item 10. Submission of Matters to a Vote of Security Holders.

No matters were voted on by shareholders during the period covered by this report.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers have evaluated the Registrant’s disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant’s management, including its principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. 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 attached as EX-99.CERT.

(a) (3) Not applicable.

(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT.

2

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/ Donald
C. Burke |
| --- | --- |
| Name: | Donald C.
Burke |
| Title: | Treasurer |
| Date: | May 3, 2007 |

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 3, 2007 |
| By: | /s/ Donald
C. Burke |
| Name: | Donald C.
Burke |
| Title: | Principal
Financial Officer |
| Date: | May 3, 2007 |

3