Blackrock Bond Fund N-CSR Certified annual shareholder report (management investment company)

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 811-02857 and 811-21434

Name of Fund: BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and Master Total Return Portfolio of Master Bond LLC

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and Master Total Return Portfolio of Master Bond LLC, 40 East 52^nd Street, New York, NY 10022.

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 09/30/2009

Date of reporting period: 09/30/2009

Item 1 – Report to Stockholders

EQUITIES    FIXED INCOME    REAL  ESTATE    LIQUIDITY    ALTERNATIVES    BLACKROCK SOLUTIONS

BlackRock Total Return Fund OF BLACKROCK BOND FUND, INC.
ANNUAL REPORT  |  SEPTEMBER 30, 2009

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE

Table of Contents

	Page
Dear Shareholder	3
Annual Report:
Fund Summary	4
About Fund Performance	6
Disclosure of Expenses	7
The Benefits and Risks of Leveraging	8
Derivative Financial Instruments	8
Fund Financial Statements:
Statement of Assets and Liabilities	9
Statement of Operations	10
Statements of Changes in Net Assets	11
Fund Financial Highlights	12
Fund Notes to Financial Statements	20
Fund Report of Independent Registered Public Accounting Firm	26
Important Tax Information (Unaudited)	26
Master Portfolio Information	27
Master Portfolio Financial Statements:
Schedule of Investments	28
Statement of Assets and Liabilities	40
Statement of Operations	41
Statements of Changes in Net Assets	42
Master Portfolio Financial Highlights	42
Master Portfolio Notes to Financial Statements	43
Master Report of Independent Registered Public Accounting Firm	51
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements	52
Officers and Directors	56
Additional Information	60
Mutual Fund Family	62

2 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Dear Shareholder

The past 12 months saw a seismic shift in market sentiment — from fear and pessimism during the worst economic decline and crisis of confidence in financial markets since The Great Depression, to exuberance and increasing optimism amid emerging signs of recovery. The period began on the heels of the infamous collapse of Lehman Brothers, which triggered an intensifying deterioration in global economic activity in the final months of 2008 and the early months of 2009 and resulted in massive government intervention (on a global scale) in the financial system and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected economic data and upside surprises in corporate earnings.

Not surprisingly, US equities endured extreme volatility in this environment — steep declines and heightened risk aversion in the early part of the reporting period gave way to an impressive seven-month rally that began in March. This rally has pushed all major indexes well into positive territory for 2009. Stocks did experience modest setbacks in June and then again in late September and early October, but the overall trajectory was up. The experience in international markets was similar to that in the United States. Prominent in the rally have been emerging markets, which were less affected by the global credit crunch and are experiencing faster economic growth rates when compared to the developed world.

In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, but concerns about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields range bound in recent months. At the same time, near-zero interest rates on risk-free assets, coupled with an improving macro environment, prompted many investors to reallocate money from cash investments into higher-yielding and riskier non-Treasury assets, bidding those prices higher. The high yield sector was the greatest beneficiary of this move, having decisively outpaced all other taxable asset classes since the start of 2009. Similarly, the municipal bond market is on pace for its best performance year ever in 2009, following one of its worst years in 2008. Investor demand remains strong while the Build America Bonds program has alleviated supply pressures, creating a highly favorable technical backdrop. Municipal bond mutual funds are seeing record inflows, reflecting the renewed investor interest in the asset class.

Total Returns as of September 30, 2009	6-month			12-month
US equities (S&P 500 Index)		34.02	%		(6.91	)%
Small cap US equities (Russell 2000 Index)		43.95			(9.55	)
International equities (MSCI Europe, Australasia, Far East Index)		49.85			3.23
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*)		(3.77	)		7.66
Taxable fixed income (Barclays Capital US Aggregate Bond Index)		5.59			10.56
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)		9.38			14.85
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)		40.25			22.51

*	Formerly a Merrill Lynch index.
	Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and investment insight, visit the most recent issue of our award-winning Shareholder® magazine at www.blackrock.com/shareholdermagazine. We thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

Announcement to Shareholders

On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of September 30, 2009

Portfolio Management Commentary

	How did the Fund perform?
•	Through the Fund’s investment in the Master Total Return Portfolio (the “Master Portfolio”), BlackRock and Institutional Shares outperformed the benchmark Barclays Capital US Aggregate Bond Index for the 12-month period, while Service, Investor A, Investor A1, Investor B, Investor B1, Investor B2, Investor C, Investor C1, Investor C2 and Class R Shares trailed the index.
	What factors influenced performance?
•	The Master Portfolio benefited from a reversal of last year’s flight to quality as the US government implemented a series of quantitative easing programs in the first quarter of 2009 aimed at restoring liquidity to the credit markets. These programs that included the Term Asset-Backed Securities Loan Facility, Public-Private Investment Program and agency mortgage-backed security (MBS) purchase program provided support to the credit markets and encouraged investors to increase their risk appetite, which resulted in US Treasury obligations underperforming the broader spread markets during 2009. Fund performance for the period was positively affected by exposure to non-index spread sectors including government sponsored agency MBS, non-agency MBS, non-agency commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS), as well as investment grade corporates, as spreads continued to narrow following the implementation of the US government quantitative easing programs.
•	During the first half of the period, Master Portfolio performance was hindered by its out-of-index allocation to spread assets, including CMBS, non-agency MBS and ABS. Master Portfolio performance was hindered by duration positioning during the second half of the period, as rates rose into the second quarter and subsequently fell through the third quarter.
	Describe recent portfolio activity.
•	During the annual period, we reduced risk in the portfolio by trimming exposure to mortgage-related and non-government spread sectors, including agency MBS, non-agency MBS, CMBS and ABS. We subsequently increased exposure to government sectors including US Treasury obligations, agency obligations, FDIC-guaranteed debt and foreign obligations. We remained active in the corporate sector, further reducing exposure to financials, while increasing exposure to non-cyclical industrials with strong free cash flows.
	Describe portfolio positioning at period end.
•	Overall, the Master Portfolio is currently underweight in government-related sectors in favor of non-government spread sectors. Within the government-related sector, the Master Portfolio is overweight in FDIC-guaranteed debt and underweight in agency debt, agency MBS and foreign backed debt. Within the non-government spread sector, the Master Portfolio is overweight in AAA-rated CMBS, ABS and investment-grade corporate debt. The Master Portfolio also holds an out-of-index allocation to non-agency MBS. At the end of the period, the Master Portfolio was positioned with a slightly shorter duration relative to the Barclays Capital US Aggregate Bond Index.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

4 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Total Return Based on a $10,000 Investment

1	Assuming maximum sales charge, transaction costs and other operating expenses, including advisory fees, if any. Institutional Shares do not have a sales charge.
2	The Fund invests primarily in long-term, fixed income securities that are rated in the four highest categories of the recognized rating agencies (Baa or better by Moody’s Investors Service, Inc. or BBB or better by Standard & Poor’s).
3	This unmanaged market-weighted index is comprised of investment grade corporate bonds (rated BBB or better), mortgages and U.S. Treasury and government agency issues with at least one year to maturity.
4	Commencement of operations.

Performance Summary for the Period Ended September 30, 2009

					Average Annual Total Returns5
					1 Year				5 Years				Since Inception6
	Standardized 30-Day Yields		6-Month Total Returns		w/o sales charge		w/sales charge		w/o sales charge		w/sales charge		w/o sales charge		w/sales charge
BlackRock	4.60	%	14.58	%	10.64	%	N/A		3.00	%	N/A		4.21	%	N/A
Institutional	4.46		14.50		10.60		N/A		2.85		N/A		4.06		N/A
Service	4.31		14.49		10.37		N/A		2.57		N/A		3.73		N/A
Investor A	3.98		14.44		10.25		5.84	%	2.56		1.72	%	3.76		3.22	%
Investor A1	4.38		14.40		10.36		9.25		2.68		2.47		3.90		3.77
Investor B	3.63		13.97		9.50		5.50		1.95		1.62		3.18		3.18
Investor B1	4.00		14.13		9.71		8.71		2.23		2.23		3.46		3.46
Investor B2	4.57		14.48		10.28		5.78		2.24		1.91		3.26		3.26
Investor C	3.54		13.99		9.61		8.61		1.88		1.88		3.04		3.04
Investor C1	3.62		14.00		9.50		8.50		1.97		1.97		3.17		3.17
Investor C2	3.82		14.22		9.74		8.74		2.23		2.23		3.46		3.46
Class R	3.94		14.31		10.01		N/A		2.32		N/A		3.52		N/A
Barclays Capital US Aggregate Bond Index	—		5.59		10.56		N/A		5.13		N/A		5.65		N/A

5	Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 6 for a detailed description of share classes, including any related sales charges and fees.
6	The Fund commenced operations on December 7, 2001.
	N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	5

About Fund Performance
•	BlackRock Shares are not subject to any sales charge. BlackRock Shares bear no ongoing distribution or service fees and are available only to eligible investors. Prior to September 24, 2007, BlackRock Share performance results are those of BlackRock Shares of a predecessor fund with no adjustments.
•	Institutional Shares are not subject to any sales charge. Institutional Shares bear no ongoing distribution or service fees and are available only to eligible investors. Prior to September 24, 2007, Institutional Share performance results are those of BlackRock Shares of a predecessor fund restated to reflect Institutional Share fees.
•	Service Shares are not subject to any sales charge. Service Shares are subject to a service fee of 0.25% per year (but no distribution fee) and are available only to eligible investors. Prior to September 24, 2007, Service Share performance results are those of Investor A Shares of a predecessor fund restated to reflect Service Share fees.
•	Investor A Shares incur a maximum initial sales charge (front-end load) of 4% and a service fee of 0.25% per year (but no distribution fee). Prior to September 24, 2007, Investor A Share performance results are those of BlackRock Shares of a predecessor fund restated to reflect Investor A Share fees.
•	Investor A1 Shares incur a maximum initial sales charge (front-end load) of 1% and a service fee of 0.10% per year (but no distribution fee). Prior to September 24, 2007, Investor A1 Share performance results are those of BlackRock Shares of a predecessor fund restated to reflect Investor A1 Share fees.
•	Investor B Shares are subject to a maximum contingent deferred sales charge of 4%, declining to 0% after six years. In addition, Investor B Shares are subject to a distribution fee of 0.50% per year and a service fee of 0.25% per year. These shares automatically convert to Investor A Shares after approximately ten years. Prior to September 24, 2007, Investor B Share performance results are those of BlackRock Shares of a predecessor fund restated to reflect Investor B Share fees.
•	Investor B1 Shares are subject to a maximum contingent deferred sales charge of 1%, declining to 0% after three years. In addition, Investor B1 Shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. These shares automatically convert to Investor A1 Shares after approximately ten years. Prior to September 24, 2007, Investor B1 Share performance results are those of BlackRock Shares of a predecessor fund restated to reflect Investor B1 Share fees.
•	Investor B2 Shares are subject to a maximum contingent deferred sales charge of 4.50%, declining to 0% after six years. In addition, Investor B2 Shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares automatically convert to Investor A Shares after approximately seven years. Prior to September 24, 2007, Investor B2 Share performance results are those of Investor B Shares of a predecessor fund, with no adjustments.
•	Investor C Shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. In addition, Investor C Shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. Prior to September 24, 2007, Investor C Share performance results are those of Investor C Shares of a predecessor fund with no adjustments.
•	Investor C1 Shares are subject to a distribution fee of 0.55% per year and a service fee of 0.25% per year. In addition, Investor C1 Shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. Prior to September 24, 2007, Investor C1 Share performance results are those of BlackRock Shares of a predecessor fund restated to reflect Investor C1 Share fees.
•	Investor C2 Shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. In addition, Investor C2 Shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. Prior to September 24, 2007, Investor C2 Share performance results are those of BlackRock Shares of a predecessor fund restated to reflect Investor C2 Share fees.
•	Class R Shares do not incur a maximum initial sales charge (front-end load) or deferred sales charge. These shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. Class R Shares are available only to certain retirement plans. Prior to October 2, 2006, Class R Share performance results are those of the Class R Shares of a predecessor fund. Prior to the predecessor fund Class R Shares inception date, the Class R Share performance is based on the performance of the BlackRock Shares of the predecessor fund restated to reflect Class R Share fees.
	Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance table on the previous page assume reinvestment of all dividends and capital gain distributions, if any, at net asset value on the payable date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Fund’s Manager waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

6 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Disclosure of Expenses

Shareholders of this Fund may incur the following charges: (a) expenses related to transactions, including sales charges, redemption fees and exchange fees; and (b) operating expenses, including advisory fees, distribution fees including 12b-1 fees, and other Fund expenses. The expense example below (which is based on a hypothetical investment of $1,000 invested on April 1, 2009 and held through September 30, 2009) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The table provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The table also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in this Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the table are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges, redemption fees or exchange fees. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Expense Example

	Actual									Hypothetical2
	Beginning Account Value April 1, 2009			Ending Account Value September 30, 2009			Expenses Paid During the Period1			Beginning Account Value April 1, 2009			Ending Account Value September 30, 2009			Expenses Paid During the Period1
BlackRock		$	1,000		$	1,145.80		$	2.42		$	1,000		$	1,022.84		$	2.28
Institutional		$	1,000		$	1,145.00		$	3.23		$	1,000		$	1,022.09		$	3.04
Service		$	1,000		$	1,144.90		$	4.25		$	1,000		$	1,021.14		$	4.00
Investor A		$	1,000		$	1,144.40		$	4.78		$	1,000		$	1,020.64		$	4.51
Investor A1		$	1,000		$	1,144.00		$	4.14		$	1,000		$	1,021.24		$	3.90
Investor B		$	1,000		$	1,139.70		$	8.26		$	1,000		$	1,017.38		$	7.79
Investor B1		$	1,000		$	1,141.30		$	6.71		$	1,000		$	1,018.83		$	6.33
Investor B2		$	1,000		$	1,144.80		$	4.52		$	1,000		$	1,020.89		$	4.26
Investor C		$	1,000		$	1,139.90		$	8.05		$	1,000		$	1,017.58		$	7.59
Investor C1		$	1,000		$	1,140.00		$	7.94		$	1,000		$	1,017.68		$	7.49
Investor C2		$	1,000		$	1,142.20		$	6.98		$	1,000		$	1,018.58		$	6.58
Class R		$	1,000		$	1,143.10		$	6.07		$	1,000		$	1,019.43		$	5.72

1	For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.45% for BlackRock, 0.60% for Institutional, 0.79% for Service, 0.89% for Investor A, 0.77% for Investor A1, 1.54% for Investor B, 1.25% for Investor B1, 0.84% for Investor B2, 1.50% for Investor C, 1.48% for Investor C1, 1.30% for Investor C2, and 1.13% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Because the Fund invests significantly in a Master Portfolio, the expense table example reflects the expenses of both the Fund and the Master Portfolio in which it invests.
	Currently, Investor B2 does not accrue distribution fees (12b-1 fees) due to regulatory fee limits. If, during the period, the distribution fees were accrued, the actual expense ratio would have been approximately 1.59%, the actual expenses paid would have been approximately $8.55 and the hypothetical expenses paid would have been approximately $8.04.
2	Hypothetical 5% return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 7

The Benefits and Risks of Leveraging

The Master Portfolio may utilize leverage to seek to enhance its yield. However, these objectives cannot be achieved in all interest rate environments.

The Master Portfolio may utilize leverage through borrowings, including participation in the Term Asset-Backed Securities Loan Facility (“TALF”), or through entering into reverse repurchase agreements and dollar rolls. In general, the concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by the Master Portfolio on its longer-term portfolio investments. To the extent that the total assets of the Master Portfolio (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Master Portfolio’s investors will benefit from the incremental net income.

Furthermore, the value of the Master Portfolio’s investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. Changes in interest rates can influence the Master Portfolio’s NAV positively or negatively in addition to the impact on the Master Portfolio’s performance from leverage.

The use of leverage may enhance opportunities for increased income to the Master Portfolio, but as described above, it also creates risks as short- or long-term interest rates fluctuate. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Master Portfolio’s net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Master Portfolio’s net income will be less than if leverage had not been used. The Master Portfolio may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments which may cause the Master Portfolio to incur losses. The use of leverage may limit the Master Portfolio’s ability to invest in certain types of securities or use certain types of hedging strategies. The Master Portfolio will incur expenses in connection with the use of leverage, all of which are borne by Master Portfolio investors and may reduce income.

Derivative Financial Instruments

The Master Portfolio may invest in various derivative instruments, including financial futures contracts, swaps, options and foreign currency exchange contracts, as specified in Note 2 of the Notes to Financial Statements, which constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market, credit, interest rate and/or foreign currency exchange rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset, possible default of the other party to the transaction and illiquidity of the derivative instrument. The Master Portfolio’s ability to successfully use a derivative instrument depends on the investment advisor’s ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require the Master Portfolio to sell or purchase portfolio securities at inopportune times or distressed values, may limit the amount of appreciation the Master Portfolio can realize on an investment or may cause the Master Portfolio to hold a security that it might otherwise sell. The Master Portfolio’s investments in these instruments are discussed in detail in the Notes to Financial Statements.

8 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Statement of Assets and Liabilities BlackRock Total Return Fund

September 30, 2009
Assets
Investment at value — Master Total Return Portfolio of Master Bond LLC (the “Master Portfolio”) (cost — $2,454,715,819)	$	2,371,715,086
Capital shares sold receivable		9,214,508
Withdrawals receivable from the Master Portfolio		1,384,796
Prepaid expenses		42,614
Total assets		2,382,357,004
Liabilities
Capital shares redeemed payable		10,599,304
Income dividends payable		6,045,813
Service and distribution fees payable		493,997
Investment advisory fees payable		171,274
Officer’s and Directors’ fees payable		839
Other affiliates payable		31,990
Other accrued expenses payable		695,612
Total liabilities		18,038,829
Net Assets	$	2,364,318,175
Net Assets Consist of
Paid-in capital		2,655,265,776
Undistributed net investment income		10,313,132
Accumulated net realized loss		(218,260,000	)
Net unrealized appreciation/depreciation		(83,000,733	)
Net Assets	$	2,364,318,175
Net Asset Value
BlackRock — Based on net assets of $681,677,467 and 64,593,452 shares outstanding, 100 million shares authorized, $0.10 par value	$	10.55
Institutional — Based on net assets of $453,846,916 and 43,014,706 shares outstanding, 250 million shares authorized, $0.10 par value	$	10.55
Service — Based on net assets of $1,322,840 and 125,314 shares outstanding, 50 million shares authorized, $0.10 par value	$	10.56
Investor A — Based on net assets of $588,731,402 and 55,768,962 shares outstanding, 100 million shares authorized, $0.10 par value	$	10.56
Investor A1 — Based on net assets of $72,851,363 and 6,905,651 shares outstanding, 50 million shares authorized, $0.10 par value	$	10.55
Investor B — Based on net assets of $93,721,849 and 8,883,344 shares outstanding, 250 million shares authorized, $0.10 par value	$	10.55
Investor B1 — Based on net assets of $15,885,868 and 1,505,287 shares outstanding, 50 million shares authorized, $0.10 par value	$	10.55
Investor B2 — Based on net assets of $223,109 and 21,137 shares outstanding, 50 million shares authorized, $0.10 par value	$	10.56
Investor C — Based on net assets of $167,344,835 and 15,862,093 shares outstanding, 100 million shares authorized, $0.10 par value	$	10.55
Investor C1 — Based on net assets of $229,174,448 and 21,716,170 shares outstanding, 100 million shares authorized, $0.10 par value	$	10.55
Investor C2 — Based on net assets of $12,880,547 and 1,221,481 shares outstanding, 50 million shares authorized, $0.10 par value	$	10.55
Class R — Based on net assets of $46,657,531 and 4,419,205 shares outstanding, 250 million shares authorized, $0.10 par value	$	10.56

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	9

Statement of Operations BlackRock Total Return Fund

Year Ended September 30, 2009
Investment Income
Net investment income allocated from the Master Portfolio:
Interest	$	128,813,149
Income — affiliated		54,587
Dividends		63,791
Expenses		(3,571,473	)
Total income		125,360,054
Expenses
Investment advisory		7,709,083
Service — Service		2,937
Service — Investor A		1,374,568
Service — Investor A1		84,715
Service and distribution — Investor B		767,321
Service and distribution — Investor B1		93,074
Service and distribution — Investor B2		1,010
Service and distribution — Investor C		1,434,584
Service and distribution — Investor C1		1,916,362
Service and distribution — Investor C2		63,626
Service and distribution — Class R		246,832
Transfer agent — BlackRock		32,166
Transfer agent — Institutional		868,109
Transfer agent — Service		1,800
Transfer agent — Investor A		1,180,309
Transfer agent — Investor A1		223,340
Transfer agent — Investor B		407,572
Transfer agent — Investor B1		68,056
Transfer agent — Investor B2		776
Transfer agent — Investor C		460,445
Transfer agent — Investor C1		594,368
Transfer agent — Investor C2		49,893
Transfer agent — Class R		187,043
Printing		198,228
Registration		145,655
Professional		117,631
Custodian		5,370
Officer and Directors		3,430
Miscellaneous		35,926
Total expenses		18,274,229
Less fees waived by advisor		(2,864,558	)
Less fees waived by advisor — class specific		(787,643	)
Total expenses after fees waived		14,622,028
Net investment income		110,738,026
Realized and Unrealized Gain (Loss) Allocated from the Master Portfolio
Net realized loss from investments, financial futures contracts, swaps, foreign currency and options written		(156,069,880	)
Net change in unrealized appreciation/depreciation on investments, financial futures contracts, swaps, foreign currency and options written		236,671,028
Total realized and unrealized gain		80,601,148
Net Increase in Net Assets Resulting from Operations	$	191,339,174

See Notes to Financial Statements.
10	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Statements of Changes in Net Assets BlackRock Total Return Fund

	Year Ended September 30,
Increase (Decrease) in Net Assets:	2009			2008
Operations
Net investment income	$	110,738,026		$	140,075,435
Net realized gain (loss)		(156,069,880	)		7,050,809
Net change in unrealized appreciation/depreciation		236,671,028			(313,660,319	)
Net increase (decrease) in net assets resulting from operations		191,339,174			(166,534,075	)
Dividends to Shareholders From
Net investment income:
BlackRock		(24,975,115	)		(24,241,317	)
Institutional		(27,930,259	)		(39,607,234	)
Service		(70,094	)		(78,874	)
Investor A		(32,416,925	)		(33,849,664	)
Investor A1		(5,122,493	)		(6,540,091	)
Investor B		(5,381,918	)		(6,900,088	)
Investor B1		(1,033,066	)		(1,530,110	)
Investor B2		(24,465	)		(38,335	)
Investor C		(7,583,750	)		(6,756,749	)
Investor C1		(12,807,142	)		(15,218,476	)
Investor C2		(697,491	)		(795,282	)
Class R		(2,821,961	)		(2,953,008	)
Decrease in net assets resulting from dividends to shareholders		(120,864,679	)		(138,509,228	)
Capital Share Transactions
Net decrease in net assets derived from capital share transactions		(131,352,702	)		(289,905,053	)
Net Assets
Total decrease in net assets		(60,878,207	)		(594,948,356	)
Beginning of year		2,425,196,382			3,020,144,738
End of year	$	2,364,318,175		$	2,425,196,382
Undistributed net investment income	$	10,313,132		$	7,741,988

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	11

Financial Highlights BlackRock Total Return Fund

	BlackRock
	Year Ended September 30,
	2009			2008			20071			2006			2005
Per Share Operating Performance
Net asset value, beginning of year	$	10.16		$	11.41		$	11.50		$	11.65		$	11.73
Net investment income2		0.54			0.60			0.53			0.51			0.47
Net realized and unrealized gain (loss)		0.47			(1.26	)		(0.11	)		(0.09	)		(0.09	)
Net increase (decrease) from investment operations		1.01			(0.66	)		0.42			0.42			0.38
Dividends and distributions from:
Net investment income		(0.62	)		(0.59	)		(0.51	)		(0.51	)		(0.46	)
Net realized gain		—			—			—			(0.06	)		—
Total dividends and distributions		(0.62	)		(0.59	)		(0.51	)		(0.57	)		(0.46	)
Net asset value, end of year	$	10.55		$	10.16		$	11.41		$	11.50		$	11.65
Total Investment Return3
Based on net asset value		10.64	%		(6.11	)%		4.24	%		3.76	%		3.21	%
Ratios to Average Net Assets
Total expenses		0.59	%4		0.55	%4		0.75	%4		0.69	%		0.72	%
Total expenses after fees waived		0.44	%4		0.45	%4		0.48	%4		0.40	%		0.40	%
Net investment income		5.72	%4		5.30	%4		5.13	%4		4.50	%		3.98	%
Supplemental Data
Net assets, end of year (000)	$	681,677		$	369,607		$	490,237		$	366,353		$	326,033
Portfolio turnover of the Fund		—			—			238	%5		192	%		358	%
Portfolio turnover of the Master Portfolio		708	%6		1,081	%7		153	%8		—			—

1	On September 24, 2007, the Fund converted from a stand-alone investment company to a “feeder” fund that seeks to achieve its investment objective by investing all of its assets in the Master Portfolio, which has the same investment objective as the Fund. All investments will be made at the Master Portfolio level. This structure is called a “master/feeder” structure.
2	Based on average shares outstanding.
3	Where applicable, total investment returns include the reinvestment of dividends and distributions.
4	Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income.
5	Represents portfolio turnover for the period October 1, 2006 to September 24, 2007.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
7	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.
8	Represents portfolio turnover for the year.
	The performance prior to September 24, 2007 set forth in this table is the financial data of BlackRock Shares of the BlackRock Total Return Portfolio. BlackRock Total Return Fund acquired all of the assets and certain stated liabilities of the BlackRock Total Return Portfolio on September 24, 2007. The net asset values and other per share information listed have been restated to reflect the conversion ratio of 1.134182.

See Notes to Financial Statements.
12	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Financial Highlights (continued) BlackRock Total Return Fund

	Institutional
							Period September 24, 20071 to September 30, 2007
	Year Ended September 30,
	2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	10.15		$	11.40		$	11.38
Net investment income2		0.55			0.58			0.01
Net realized and unrealized gain (loss)		0.46			(1.25	)		0.03
Net increase (decrease) from investment operations		1.01			(0.67	)		0.04
Dividends from net investment income		(0.61	)		(0.58	)		(0.02	)
Net asset value, end of period	$	10.55		$	10.15		$	11.40
Total Investment Return3
Based on net asset value		10.60	%		(6.26	)%		0.27	%4
Ratios to Average Net Assets5
Total expenses		0.77	%		0.68	%		0.67	%6
Total expenses after fees waived		0.58	%		0.59	%		0.55	%6
Net investment income		5.72	%		5.16	%		4.54	%6
Supplemental Data
Net assets, end of period (000)	$	453,847		$	642,177		$	837,730
Portfolio turnover of the Master Portfolio		708	%7		1,081	%8		153	%9

1	Commencement of operations.
2	Based on average shares outstanding.
3	Where applicable, total investment returns include the reinvestment of dividends and distributions.
4	Aggregate total investment return.
5	Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income.
6	Annualized.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
8	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.
9	Represents portfolio turnover for the period.

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	13

Financial Highlights (continued) BlackRock Total Return Fund

	Service
	Year Ended September 30,
	2009			2008			20071			2006			2005
Per Share Operating Performance
Net asset value, beginning of year	$	10.16		$	11.41		$	11.50		$	11.64		$	11.72
Net investment income2		0.54			0.55			0.50			0.45			0.43
Net realized and unrealized gain (loss)		0.45			(1.25	)		(0.12	)		(0.07	)		(0.10	)
Net increase (decrease) from investment operations		0.99			(0.70	)		0.38			0.38			0.33
Dividends and distributions from:
Net investment income		(0.59	)		(0.55	)		(0.47	)		(0.46	)		(0.41	)
Net realized gain		—			—			—			(0.06	)		—
Total dividends and distributions		(0.59	)		(0.55	)		(0.47	)		(0.52	)		(0.41	)
Net asset value, end of year	$	10.56		$	10.16		$	11.41		$	11.50		$	11.64
Total Investment Return3
Based on net asset value		10.37	%		(6.47	)%		3.88	%		3.38	%		2.77	%
Ratios to Average Net Assets
Total expenses		0.98	%4		0.96	%4		1.25	%4		31.07	%		1.08	%
Total expenses after fees waived		0.78	%4		0.81	%4		0.91	%4		0.88	%		0.80	%
Net investment income		5.48	%4		4.92	%4		4.80	%4		3.93	%		3.57	%
Supplemental Data
Net assets, end of year (000)	$	1,323		$	1,324		$	1,769			—	5		—	5
Portfolio turnover of the Fund		—			—			238	%6		192	%		358	%
Portfolio turnover of the Master Portfolio		708	%7		1,081	%8		153	%9		—			—

1	On September 24, 2007, the Fund converted from a stand-alone investment company to a “feeder” fund that seeks to achieve its investment objective by investing all of its assets in the Master Portfolio, which has the same investment objective as the Fund. All investments will be made at the Master Portfolio level. This structure is called a “master/feeder” structure.
2	Based on average shares outstanding.
3	Where applicable, total investment returns include the reinvestment of dividends and distributions.
4	Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income.
5	Amount is less than $500.
6	Represents portfolio turnover for the period October 1, 2006 to September 24, 2007.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
8	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.
9	Represents portfolio turnover for the year.
	The performance prior to September 24, 2007 set forth in this table is the financial data of Service Shares of the BlackRock Total Return Portfolio. BlackRock Total Return Fund acquired all of the assets and certain stated liabilities of the BlackRock Total Return Portfolio on September 24, 2007. The net asset values and other per share information listed have been restated to reflect the conversion ratio of 1.126588.

See Notes to Financial Statements.
14	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Financial Highlights (continued) BlackRock Total Return Fund

	Investor A									Investor A1
							Period September 24, 20071 to September 30, 2007									Period September 24, 20071 to September 30, 2007
	Year Ended September 30,									Year Ended September 30,
	2009			2008						2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	10.16		$	11.41		$	11.38		$	10.15		$	11.40		$	11.38
Net Investment income2		0.53			0.55			0.01			0.54			0.56			0.01
Net realized and unrealized gain (loss)		0.45			(1.26	)		0.03			0.45			(1.26	)		0.03
Net increase (decrease) from investment operations		0.98			(0.71	)		0.04			0.99			(0.70	)		0.04
Dividends from net investment income		(0.58	)		(0.54	)		(0.01	)		(0.59	)		(0.55	)		(0.02	)
Net asset value, end of period	$	10.56		$	10.16		$	11.41		$	10.55		$	10.15		$	11.40
Total Investment Return3
Based on net asset value		10.25	%		(6.56	)%		0.35	%4		10.36	%		(6.46	)%		0.27	%4
Ratios to Average Net Assets5
Total expenses		1.04	%		1.00	%		1.02	%6		0.93	%		0.88	%		0.72	%6
Total expenses after fees waived		0.89	%		0.92	%		0.90	%6		0.80	%		0.81	%		0.64	%6
Net investment income		5.42	%		4.84	%		4.17	%6		5.55	%		4.95	%		4.43	%6
Supplemental Data
Net assets, end of period (000)	$	588,731		$	618,346		$	690,100		$	72,851		$	109,125		$	147,533
Portfolio turnover of the Master Portfolio		708	%7		1,081	%8		153	%9		708	%7		1,081	%8		153	%9

1	Commencement of operations.
2	Based on average shares outstanding.
3	Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4	Aggregate total investment return.
5	Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income.
6	Annualized.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
8	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.
9	Represents portfolio turnover for the period.

See Notes to Financial Statements.
	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	15

Financial Highlights (continued) BlackRock Total Return Fund

	Investor B									Investor B1
							Period September 24, 20071 to September 30, 2007									Period September 24, 20071 to September 30, 2007
	Year Ended September 30,									Year Ended September 30,
	2009			2008						2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	10.15		$	11.40		$	11.38		$	10.16		$	11.41		$	11.38
Net investment income2		0.46			0.47			0.01			0.49			0.50			0.01
Net realized and unrealized gain (loss)		0.45			(1.25	)		0.02			0.44			(1.25	)		0.03
Net increase (decrease) from investment operations		0.91			(0.78	)		0.03			0.93			(0.75	)		0.04
Dividends from net investment income		(0.51	)		(0.47	)		(0.01	)		(0.54	)		(0.50	)		(0.01	)
Net asset value, end of period	$	10.55		$	10.15		$	11.40		$	10.55		$	10.16		$	11.41
Total Investment Return3
Based on net asset value		9.50	%		(7.18	)%		0.26	%4		9.71	%		(6.91	)%		0.35	%4
Ratios to Average Net Assets5
Total expenses		1.72	%		1.64	%		1.51	%6		1.44	%		1.36	%		1.20	%6
Total expenses after fees waived		1.58	%		1.57	%		1.43	%6		1.30	%		1.30	%		1.12	%6
Net investment income		4.76	%		4.18	%		3.64	%6		5.05	%		4.46	%		3.96	%6
Supplemental Data
Net assets, end of period (000)	$	93,722		$	131,142		$	193,973		$	15,886		$	24,912		$	42,961
Portfolio turnover of the Master Portfolio		708	%7		1,081	%8		153	%9		708	%7		1,081	%8		153	%9

1	Commencement of operations.
2	Based on average shares outstanding.
3	Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4	Aggregate total investment return.
5	Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income.
6	Annualized.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
8	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.
9	Represents portfolio turnover for the period.

See Notes to Financial Statements.
16	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Financial Highlights (continued) BlackRock Total Return Fund

	Investor B2															Investor C
	Year Ended September 30,															Year Ended September 30,
	2009			2008			20071			2006			2005			2009			2008			20071			2006			2005
Per Share Operating Performance
Net asset value, beginning of year	$	10.16		$	11.40		$	11.49		$	11.63		$	11.71		$	10.15		$	11.40		$	11.49		$	11.63		$	11.71
Net investment income2		0.54			0.54			0.49			0.38			0.33			0.47			0.48			0.16			0.38			0.32
Net realized and unrealized gain (loss)		0.44			(1.24	)		(0.12	)		(0.09	)		(0.09	)		0.45			(1.26	)		0.16			(0.09	)		(0.08	)
Net increase (decrease) from investment operations		0.98			(0.70	)		0.37			0.29			0.24			0.92			(0.78	)		0.32			0.29			0.24
Dividends and distributions from:
Net investment income		(0.58	)		(0.54	)		(0.46	)		(0.37	)		(0.32	)		(0.52	)		(0.47	)		(0.41	)		(0.37	)		(0.32	)
Net realized gain		—			—			—			(0.06	)		—			—			—			—			(0.06	)		—
Total dividends and distributions		(0.58	)		(0.54	)		(0.46	)		(0.43	)		(0.32	)		(0.52	)		(0.47	)		(0.41	)		(0.43	)		(0.32	)
Net asset value, end of year	$	10.56		$	10.16		$	11.40		$	11.49		$	11.63		$	10.55		$	10.15		$	11.40		$	11.49		$	11.63
Total Investment Return3
Based on net asset value		10.28	%		(6.50	)%		3.59	%		2.50	%		2.02%			9.61	%		(7.12	)%		3.12	%		2.50	%		2.02	%
Ratios to Average Net Assets
Total expenses		1.01	%4		1.02	%4		1.28	%4		3.30	%		1.84%			1.90	%4		1.95	%4		2.08	%4		10.03	%		1.84	%
Total expenses after fees waived		0.88	%4		0.95	%4		1.03	%4		1.62	%		1.56%			1.48	%4		1.50	%4		1.53	%4		1.62	%		1.56	%
Net investment income		5.53	%4		4.78	%4		4.73	%4		3.29	%		2.84%			4.81	%4		4.24	%4		3.85	%4		3.27	%		2.78	%
Supplemental Data
Net assets, end of year (000)	$	223		$	612		$	1,027		$	226		$	137		$	167,345		$	157,147		$	137,586		$	102		$	53
Portfolio turnover of the Fund		—			—			238	%5		192	%		358%			—			—			238	%5		192	%		358	%
Portfolio turnover of the Master Portfolio		708	%6		1,081	%7		153	%8		—			—			708	%6		1,081	%7		153	%8		—			—

1	On September 24, 2007, the Fund converted from a stand-alone investment company to a “feeder” fund that seeks to achieve its investment objective by investing all of its assets in the Master Portfolio, which has the same investment objective as the Fund. All investments will be made at the Master Portfolio level. This structure is called a “master/feeder” structure.
2	Based on average shares outstanding.
3	Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4	Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income.
5	Represents portfolio turnover for the period October 1, 2006 to September 24, 2007.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
7	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.
8	Represents portfolio turnover for the year.
	The performance prior to September 24, 2007 set forth in this table is the financial data of Investor B and Investor C Shares of the BlackRock Total Return Portfolio. BlackRock Total Return Fund acquired all of the assets and certain stated liabilities of the BlackRock Total Return Portfolio on September 24, 2007. The net asset values and other per share information listed have been restated to reflect the conversion ratio of 1.132883 and 1.133781, respectively.

See Notes to Financial Statements.
	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	17

Financial Highlights (continued) BlackRock Total Return Fund

	Investor C1									Investor C2
							Period September 24, 20071 to September 30, 2007									Period September 24, 20071 to September 30, 2007
	Year Ended September 30,									Year Ended September 30,
	2009			2008						2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	10.16		$	11.41		$	11.38		$	10.15		$	11.40		$	11.37
Net investment income2		0.47			0.48			0.01			0.49			0.50			0.01
Net realized and unrealized gain (loss)		0.44			(1.25	)		0.03			0.44			(1.26	)		0.03
Net increase (decrease) from investment operations		0.91			(0.77	)		0.04			0.93			(0.76	)		0.04
Dividends from net investment income		(0.52	)		(0.48	)		(0.01	)		(0.53	)		(0.49	)		(0.01	)
Net asset value, end of period	$	10.55		$	10.16		$	11.41		$	10.55		$	10.15		$	11.40
Total Investment Return3
Based on net asset value		9.50	%		(7.09	)%		0.35	%4		9.74	%		(6.95	)%		0.35	%4
Ratios to Average Net Assets5
Total expenses		1.62	%		1.55	%		1.45	%6		1.46	%		1.40	%		1.29	%6
Total expenses after fees waived		1.48	%		1.49	%		1.37	%6		1.33	%		1.33	%		1.21	%6
Net investment income		4.85	%		4.27	%		3.70	%6		4.99	%		4.42	%		3.87	%6
Supplemental Data
Net assets, end of period (000)	$	229,174		$	297,811		$	393,738		$	12,881		$	15,099		$	20,654
Portfolio turnover of the Master Portfolio		708	%7		1,081	%8		153	%9		708	%7		1,081	%8		153	%9

1	Commencement of operations.
2	Based on average shares outstanding.
3	Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4	Aggregate total investment return.
5	Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income.
6	Annualized.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
8	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.
9	Represents portfolio turnover for the period.

See Notes to Financial Statements.
18	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Financial Highlights (concluded) BlackRock Total Return Fund

	Class R
							Period October 2, 20061 to September 30, 2007
	Year Ended September 30,
	2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	10.16		$	11.41		$	11.50
Net investment income2		0.51			0.52			0.11
Net realized and unrealized gain (loss)		0.45			(1.25	)		0.26
Net increase (decrease) from investment operations		0.96			(0.73	)		0.37
Dividends from net investment income		(0.56	)		(0.52	)		(0.46	)
Net asset value, end of period	$	10.56		$	10.16		$	11.41
Total Investment Return3
Based on net asset value		10.01	%		(6.76	)%		3.48	%4
Ratios to Average Net Assets5
Total expenses		1.45	%		1.37	%		1.37	%6
Total expenses after fees waived		1.11	%		1.13	%		1.10	%6
Net investment income		5.23	%		4.62	%		4.01	%6
Supplemental Data
Net assets, end of period (000)	$	46,658		$	57,895		$	62,836
Portfolio turnover of the Fund		—			—			238	%7
Portfolio turnover of the Master Portfolio		708	%8		1,081	%9		153	%10

1	Commencement of operations.
2	Based on average shares outstanding.
3	Where applicable, total investment returns include the reinvestment of dividends and distributions.
4	Aggregate total investment return.
5	Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income.
6	Annualized.
7	Represents portfolio turnover for the year.
8	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
9	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.
10	Represents portfolio turnover for the period.
	The performance prior to September 24, 2007 set forth in this table is the financial data of Class R Shares of the BlackRock Total Return Portfolio. BlackRock Total Return Fund acquired all of the assets and certain stated liabilities of the BlackRock Total Return Portfolio on September 24, 2007. The net asset values and other per share information listed have been restated to reflect the conservation ratio of 1.133286.

See Notes to Financial Statements.
	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	19

Notes to Financial Statements BlackRock Total Return Fund

1. Organization and Significant Accounting Policies:

BlackRock Total Return Fund (the “Fund”) is a series of BlackRock Bond Fund, Inc. (the “Bond Fund”) and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Fund seeks to achieve its investment objective by investing all of its assets in Master Total Return Portfolio (the “Master Portfolio”), of Master Bond LLC (the “Master LLC”), which has the same investment objective and strategies as the Fund. The Master LLC is organized as a Delaware limited liability company. The value of the Fund’s investment in the Master Portfolio reflects the Fund’s proportionate interest in the net assets of the Master Portfolio. The percentage of the Master Portfolio owned by the Fund at September 30, 2009 was 75.9%. The performance of the Fund is directly affected by the performance of the Master Portfolio. The financial statements of the Master Portfolio, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements. The Fund’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Fund offers multiple classes of shares. Institutional and Service Shares are sold without a sales charge and only to certain eligible investors. Investor A and Investor A1 Shares are generally sold with a front-end sales charge. Investor B, Investor B1, Investor B2, Investor C, Investor C1 and Investor C2 Shares are subject to a contingent deferred sales charge. In addition, Investor A1, Investor B, Investor B1, Investor B2, Investor C1 and Investor C2 Shares are sold only to certain eligible investors. Investor B and Class R Shares are sold only to certain retirement or similar plans.

All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Service, Investor A, Investor A1, Investor B, Investor B1, Investor B2, Investor C, Investor C1, Investor C2 and Class R Shares bear certain expenses related to the shareholder servicing of such shares and Investor B, Investor B1, Investor B2, Investor C, Investor C1, Investor C2 and Class R Shares also bear certain expenses related to the distribution of such shares. Investor B and Investor B1 Shares automatically convert to Investor A and Investor A1 Shares, respectively, after approximately 10 years. Investor B2 Shares automatically convert to Investor A Shares after approximately 7 years. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor B, Investor B1 and Investor B2 shareholders may vote on material changes to the Investor A and Investor A1 distribution plans as applicable).

The following is a summary of significant accounting policies followed by the Fund:

Valuation: The Fund records its investments in the Master Portfolio at fair value. Valuation of securities held by the Master Portfolio is discussed in Note 1 of the Master Portfolio’s Notes to Financial Statements, which are included elsewhere in this report.

Fair Value Measurements: Various inputs are used in determining the fair value of investments, which are as follows:

• Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

• Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

• Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of September 30, 2009, the Fund’s investment in the Master Portfolio was classified as Level 2. The Fund believes more relevant disclosure regarding fair value measurements relates to the Master Portfolio, which is disclosed in Note 1 of the Master Portfolio’s Notes to Financial Statements included elsewhere in this report.

Investment Transactions and Net Investment Income: For financial reporting purposes, investment transactions in the Master Portfolio are accounted for on a trade date basis. The Fund records daily its proportionate share of the Master Portfolio’s income, expenses and realized and unrealized gains and losses. In addition, the Fund accrues its own expenses. Income and realized and unrealized gains and losses on investments are allocated daily to each class based on its relative net assets.

Dividends and Distributions to Shareholders: Dividends from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates.

Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

20 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Notes to Financial Statements (continued) BlackRock Total Return Fund

The Fund files US federal and various state local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s US federal tax returns remain open for the four years ended Septem-ber 30, 2009. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending on the jurisdiction.

Recent Accounting Standards: In June 2009, amended guidance was issued by the Financial Accounting Standards Board for transfers of financial assets. This guidance is intended to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement, if any, in transferred financial assets. The amended guidance is effective for financial statements for fiscal years and interim periods beginning after November 15, 2009. Earlier application is prohibited. The recognition and measurement provisions of this guidance must be applied to transfers occurring on or after the effective date. Additionally, the enhanced disclosure provisions of the amended guidance should be applied to transfers that occurred both before and after the effective date of this guidance. The impact of this guidance on the Fund’s financial statements and disclosures, if any, is currently being assessed.

Other: Expenses directly related to the Fund or its classes are charged to that Fund or class. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods. Other expenses of the Fund are allocated daily to each class based on its relative net assets.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Fund under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

The Bond Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Fund’s investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services.

The Manager is responsible for the management of the Fund and the Bond Fund’s other series, BlackRock High Income Fund, and provides the necessary personnel, facilities and equipment to provide such services to the Bond Fund. The Manager also performs certain administrative services necessary for the operation of the Bond Fund. For such services the Manager receives, at the end of each month, a fee with respect to the Fund at the annual rates set forth below which are based upon the aggregate average daily value of the Bond Fund’s net assets at the following annual rates: 0.50% of the Bond Fund’s average daily net assets not exceeding $250 million; 0.45% of the average daily net assets in excess of $250 million but not exceeding $500 million; 0.40% of average daily net assets in excess of $500 million but not exceeding $750 million; and 0.35% of average daily net assets in excess of $750 million. For the year ended September 30, 2009, the aggregate average daily net assets of the Bond Fund were approximately $2,917,185,000. The Manager has contractually agreed to waive the Fund’s investment advisory fee in the amount of the Fund’s share of the investment advisory fee paid by the Master Portfolio. For the year ended September 30, 2009, the Manager waived $2,864,558, which is included in fees waived by advisor in the Statement of Operations.

For the year ended September 30, 2009, the Manager contractually agreed to waive and/or reimburse fees and/or expenses in order to limit expenses (excluding interest expense and certain other fund expenses) as a percentage of average daily net assets allocated to each class of the Fund as follows: 0.40% (for BlackRock Shares), 0.55% (for Institutional Shares), 0.85% (for Service Shares), 0.90% (for Investor A Shares), 1.65% (for Investor B2 Shares), 1.65% (for Investor C Shares) and 1.10% (for Class R Shares) until August 1, 2010. In addition to the contractual waivers described above, the Manager has voluntarily agreed to waive and/or reimburse fees or expenses in order to limit expenses (excluding interest expense and certain other Fund expenses) as a percentage of average daily net assets allocated to each class of the Fund as follows: 0.76% (for Service Shares), 1.53% (for Investor B2 Shares), 1.45% (for Investor C Shares) and 1.08% (for Class R Shares). As a result, the Manager waived the following amounts which is included in fees waived by advisor — class specific in the Statement of Operations:

	Fees Waived by Advisor
BlackRock	$	9,023
Institutional		240,862
Service		674
Investor A		43,400
Investor C		392,089
Class R		101,595
Total	$	787,643

The Manager has entered into a sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager, under which the Manager pays BFM a fee that is a percentage of the investment advisory fee paid by the Fund to the Manager.

The Bond Fund has entered into a Distribution Agreement and Distribution Plans on behalf of the Fund with BlackRock Investments, LLC (“BRIL”), which is an affiliate of BlackRock.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 21

Notes to Financial Statements (continued) BlackRock Total Return Fund

Pursuant to the Distribution Plans adopted by the Bond Fund in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares as follows:

	Service Fee		Distribution Fee
Service	0.25	%	—
Investor A	0.25	%	—
Investor A1	0.10	%	—
Investor B	0.25	%	0.50	%
Investor B1	0.25	%	0.25	%
Investor B2	0.25	%	0.75	%
Investor C	0.25	%	0.75	%
Investor C1	0.25	%	0.55	%
Investor C2	0.25	%	0.25	%
Class R	0.25	%	0.25	%

Pursuant to sub-agreements with BRIL, broker-dealers, including Merrill Lynch, Pierce, Fenner and Smith Incorporated (“MLPF&S”), a wholly owned subsidiary of Merrill Lynch, and BRIL provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to Service, Investor A, Investor A1, Investor B, Investor B1, Investor B2, Investor C, Investor C1, Investor C2 and Class R shareholders. For the year ended September 30, 2009 the Fund did not accrue Investor B2 distribution fees because of regulatory limits.

For the year ended September 30, 2009, affiliates, including Merrill Lynch, from October 1, 2008 to December 31, 2008 (after which time Merrill Lynch was no longer considered an affiliate) earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares, which totaled $100,887. Affiliates received contingent deferred sales charges as follows:

Investor B	$	90,078
Investor B1	$	731
Investor B2	$	1,088
Investor C	$	62,723
Investor C1	$	12,107
Investor C2	$	161

PNC Global Investment Servicing (U.S.) Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the Manager, serves as transfer agent and dividend disbursing agent. Each class of the Fund bears the costs of transfer agent fees associated with such respective class. Transfer agency fees borne by each class of the Fund are comprised of those fees charged for all shareholder communications including mailing of shareholder reports, dividend and distribution notices, and proxy materials for shareholder meetings, as well as per account and per transaction fees related to servicing and maintenance of shareholder accounts, including the issuing, redeeming and transferring of shares of each class of the Fund, 12b-1 fee calculation, check writing, anti-money laundering services, and customer identification services.

Pursuant to written agreements, certain affiliates, including Merrill Lynch, from October 1, 2008 to December 31, 2008 (after which time Merrill Lynch was no longer considered an affiliate) provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these affiliates receive an annual fee per shareholder account which will vary depending on share class. For the year ended September 30, 2009, the Fund paid $1,066,900 in return for these services, which is included in transfer agent in the Statement of Operations.

The Fund may earn income on positive cash balances in demand deposit accounts that are maintained by the transfer agent on behalf of the Fund. For the year ended September 30, 2009, the Fund earned $2,452, which is included in Income — affiliated in the Statement of Operations.

The Manager maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the year ended September 30, 2009, the following amounts have been accrued by the Fund to reimburse the Manager for costs incurred running the call center, which are included in transfer agent in the Statement of Operations.

BlackRock	$	2,734
Institutional	$	9,692
Service	$	113
Investor A	$	10,817
Investor A1	$	1,441
Investor B	$	2,656
Investor B1	$	364
Investor B2	$	51
Investor C	$	4,054
Investor C1	$	5,562
Investor C2	$	256
Class R	$	664

Certain officers and/or directors of the Bond Fund are officers and/or directors of BlackRock, or its affiliates. The Fund reimburses the Manager for compensation paid to the Fund’s Chief Compliance Officer.

22 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Notes to Financial Statements (continued) BlackRock Total Return Fund

3. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of September 30, 2009 attributable to the accounting for swap agreements, amortization methods on fixed income securities, the classification of investments, foreign currency transactions, and the expiration of capital loss carryforwards were reclassified to the following accounts:

Paid-in capital	$	(12,816,607	)
Undistributed net investment income	$	12,697,797
Accumulated net realized loss	$	118,810

The tax character of distributions paid during the fiscal years ended September 30, 2009 and 2008 was as follows:

Ordinary income
9/30/2009	$	120,864,679
9/30/2008	$	138,509,228

As of September 30, 2009, the tax components of accumulated net losses were as follows:

Undistributed ordinary income	$	11,994,726
Capital loss carryforwards		(62,415,128	)
Net unrealized losses*		(240,527,199	)
Total	$	(290,947,601	)

* The differences between book-basis and tax-basis net unrealized losses is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, amortization methods for premiums and discounts on fixed income securities, the realization for tax purposes of unrealized gains (losses) on certain futures and foreign currency contracts, the deferral of post-October capital losses for tax purposes, the accounting for swap agreements, and the classification of investments.

As of September 30, 2009, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

Expires September 30,
2013	$	71,451
2014		8,093,306
2015		23,885,656
2016		10,255,556
2017		20,109,159
Total	$	62,415,128

4. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Year Ended September 30, 2009						Year Ended September 30, 2008
	Shares			Amount			Shares			Amount
BlackRock
Shares sold		40,546,242		$	409,857,288			4,628,710		$	52,477,533
Shares issued to shareholders in reinvestment of dividends		2,270,665			22,368,136			1,885,023			21,114,013
Total issued		42,816,907			432,225,424			6,513,733			73,591,546
Shares redeemed		(14,606,891	)		(144,178,757	)		(13,097,624	)		(147,546,681	)
Net increase (decrease)		28,210,016		$	288,046,667			(6,583,891	)	$	(73,955,135	)
Institutional
Shares sold		9,853,802		$	96,181,307			14,337,660		$	160,960,965
Shares issued to shareholders in reinvestment of dividends		2,512,112			24,501,041			2,499,632			27,909,614
Total issued		12,365,914			120,682,348			16,837,292			188,870,579
Shares redeemed		(32,593,943	)		(321,518,144	)		(27,058,472	)		(304,379,234	)
Net decrease		(20,228,029	)	$	(200,835,796	)		(10,221,180	)	$	(115,508,655	)

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 23

Notes to Financial Statements (continued) BlackRock Total Return Fund

	Year Ended September 30, 2009						Year Ended September 30, 2008
	Shares			Amount			Shares			Amount
Service
Shares sold		70,643		$	701,066			24,841		$	280,763
Shares issued to shareholders in reinvestment of dividends		6,498			63,639			6,465			72,242
Total issued		77,141			764,705			31,306			353,005
Shares redeemed		(82,163	)		(812,224	)		(56,019	)		(626,677	)
Net decrease		(5,022	)	$	(47,519	)		(24,713	)	$	(273,672	)
Investor A
Shares sold and automatic conversion of shares		14,264,403		$	139,637,174			17,821,322		$	201,397,182
Shares issued to shareholders in reinvestment of dividends		2,979,970			29,118,922			2,721,792			30,408,979
Total issued		17,244,373			168,756,096			20,543,114			231,806,161
Shares redeemed		(22,339,818	)		(217,010,448	)		(20,161,940	)		(225,686,317	)
Net increase (decrease)		(5,095,445	)	$	(48,254,352	)		381,174		$	6,119,844
Investor A1
Shares sold and automatic conversion of shares		1,997,717		$	19,542,209			2,830,817		$	31,918,774
Shares issued to shareholders in reinvestment of dividends		470,023			4,574,802			534,370			5,971,790
Total issued		2,467,740			24,117,011			3,365,187			37,890,564
Shares redeemed		(6,310,454	)		(61,744,068	)		(5,555,500	)		(62,280,566	)
Net decrease		(3,842,714	)	$	(37,627,057	)		(2,190,313	)	$	(24,390,002	)
Investor B
Shares sold		1,236,054		$	12,073,495			1,712,339		$	19,278,051
Shares issued to shareholders in reinvestment of dividends		448,121			4,361,353			498,001			5,568,643
Total issued		1,684,175			16,434,848			2,210,340			24,846,694
Shares redeemed and automatic conversion of shares		(5,716,821	)		(55,507,765	)		(6,304,635	)		(70,798,766	)
Net decrease		(4,032,646	)	$	(39,072,917	)		(4,094,295	)	$	(45,952,072	)
Investor B1
Shares sold		289,439		$	2,823,586			431,347		$	4,854,779
Shares issued to shareholders in reinvestment of dividends		90,096			876,987			117,462			1,316,084
Total issued		379,535			3,700,573			548,809			6,170,863
Shares redeemed and automatic conversion of shares		(1,327,088	)		(12,935,631	)		(1,862,400	)		(20,947,774	)
Net decrease		(947,553	)	$	(9,235,058	)		(1,313,591	)	$	(14,776,911	)
Investor B2
Shares sold		—			—			1		$	10
Shares issued to shareholders in reinvestment of dividends		1,883		$	18,258			2,725			30,449
Total issued		1,883			18,258			2,726			30,459
Shares redeemed and automatic conversion of shares		(40,970	)		(401,397	)		(32,579	)		(367,939	)
Net decrease		(39,087	)	$	(383,139	)		(29,853	)	$	(337,480	)

24 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Notes to Financial Statements (concluded) BlackRock Total Return Fund

	Year Ended September 30, 2009						Year Ended September 30, 2008
	Shares			Amount			Shares			Amount
Investor C
Shares sold		7,033,222		$	69,048,493			8,103,085		$	91,146,697
Shares issued to shareholders in reinvestment of dividends		677,122			6,614,725			547,326			6,094,016
Total issued		7,710,344			75,663,218			8,650,411			97,240,713
Shares redeemed		(7,325,659	)		(71,117,668	)		(5,242,896	)		(58,527,611	)
Net increase		384,685		$	4,545,550			3,407,515		$	38,713,102
Investor C1
Shares sold		883,582		$	8,631,216			1,038,182		$	11,690,667
Shares issued to shareholders in reinvestment of dividends		1,129,940			11,009,289			1,184,526			13,244,116
Total issued		2,013,522			19,640,505			2,222,708			24,934,783
Shares redeemed		(9,619,589	)		(93,211,998	)		(7,419,084	)		(83,071,268	)
Net decrease		(7,606,067	)	$	(73,571,493	)		(5,196,376	)	$	(58,136,485	)
Investor C2
Shares sold		189,077		$	1,851,653			199,604		$	2,243,704
Shares issued to shareholders in reinvestment of dividends		56,946			555,211			55,810			623,159
Total issued		246,023			2,406,864			255,414			2,866,863
Shares redeemed		(512,336	)		(4,963,574	)		(579,711	)		(6,516,126	)
Net decrease		(266,313	)	$	(2,556,710	)		(324,297	)	$	(3,649,263	)
Class R
Shares sold		1,933,855		$	18,915,768			2,749,845		$	30,941,003
Shares issued to shareholders in reinvestment of dividends		288,405			2,811,204			263,989			2,947,526
Total issued		2,222,260			21,726,972			3,013,834			33,888,529
Shares redeemed		(3,500,657	)		(34,087,850	)		(2,822,946	)		(31,646,853	)
Net increase (decrease)		(1,278,397	)	$	(12,360,878	)		190,888		$	2,241,676

5. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Fund through November 25, 2009, the date the financial statements were issued, and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 25

Report of Independent Registered Public Accounting Firm BlackRock Total Return Fund

To the Shareholders and Board of Directors of BlackRock Bond Fund, Inc.:

We have audited the accompanying statement of assets and liabilities of BlackRock Total Return Fund, one of the portfolios constituting BlackRock Bond Fund, Inc. (the “Fund”) as of September 30, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Total Return Fund of BlackRock Bond Fund, Inc. as of September 30, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
November 25, 2009

Important Tax Information (Unaudited)

The following information is provided with respect to the ordinary income distributions paid by BlackRock Total Return Fund of BlackRock Bond Fund, Inc. during the fiscal year ended September 30, 2009:

Federal Obligation Interest*		3.26	%
	Interest Related Dividends for Non-U.S. Residents**
Month(s) Paid:	October 2008	90.83	%
	November 2008 – December 2008	72.09	%
	January 2009 – September 2009	87.58	%

*	The law varies in each state as to whether and what percentage of dividend income attributable to Federal Obligations is exempt from state income tax. We recommend that you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes.
**	Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.

26 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Portfolio Information Master Total Return Portfolio

As of September 30, 2009

Portfolio Composition	Percent of Long-Term Investments
U.S. Government Sponsored Agency Securities	39	%
Non-Agency Mortgage-Backed Securities	21
Corporate Bonds	17
U.S. Treasury Obligations	10
Asset-Backed Securities	9
Preferred Securities	2
Taxable Municipal Bonds	1
Foreign Agency Obligations	1
Credit Quality Allocation1	Percent of Long-Term Investments
AAA/Aaa2	73	%
AA/Aa	6
A/A	7
BBB/Baa	6
BB/Ba	3
B/B	2
CCC/Caa	3

1	Using the higher of Standard & Poor’s or Moody’s Investors Service.
2	Includes US Government Sponsored Agency Securities which are deemed AAA/Aaa by the investment advisor.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 27

Schedule of Investments September 30, 2009	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
ACE Securities Corp. (a):
Series 2003-OP1 Class A2, 0.61%, 12/25/33	USD	581	$	192,586
Series 2005-ASP1 Class M1, 0.93%, 9/25/35		11,203		812,218
Series 2006-CW1 Class A2C, 0.39%, 7/25/36		1,680		732,492
Accredited Mortgage Loan Trust Series 2007-1 (a):
Class A1, 0.30%, 2/25/37		178		170,575
Class A3, 0.38%, 2/25/37		2,000		862,530
Aegis Asset Backed Securities Trust, Series 2006-1 Class A1, 0.33%, 1/25/37 (a)		94		91,655
American Airlines, Inc., Series 2003-1, 3.86%, 1/09/12		1,849		1,790,700
American Express Issuance Trust, Series 2008-2 Class A, 4.02%, 1/18/11		25,950		26,219,953
Ameriquest Mortgage Securities, Inc., Series 2004-R11 Class A1, 0.55%, 11/25/34 (a)		475		306,124
Banc of America Securities Auto Trust, Series 2006-G1 Class A4, 5.17%, 12/20/10		22,413		22,681,790
Bank of America Auto Trust, Series 2009-2A Class A2, 1.16%, 2/15/12 (b)		20,765		20,776,797
Bear Stearns Asset Backed Securities Trust (a):
Series 2005-4 Class A, 0.58%, 1/25/36		1,476		1,383,546
Series 2005-HE10 Class A2, 0.54%, 11/25/35		2,282		2,207,175
Series 2005-SD1 Class 1A2, 0.55%, 7/25/27		5,189		4,834,803
Series 2006-HE8 Class 1A1, 0.32%, 10/25/36		2,279		2,219,431
Series 2006-HE10 Class 21A1, 0.32%, 12/25/36		5,929		5,335,876
Carrington Mortgage Loan Trust (a):
Series 2006-NC4 Class A1, 0.30%, 10/25/36		74		70,574
Series 2006-NC5 Class A1, 0.30%, 1/25/37		168		160,217
Chase Issuance Trust, Series 2009-A7 Class A7, 0.69%, 9/17/12 (a)		30,025		30,027,309
Citigroup Mortgage Loan Trust, Inc., Series 2006-HE2 Class A2C, 0.40%, 8/25/36 (a)		1,975		1,182,025
Continental Airlines, Inc., Series 2002-1, 6.56%, 8/15/13		2,555		2,427,250
Countrywide Asset-Backed Certificates (a):
Series 2003-BC3 Class A2, 0.87%, 9/25/33		909		612,869
Series 2004-5 Class A, 0.70%, 10/25/34		1,655		1,128,514
Series 2004-13 Class AF4, 4.58%, 1/25/33		8,641		7,301,182
Series 2006-13 Class 3AV2, 0.40%, 1/25/37		2,272		1,491,710
Series 2006-14 Class 2A1, 0.30%, 2/25/37		126		124,334
Series 2006-17 Class 2A2, 0.40%, 3/25/47		1,360		833,731
Series 2006-18, Class 2A1, 0.30%, 3/25/37		171		169,332
Series 2006-19 Class 2A1, 0.31%, 3/25/37		72		71,002
Series 2006-21 Class 2A1, 0.30%, 5/25/37		5,263		5,067,459
Series 2006-22 Class 2A1, 0.30%, 5/25/47		120		114,063
Series 2006-25 Class 2A1, 0.32%, 6/25/47		492		474,498
Series 2007-1 Class 2A1, 0.30%, 7/25/37		249		232,654
DaimlerChrysler Auto Trust:
Series 2006-D Class A3, 4.98%, 2/08/11		4,597		4,627,445
Series 2008-C Class A2A, 3.72%, 1/15/11		373		375,223
Series 2009-A Class A3B, 2.74%, 5/15/13 (a)		51,480		53,025,708
GMAC 93, 7.43%, 12/01/22		12,986		12,855,780
GSAA Home Equity Trust (a):
Series 2006-5 Class 2A1, 0.32%, 3/25/36		164		106,148
Series 2006-9 Class A1, 0.30%, 6/25/36		4		4,130
Series 2006-10 Class AV1, 0.33%, 6/25/36		60		57,005

Asset-Backed Securities	Par (000)			Value
GSAMP Trust, Series 2007-NC1 Class A2B, 0.35%, 12/25/46 (a)	USD	1,150		$	370,157
Harley-Davidson Motorcycle Trust, Series 2006-2 Class A2, 5.35%, 3/15/13		5,578			5,759,312
Home Equity Asset Trust, Series 2007-2 Class 2A1, 0.36%, 7/25/37 (a)		252			235,355
IXIS Real Estate Capital Trust, Series 2007-HE1 Class A1, 0.31%, 5/25/37 (a)		7,034			3,545,504
Irwin Home Equity Corp., Series 2005-C Class 1A1, 0.51%, 4/25/30 (a)		971			915,555
JPMorgan Mortgage Acquisition Corp. (a):
Series 2006-HE3 Class A2, 0.33%, 11/25/36		1,446			1,400,979
Series 2007-CH5 Class A3, 0.36%, 5/25/37		2,240			1,061,329
Lehman XS Trust, Series 2005-5N Class 3A2, 0.61%, 11/25/35 (a)		11,095			3,007,781
Long Beach Mortgage Loan Trust, Series 2006-11 Class 2A1, 0.31%, 12/25/36 (a)		3,395			2,597,044
Maryland Insurance Backed Securities Trust, Series 2006-1A Class, 5.55%, 12/10/65		2,500			875,000
Morgan Stanley ABS Capital I (a):
Series 2005-HE1 Class A2MZ, 0.55%, 12/25/34		820			600,511
Series 2007-NC1 Class A2A, 0.30%, 11/25/36		3,242			3,181,911
New Century Home Equity Loan Trust, Series 2005-2 Class A2MZ, 0.51%, 6/25/35 (a)		2,543			1,984,748
Nissan Auto Receivables Owner Trust:
Series 2006-C Class A4, 5.45%, 6/15/12		448			460,414
Series 2009-1 Class A2, 3.92%, 4/15/11		1,530			1,552,215
Option One Mortgage Loan Trust, Series 2003-4 Class A2, 0.89%, 7/25/33 (a)		2,592			1,778,006
PECO Energy Transition Trust, Series 2001-A Class A1, 6.52%, 12/31/10		510			529,933
Park Place Securities, Inc., Series 2005-WCH1 (a):
Class A1B, 0.55%, 1/25/35		12			11,644
Class A3D, 0.59%, 1/25/35		215			212,944
Popular ABS Mortgage Pass-Through Trust, Series 2006-D Class A1, 0.31%, 11/25/46 (a)		60			57,627
RAAC, Series 2005-SP2 Class 2A, 0.55%, 6/25/44 (a)		9,660			4,299,165
Residential Asset Mortgage Products, Inc., Series 2005-RS3 Class AI2, 0.42%, 3/25/35 (a)		353			347,225
Residential Asset Securities Corp., Series 2003-KS5 Class AIIB, 0.83%, 7/25/33 (a)		1,027			448,643
SLM Student Loan Trust:
Series 2005-4 Class A2, 0.58%, 4/26/21		7,060			6,998,050
Series 2008-5 Class A1, 1.30%, 10/25/13		1,191			1,193,667
Series 2008-5 Class A2, 1.60%, 10/25/16		33,280			33,825,363
Series 2008-5 Class A3, 1.80%, 1/25/18		9,520			9,749,958
Series 2008-5 Class A4, 2.20%, 7/25/23		24,880			25,773,672
Small Business Administration, Class 1:
Series 2002-P10, 5.20%, 8/10/12		109			113,789
Series 2004-P10, 4.50%, 2/10/14		501			516,091
Soundview Home Equity Loan Trust, Series 2006-EQ1 Class A2, 0.36%, 10/25/36 (a)		803			738,831
Structured Asset Receivables Corp. (b):
Series 2003-2 Class, 4.82%, 1/21/09 (a)		—	(c)		433
Series 2003-Al2 Class A, 3.36%, 1/25/31		454			449,096
Structured Asset Securities Corp. (a):
Series 2004-23XS Class 2A1, 0.55%, 1/25/35		3,116			1,895,081
Series 2006-BC2 Class A3, 0.40%, 9/25/36		3,455			1,598,074
Series 2006-BC6 Class A2, 0.33%, 1/25/37		7,458			6,836,649
Series 2007-BC1 Class A2, 0.30%, 2/25/37		1,123			1,046,298
USAA Auto Owner Trust, Series 2006-4 Class A4, 4.98%, 10/15/12		21,651			22,415,826
Total Asset-Backed Securities — 11.5%					361,542,293

See Notes to Financial Statements.
28	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Preferred Securities

Capital Trusts	Par (000)		Value
Capital Markets — 0.1%
Credit Suisse Guernsey Ltd., 5.86% (a)(d)	USD	3,101	$	2,356,760
Goldman Sachs Capital II, 5.79% (a)(d)		3,180		2,289,600
Lehman Brothers Holdings Capital Trust VII, 5.86% (a)(d)(e)(f)		1,868		187
				4,646,547
Commercial Banks — 0.3%
Barclays Bank Plc (a)(b)(d):
5.93%		1,125		832,500
7.43%		100		87,500
8.55%		6,660		6,060,600
Wachovia Capital Trust III, 5.80% (a)(d)		1,865		1,286,850
				8,267,450
Diversified Financial Services — 0.5%
General Electric Capital Corp., 6.38%, 11/15/67 (a)		8,490		7,025,475
JPMorgan Chase & Co., 7.90% (a)(d)		10,730		10,302,624
				17,328,099
Insurance — 1.1%
Chubb Corp., 6.38%, 3/29/67 (a)		6,825		6,142,500
Lincoln National Corp. (a):
7.00%, 5/17/66		4,185		2,992,275
6.05%, 4/20/67		3,060		2,065,500
MetLife, Inc., 6.40%, 12/15/66		8,275		6,992,375
Progressive Corp., 6.70%, 6/15/67 (a)		6,460		5,553,649
Reinsurance Group of America, 6.75%, 12/15/65 (a)		4,415		3,119,277
The Travelers Cos., Inc., 6.25%, 3/15/67 (a)		5,715		5,024,777
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(b)		1,329		1,076,490
				32,966,843
Total Preferred Securities — 2.0%				63,208,939

Corporate Bonds
Aerospace & Defense — 0.1%
BAE Systems Holdings, Inc., 5.20%, 8/15/15 (b)	340	354,535
L-3 Communications Corp.:
5.88%, 1/15/15	1,360	1,353,200
Series B, 6.38%, 10/15/15	697	703,970
		2,411,705
Air Freight & Logistics — 0.2%
United Parcel Service, Inc., 3.88%, 4/01/14	6,775	7,103,547
Building Products — 0.0%
Masco Corp., 7.13%, 8/15/13	155	158,836
Capital Markets — 2.0%
The Bear Stearns Cos., Inc., 0.91%, 7/19/10 (a)	4,995	5,007,243
The Goldman Sachs Group, Inc., 5.25%, 10/15/13	7,770	8,248,749
Lehman Brothers Holdings, Inc., 6.75%, 12/28/17 (e)(f)	7,180	718
Morgan Stanley:
6.75%, 4/15/11	265	282,563
0.79%, 1/09/12 (a)(g)	43,250	42,093,408
7.30%, 5/13/19	385	423,605
5.63%, 9/23/19	6,300	6,194,784
		62,251,070

Corporate Bonds	Par (000)		Value
Chemicals — 0.3%
Huntsman International LLC:
7.88%, 11/15/14	USD	4,390	$	4,093,675
7.38%, 1/01/15		1,285		1,166,137
NOVA Chemicals Corp.:
6.50%, 1/15/12		1,005		982,388
4.54%, 11/15/13 (a)		2,292		2,022,690
				8,264,890
Commercial Banks — 0.6%
Corporacion Andina de Fomento, 6.88%, 3/15/12		5,125		5,532,971
Eksportfinans A/S, 5.50%, 5/25/16		8,025		8,668,388
HSBC Bank USA NA, 4.63%, 4/01/14		415		428,310
Royal Bank of Scotland Group Plc, 2.63%, 5/11/12 (b)		2,650		2,689,371
				17,319,040
Consumer Finance — 0.3%
Ford Motor Credit Co. LLC, 9.75%, 9/15/10		2,445		2,498,519
SLM Corp.:
5.40%, 10/25/11		6,000		5,536,320
5.13%, 8/27/12		1,450		1,240,727
Series CPI, 0.69%, 1/31/14 (a)		1,300		774,943
				10,050,509
Containers & Packaging — 0.2%
Ball Corp.:
7.13%, 9/01/16		2,440		2,488,800
7.38%, 9/01/19		2,440		2,476,600
				4,965,400
Diversified Financial Services — 1.9%
CIT Group, Inc.:
4.25%, 2/01/10		810		583,982
4.75%, 12/15/10		890		614,832
5.80%, 7/28/11		1,055		717,531
5.40%, 2/13/12		825		541,470
General Electric Capital Corp.:
5.00%, 11/15/11		18,780		19,766,945
Series A, 5.00%, 12/01/10		10,915		11,282,071
JPMorgan Chase & Co., 4.50%, 11/15/10		10		10,295
JPMorgan Chase Bank NA:
6.00%, 7/05/17 (g)		13,805		14,499,971
Series BKNT, 6.00%, 10/01/17		10,900		11,464,064
				59,481,161
Diversified Telecommunication Services — 2.1%
AT&T, Inc.:
5.50%, 2/01/18		9,750		10,172,906
6.50%, 9/01/37		8,975		9,643,700
Cincinnati Bell, Inc., 7.25%, 7/15/13		200		203,000
Comcast Cable Holdings LLC, 7.88%, 8/01/13		150		170,229
GTE Corp.:
6.84%, 4/15/18		8,030		8,749,351
6.94%, 4/15/28		100		107,519
Qwest Communications International, Inc.:
7.50%, 2/15/14		1,150		1,135,625
Series B, 7.50%, 2/15/14		810		799,875
Qwest Corp.:
8.88%, 3/15/12		1,075		1,131,438
3.55%, 6/15/13 (a)		135		126,225
8.38%, 5/01/16 (b)		2,625		2,716,875
TELUS Corp., 8.00%, 6/01/11		605		658,294
Telecom Italia Capital SA:
5.25%, 10/01/15		325		336,463
6.00%, 9/30/34		45		43,869

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	29

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Diversified Telecommunication Services (concluded)
Telefonica Emisiones SAU:
5.98%, 6/20/11	USD	1,070	$	1,140,086
4.95%, 1/15/15		9,225		9,785,954
Telefonica Europe BV, 7.75%, 9/15/10		2,010		2,126,166
Verizon Communications, Inc.:
8.75%, 11/01/18		11,200		13,991,600
6.35%, 4/01/19		725		800,594
Verizon Maryland, Inc. Series B, 5.13%, 6/15/33		95		80,841
Verizon New Jersey, Inc., 7.85%, 11/15/29		35		38,791
Verizon Virginia, Inc. Series A, 4.63%, 3/15/13		60		62,329
Windstream Corp.:
8.13%, 8/01/13		240		246,600
8.63%, 8/01/16		255		260,738
				64,529,068
Electric Utilities — 0.5%
Entergy Gulf States, Inc., 0.76%, 12/01/09 (a)		825		824,160
Florida Power & Light Co.:
5.63%, 4/01/34		150		162,065
5.95%, 2/01/38		3,575		4,057,253
Florida Power Corp., 6.40%, 6/15/38		6,650		7,866,870
Progress Energy, Inc., 7.10%, 3/01/11		885		938,196
Southern California Edison Co. Series 08-A, 5.95%, 2/01/38		2,800		3,177,709
				17,026,253
Food & Staples Retailing — 0.0%
CVS Caremark Corp., 0.66%, 6/01/10 (a)		400		400,290
Food Products — 0.8%
Kraft Foods, Inc.:
6.50%, 8/11/17		7,555		8,172,606
6.13%, 2/01/18		8,090		8,572,803
Tyson Foods, Inc., 10.50%, 3/01/14		6,490		7,349,925
				24,095,334
Gas Utilities — 0.0%
El Paso Natural Gas Co., 8.63%, 1/15/22		130		157,945
Health Care Equipment & Supplies — 0.0%
DJO Finance LLC, 10.88%, 11/15/14		360		368,100
Health Care Providers & Services — 0.0%
Tenet Healthcare Corp. (b):
9.00%, 5/01/15		127		132,715
10.00%, 5/01/18		147		162,068
				294,783
Hotels, Restaurants & Leisure — 0.3%
American Real Estate Partners LP:
8.13%, 6/01/12		75		74,344
7.13%, 2/15/13		1,890		1,819,125
Harrah’s Operating Co., Inc., 10.00%, 12/15/18 (b)		1,696		1,348,320
Wendy’s International, Inc., 6.25%, 11/15/11		5,380		5,380,000
				8,621,789
Household Durables — 1.4%
American Greetings Corp., 7.38%, 6/01/16		570		545,775
Belvoir Land LLC Series A-1, 5.27%, 12/15/47 (b)		325		221,760
Centex Corp., 5.13%, 10/01/13		9,798		9,749,010
DR Horton, Inc.:
6.88%, 5/01/13		7,830		7,986,600
6.13%, 1/15/14		9,830		9,756,275
5.63%, 9/15/14		2,269		2,189,585
Irwin Land LLC Series A-2, 5.40%, 12/15/47 (b)		600		410,820
KB Home, 6.38%, 8/15/11		1,488		1,502,880
Lennar Corp. Series B, 5.60%, 5/31/15		3,610		3,330,225

Corporate Bonds	Par (000)		Value
Household Durables (concluded)
Pulte Homes Inc.:
6.25%, 2/15/13	USD	430	$	436,450
5.20%, 2/15/15		2,720		2,584,000
Ryland Group, Inc., 5.38%, 5/15/12		2,445		2,445,000
Toll Brothers Finance Corp., 4.95%, 3/15/14		2,260		2,183,031
				43,341,411
IT Services — 0.6%
First Data Corp., 9.88%, 9/24/15		10,240		9,459,200
iPayment Investors LP, 12.75%, 7/15/14 (b)(h)		486		194,412
Sabre Holdings Corp., 6.35%, 3/15/16		10,080		8,416,800
				18,070,412
Independent Power Producers & Energy Traders — 0.4%
AES Ironwood LLC, 8.86%, 11/30/25		82		75,400
AES Red Oak LLC Series B, 9.20%, 11/30/29		50		46,125
NRG Energy, Inc., 7.38%, 2/01/16		740		715,950
TXU Corp., 5.55%, 11/15/14		11,845		8,083,585
Texas Competitive Electric Holdings Co. LLC:
10.50%, 11/01/16 (h)		135		92,753
Series B, 10.25%, 11/01/15 (i)		4,463		3,213,360
				12,227,173
Insurance — 1.4%
Hartford Life Global Funding Trusts, 0.48%, 6/16/14 (a)		13,275		9,884,246
Metropolitan Life Global Funding I (b):
2.88%, 9/17/12		8,375		8,340,185
5.13%, 4/10/13		11,675		12,104,967
5.13%, 6/10/14		1,400		1,462,566
Monument Global Funding Ltd., 0.42%, 6/16/10 (a)(b)		2,510		2,443,463
Prudential Financial, Inc., 4.75%, 9/17/15		10,790		10,714,297
				44,949,724
Internet & Catalog Retail — 0.3%
Expedia, Inc., 7.46%, 8/15/18		8,620		9,137,200
Media — 1.9%
Belo Corp., 6.75%, 5/30/13		1,805		1,694,444
Comcast Cable Communications Holdings, Inc., 8.38%, 3/15/13		670		778,172
Comcast Corp.:
5.50%, 3/15/11		610		641,494
5.90%, 3/15/16		425		456,748
7.05%, 3/15/33		155		175,780
6.45%, 3/15/37		7,000		7,412,223
6.95%, 8/15/37		1,250		1,395,202
Cox Communications, Inc.:
7.13%, 10/01/12		3,895		4,344,958
8.38%, 3/01/39 (b)		6,130		7,561,815
News America, Inc.:
7.13%, 4/08/28		125		128,522
7.63%, 11/30/28		140		145,198
6.20%, 12/15/34		75		73,791
6.40%, 12/15/35		5,210		5,255,733
6.75%, 1/09/38		5,060		5,310,121
Shaw Communications, Inc., 7.20%, 12/15/11		3,135		3,338,775
TCI Communications, Inc., 8.75%, 8/01/15		360		434,417
Time Warner Cable, Inc., 5.85%, 5/01/17		4,225		4,454,616
Time Warner Cos., Inc.:
9.13%, 1/15/13		9,715		11,281,213
7.57%, 2/01/24		720		782,638
Time Warner Entertainment Co. LP, 8.38%, 3/15/23		150		179,931
Time Warner, Inc.:
0.68%, 11/13/09 (a)		1,995		1,995,505
6.75%, 4/15/11		200		213,753
				58,055,049

See Notes to Financial Statements.
30	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Metals & Mining — 0.0%
Aleris International, Inc., 9.00%, 12/15/14 (e)(f)	USD	140	$	140
Arch Western Finance LLC, 6.75%, 7/01/13		795		782,081
Freeport-McMoRan Copper & Gold, Inc., 5.00%, 4/01/15 (a)		1,150		1,152,334
				1,934,555
Multi-Utilities — 0.0%
CenterPoint Energy, Inc., 7.25%, 9/01/10		480		492,805
Multiline Retail — 0.2%
Macys Retail Holdings, Inc., 5.35%, 3/15/12		4,865		4,735,513
The May Department Stores Co., 5.75%, 7/15/14		1,350		1,268,393
				6,003,906
Oil, Gas & Consumable Fuels — 2.5%
BP Capital Markets Plc, 3.13%, 3/10/12		11,425		11,802,882
Canadian Natural Resources, Ltd., 5.90%, 2/01/18		2,625		2,798,919
Cenovus Energy, Inc., 6.75%, 11/15/39 (b)		4,905		5,285,299
ConocoPhillips:
4.60%, 1/15/15		16,822		17,954,020
7.00%, 3/30/29		80		91,220
Consolidated Natural Gas Co.:
Series A, 5.00%, 3/01/14		235		247,600
Series C, 6.25%, 11/01/11		150		161,730
Enterprise Products Operating LLC, 6.13%, 10/15/39		4,600		4,647,610
Enterprise Products Operating LP, 4.95%, 6/01/10		450		457,016
Kinder Morgan Finance Co. ULC, 5.35%, 1/05/11		5,350		5,376,750
Kinder Morgan, Inc., 6.50%, 9/01/12		2,235		2,296,462
MidAmerican Energy Holdings Co., 5.95%, 5/15/37		7,100		7,489,002
Shell International Finance BV, 4.00%, 3/21/14		14,500		15,231,032
Tennessee Gas Pipeline Co., 7.00%, 10/15/28		920		980,316
XTO Energy, Inc., 6.75%, 8/01/37		3,370		3,748,896
				78,568,754
Pharmaceuticals — 2.0%
Bristol-Myers Squibb Co., 6.88%, 8/01/97		75		87,310
Eli Lilly & Co., 3.55%, 3/06/12		5,415		5,670,642
GlaxoSmithKline Capital, Inc., 4.85%, 5/15/13		8,050		8,648,381
Merck & Co., Inc., 4.00%, 6/30/15		11,910		12,514,278
Pfizer, Inc., 5.35%, 3/15/15		19,655		21,764,119
Roche Holdings Inc. (b):
2.39%, 2/25/11 (a)		2,735		2,809,233
5.00%, 3/01/14		11,425		12,351,293
Wyeth, 6.00%, 2/15/36		100		110,940
				63,956,196
Real Estate Investment Trusts (REITs) — 0.1%
iStar Financial, Inc., 5.65%, 9/15/11		2,220		1,531,800
Road & Rail — 0.0%
The Hertz Corp., 8.88%, 1/01/14		1,160		1,171,600
Software — 0.2%
Oracle Corp., 5.75%, 4/15/18		5,980		6,589,003
Specialty Retail — 0.0%
Limited Brands, Inc., 6.13%, 12/01/12		395		388,795
Wireless Telecommunication Services — 1.4%
Rogers Wireless, Inc., 7.50%, 3/15/15		140		161,396
Verizon Wireless Capital LLC, 3.75%, 5/20/11 (b)(g)		27,550		28,424,079
Vodafone Group Plc:
7.75%, 2/15/10		1,125		1,153,126
5.00%, 12/16/13		275		293,282
4.15%, 6/10/14		13,150		13,504,090
5.00%, 9/15/15		130		137,378
				43,673,351
Total Corporate Bonds — 21.7%				677,591,454

Foreign Agency Obligations	Par (000)		Value
Israel Government Bond:
5.50%, 9/18/23	USD	850	$	922,717
5.50%, 4/26/24		625		673,225
Japan Finance Corp., 2.00%, 6/24/11		8,440		8,547,889
Landwirtschaftliche Rentenbank:
4.13%, 7/15/13		1,015		1,069,571
Series E, 5.25%, 7/02/12		3,515		3,830,482
Series E, 4.38%, 1/15/13		2,860		3,035,753
Series E, 4.00%, 2/02/15		2,235		2,325,097
Mexico Government International Bond, 6.38%, 1/16/13		2,818		3,089,937
Province of Ontario Canada, 4.10%, 6/16/14		14,630		15,467,787
United Kingdom Gilt, 4.25%, 12/07/49	GBP	4,880		8,064,572
Total Foreign Agency Obligations — 1.5%				47,027,030

Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 10.4%
American Home Mortgage Investment Trust, Series 2005-1 Class 6A, 5.29%, 6/25/45 (a)	USD	1,941	1,191,943
Banc of America Alternative Loan Trust, Series 2004-7 Class 4A1, 5.00%, 8/25/19		823	780,585
Bear Stearns Adjustable Rate Mortgage Trust (a):
Series 2005-4 Class 3A1, 5.37%, 8/25/35		69,277	58,104,142
Series 2006-2 Class 2A1, 5.65%, 7/25/36		2,231	1,507,103
BlackRock Capital Finance LP, Series 1997-R2 Class AP, 1.31%, 12/25/35 (a)(b)(j)		10	10,162
CitiMortgage Alternative Loan Trust, Series 2007-A8 Class A1, 6.00%, 10/25/37		23,346	17,625,978
Citigroup Mortgage Loan Trust, Inc., Series 2007-2 Class 2A, 6.00%, 11/25/36		824	753,776
Collateralized Mortgage Obligation Trust, Series 57 Class D, 9.90%, 2/01/19		17	18,514
Countrywide Alternative Loan Trust:
Series 2004-18CB Class 2A5, 0.70%, 9/25/34 (a)		853	736,106
Series 2005-21B Class A17, 6.00%, 6/25/35		20,924	18,936,323
Series 2006-OA10 Class 4A1, 0.44%, 8/25/46 (a)		2,897	1,382,741
Series 2006-0A21 Class A1, 0.44%, 3/20/47 (a)		10,778	5,449,271
Series 2006-OC8 Class 2A1A, 0.34%, 11/25/36 (a)		365	361,721
Series 2006-OC9 Class A1, 0.32%, 12/25/46 (a)		6,081	5,591,757
Series 2006-OC10 Class 2A1, 0.34%, 11/25/36 (a)		4,305	3,989,685
Series 2006-OC11 Class 2A1, 0.35%, 1/25/37 (a)		6,415	5,807,604
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2004-29 Class1A1, 0.79%, 2/25/35 (a)		469	294,899
Series 2006-0A5 Class 2A1, 0.45%, 4/25/46 (a)		4,667	2,216,599
Series 2006-0A5 Class 3A1, 0.45%, 4/25/46 (a)		8,532	3,981,745
Series 2007-16 Class A1, 6.50%, 10/25/37		3,896	3,189,797
Credit Suisse Mortgage Capital Certificates, Series 2006-8 Class 3A1, 6.00%, 10/25/21		4,922	3,273,164
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2005-2 Class 1A1, 0.65%, 4/25/35 (a)		2,088	1,060,275
First Horizon Asset Securities, Inc., Series 2005-AR3 Class 3A1, 5.50%, 8/25/35 (a)		3,797	3,433,500

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	31

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Collateralized Mortgage Obligations (concluded)
GSR Mortgage Loan Trust:
Series 2005-AR4 Class 6A1, 5.25%, 7/25/35 (a)	USD	13,373	$	11,916,288
Series 2006-0A1 Class 2A1, 0.44%, 8/25/46 (a)		1,475		1,044,323
Series 2006-2F Class 2A2, 5.75%, 2/25/36		1,058		872,974
Harborview Mortgage Loan Trust (a):
Series 2005-8 Class 1A2A, 0.58%, 9/19/35		1,238		662,418
Series 2005-10 Class 2A1A, 0.56%, 11/19/35		1,520		871,334
Series 2006-9 Class 2A1A, 0.46%, 11/19/36		399		198,986
Series 2006-11 Class A1A, 0.42%, 12/19/36		1,050		510,678
Homebanc Mortgage Trust, Series 2006-2 Class A1, 0.43%, 12/25/36 (a)		10,232		4,943,095
Impac CMB Trust, Series 2005-6 Class 1A2, 0.39%, 10/25/35 (a)		603		285,791
Impac Secured Assets CMN Owner Trust (a):
Series 2004-3 Class 1A4, 1.05%, 11/25/34		1,732		1,293,661
Series 2004-3 Class M1, 1.15%, 11/25/34		11,950		3,124,565
IndyMac Index Mortgage Loan Trust,
Series 2006-AR41 Class A3, 0.43%, 2/25/37 (a)		16,048		7,506,959
JPMorgan Mortgage Trust:
Series 2006-S2 Class 2A2, 5.88%, 7/25/36		2,326		2,128,151
Series 2007-S1 Class 1A2, 5.50%, 3/25/22		1,497		1,268,939
Luminent Mortgage Trust, Series 2006-7 Class 1A1, 0.43%, 12/25/36 (a)		21,029		9,832,628
Ocwen Residential MBS Corp., Series 1998-R2 Class AP, 9.95%, 11/25/34 (a)(b)		29		5,779
Structured Adjustable Rate Mortgage Loan Trust, Series 2007-3 Class 2A1, 5.73%, 4/25/37 (a)		25,728		17,637,816
Structured Asset Securities Corp., Series 2005-GEL2 Class A, 0.53%, 4/25/35 (a)		1,057		909,809
WaMu Mortgage Pass Through Certificates (a):
Series 2000-1 Class B1, 4.75%, 1/25/40 (b)		1		58
Series 2006-AR11 Class 1A, 1.86%, 9/25/46		1,347		620,875
Series 2006-AR18 Class 1A1, 5.28%, 1/25/37		26,414		17,467,550
Series 2007-0A4 Class 1A, 1.67%, 5/25/47		5,086		2,656,189
Series 2007-0A5 Class 1A, 1.65%, 6/25/47		5,617		3,019,551
Wells Fargo Mortgage Backed Securities Trust (a):
Series 2005-AR15 Class 2A1, 5.11%, 9/25/35		32,842		30,030,993
Series 2006-AR2 Class 2A5, 5.03%, 3/25/36		29,895		22,272,497
Series 2006-AR3 Class A4, 5.71%, 3/25/36		30,094		22,397,534
Series 2006-AR4 Class 2A4, 5.78%, 4/25/36		1,500		1,107,591
Series 2006-AR12 Class 2A1, 6.10%, 9/25/36		6,786		5,357,415
Series 2006-AR15 Class A1, 5.66%, 10/25/36		6,615		5,129,183
Series 2006-AR17 Class A1, 5.33%, 10/25/36		10,732		8,125,344
				322,896,364
Commercial Mortgage-Backed Securities — 16.7%
Banc of America Commercial Mortgage, Inc., Series 2005-3 Class A3A, 4.62%, 7/10/43		850		844,244
Banc of America Commercial Mortgage, Inc.:
Series 2004-4 Class A6, 4.88%, 7/10/42 (a)		2,840		2,755,669
Series 2004-7 Class 4A1, 6.50%, 4/15/36		1,514		1,566,725
Series 2006-2 Class A4, 5.74%, 5/10/45 (a)		5,460		5,248,924

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Bear Stearns Commercial Mortgage Securities:
Series 1998-C1 Class A2, 6.44%, 6/16/30	USD	461	$	460,668
Series 2000-WF2 Class A2, 7.32%, 10/15/32 (a)		1,240		1,273,917
Series 2004-PWR6 Class A6, 4.83%, 11/11/41		440		432,278
Series 2007-PW15 Class A4, 5.33%, 2/11/44		20,950		18,858,691
CS First Boston Mortgage Securities Corp.:
Series 2001-CK6 Class A3, 6.39%, 8/15/36		366		383,108
Series 2002-CKS4 Class A2, 5.18%, 11/15/36		3,440		3,544,757
Series 2002-CP5 Class A1, 4.11%, 12/15/35		6,487		6,597,054
Series 2003-C3 Class A5, 3.94%, 5/15/38		3,550		3,494,013
Series 2003-CPN1 Class A2, 4.60%, 3/15/35		1,000		1,003,307
Chase Commercial Mortgage Securities Corp.:
Series 1999-2 Class A2, 7.20%, 1/15/32		4,560		4,557,239
Series 2000-1 Class A2, 7.76%, 4/15/32		12,385		12,513,863
Citigroup Commercial Mortgage Trust, Series 2005-C3 Class A4, 4.86%, 5/15/43		860		835,066
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD5 Class A4, 5.89%, 11/15/44 (a)		446		416,582
Commercial Mortgage Asset Trust, Series 1999-C2 Class A2, 7.55%, 11/17/32 (a)		50		49,948
Commercial Mortgage Pass Through Certificates (a):
Series 2000-C1 Class A2, 7.42%, 8/15/33		176		177,798
Series 2004-LB3A Class A3, 5.09%, 7/10/37		9,900		9,727,017
Series 2007-C9 Class A4, 6.01%, 12/10/49		384		346,366
Credit Suisse Mortgage Capital Certificates, Series 2006-CA4 Class A2, 5.36%, 9/15/39 (k)		25,000		25,238,403
DLJ Commercial Mortgage Corp., Series 2000-CKP1 Class A1B, 7.18%, 11/10/33		2,051		2,112,197
First Union National Bank Commercial Mortgage:
Series 2000-C1 Class A2, 7.84%, 5/17/32		9,582		9,713,247
Series 2001-C2 Class A2, 6.66%, 1/12/43		3,161		3,304,865
Series 2001-C3 Class A3, 6.42%, 8/15/33		1,221		1,283,185
GE Capital Commercial Mortgage Corp.:
Series 2001-3 Class A2, 6.07%, 6/10/38		1,670		1,761,007
Series 2002-1A Class A3, 6.27%, 12/10/35		1,730		1,834,815
Series 2005-C4 Class A4, 5.51%, 11/10/45 (a)		1,850		1,765,905
Series 2007-C1 Class A2, 5.42%, 12/10/49 (k)		38,422		37,887,596
GMAC Commercial Mortgage Securities, Inc.:
Series 1998-C2 Class D, 6.50%, 5/15/35		2,472		2,469,743
Series 2000-C1 Class A2, 7.72%, 3/15/33 (a)		488		489,913
Series 2000-C2 Class A2, 7.46%, 8/16/33 (a)		967		991,565
Series 2000-C2 Class A2, 5.67%, 5/10/40 (a)		2,465		2,571,228
Series 2001-C1 Class B, 6.67%, 4/15/34 (a)		15,000		15,309,608
Series 2003-C3 Class A4, 5.02%, 4/10/40		2,325		2,375,960
Series 2004-C3 Class AAB, 4.70%, 12/10/41		700		709,789
GS Mortgage Securities Corp. II:
Series 2004-GG2 Class A4, 4.96%, 8/10/38		1,625		1,603,677
Series 2006-GG6 Class A2, 5.51%, 4/10/38 (a)		18,650		18,778,855
Series 2007-GG10 Class A2, 5.78%, 8/10/45 (a)(k)		36,500		36,614,555
Greenwich Capital Commercial Funding Corp.:
Series 2004-GG1 Class A4, 4.76%, 6/10/36		20,425		20,573,719
Series 2005-GG3 Class A3, 4.57%, 8/10/42		2,445		2,424,283
Series 2005-GG3 Class AAB, 4.62%, 8/10/42		955		964,063
Series 2006-GG7 Class A4, 5.92%, 7/10/38 (a)		467		426,907
Series 2007-GG9 Class A4, 5.44%, 3/10/39		1,850		1,639,495

See Notes to Financial Statements.
32	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Commercial Mortgage-Backed Securities (concluded)
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2001-C1 Class A3, 5.86%, 10/12/35 USD		960	$	1,010,938
Series 2001-CIB2 Class A3, 6.43%, 4/15/35		21,558		22,246,754
Series 2001-CIB3 Class A3, 6.47%, 11/15/35		2,960		3,111,879
Series 2001-CIBC Class A3, 6.26%, 3/15/33		1,031		1,064,511
Series 2004-CBX Class A5, 4.65%, 1/12/37		900		896,990
Series 2006-LDP8 Class A2, 5.29%, 5/15/45 (k)		25,000		25,056,573
Series 2007-LD1 Class A2, 5.99%, 6/15/49 (a)		9,700		9,724,910
LB-UBS Commercial Mortgage Trust:
Series 2000-C3 Class A2, 7.95%, 5/15/25 (a)		13,176		13,280,473
Series 2000-C4 Class A2, 7.37%, 8/15/26		831		849,430
Series 2005-C1 Class AAB, 4.57%, 2/15/30		1,050		1,072,585
Series 2006-C7 Class A2, 5.30%, 11/15/38		20,170		20,128,819
Series 2007-C1 Class A4, 5.42%, 2/15/40		1,500		1,257,943
Series 2007-C7 Class A2, 5.59%, 9/15/45		1,845		1,854,212
Merrill Lynch/Countrywide Commercial Mortgage Series 2006-2 Class A2, 5.88%, 6/12/46 (a)(k)		14,159		14,412,408
Merrill Lynch Mortgage Trust (a):
Series 2006-C1 Class A2, 5.79%, 5/12/39 (k)		40,000		40,469,176
Series 2007-C1 Class A2, 5.92%, 6/12/50		1,850		1,852,774
Morgan Stanley Capital, Class A2:
Series 2006-IQ11, 5.69%, 10/15/42 (a)		6,715		6,776,914
Series 2007-HQ11, 5.36%, 2/12/44 (k)		13,000		12,878,182
Series 2007-HQ12, 5.81%, 4/12/49 (a)		3,520		3,373,109
Morgan Stanley Dean Witter Capital I:
Series 2000-LIFE Class A2, 7.57%, 11/15/36 (a)		7,790		7,824,521
Series 2001-TOP3 Class A4, 6.39%, 7/15/33		1,319		1,375,370
Prudential Mortgage Capital Funding, LLC Series 2001-Rock Class A2, 6.61%, 5/10/34		2,114		2,214,621
Prudential Securities Secured Financing Corp. Series 2000-C1 Class A2, 7.73%, 5/17/32 (a)		8,424		8,508,038
Salomon Brothers Mortgage Securities VII, Inc.:
Series 2000-C1 Class A2, 7.52%, 2/18/32 (a)		146		146,634
Series 2000-C3 Class A2, 6.59%, 12/18/33		1,420		1,455,739
Series 2001-C2 Class A3, 6.50%, 11/13/36		4,769		5,036,796
Wachovia Bank Commercial Mortgage Trust:
Series 2005-C21 Class A3, 5.21%, 10/15/44 (a)		9,420		9,480,462
Series 2006-C28 Class A2, 5.50%, 10/15/48 (k)		29,196		29,290,341
Series 2006-C29 Class A4, 5.31%, 11/15/48		7,040		6,339,007
				520,921,923
Interest Only Collateralized Mortgage Obligations — 0.0%
GS Mortgage Securities Corp. II, Series 2003-C1 Class X2, 0.97%, 1/10/40 (b)		11,206		40,012
WaMu Commercial Mortgage Securities Trust, Series 2005-C1A Class X, 2.06%, 5/25/36 (a)(b)		9,805		303,915
				343,927
Total Non-Agency Mortgage-Backed Securities — 27.1%				844,162,214

Taxable Municipal Bonds		Par (000)	Value
Chicago Metropolitan Water Reclamation District, GO, Build America Bonds, 5.72%, 12/01/38	USD	4,195	$	4,607,620
Dallas Area Rapid Transit, RB, Build America Bonds, 6.00%, 12/01/44		2,210		2,484,084
Leland Stanford Junior University, 4.75%, 5/01/19		2,450		2,580,928
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39		5,540		6,884,613
New Jersey State Turnpike Authority, RB, Build America Bonds, Taxable, Series F, 7.41%, 1/01/40		1,245		1,540,289
New York State Dormitory Authority, RB, Build America Bonds, 5.63%, 3/15/39		4,600		4,841,132
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29		3,275		3,615,895
State of California, GO, Taxable, Various Purpose, Series 3, 5.45%, 4/01/15		20,425		21,574,315
State of Texas, GO, Build America Bonds, Taxable, 5.52%, 4/01/39		11,140		11,809,403
Total Taxable Municipal Bonds — 1.9%				59,938,279
U.S. Government Sponsored Agency Securities
Agency Obligations — 4.4%
Fannie Mae:
6.25%, 2/01/11		16,780		17,770,591
5.25%, 8/01/12		49,176		52,555,866
1.75%, 8/10/12		325		326,481
6.63%, 11/15/30		200		258,143
Federal Home Loan Banks, 5.38%, 5/15/19 (g)(l)		36,340		39,852,697
Freddie Mac:
1.75%, 6/15/12 (g)		10,700		10,756,485
2.13%, 3/23/12		1,850		1,884,266
Resolution Funding Corp. (m):
6.39%, 7/15/18		100		70,698
6.40%, 10/15/18		100		69,778
Tennessee Valley Authority, 5.25%, 9/15/39		12,145		12,814,469
				136,359,474
Collateralized Mortgage Obligations — 1.7%
Fannie Mae Mortgage Backed Securities:
Series 2003-41 Class XU, 4.00%, 7/25/15		5,584		5,618,615
Series 2003-W5 Class A, 0.47%, 4/25/33 (a)		20		17,809
Series 2004-29 Class HC, 7.50%, 7/25/30		847		903,838
Series 2005-63 Class PA, 5.50%, 10/25/24		2,677		2,693,827
Series 2006-26 Class QA, 5.50%, 6/25/26		1,112		1,151,052
Series 2006-M2 Class A2A, 5.27%, 10/25/32 (a)		4,600		5,007,252
Series 2007-22 Class PA, 5.50%, 3/25/37		12,266		13,183,502
Series 2007-108 Class AN, 8.83%, 11/25/37 (a)		12,682		13,934,127
Series 2989 Class KA, 4.50%, 3/15/19		823		855,643
Freddie Mac Mortgage Backed Securities:
Series 2825 Class VP, 5.50%, 6/15/15		1,361		1,462,334
Series 3063 Class YB, 5.50%, 6/15/26 (b)		1,035		1,061,891
Series 3068 Class VA, 5.50%, 10/15/16		8,300		8,762,453
				54,652,343
Federal Deposit Insurance Corporation Guaranteed — 5.7%
Citibank NA, 1.38%, 8/10/11		47,100		47,268,430
Citigroup Funding, Inc.:
2.13%, 7/12/12		12,005		12,137,523
1.88%, 10/22/12		25,800		25,849,975
2.25%, 12/10/12		1,715		1,738,091
Citigroup, Inc., 1.88%, 5/07/12		1,465		1,474,701

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	33

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

U.S. Government Sponsored Agency Securities		Par (000)	Value
Federal Deposit Insurance Corporation Guaranteed (concluded)
General Electric Capital Corp.:
2.25%, 3/12/12	USD	16,400	$	16,696,168
2.00%, 9/28/12		16,400		16,491,397
2.13%, 12/21/12		33,930		34,238,186
2.63%, 12/28/12		20,550		21,054,523
Morgan Stanley, 2.25%, 3/13/12		1,205		1,227,049
				178,176,043
Interest Only Collateralized Mortgage Obligations — 0.1%
Ginnie Mae Mortgage Backed Securities, Series 2009-26 Class SC, 5.95%, 1/16/38		24,082		2,332,131
Mortgage-Backed Securities — 38.1%
Fannie Mae Mortgage Backed Securities:
4.00%, 10/15/39 – 10/20/39 (n)		32,100		32,249,352
4.50%, 12/01/20 – 11/15/39 (g)(n)		377,051		382,968,500
5.00%, 4/01/21 – 10/15/39 (g)(n)		194,315		202,977,002
5.04%, 8/01/38 (a)		15,099		15,794,169
5.50%, 7/01/14 – 10/15/39 (n)		171,023		179,689,599
6.00%, 1/01/21 – 10/15/39 (n)		157,228		166,460,213
6.28%, 8/01/11		1,800		1,914,386
6.50%, 8/01/32 – 11/15/39 (n)		25,922		27,606,797
Freddie Mac Mortgage Backed Securities:
4.00%, 5/01/10		257		259,584
5.00%, 2/01/22 – 10/15/39 (n)		38,043		39,938,031
5.34%, 2/01/37 (a)		260		273,286
5.50%, 8/01/17 – 10/15/39 (n)		75,436		79,149,031
5.54%, 2/01/37 (a)		276		290,722
5.72%, 10/01/36 (a)		168		175,704
6.00%, 5/01/13 – 9/01/37		754		800,621
Ginnie Mae Mortgage Backed Securities:
2.75%, 5/20/34 (a)		2,052		2,065,039
5.00%, 10/15/39 (n)		53,700		55,562,746
5.50%, 11/15/33 – 2/15/35		517		545,718
7.50%, 4/15/31 – 3/15/32		362		408,775
				1,189,129,275
Total U.S. Government Sponsored Agency Securities — 50.0%				1,560,649,266
U.S. Treasury Obligations
U.S. Treasury Notes:
0.77%, 9/30/11		11,930		11,939,317
1.38%, 9/15/12		1,750		1,746,992
2.38%, 9/30/14		28,690		28,764,020
3.00%, 9/30/16		211,590		212,432,975
3.75%, 11/15/18		485		501,862
3.63%, 8/15/19 (o)		58,115		59,649,585
5.25%, 2/15/29		21,200		24,608,557
3.50%, 2/15/39		49,235		44,603,857
4.25%, 5/15/39 (g)		11,254		11,642,612
U.S. Treasury Strips, 4.62%, 8/15/20 (m)		53,190		35,032,689
Total U.S. Treasury Obligations — 13.8%				430,922,466
Total Long-Term Investments (Cost — $4,121,074,035) — 129.5%				4,045,041,941

Short-Term Securities	Shares		Value
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.20% (j)(p)		2,551,335	$	2,551,335
Total Short-Term Securities (Cost — $2,551,335) — 0.1%				2,551,335
Options Purchased		Contracts (q)
Over-the-Counter Call Swaptions Purchased
Receive a fixed rate of 2.25% and pay a floating rate based on 3-month LIBOR, expiring 10/19/09, Broker JPMorgan Chase Bank NA		61		121
Receive a fixed rate of 3.12% and pay a floating rate based on 3-month LIBOR, expiring 10/21/09, Broker Barclays Bank Plc		78		122,540
Receive a fixed rate of 2.25% and pay a floating rate based on 3-month LIBOR expiring 10/30/09, Broker JPMorgan Chase Bank NA		6		64
Receive a fixed rate of 2.50% and pay a floating rate based on 3-month LIBOR, expiring 11/06/09, Broker JPMorgan Chase Bank NA		47		2,340
Receive a fixed rate of 2.75% and pay a floating rate based on 3-month LIBOR expiring 11/09/09, Broker Barclays Bank Plc		17		8,619
Receive a fixed rate of 2.37% and pay a floating rate based on 3-month LIBOR, expiring 11/16/09, Broker Goldman Sachs Bank USA		66		2,324
Receive a fixed rate of 2.75% and pay a floating rate based on 3-month LIBOR, expiring 11/30/09, Broker Morgan Stanley Capital Services, Inc.		142		474,848
Receive a fixed rate of 2.75% and pay a floating rate based on 3-month LIBOR, expiring 12/17/09, Broker Morgan Stanley Capital Services, Inc.		108		462,788
Receive a fixed rate of 2.50% and pay a floating rate based on 3-month LIBOR, expiring 3/11/10, Broker Barclays Bank Plc		2		2,477
Receive a fixed rate of 2.50% and pay a floating rate based on 3-month LIBOR, expiring 3/12/10, Broker Barclays Bank Plc		28		32,090
Receive a fixed rate of 3.40% and pay a floating rate based on 3-month LIBOR, expiring 4/08/10, Broker Deutsche Bank AG		48		1,062,527
Receive a fixed rate of 4.40% and pay a floating rate based 3-month LIBOR, expiring 6/22/10, Broker Deutsche Bank AG		54		3,958,304
Receive a fixed rate of 1.92% and pay a floating rate based on 3-month LIBOR expiring 9/02/10, Broker Morgan Stanley Capital Services, Inc.		236		1,252,746
Receive a fixed rate of 1.95% and pay a floating rate based on 3-month LIBOR expiring 9/03/10, Broker Citibank NA		236		1,293,286
				8,675,074
Over-the-Counter Put Swaptions Purchased
Pay a fixed rate of 3.12% and receive a floating rate based on 3-month LIBOR, expiring 10/21/09, Broker Barclays Bank Plc		78		2,575,835
Pay a fixed rate of 4.50% and receive a floating rate based on 3-month LIBOR, expiring 3/15/10, Broker Royal Bank of Scotland Plc		144		1,652,947
Pay a fixed rate of 3.40% and receive a floating rate based 3-month LIBOR, expiring 4/08/10, Broker Deutsche Bank AG		48		2,249,148

See Notes to Financial Statements.
34	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Options Purchased	Contracts (q)		Value
Over-the-Counter Put Swaptions Purchased (concluded)
Pay a fixed rate of 4.40% and receive a floating rate based 3-month LIBOR, expiring 6/22/10, Broker Deutsche Bank AG		54	$	1,216,697
Pay a fixed rate of 1.92% and receive a floating rate based on 3-month LIBOR, expiring 9/02/10, Broker Morgan Stanley Capital Services, Inc.		236		1,208,670
Pay a fixed rate of 1.95% and receive a floating rate based on 3-month LIBOR, expiring 9/03/10, Broker Citibank NA		236		1,189,106
				10,092,403
Total Options Purchased (Cost — $25,498,448) — 0.6%				18,767,477
Total Investments Before TBA Sale Commitments and Options Written (Cost — $4,149,123,818*) — 130.2%				4,066,360,753

TBA Sale Commitments (n)		Par (000)
Fannie Mae Mortgage Backed Securities:
4.50%, 12/01/20 – 11/15/39	USD	82,000	(83,408,334	)
5.00%, 4/01/21 – 10/15/39		62,200	(65,212,844	)
5.50%, 7/01/14 – 10/15/39		65,400	(68,484,123	)
6.00%, 1/01/21 – 10/15/39		152,900	(161,320,500	)
Freddie Mac Mortgage Backed Securities:
5.00%, 2/01/22 – 10/15/39		31,000	(32,530,625	)
6.00%, 5/01/13 – 9/01/37		500	(527,656	)
Total TBA Sale Commitments (Proceeds — $408,498,005) — (13.2)%			(411,484,082	)

Options Written	Contracts (q)
Over-the-Counter Call Swaptions Written
Pay a fixed rate of 5.49% and receive a floating rate based on 3-month LIBOR, expiring 10/26/09, Broker JPMorgan Chase Bank NA	5	(925,711	)
Pay a fixed rate of 5.67% and receive a floating rate based on 3-month LIBOR, expiring 1/04/10, Broker Citibank NA	4	(661,767	)
Pay a fixed rate of 3.18% and receive a floating rate based on 3-month LIBOR, expiring 1/06/10, Broker Citibank NA	4	(41,308	)
Pay a fixed rate of 3.58% and receive a floating rate based on 3-month LIBOR, expiring 1/08/10, Broker Deutsche Bank AG	93	(2,305,727	)
Pay a fixed rate of 3.50% and receive a floating rate based on 3-month LIBOR, expiring 1/11/10, Broker Deutsche Bank AG	67	(1,440,590	)
Pay a fixed rate of 4.87% and receive a floating rate based on 3-month LIBOR, expiring 2/04/10, Broker Deutsche Bank AG	116	(12,829,983	)
Pay a fixed rate of 3.31% and receive a floating rate based on 3-month LIBOR, expiring 3/12/10, Broker JPMorgan Chase Bank NA	7	(116,187	)
Pay a fixed rate of 3.32% and receive a floating rate based on 3-month LIBOR, expiring 3/12/10, Broker Deutsche Bank AG	20	(364,140	)
Pay a fixed rate of 3.88% and receive a floating rate based on 3-month LIBOR, expiring 3/22/10, Broker Citibank NA	45	(1,934,527	)
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, expiring 3/22/10, Broker Citibank NA	53	(2,241,404	)

Options Written	Contracts (q)		Value
Over-the-Counter Call Swaptions Written (concluded)
Pay a fixed rate of 3.96% and receive a floating rate based on 3-month LIBOR, expiring 3/22/10, Broker Citibank NA		40	$	(1,921,303	)
Pay a fixed rate of 3.74% and receive a floating rate based on 3-month LIBOR, expiring 3/25/10, Broker Citibank NA		45		(1,624,050	)
Pay a fixed rate of 3.65% and receive a floating rate based on 3-month LIBOR, expiring 3/29/10, Broker Citibank NA		40		(1,284,240	)
Pay a fixed rate of 3.80% and receive a floating rate based on 3-month LIBOR, expiring 5/28/10, Broker Morgan Stanley Capital Services, Inc.		80		(3,245,040	)
Pay a fixed rate of 4.42% and receive a floating rate based on 3-month LIBOR, expiring 6/02/10, Broker Deutsche Bank AG		7		(490,490	)
Pay a fixed rate of 4.52% and receive a floating rate based on 3-month LIBOR, expiring 6/02/10, Broker Barclays Bank Plc		3		(213,847	)
Pay a fixed rate of 4.67% and receive a floating rate based on 3-month LIBOR, expiring 6/07/10, Broker Barclays Bank Plc		4		(331,600	)
Pay a fixed rate of 4.80% and receive a floating rate based on 3-month LIBOR, expiring 6/11/10, Broker Barclays Bank Plc		108		(10,830,693	)
Pay a fixed rate of 4.12% and receive a floating rate based on 3-month LIBOR, expiring 8/26/10, Broker Goldman Sachs Bank USA		28		(1,597,874	)
Pay a fixed rate of 4.12% and receive a floating rate based on 3-month LIBOR, expiring 8/27/10, Broker Morgan Stanley Capital Services, Inc.		25		(1,465,428	)
Pay a fixed rate of 4.08% and receive a floating rate based on 3-month LIBOR, expiring 9/01/10, Broker Deutsche Bank AG		20		(1,106,880	)
Pay a fixed rate of 4.07% and receive a floating rate based on 3-month LIBOR, expiring 9/23/10, Broker Citibank NA		54		(2,928,697	)
Pay a fixed rate of 4.08% and receive a floating rate based on 3-month LIBOR, expiring 9/24/10, Broker Deutsche Bank AG		80		(4,445,790	)
Pay a fixed rate of 2.44% and receive a floating rate based on 3-month LIBOR. expiring 12/17/10, Broker Royal Bank of Scotland Plc		8		(52,402	)
Pay a fixed rate of 3.54% and receive a floating rate based on 3-month LIBOR, expiring 3/28/11, Broker JPMorgan Chase Bank NA		4		(139,097	)
				(54,538,775	)
Over-the-Counter Put Swaptions Written
Receive a fixed rate of 5.49% and pay a floating rate based on 3-month LIBOR, expiring 10/26/09, Broker JPMorgan Chase Bank NA		5		(54	)
Receive a fixed rate of 5.67% and pay a floating rate based on 3-month LIBOR, expiring 1/04/10, Broker Citibank NA		4		(1,173	)
Receive a fixed rate of 3.18% and pay a floating rate based on 3-month LIBOR, expiring 1/06/10, Broker Citibank NA		4		(178,216	)
Receive a fixed rate of 4.08% and pay a floating rate based on 3-month LIBOR, expiring 1/08/10, Broker Deutsche Bank AG		93		(1,015,992	)
Receive a fixed rate of 4.00% and pay a floating rate based on 3-month LIBOR, expiring 1/11/10, Broker Deutsche Bank AG		67		(863,369	)

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	35

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Options Written	Contracts (q)	Value
Over-the-Counter Put Swaptions Written (continued)
Receive a fixed rate of 2.75% and pay a floating rate based on 3-month LIBOR, expiring 2/04/10, Broker Deutsche Bank AG	35	$	(52,809	)
Receive a fixed rate of 4.87% and pay a floating rate based on 3-month LIBOR, expiring 2/04/10, Deutsche Bank AG	116		(457,408	)
Receive a fixed rate of 4.50% and pay a floating rate based on 3-month LIBOR, expiring 3/11/10, Broker Barclays Bank Plc	2		(68,999	)
Receive a fixed rate of 3.31% and pay a floating rate based on 3-month LIBOR, expiring 3/12/10, Broker JPMorgan Chase Bank NA	7		(312,357	)
Receive a fixed rate of 4.50% and pay a floating rate based on 3-month LIBOR, expiring 3/12/10, Broker Barclays Bank Plc	28		(886,780	)
Receive a fixed rate of 3.32% and pay a floating rate based on 3-month LIBOR, expiring 3/12/10, Broker Deutsche Bank AG	20		(950,780	)
Receive a fixed rate of 5.50% and pay a floating rate based on 3-month LIBOR, expiring 3/15/10, Broker Royal Bank of Scotland Plc	144		(374,862	)
Receive a fixed rate of 3.88% and pay a floating rate based on 3-month LIBOR, expiring 3/22/10, Broker Citibank NA	45		(1,161,395	)
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, expiring 3/22/10, Broker Citibank NA	53		(1,412,938	)
Receive a fixed rate of 3.96% and pay a floating rate based on 3-month LIBOR, expiring 3/22/10, Broker Citibank NA	40		(951,201	)
Receive a fixed rate of 3.74% and pay a floating rate based on 3-month LIBOR, expiring 3/25/10, Broker Citibank NA	45		(1,403,055	)
Receive a fixed rate of 3.65% and pay floating rate based on 3-month LIBOR, expiring 3/29/10, Broker Citibank NA	40		(1,399,080	)
Receive a fixed rate of 4.50% and pay a floating rate based on 3-month LIBOR, expiring 5/28/10, Broker Morgan Stanley Capital Services, Inc.	80		(1,477,920	)
Receive a fixed rate of 4.42% and pay a floating rate based on 3-month LIBOR, expiring 6/02/10, Broker Deutsche Bank AG	7		(133,211	)
Receive a fixed rate of 4.52% and pay a floating rate based on 3-month LIBOR, expiring 6/02/10, Broker Barclays Bank Plc	3		(47,988	)
Receive a fixed rate of 4.67% and pay a floating rate based on 3-month LIBOR, expiring 6/07/10, Broker Barclays Bank Plc	4		(58,464	)
Receive a fixed rate of 4.80% and pay a floating rate based on 3-month LIBOR, expiring 6/11/10, Broker Barclays Bank Plc	108		(1,560,738	)
Receive a fixed rate of 4.12% and pay a floating rate based on 3-month LIBOR, expiring 8/26/10, Broker Goldman Sachs Bank USA	28		(981,042	)
Receive a fixed rate of 4.12% and pay a floating rate based on 3-month LIBOR, expiring 8/27/10, Broker Morgan Stanley Capital Services, Inc.	25		(909,117	)
Receive a fixed rate of 4.08% and pay a floating rate based on 3-month LIBOR, expiring 9/01/10, Broker Deutsche Bank AG	20		(751,600	)
Receive a fixed rate of 4.07% and pay a floating rate based on 3-month LIBOR, expiring 9/23/10, Broker Citibank NA	54		(2,136,737	)

Options Written	Contracts (q)	Value
Over-the-Counter Put Swaptions Written (concluded)
Receive a fixed rate of 4.08% and pay a floating rate based on 3-month LIBOR, expiring 9/24/10, Broker Deutsche Bank AG	80	$	(3,166,433	)
Receive a fixed rate of 2.44% and pay a floating rate based on 3-month LIBOR, expiring 12/17/10, Broker Royal Bank of Scotland Plc	8		(1,008,923	)
Receive a fixed rate of 3.54% and pay a floating rate based on 3-month LIBOR, expiring 3/28/11, Broker JPMorgan Chase Bank NA	4		(312,613	)
			(24,035,254	)
Total Options Written (Premiums Received — $80,029,707) — (2.5)%			(78,574,029	)
Total Investments — 114.5%			3,576,302,642
Liabilities in Excess of Other Assets — (14.5)%			(452,647,861	)
Net Assets — 100.0%		$	3,123,654,781

  * The cost and unrealized appreciation (depreciation) of investments as of September 30, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	4,154,627,912
Gross unrealized appreciation	$	96,248,465
Gross unrealized depreciation		(184,515,624	)
Net unrealized depreciation	$	(88,267,159	)

(a)	Variable rate security. Rate shown is as of report date.
(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Amount is less than $1,000.
(d)	Security is perpetual in nature and has no stated maturity date.
(e)	Non-income producing security.
(f)	Issuer filed for bankruptcy and/or is in default of interest payments.
(g)	All or a portion of security has been pledged as collateral in connection with swaps. (h) Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown reflects the effective yield at the time of purchase.
(j)	Investments in companies considered to be an affiliate of the Master Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Purchase Cost		Sales Cost		Realized Gain		Income
BlackRock Capital Finance LP, Series 1997-R2 Class AP, 1.31%, 12/25/35		—		—		—	$	1,074
BlackRock Liquidity Funds, TempFund, Institutional Class	$	2,551,3351		—		—	$	49,614

	1	Represents net purchase cost.
(k)	All or a portion of security held as collateral in connection with TALF program.
(l)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(m)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

See Notes to Financial Statements.
36	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Schedule of Investments (continued) Master Total Return Portfolio

(n) Represents or includes a to-be-announced (“TBA”) transaction. Unsettled TBA transactions as of report date were as follows:

Counterparty	Market Value			Unrealized Appreciation (Depreciation)
BNP Paribas	$	36,925,000		$	98,438
Citigroup Global Markets, Inc.	$	(16,189,117	)	$	(88,195	)
Credit Suisse Securities LLC	$	164,677,852		$	452,305
Deutsche Bank Securities, Inc.	$	148,839,938		$	808,747
Goldman Sachs & Co.	$	143,273,213		$	1,172,046
JPMorgan Securities, Ltd.	$	(38,845,148	)	$	178,415
Morgan Stanley Capital Services, Inc.	$	(121,748,082	)	$	(1,582,605	)

(o)	All or a portion of security has been pledged as collateral for reverse repurchase agreements.
(p)	Represents the current yield as of report date.
(q)	One contract represents a notional amount of $1 million.
•	For Master Portfolio compliance purposes,the Master Portfolio ‘s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Master Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.
•	Investments in companies considered to be an affiliate of the Master Portfolio, during the period October 1, 2008 to December 31, 2008, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Purchase Cost		Sales Cost		Realized Gain		Income
Merrill Lynch Mortgage Trust Series 2007-C1 Class AM, 5.73%, 6/12/50		—		—		—	$	18,780

• Reverse repurchase agreements outstanding as of September 30, 2009 were as follows:

Counterparty	Interest Rate		Trade Date		Maturity Date		Net Closing Amount		Face Amount
Credit Suisse Securities		0.10%		09/30/09		TBD	$	17,510,049	$	17,510,000

• Financial futures contracts purchased as of September 30, 2009 were as follows:

Contracts	Issue		Exchange		Expiration Date		Face Value		Unrealized Appreciation
48		Long Gilt		London		December 2009	$	9,028,729	$	66,202
4,091		5-Year U.S. Treasury Notes		Chicago		December 2009	$	472,559,357		2,380,174
1,159		10-Year U.S. Treasury Notes		Chicago		December 2009	$	136,364,114		778,183
Total									$	3,224,559

• Financial futures contracts sold as of September 30, 2009 were as follows:

Contracts	Issue		Exchange		Expiration Date		Face Value		Unrealized Depreciation
4		2-Year U.S. Treasury Notes		Chicago		December 2009	$	866,991	$	(884	)
439		30-Year U.S. Treasury Bond		Chicago		December 2009	$	52,555,495		(728,130	)
Total									$	(729,014	)

• Foreign currency exchange contracts as of September 30, 2009 were as follows:

Currency Purchased	Currency Sold		Counterparty		Settlement Date		Unrealized Appreciation
USD  18,241,020	GBP	11,160,000		Citibank NA		10/28/09	$	407,958

• Interest rate swaps outstanding as of September 30, 2009 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation (Depreciation)
4.05% (a)	3-month LIBOR	Barclays Bank Plc	December 2009	USD	57,800	$	407,508
1.75% (a)	3-month LIBOR	Goldman Sachs Bank USA	June 2011	USD	14,700		158,413
2.25% (b)	3-month LIBOR	Deutsche Bank AG	December 2012	USD	35,680		(246,299	)
2.85% (b)	3-month LIBOR	Deutsche Bank AG	August 2014	USD	32,900		(353,367	)
2.90% (b)	3-month LIBOR	Credit Suisse International	August 2014	USD	44,000		(573,714	)
2.80% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	September 2014	USD	38,400		(306,078	)
2.81% (a)	3-month LIBOR	Citibank NA	February 2016	USD	50,000		(513,939	)
3.73% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	August 2019	USD	32,100		764,977
3.68% (a)	3-month LIBOR	Deutsche Bank AG	August 2019	USD	68,900		1,366,264
3.50% (a)	3-month LIBOR	Citibank NA	September 2019	USD	34,100		133,528
3.50% (a)	3-month LIBOR	Bank of America NA	September 2019	USD	49,400		195,444
3.47% (a)	3-month LIBOR	Royal Bank of Scotland Plc	September 2019	USD	46,600		51,963
3.43% (b)	3-month LIBOR	Deutsche Bank AG	October 2019	USD	17,700		39,610
4.24% (c)	3-month LIBOR	JPMorgan Chase Bank NA	August 2020	USD	11,615		(527,033	)
4.42% (c)	3-month LIBOR	JPMorgan Chase Bank NA	August 2020	USD	38,165		(2,169,299	)
5.41% (a)	3-month LIBOR	JPMorgan Chase Bank NA	August 2022	USD	24,125		4,407,664
4.35% (b)	3-month LIBOR	JPMorgan Chase Bank NA	July 2039	USD	26,700		(2,022,889	)
4.06% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	September 2039	USD	6,000		139,440
3.50% (b)	3-month LIBOR	Barclays Bank Plc	March 2040	USD	7,400		678,410
Total						$	1,630,603

(a)	Pays floating interest rate and receives fixed rate.
(b)	Pays fixed interest rate and receives floating rate.
(c)	Pays fixed interest rate and receives floating rate at expiration date.

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	37

Schedule of Investments (continued) Master Total Return Portfolio

• Credit default swaps on single-name issues — buy protection outstanding as of September 30, 2009 were as follows:

Issuer	Pay Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Centex Corp.	6.92%	JPMorgan Chase Bank NA	December 2010	USD	3,890	$	(303,130)
Limited Brands, Inc.	1.07%	UBS AG	December 2010	USD	7,625		125,963
Radio Shack Corp.	1.16%	UBS AG	December 2010	USD	7,625		(39,726)
Knight Inc.	1.80%	Credit Suisse International	January 2011	USD	5,350		(46,952)
Sara Lee Corp.	0.60%	JPMorgan Chase Bank NA	March 2011	USD	7,720		(35,624)
Computer Sciences Corp.	0.88%	Morgan Stanley Capital Services, Inc.	June 2011	USD	7,770		(98,925)
iStar Financial, Inc.	5.00%	Morgan Stanley Capital Services, Inc.	September 2011	USD	2,220		115,441
KB Home	4.90%	JPMorgan Chase Bank NA	September 2011	USD	6,600		(367,292)
Wendy’s International Inc.	2.90%	JPMorgan Chase Bank NA	December 2011	USD	5,380		(159,051)
NOVA Chemicals Corp.	5.00%	Citibank NA	March 2012	USD	405		(14,098)
Macy’s, Inc.	7.50%	Morgan Stanley Capital Services, Inc.	June 2012	USD	3,605		(445,480)
Macy’s, Inc.	8.00%	Morgan Stanley Capital Services, Inc.	June 2012	USD	1,260		(171,821)
MeadWestvaco Corp.	1.20%	Deutsche Bank AG	June 2012	USD	5,925		(92,469)
NOVA Chemicals Corp.	5.00%	JPMorgan Chase Bank NA	June 2012	USD	555		(14,770)
Ryland Group, Inc.	4.51%	JPMorgan Chase Bank NA	June 2012	USD	2,445		(190,396)
Knight Inc.	1.00%	Morgan Stanley Capital Services, Inc	September 2012	USD	1,655		3,017
Knight Inc.	1.00%	Royal Bank of Scotland Plc	September 2012	USD	580		1,701
Limited Brands, Inc,	1.00%	Royal Bank of Scotland Plc	December 2012	USD	395		(2,337)
Pulte Homes, Inc.	1.00%	Royal Bank of Scotland Plc	March 2013	USD	430		792
Belo Corp.	5.00%	Barclays Bank Plc	June 2013	USD	1,665		(245,942)
DR Horton, Inc.	5.04%	JPMorgan Chase Bank NA	June 2013	USD	7,830		(932,048)
Eastman Chemical Co.	0.68%	Morgan Stanley Capital Services, Inc.	September 2013	USD	7,800		(68,550)
Expedia, Inc.	5.00%	Citibank NA	September 2013	USD	5,705		(795,420)
Expedia, Inc.	5.18%	Goldman Sachs Bank USA	September 2013	USD	2,915		(426,075)
Centex Corp.	1.00%	Royal Bank of Scotland Plc	December 2013	USD	205		(5,817)
Centex Corp.	4.37%	Deutsche Bank AG	December 2013	USD	8,259		(1,216,320)

Issuer	Pay Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Centex Corp.	4.40%	JPMorgan Chase Bank NA	December 2013	USD	4,815	$	(714,932	)
NOVA Chemicals Corp.	5.00%	Goldman Sachs Bank USA	December 2013	USD	2,292		(151,974	)
DR Horton, Inc.	1.00%	JPMorgan Chase Bank NA	March 2014	USD	9,105		(290,163	)
Hertz Global Holdings, Inc.	5.00%	Goldman Sachs Bank USA	March 2014	USD	1,160		(377,784	)
Toll Brothers Finance Corp.	2.00%	JPMorgan Chase Bank NA	March 2014	USD	2,260		(77,968	)
Tyson Foods, Inc.	4.10%	Barclays Bank Plc	March 2014	USD	3,240		(275,694	)
Tyson Foods, Inc.	4.22%	Barclays Bank Plc	March 2014	USD	3,250		(292,365	)
DR Horton, Inc.	5.07%	JPMorgan Chase Bank NA	September 2014	USD	2,269		(338,916	)
Macy’s, Inc.	1.00%	Morgan Stanley Capital Services, Inc.	September 2014	USD	1,350		44,059
Energy Future Holdings Corp.	5.00%	Morgan Stanley Capital Services, Inc.	December 2014	USD	9,960		(929,950	)
Energy Future Holdings Corp.	5.00%	JPMorgan Chase Bank NA	December 2014	USD	1,745		(212,124)
Huntsman International LLC	5.00%	Goldman Sachs Bank USA	December 2014	USD	4,390		(1,497,207	)
Huntsman International LLC	5.00%	Goldman Sachs Bank USA	March 2015	USD	1,285		(346,364	)
Pulte Homes, Inc.	3.00%	JPMorgan Chase Bank NA	March 2015	USD	2,720		(194,944	)
Lennar Corp.	5.86%	JPMorgan Chase Bank NA	June 2015	USD	3,610		(583,989	)
First Data Corp.	5.00%	Barclays Bank Plc	December 2015	USD	4,610		(804,168	)
First Data Corp.	5.00%	Credit Suisse International	December 2015	USD	1,915		(334,052	)
First Data Corp.	5.00%	Goldman Sachs Bank USA	December 2015	USD	1,275		(216,525	)
Sabre Holdings Corp.	5.00%	JPMorgan Chase Bank NA	March 2016	USD	10,080		(4,159,192	)
First Data Corp.	5.00%	JPMorgan Chase Bank NA	December 2015	USD	2,440		(425,633	)
American Greetings Corp.	5.00%	Royal Bank of Scotland Plc	September 2016	USD	570		21,125
Total						$	(17,584,089	)

See Notes to Financial Statements.
38	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Schedule of Investments (concluded) Master Total Return Portfolio

• Credit default swaps on single-name issues — sold protection outstanding as of September 30, 2009 were as follows:

Issuer	Received Fixed Rate	Counterparty	Expiration	Credit Rating1	Notional Amount (000)2		Unrealized Depreciation
SLM Corp.	5.00%	Barclays	March 2013	BBB–	USD	5,000	$	(561,341	)
		Bank Plc

	1	Using Standard and Poor’s ratings.
	2	The maximum potential amount the Master Portfolio may pay should a negative credit event take place as defined under the terms of the agreement.
•	Credit default swaps on traded indexes — buy protection outstanding as of September 30, 2009 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation
Dow Jones	5.00%	Credit Suisse	December	USD	32,450	$	385,417
CDX North		International	2014
America High Yield

• Currency and Portfolio Abbreviations:

GBP	British Pound
GO	General Obligation Bonds
LIBOR	London Inter Bank Offered Rate
RB	Revenue Bonds
TBD	To be determined
USD	US Dollar

•	Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master LLC’s own assumptions used in determining the fair value of investments)
	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Master LLC’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
	The following table summarizes the inputs used as of September 30, 2009 in determining the fair valuation of the Master LLC’s investments:

Valuation Inputs	Investments in Securities
	Assets		Liabilities
Level 1
Short-Term Investments	$	2,551,335		—
Level 2
Long-Term Investments:
Asset-Backed Securities		346,998,862		—
Corporate Bonds		677,397,042		—
Foreign Agency Obligations		47,027,030		—
Non-Agency Mortgage-Backed Securities		844,146,215		—
Preferred Securities		63,208,939		—
Taxable Municipal Bonds		59,938,279		—
TBA Sale Commitments		—	$	(411,484,082	)
U.S. Government Sponsored Agency Securities		1,560,649,266		—
U.S. Treasury Obligations		430,922,466		—
Total Level 2		4,030,288,099		(411,484,082	)

Valuation Inputs	Investments in Securities
	Assets		Liabilities
Level 3
Long-Term Investments:
Asset-Backed Securities	$	14,543,431		—
Corporate Bonds		194,412		—
Non-Agency Mortgage-Backed Securities		15,999		—
Total Level 3		14,753,842		—
Total	$	4,047,593,276	$	(411,484,082	)

Valuation Inputs	Other Financial Instruments 1
	Assets		Liabilities
Level 1	$	3,224,559	$	(729,014	)
Level 2		28,195,046		(101,047,843	)
Level 3		21,125		(176,205,090	)
Total	$	31,440,730	$	(277,981,947	)

¹ Other financial instruments are swaps, financial futures contracts, options, TALF loans and foreign currency exchange contracts. Swaps, financial futures contracts and foreign currency exchange contracts are shown at the unrealized appreciation/ depreciation on the instrument and options and TALF loans are shown at market value.

The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:

	Asset-Backed Securities			Corporate Bonds		Non-Agency Mortgage-Backed Securities			Total
Balance, as of September 30, 2008	$	1,963,843			—	$	10,232		$	1,974,075
Accrued discounts/ premiums		—			—		—			—
Realized gain (loss)		395			—		—			395
Change in unrealized appreciation (depreciation)2		(847,919	)		—		—			(847,919	)
Net purchases (sales)		(120,236	)		—		(70	)		(120,306	)
Net transfers in/out of Level 3		13,547,348		$	194,412		5,837			13,747,597
Balance, as of September 30, 2009	$	14,543,431		$	194,412	$	15,999		$	14,753,842

² Included in the related net change in unrealized appreciation/depreciation on the Statement of Operations.

The following is a reconciliation of other financial instruments for unobservable inputs (Level 3) used in determining fair value:

	Other Financial Instruments3
	Assets		Liabilities
Balance, as of September 30, 2008		—		—
Accrued discounts/premiums		—		—
Realized gain (loss)		—		—
Change in unrealized appreciation (depreciation)		—		—
Net purchases (sales)		—		—
Net transfers in/out of Level 3	$	21,125	$	(176,205,090	)
Balance, as of September 30, 2009	$	21,125	$	(176,205,090	)

³ Other financial instruments are swaps and TALF loans.

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	39

Statement of Assets and Liabilities Master Total Return Portfolio

September 30, 2009
Assets
Investments at value — unaffiliated (cost — $4,146,562,383)	$	4,063,799,256
Investments at value — affiliated (cost — $2,561,435)		2,561,497
Foreign currency at value (cost — $2,369)		2,612
Unrealized appreciation on swaps		9,040,736
Unrealized appreciation on foreign currency exchange contracts		407,958
TBA sale commitments receivable		408,498,005
Investments sold receivable		361,389,949
Interest receivable		23,048,027
Swap premiums paid		18,144,907
Contributions receivable from investors		17,416,607
Swaps receivable		3,539,391
Margin variation receivable		690,529
Prepaid expenses		60,726
Total assets		4,908,600,200
Liabilities
TBA sale commitments at value (proceeds — $408,498,005)		411,484,082
Reverse repurchase agreements		17,510,000
Options written at value (premiums received — $80,029,707)		78,574,029
Investments purchased payable		1,062,671,285
Loan payable		173,508,758
Unrealized depreciation on swaps		25,170,146
Withdrawals payable to investors		10,606,363
Swaps payable		3,322,864
Interest expense payable		357,902
Investment advisory fees payable		168,364
Other affiliates payable		15,399
Officer’s and Directors’ fees payable		2,289
Other accrued expenses payable		295,197
Other liabilities		1,258,741
Total liabilities		1,784,945,419
Net Assets	$	3,123,654,781
Net Assets Consist of
Investors’ capital	$	3,221,176,628
Net unrealized appreciation/depreciation		(97,521,847	)
Net Assets	$	3,123,654,781

See Notes to Financial Statements.
40	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Statement of Operations Master Total Return Portfolio

Year Ended September 30, 2009
Investment Income
Interest	$	173,539,853
Dividends		84,551
Income — affiliated		71,920
Total income		173,696,324
Expenses
Investment advisory		1,955,736
Accounting services		637,408
Borrowing costs1		347,423
Professional		245,694
Custodian		234,700
Officer and Directors		102,200
Printing		10,227
Miscellaneous		205,805
Total expenses excluding interest expense		3,739,193
Interest expense		1,059,184
Total expenses		4,798,377
Less fees waived by advisor		(9,393	)
Less fees paid indirectly		(1,702	)
Total expenses after fees waived and paid indirectly		4,787,282
Net investment income		168,909,042
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(200,460,141	)
Financial futures contracts and swaps		(16,961,804	)
Options written		(8,404,977	)
Foreign currency		13,180,552
		(212,646,370	)
Net change in unrealized appreciation/depreciation on:
Investments		316,691,127
Financial futures contracts and swaps		6,859,451
Options written		4,571,672
Foreign currency		(6,942,831	)
		321,179,419
Total realized and unrealized gain		108,533,049
Net Increase in Net Assets Resulting from Operations	$	277,442,091

¹ See Note 5 of the Notes to Financial Statements for details of borrowings.

See Notes to Financial Statements.
BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009	41

Statements of Changes in Net Assets Master Total Return Portfolio

	Year Ended September 30,
Increase (Decrease) in Net Assets:	2009			2008
Operations
Net investment income	$	168,909,042		$	210,800,448
Net realized gain (loss)		(212,646,370	)		9,509,510
Net change in unrealized appreciation/depreciation		321,179,419			(411,992,926	)
Net increase (decrease) in net assets resulting from operations		277,442,091			(191,682,968	)
Capital Transactions
Proceeds from contributions		889,293,142			808,890,417
Value of withdrawals		(1,288,029,428	)		(1,352,430,633	)
Net decrease in net assets derived from capital transactions		(398,736,286	)		(543,540,216	)
Net Assets
Total decrease in net assets		(121,294,195	)		(735,223,184	)
Beginning of year		3,244,948,976			3,980,172,160
End of year	$	3,123,654,781		$	3,244,948,976

Financial Highlights Master Total Return Portfolio

	Year Ended September 30,
	2009			2008			2007			2006			2005
Total Investment Return
Total investment return		10.95	%		(5.76	)%		4.45	%		3.88	%		3.13	%
Ratios to Average Net Assets
Total expenses		0.17	%		0.15	%		0.10	%		0.12	%		0.10	%
Total expenses after fees waived and paid indirectly		0.17	%		0.15	%		0.10	%		0.12	%		0.10	%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.13	%		0.10	%		0.10	%		0.12	%		0.10	%
Net investment income		6.10	%		5.59	%		5.35	%		4.90	%		3.81	%
Supplemental Data
Net assets, end of year (000)	$	3,123,655		$	3,244,949		$	3,980,172		$	2,902,237		$	2,871,830
Portfolio turnover		708	%1		1,081	%2		153	%		208	%		235	%

1	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
2	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 418%.

See Notes to Financial Statements.
42	BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC.	SEPTEMBER 30, 2009

Notes to Financial Statements Master Total Return Portfolio

1. Organization and Significant Accounting Policies:

Master Total Return Portfolio (the “Master Portfolio”) is a part of Master Bond LLC (the “Master LLC”) and is registered as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), and is organized as a Delaware limited liability company. The Limited Liability Company Agreement permits the Directors to issue non-transferable interests in the Master LLC, subject to certain limitations. The Master Portfolio’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates.

The following is a summary of significant accounting policies followed by the Master Portfolio:

Valuation: The Master Portfolio values its bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services selected under the supervision of the Master LLC’s Board of Directors (the “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures based on valuation technology commonly employed in the market for such investments. The fair value of asset-backed and mortgage-backed securities are estimated based on models. The models consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. Financial futures contracts traded on exchanges are valued at their last sale price. To-be-announced (“TBA”) commitments are valued at the current market value of the underlying securities. Swap agreements are valued utilizing quotes received daily by the Master Portfolio’s pricing service or through brokers, which are derived using daily swap curves and trades of underlying securities. Investments in open-end investment companies are valued at net asset value each business day. Short-term securities with maturities less than 60 days may be valued at amortized cost, which approximates fair value.

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid price. If no bid price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security.

Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the option. Over-the-counter options and swaptions are valued by an independent pricing service using a mathematical model which incorporates a number of market data factors, such as the trades and prices of the underlying securities.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or is not available, the investment will be valued by a method approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that the Master Portfolio 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. The pricing of all Fair Value Assets is subsequently reported to the respective Board or a committee thereof.

Generally, trading in foreign securities is substantially completed each day at various times prior to the close of business on the New York Stock Exchange (“NYSE”). The values of such securities used in computing the net assets of the Master Portfolio are determined as of such times. Foreign currency exchange rates will be determined as of the close of business on the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of business on the NYSE that may not be reflected in the computation of the Master Portfolio’s net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such securities, those securities may be Fair Value Assets and be valued at their fair value as determined in good faith by the Board or by the investment advisor using a pricing service and/or procedures approved by the Board. Foreign currency exchange contracts are valued at the mid between the bid and ask prices. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

Foreign Currency Transactions: Foreign currency amounts are translated into United States dollars on the following basis: (i) market value of investment securities, assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the rates of exchange prevailing on the respective dates of such transactions.

The Master Portfolio reports foreign currency related transactions as components of realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Asset-Backed and Mortgage-Backed Securities: The Master Portfolio may invest in asset-backed securities. Asset-backed securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in an underlying pool of assets, or as debt instruments, which are also known as collateralized obligations, and are generally issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 43

Notes to Financial Statements (continued) Master Total Return Portfolio

decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security subject to such a prepayment feature will have the effect of shortening the maturity of the security. If the Master Portfolio has purchased such an asset-backed security at a premium, a faster than anticipated pre-payment rate could result in a loss of principal to the extent of the premium paid.

The Master Portfolio may purchase certain mortgage pass-through securities. There are a number of important differences among the agencies and instrumentalities of the US Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by the Government National Mortgage Association (“GNMA”) are guaranteed as to the timely payment of principal and interest by GNMA and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by the Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”), including FNMA guaranteed Mortgage Pass-Through Certificates which are solely the obligations of the FNMA, are not backed by or entitled to the full faith and credit of the United States and are supported by the right of the issuer to borrow from the Treasury.

The Master Portfolio invests a significant portion of its assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Please see the Schedule of Investments for these securities. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions.

Multiple Class Pass-Through Securities: The Master Portfolio may invest in multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities. These multiple class securities may be issued by GNMA, US government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by, and multiple class pass-through securities represent direct ownership interests in, a pool of residential or commercial mortgage loans or mortgage pass-through securities (the “Mortgage Assets”), the payments on which are used to make payments on the CMOs or multiple pass-through securities. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes (“PACs”) and targeted amortization classes (“TACs”). IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the investment is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying mortgage assets experience greater than anticipated pre-payments of principal, the Master Portfolio may not fully recoup its initial investment in IOs.

Capital Trusts: These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured as either fixed or adjustable coupon securities that can have either a perpetual or stated maturity date. Interest can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. These securities can have a rating that is slightly below that of the issuing company’s senior debt securities.

Mortgage Dollar Roll Transactions: The Master Portfolio may sell mortgage-backed securities and simultaneously contract to repurchase substantially similar (same type, coupon and maturity) securities on a specific future date at an agreed-upon price. During the period between the sale and repurchase, the Master Portfolio will not be entitled to receive interest and principal payments on the securities sold. The Master Portfolio accounts for dollar roll transactions as purchases and sales and realize gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that the Master Portfolio is required to purchase may decline below the agreed upon repurchase price of those securities.

Treasury Roll Transactions: A treasury roll transaction involves the sale of a Treasury security, with an agreement to repurchase the same security at an agreed upon price and date. Treasury rolls constitute a borrowing and the difference between the sale and repurchase price represents interest expense at an agreed upon rate. Whether such a transaction produces a positive impact on performance depends upon whether the income and gains on the securities purchased with the proceeds received from the sale of the security exceeds the interest expense incurred by the Master Portfolio. Treasury rolls are not considered purchases and sales and any gains or losses incurred on the treasury rolls will be deferred until the Treasury securities are disposed.

Treasury roll transactions involve the risk that the market value of the securities that the Master Portfolio is required to purchase may decline below the agreed upon purchase price of those securities. If investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities sold as part of the treasury roll, the use of this technique will adversely impact the investment performance of the Master Portfolio.

44 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Notes to Financial Statements (continued) Master Total Return Portfolio

Reverse Repurchase Agreements: The Master Portfolio may enter into reverse repurchase agreements with qualified third party broker-dealers. In a reverse repurchase agreement, the Master Portfolio sells securities to a bank or broker-dealer and agrees to repurchase the securities at a mutually agreed upon date and price. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. The Master Portfolio may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk and also the risk that the market value of the securities that the Master Portfolio is obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Master Portfolio’s use of the proceeds of the agreement may be restricted pending determination by the other party, or its trustee or receiver, determines whether or not to enforce the Master Portfolio’s obligation to repurchase the securities.

TBA Commitments: The Master Portfolio may enter into TBA commitments to purchase or sell mortgage-backed securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to settlement date, which is in addition to the risk of decline in the value of the Master Portfolio’s other assets.

Zero-Coupon Bonds: The Master Portfolio may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Master Portfolio either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, TBAs beyond normal settlement, written options, foreign currency exchange contracts, financial futures contracts and swaps), or certain borrowings (e.g., reverse repurchase agreements) the Master Portfolio will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or 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. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Master Portfolio has determined the ex-dividend date. Interest income is recognized on the accrual basis. The Master Portfolio amortizes all premiums and discounts on debt securities.

Income Taxes: The Master Portfolio is classified as a partnership for federal income tax purposes. As such, each investor in the Master Portfolio is treated as owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the Master Portfolio. Therefore, no federal income tax provision is required. Under the applicable foreign tax laws, a withholding tax may be imposed on the interest, dividends and capital gains at various rates. It is intended that the Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code.

The Master Portfolio files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Master Portfolio’s US federal tax returns remain open for each of the four years ended September 30, 2009. The statutes of limitations on the Master Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Standards: In June 2009, amended guidance was issued by the Financial Accounting Standards Board for transfers of financial assets. This guidance is intended to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement, if any, in transferred financial assets. The amended guidance is effective for financial statements for fiscal years and interim periods beginning after November 15, 2009. Earlier application is prohibited. The recognition and measurement provisions of this guidance must be applied to transfers occurring on or after the effective date. Additionally, the enhanced disclosure provisions of the amended guidance should be applied to transfers that occurred both before and after the effective date of this guidance. The impact of this guidance on the Master Portfolio’s financial statements and disclosures, if any, is currently being assessed.

Other: Expenses directly related to the Master Portfolio are charged to that Master Portfolio. Other operating expenses shared by several funds are prorated among those funds on the basis of relative net assets or other appropriate methods. Custodian fees may be reduced by amounts calculated on uninvested cash balances, which are shown as fees paid indirectly in the Statement of Operations.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 45

Notes to Financial Statements (continued) Master Total Return Portfolio

2. Derivative Financial Instruments:

The Master Portfolio may engage in various portfolio investment strategies both to increase the returns of the Master Portfolio and to economically hedge, or protect, its exposure to certain risks such as credit risk, interest rate risk and foreign currency exchange rate risk. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying instrument or if the counterparty does not perform under the contract. The Master Portfolio may mitigate counterparty risk through master netting agreements included within an International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreement between the Master Portfolio and its counterparties. The ISDA Master Agreement allows the Master Portfolio to offset with its counterparty certain derivative financial instrument’s payables and/or receivables with collateral held with each counterparty. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Master Portfolio from its counterparty are not fully collateralized contractually or otherwise, the Master Portfolio bears the risk of loss from counter-party non-performance. See Note 1 “Segregation and Collateralization” for additional information with respect to collateral practices.

The Master Portfolio’s maximum risk of loss from counterparty credit risk on over-the-counter derivatives is generally the aggregate unrealized gain in excess of any collateral pledged by the counterparty to the Master Portfolio. For over-the-counter purchased options, the Master Portfolio bears the risk of loss in the amount of the premiums paid and change in market value of the options should the counterparty not perform under the contracts. Options written by the Master Portfolio do not give rise to counterparty credit risk, as written options obligate the Master Portfolio to perform and not the counter-party. Certain ISDA Master Agreements allow counterparties to over-the-counter derivatives to terminate derivative contracts prior to maturity in the event the Master Portfolio’s net assets decline by a stated percentage or the Master Portfolio fails to meet the terms of its ISDA Master Agreements, which would cause the Master Portfolio to accelerate payment of any net liability owed to the counterparty. Counterparty risk related to exchange-traded financial futures contracts and options is minimal because of protection against defaults provided by the exchange on which they trade.

Financial Futures Contracts: The Master Portfolio may purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of interest rates (interest rate risk). Financial futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Master Portfolio as unrealized gains or losses. When the contract is closed, the Master Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Foreign Currency Exchange Contracts: The Master Portfolio may enter into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio positions (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by the Master Portfolio, help to manage the overall exposure to the currency backing some of the investments held by the Master Portfolio. The contract is marked-to-market daily and the change in market value is recorded by the Master Portfolio as an unrealized gain or loss. When the contract is closed, the Master Portfolio records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign currency exchange contracts involves the risk that counterparties may not meet the terms of the agreement or unfavorable movements in the value of a currency relative to the US dollar.

Options: The Master Portfolio may purchase and write call and put options to increase or decrease their exposure to underlying instruments (interest rate risk). A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying instrument at the exercise price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise price at any time or at a specified time during the option period. When the Master Portfolio purchases (writes) an option, an amount equal to the premium paid (received) by the Master Portfolio is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Master Portfolio enters into a closing transaction), the Master Portfolio realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium received or paid). When the Master Portfolio writes a call option, such option is “covered,” meaning that the Master Portfolio holds the underlying instrument subject to being called by the option counterparty, or cash in an amount sufficient to cover the obligation. When the Master Portfolio writes a put option, such option is covered by cash in an amount sufficient to cover the obligation.

46 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Notes to Financial Statements (continued) Master Total Return Portfolio

Options on swaps (swaptions) are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap option is granting or buying the right to enter into a previously agreed upon interest rate swap agreement at any time before the expiration of the option.

In purchasing and writing options, the Master Portfolio bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Master Portfolio may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Master Portfolio purchasing a security at a price different from the current market value. The Master Portfolio may execute transactions in both listed and over-the-counter options.

Swaps: The Master Portfolio may enter into swap agreements, in which the Master Portfolio and a counterparty agree to make periodic net payments on a specified notional amount. These periodic payments received or made by the Master Portfolio are recorded in the Statement of Operations as realized gains or losses, respectively. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). When the swap is terminated, the Master Portfolio will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Master Portfolio’s basis in the contract, if any. Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

• Credit default swaps — The Master Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which it is not otherwise exposed (credit risk). The Master Portfolio enters into credit default agreements to provide a measure of protection against the default of an issuer (as buyer protection) and/or gain credit exposure to an issuer to which it is not otherwise exposed (as seller of protection). The Master Portfolio may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign) or traded indexes. Credit default swaps on single-name issuers are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a negative credit event take place (e.g., bankruptcy, failure to pay, obligation accelerators, repudiation, moratorium or restructuring). Credit default swaps on traded indexes are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a write-down, principal or interest shortfall or default of all or individual underlying securities included in the index occurs. As a buyer, if an underlying credit event occurs, the Master Portfolio will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising of an index or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising of an index. As a seller (writer), if an underlying credit event occurs,the Master Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising of an index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising of an index.

• Interest rate swaps — The Master Portfolio may enter into interest rate swaps to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). Interest rate swaps are agreements 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.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 47

Notes to Financial Statements (continued) Master Total Return Portfolio

Derivative Instruments Categorized by Risk Exposure:

Value of Derivative Instruments as of September 30, 2009*
	Asset Derivatives			Liability Derivatives
	Statement of Assets and Liabilities Location	Value		Statement of Assets and Liabilities Location	Value
Interest rate contracts**	Net unrealized appreciation/depreciation/Unrealized appreciation on swaps/Investments at value — unaffiliated	$	30,335,257	Net unrealized appreciation/depreciation/Unrealized depreciation on swaps/Options written at value	$	86,015,661
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts		407,958
Credit contracts	Unrealized appreciation on swaps		697,515	Unrealized depreciation on swaps		18,457,528
Total		$	31,440,730		$	104,473,189

*	For open derivative instruments as of September 30, 2009, see the Schedule of Investments, which is also indicative of activity for the year ended September 30, 2009.
**	Includes cumulative appreciation/depreciation of financial futures contracts as reported in Schedule of Investments. Only current day’s margin variation is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Instruments on the Statement of Operations Year Ended September 30, 2009
	Net Realized Gain (Loss) From
	Financial Futures Contracts		Swaps			Options***			Foreign Currency Exchange Contracts			Total
Interest rate contracts	$	128,787	$	(11,265,570	)	$	19,693,405			—		$	8,556,622
Foreign currency exchange contracts		—		—			—		$	13,254,418			13,254,418
Credit contracts		—		(5,825,021	)		—			—			(5,825,021	)
Total	$	128,787	$	(17,090,591	)	$	19,693,405		$	13,254,418		$	15,986,019
	Net Change in Unrealized Appreciation/Depreciation on
	Financial Futures Contracts		Swaps			Options***			Foreign Currency Exchange Contracts			Total
Interest rate contracts	$	17,190,170	$	6,163,219		$	(17,364,500	)		—		$	5,988,889
Foreign currency exchange contracts		—		—			—		$	(7,012,721	)		(7,012,721	)
Credit contracts		—		(16,493,938	)		—			—			(16,493,938	)
Total	$	17,190,170	$	(10,330,719	)	$	(17,364,500	)	$	(7,012,721	)	$	(17,517,770	)

*** Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Master Portfolio under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

The Master LLC, on behalf of the Master Portfolio, has entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Master LLC’s investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services.

The Manager is responsible for the management of the Master Portfolio’s portfolio and provides the necessary personnel, facilities and equipment to provide such services to the Master Portfolio. For such services, the Master Portfolio pays a monthly fee based upon the aggregate average daily value of the net assets of the Master Portfolio and BlackRock High Income Fund of BlackRock Bond Fund, Inc. at an annual rate of 0.20% of the aggregate average daily net assets not exceeding $250 million; 0.15% of the aggregate average daily net assets in excess of $250 million but less than $500 million; 0.10% of the aggregate average daily net assets in excess of $500 million but less than $750 million and 0.05% of the aggregate average daily net assets in excess of $750 million. For the year ended September 30, 2009, the aggregate average daily net asset value of the Master Portfolio and BlackRock High Income Fund was approximately $3,633,656,000.

The Manager has voluntarily agreed to waive its advisory fee by the amount of investment advisory fees the Master Portfolio pays to the Manager indirectly through its investment in affiliated money market funds. This amount is shown as fees waived by advisor in the Statement of Operations.

The Manager has entered into a separate sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager, under which the Manager pays BFM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by the Master Portfolio to the Manager.

48 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Notes to Financial Statements (continued) Master Total Return Portfolio

For the year ended September 30, 2009, the Master Portfolio reimbursed the Manager $61,316 for certain accounting services, which are included in accounting services in the Statement of Operations.

The Master Portfolio may earn income on positive cash balances in demand deposit accounts. For the year ended September 30, 2009 the Master Portfolio earned $2,452, which is included in income — affiliated in the Statement of Operations.

Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates. The Master Portfolio reimburses the Manager for compensation paid to the Master Portfolio’s Chief Compliance Officer.

4. Investments:

Purchases and sales of investments including paydowns, mortgage dollar roll and TBA transactions and excluding short-term securities and US government securities for the year ended September 30, 2009 were $19,427,734,709 and $20,802,265,790, respectively.

For the year ended September 30, 2009, purchases and sales of US government securities were $7,095,596,517 and $6,157,049,887, respectively.

For the year ended September 30, 2009, purchases and sales of mortgage dollar rolls were $8,622,751,446 and $9,084,516,043, respectively.

Transactions in options written for the year ended September 30, 2009 were as follows:

Call Options Written	Contracts†		Premiums Received
Outstanding options written, at beginning of year	597		$	21,278,695
Options written	1,448			64,129,152
Options exercised	(246	)		(6,431,500	)
Options closed	(839	)		(40,809,245	)
Outstanding options written, at end of year	960		$	38,167,102

† Swaption contracts include a notional amount of $1 million.

Put Options Written	Contracts†		Premiums Received
Outstanding options written, at beginning of year	1,117		$	24,958,498
Options written	1,658			68,627,985
Options expired	(765	)		(10,111,302	)
Options exercised	(1	)		(14,410	)
Options closed	(840	)		(41,598,166	)
Outstanding options written, at end of year	1,169		$	41,862,605

† Swaption contracts include a notional amount of $1 million.

5. Borrowings:

The Master Portfolio, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders, which expires in November 2009. The Master Portfolio may borrow under the credit agreement to fund shareholder redemptions and for other lawful purposes other than for leverage. The Master Portfolio may borrow up to the maximum amount allowable under the Master Portfolio’s current Prospectus and Statement of Additional Information, subject to various other legal, regulatory or contractual limits. The Master Portfolio paid its pro rata share of a 0.02% upfront fee on the aggregate commitment amount based on its net assets. The Master Portfolio pays a commitment fee of 0.08% per annum based on the Master Portfolio’s pro rata share of the unused portion of the credit agreement, which is included in borrowing costs in the Statement of Operations. Amounts borrowed under the credit agreement bear interest at a rate equal to the higher of the (a) federal funds effective rate and (b) reserve adjusted one month LIBOR, plus, in each case, the higher of (i) 1.50% and (ii) 50% of the CDX Index (as defined in the credit agreement). The Master Portfolio did not borrow under the credit agreement during the year ended September 30, 2009.

On August 28, 2009, the Master Portfolio borrowed under the Term Asset-Backed Securities Loan Facility (“TALF”). The TALF program was launched by the U.S. Department of Treasury and the Federal Reserve Board as a credit facility designed to restore liquidity to the market for asset-backed securities. The Federal Reserve Bank of New York (“FRBNY”) will provide up to $1 trillion in non-recourse loans to support the issuance of certain AAA-rated asset-backed securities and commercial mortgage-backed securities (“Eligible Securities”). The Master Portfolio posted as collateral already-held Eligible Securities, which were all commercial mortgage-backed securities, in return for non-recourse, 5-year term loans (“TALF loans”) in an amount equal to approximately 85% of the value of such Eligible Securities. The TALF loans are shown as loan payable on the Statement of Assets and Liabilities. The following is a summary of the outstanding TALF loans and related information as of September 30, 2009:

Number of Loans	Aggregate Amount of Loans	Maturity Date	Interest Rate	Value of Eligible Securities
8	$173,508,758	8/28/14	3.81%	$206,697,438

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 49

Notes to Financial Statements (concluded) Master Total Return Portfolio

The non-recourse provision of the TALF loans allows the Master Portfolio to satisfy loan obligations with Eligible Securities, subject to certain conditions, even if the value of the Eligible Securities falls below the outstanding amount of the loan. The Master Portfolio can repay TALF loans prior to the maturity dates with no penalty. Principal and interest due on the loans will typically be paid with principal paydowns and interest received from the Eligible Securities. Credit agreements underlying each loan contain provisions to address instances in which interest payments on Eligible Securities fall short of amounts due to the FRBNY. The Master Portfolio paid to the FRBNY a onetime administration fee of 0.20% of the amount borrowed, which was expensed as incurred in the current period by the Master Portfolio and is included in borrowing costs in the Statement of Operations. The Master Portfolio also pays a financing fee equal to the 5-year LIBOR swap rate plus 1.00% on the outstanding loan amount payable monthly, which is included in interest expense in the Statement of Operations.

Since the Master Portfolio has the ability to potentially satisfy TALF loan obligations by surrendering Eligible Securities, potential losses by the Master Portfolio associated with the TALF loans are limited to the difference between the amount of Eligible Securities posted at the time of loan initiation and the loan proceeds received by the Master Portfolio.

The Master Portfolio has elected to account for the outstanding TALF loans at fair value. The Master Portfolio elected to fair value its TALF loans to more closely align changes in the value of the TALF loans with changes in the value of the Eligible Securities and to reduce the potential volatility in the Statement of Operations which could result if only the Eligible Securities were fair valued. In fair valuing TALF loans, the Master Portfolio considers various factors such as observable market transactions, if available, changes in the value of Eligible Securities, interest rate movements, and the potential likelihood and timing of loan repayments. Any change in unrealized gain or loss associated with fair valuing TALF loans will be reflected in the Statement of Operations. As of September 30, 2009, the fair value of the Master Portfolio’s TALF loan obligation was determined to be equal to its face value and as a result there were no unrealized gains or losses recorded by the Master Portfolio.

For the year ended September 30, 2009, the Master Portfolio’s average amount of outstanding transactions considered as borrowings from reverse repurchase agreement, treasury rolls and TALF loans was approximately $361,542,000 and the daily weighted average interest rate was 0.28%.

6. Market and Credit Risk:

In the normal course of business, the Master Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (credit risk). The value of securities held by the Master Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Master Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to credit risk, the Master Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Master Portfolio has unsettled or open transactions may default. Financial assets, which potentially expose the Master Portfolio to credit and counterparty risks, consist principally of investments and cash due from counterparties. The extent of the Master Portfolio’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in the Master Portfolio’s Statement of Assets and Liabilities.

7. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Master Portfolio through November 25, 2009, the date the financial statements were issued, and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

50 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Report of Independent Registered Public Accounting Firm Master Total Return Portfolio

To the Investors and Board of Directors of Master Bond LLC:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master Total Return Portfolio of Master Bond LLC (the “Master LLC”), as of September 30, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Master LLC’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Master LLC is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Master LLC’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of the securities owned as of September 30, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master Total Return Portfolio of Master Bond LLC as of September 30, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
November 25, 2009

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 51

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors of Master Total Return Portfolio (the “Master Portfolio”), a series of Master Bond LLC (the “Master LLC”), and the Board of Directors of BlackRock Total Return Fund (the “Total Return Fund”), a series of the BlackRock Bond Fund, Inc. (the “Corporation”) (collectively, the “Board,” and the members of which are referred to herein as “Board Members”), met on May 5, 2009 and June 4 – 5, 2009 to consider the approval of investment advisory agreements (collectively, the “Advisory Agreements”) for the Master LLC, on behalf of the Master Portfolio, and the Corporation, on behalf of the Total Return Fund, with BlackRock Advisors, LLC (the “Manager”), the Master Portfolio’s and the Total Return Fund’s (each, a “Fund,” and collectively, the “Funds”) investment advisor. The Board of Directors of each of the Master LLC and the Corporation also considered the approval of the sub-advisory agreements (collectively, the “Sub-Advisory Agreements”) between the Manager and BlackRock Financial Management, Inc. (the “Sub-Advisor”) with respect to each Fund. The Total Return Fund is a “feeder” fund that invests all of its investable assets in the Master Portfolio. Accordingly, the Board of Directors of the Corporation also considered the approval of the Advisory Agreement and the Sub-Advisory Agreement with respect to the Master LLC.

The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

The Board of the Master LLC and the Corporation consisted of fifteen individuals, twelve of whom were not “interested persons” of the Master LLC or the Corporation as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”), at the time of the Board’s approval of the Agreements. The Board Members are responsible for the oversight of the operations of each Fund, as pertinent, and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of the Board is an Independent Board Member. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is composed of Independent Board Members (except for the Performance Oversight Committee and the Executive Committee, which each have one interested Board Member) and is chaired by Independent Board Members.

The Agreements

Pursuant to the 1940 Act, the Board is required to consider the continuation of the Agreements on an annual basis. In connection with this process, the Board assessed, among other things, the nature, scope and quality of the services provided to the Master Portfolio and/or the Total Return Fund by the personnel of BlackRock and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting applicable legal and regulatory requirements.

Throughout the year, the Board, acting directly and through its committees, considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Master Portfolio and/or the Total Return Fund and its shareholders. Among the matters the Board considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management and portfolio managers’ analysis of the reasons for any out performance or underperformance against its peers; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Master Portfolio and/or the Total Return Fund for services, such as transfer agency, marketing and distribution, call center and fund accounting; (c) the Master Portfolio’s and the Total Return Fund’s operating expenses; (d) the resources devoted to and compliance reports relating to each Fund’s investment objective, policies and restrictions; (e) each Fund’s compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; and (k) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the May 5, 2009 meeting, the Board requested and received materials specifically relating to the Agreements. The Board is engaged in an ongoing process with BlackRock to continuously review the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the May meeting included: (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on the Total Return Fund’s fees and expenses, and the investment performance of the Total Return Fund as compared with a peer group of funds as determined by Lipper (collectively, “Peers”); (b) information on the profitability of the Agreements to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) a general analysis provided by BlackRock concerning investment advisory fees charged to other clients, such as institutional clients and closed-end funds, under similar investment mandates, as well as the performance of such other clients; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by the Total Return Fund and/or the Master Portfolio to BlackRock; (f) sales and redemption data regarding the Total Return Fund’s shares; and (g) an internal comparison of management fees classified by Lipper, if applicable.

At an in-person meeting held on May 5, 2009, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the May 5, 2009 meeting, the Board presented BlackRock with questions and requests for additional information and BlackRock responded to these requests with additional written information in advance of the June 4 – 5, 2009 Board meeting.

52 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

At an in-person meeting held on June 4 – 5, 2009, each of the Master LLC’s and the Corporation’s Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreements between the Manager and each of the Master LLC and the Corporation and the Sub-Advisory Agreements between the Manager and the Sub-Advisor with respect to each Fund, each for a one-year term ending June 30, 2010. The Board of Directors of the Total Return Fund, including the Independent Board Members, also considered the continuation of the Agreements with respect to the Master Portfolio and found the Agreements to be satisfactory. The Board considered all factors it believed relevant with respect to the Master LLC, the Corporation and each Fund, as applicable, including, among other factors: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Funds and BlackRock portfolio management; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and certain affiliates from the relationship with the Funds; (d) economies of scale; and (e) other factors.

The Board also considered other matters it deemed important to the approval process, such as payments made to BlackRock or its affiliates relating to the distribution of the Total Return Fund’s shares, services related to the valuation and pricing of the Master Portfolio’s portfolio holdings, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with each Fund and advice from independent legal counsel with respect to the review process and materials submitted for the Board’s review. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of the Funds. Throughout the year, the Board compared the Funds’ performance to the performance of a comparable group of mutual funds, and the performance of a relevant benchmark, if any. The Board met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. The Board also reviewed the materials provided by the Funds’ portfolio management team discussing the Funds’ performance and the Funds’ investment objective, strategies and outlook.

The Board considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and the Funds’ portfolio management team, investments by portfolio managers in the funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s use of technology, BlackRock’s commitment to compliance and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also reviewed a general description of BlackRock’s compensation structure with respect to the Funds’ portfolio management team and BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, the Board considered the quality of the administrative and non-investment advisory services provided to each Fund. BlackRock and its affiliates and significant shareholders provide each Fund with certain administrative, transfer agency, shareholder and other services (in addition to any such services provided to a Fund by third parties) and officers and other personnel as are necessary for the operations of a Fund. In addition to investment advisory services, BlackRock and its affiliates provide each Fund with other services, including: (i) preparing disclosure documents, such as the prospectus, the statement of additional information and periodic shareholder reports; (ii) assisting with daily accounting and pricing; (iii) overseeing and coordinating the activities of other service providers; (iv) organizing Board meetings and preparing the materials for such Board meetings; (v) providing legal and compliance support; and (vi) performing other administrative functions necessary for the operation of a Fund, such as tax reporting, fulfilling regulatory filing requirements, and call center services. The Board reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of the Funds. In preparation for the May 5, 2009 meeting, the Board was provided with reports, independently prepared by Lipper, which included a comprehensive analysis of the Total Return Fund’s performance. The Board also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with its review, the Board received and reviewed information regarding the investment performance of the Total Return Fund as compared to a representative group of similar funds as determined by Lipper and to all funds in the Total Return Fund’s applicable Lipper category. The Board was provided with a description of the methodology used by Lipper to select peer funds. The Board regularly reviews the performance of the Funds throughout the year. The Board attaches more importance to performance over relatively long periods of time, typically three to five years.

The Board noted that the Total Return Fund ranked in the fourth quartile against its Lipper Performance Universe for each of the one-, three- and five-year periods reported. The Board and BlackRock reviewed the reasons for the Total Return Fund’s underperformance during these periods compared with its Peers. The Board was informed that, among other things, performance of BlackRock’s multi-sector taxable fixed income funds in 2008 was challenged most significantly due to overweight exposure to commercial mortgage-backed securities, non-agency residential mortgage-backed securities, and financial credits (where applicable). BlackRock continues to monitor these positions closely and believes that certain securities continue to provide an attractive long term investment opportunity. The Board also noted the enhancements made to BlackRock’s Fixed Income Team and process. The Board and BlackRock discussed BlackRock’s commitment to providing the resources necessary to assist the portfolio managers and to improve the Total Return Fund’s performance.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 53

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: The Board, including the Independent Board Members, reviewed the Funds’ contractual advisory fee rates compared with the other funds in their Lipper category. It also compared the Total Return Fund’s total expenses, as well as actual management fees, to those of other comparable funds. The Board considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.

The Board received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided the Master Portfolio. The Board was also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Total Return Fund and/or the Master Portfolio. The Board reviewed BlackRock’s profitability with respect to the Master Portfolio and other funds the Board currently oversees for the year ended December 31, 2008 compared to available aggregate profitability data provided for the year ended December 31, 2007. The Board reviewed BlackRock’s profitability with respect to other fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Nevertheless, to the extent such information is available, the Board considered BlackRock’s operating margin, in general, compared to the operating margin for leading investment management firms whose operations include advising open-end funds, among other product types. The comparison indicated that operating margins for BlackRock with respect to its registered funds are generally consistent with margins earned by similarly situated publicly traded competitors. In addition, the Board considered, among other things, certain third party data comparing BlackRock’s operating margin with that of other publicly-traded asset management firms, which concluded that larger asset bases do not, in themselves, translate to higher profit margins.

In addition, the Board considered the cost of the services provided to the Funds by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of the Funds and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Board reviewed BlackRock’s methodology in allocating its costs to the management of the Funds. The Board also considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board.

The Board noted that, although the Total Return Fund’s/Master Portfolio’s contractual advisory fees were above the median contractual advisory fees paid by the Total Return Fund’s Peers, the actual advisory fees, after giving effect to any expense reimbursements or fee waivers, were lower than or equal to the median of the Total Return Fund’s Peers. The Board also noted that the Total Return Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the aggregate assets of the Total Return Fund and the BlackRock High Income Fund, also a series of the Corporation, increase, thereby allowing shareholders the potential to participate in economies of scale. The Total Return Fund is a “feeder” fund that invests all of its investable assets in the Master Portfolio. The Manager has contractually agreed to waive the Total Return Fund’s advisory fee in the amount of the Total Return Fund’s share of the advisory fee paid by the Master Portfolio. The Master Portfolio also has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the aggregate assets of the Master Portfolio and the BlackRock High Income Fund increase, thereby allowing shareholders the potential to participate in economies of scale. The Board further noted that BlackRock has contractually and/or voluntarily agreed to waive fees or reimburse expenses in order to limit the Total Return Fund’s total net expenses on a class-by-class basis, as applicable.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Funds increase and whether there should be changes in the advisory fee rate or structure in order to enable the Funds to participate in these economies of scale, for example through the use of revised breakpoints in the advisory fee based upon the assets of the Funds. The Board considered that the funds in the BlackRock fund complex share some common resources and, as a result, an increase in the overall size of the complex could permit each fund to incur lower expenses than it would otherwise as a stand-alone entity. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations.

E. Other Factors: The Board also took into account other ancillary or “fallout” benefits that BlackRock or its affiliates and significant shareholders may derive from its relationship with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates and significant shareholders as service providers to the Funds, including for administrative, transfer agency and distribution services. The Board also noted that BlackRock may use third party research obtained by soft dollars generated by certain mutual fund transactions to assist itself in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

54 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

Conclusion

The Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreements between the Manager and the Master LLC, on behalf of the Master Portfolio, and the Corporation, on behalf of the Total Return Fund, for a one-year term ending June 30, 2010 and the Sub-Advisory Agreements between the Manager and Sub-Advisor with respect to each Fund for a one-year term ending June 30, 2010. Based upon its evaluation of all these factors in their totality, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. The Board of Directors of the Total Return Fund, including the Independent Board Members, also considered the continuation of the Agreements with respect to the Master Portfolio and found the Agreements to be satisfactory. In arriving at a decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for each Fund reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. Certain aspects of the arrangements may be the subject of more attention in some years than in others, and the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 55

Officers and Directors

Name, Address and Year of Birth	Position(s) Held with Fund/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Non-Interested Directors1
Robert M. Hernandez 40 East 52nd Street New York, NY 10022 1944	Chairman of the Board, Director and Member of the Audit Committee	Since 2007	Director, Vice Chairman and Chief Financial Officer of USX Corporation (energy and steel business) from 1991 to 2001.	35 RICs consisting of 101 Portfolios	ACE Limited (insurance company); Eastman Chemical Company (chemical); RTI International Metals, Inc. (metals); TYCO Electronics (electronics)
Fred G. Weiss 40 East 52nd Street New York, NY 10022 1941	Vice Chairman of the Board, Chairman of the Audit Committee and Director	Since 2007	Managing Director, FGW Associates (consulting and investment company) since 1997; Director, Michael J. Fox Foundation for Parkinson’s Research since 2000; Director, BTG International Plc (a global technology commercialization company) from 2001 to 2007.	35 RICs consisting of 101 Portfolios	Watson Pharmaceutical Inc.
James H. Bodurtha 40 East 52nd Street New York, NY 10022 1944	Director	Since 2007	Director, The China Business Group, Inc. (consulting firm) since 1996 and Executive Vice President thereof from 1996 to 2003; Chairman of the Board, Berkshire Holding Corporation since 1980.	35 RICs consisting of 101 Portfolios	None
Bruce R. Bond 40 East 52nd Street New York, NY 10022 1946	Director	Since 2007	Trustee and member of the Governance Committee, State Street Research Mutual Funds from 1997 to 2005; Board Member of Governance, Audit and Finance Committee, Avaya Inc. (computer equipment) from 2003 to 2007.	35 RICs consisting of 101 Portfolios	None
Donald W. Burton 40 East 52nd Street New York, NY 10022 1944	Director	Since 2007	Managing General Partner, The Burton Partnership, LP (an investment partnership) since 1979; Managing General Partner, The South Atlantic Venture Funds since 1983; Member of the Investment Advisory Council of the Florida State Board of Administration from 2001 to 2007.	35 RICs consisting of 101 Portfolios	Knology, Inc. (tele-communications); Capital Southwest (financial)
Honorable Stuart E. Eizenstat 40 East 52nd Street New York, NY 10022 1943	Director	Since 2007	Partner and Head of International Practice, Covington and Burling (law firm) since 2001; International Advisory Board Member, The Coca-Cola Company since 2002; Advisory Board Member, BT Americas (telecommunications) since 2004; Member of the Board of Directors, Chicago Climate Exchange (environmental) since 2006; Member of the International Advisory Board GML (energy) since 2003.	35 RICs consisting of 101 Portfolios	Alcatel-Lucent (tele-communications); Global Specialty Metallurgical (metal-lurgical industry); UPS Corporation (delivery service)
Kenneth A. Froot 40 East 52nd Street New York, NY 10022 1957	Director	Since 2007	Professor, Harvard University since 1992.	35 RICs consisting of 101 Portfolios	None
John F. O’Brien 40 East 52nd Street New York, NY 10022 1943	Director	Since 2007	Trustee, Woods Hole Oceanographic Institute since 2003; Director, Allmerica Financial Corporation from 1995 to 2003; Director, ABIOMED from 1989 to 2006; Director, Ameresco, Inc. (energy solutions company) from 2006 to 2007.	35 RICs consisting of 101 Portfolios	Cabot Corporation (chemicals); LKQ Corporation (auto parts manufacturing); TJX Companies, Inc. (retailer)
Roberta Cooper Ramo 40 East 52nd Street New York, NY 10022 1942	Director	Since 2007	Shareholder, Modrall, Sperling, Roehl, Harris & Sisk, P.A. (law firm) since 1993; Chairman of the Board, Cooper’s Inc. (retail) since 2000; Director of ECMC Group (service provider to students, schools and lenders) since 2001; President, The American Law Institute (non-profit) since 2008; President, American Bar Association from 1995 to 1996.	35 RICs consisting of 101 Portfolios	None

56 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Officers and Directors (continued)

Name, Address and Year of Birth	Position(s) Held with Fund/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Non-Interested Directors1 (concluded)
David H. Walsh 40 East 52nd Street New York, NY 10022 1941	Director	Since 2007	Director, National Museum of Wildlife Art since 2007; Director, Ruckleshaus Institute and Haub School of Natural Resources at the University of Wyoming from 2006 to 2008; Trustee, University of Wyoming Foundation since 2008; Director, The American Museum of Fly Fishing since 1997; Director, The National Audubon Society from 1998 to 2005.	35 RICs consisting of 101 Portfolios	None
Richard R. West 40 East 52nd Street New York, NY 10022 1938	Director and Member of the Audit Committee	Since 1981	Dean Emeritus, New York University’s Leonard N. Stern School of Business Administration since 1995.	35 RICs consisting of 101 Portfolios	Bowne & Co., Inc. (financial printers); Vornado Realty Trust (real estate company); Alexander’s Inc. (real estate company)

1

Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

2

Date shown is the earliest date a person has served as a director for the Fund/Master LLC covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain directors as joining the Fund/Master LLC board in 2007, each director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: James H. Bodurtha, 1995; Bruce R. Bond, 2005; Donald W. Burton, 2002; Stuart E. Eizenstat, 2001; Kenneth A. Froot, 2005; Robert M. Hernandez, 1996; John F. O’Brien, 2004; Roberta Cooper Ramo, 2000; David H. Walsh, 2003; Fred G. Weiss, 1998; and Richard R. West, 1978.

Interested Directors3
Richard S. Davis 40 East 52nd Street New York, NY 10022 1945	Director	Since 2007	Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State Street Research & Management Company from 2000 to 2005; Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005; Chairman, SSR Realty from 2000 to 2004.	172 RICs consisting of 283 Portfolios	None
Laurence D. Fink 40 East 52nd Street New York, NY 10022 1952	Director	Since 2007	Chairman and Chief Executive Officer of BlackRock, Inc. since its formation in 1998 and of BlackRock, Inc.’s predecessor entities since 1988 and Chairman of the Executive and Management Committees; Formerly Managing Director, The First Boston Corporation, Member of its Management Committee, Co-head of its Taxable Fixed Income Division and Head of its Mortgage and Real Estate Products Group; Chairman of the Board of several of BlackRock’s alternative investment vehicles; Director of several of BlackRock’s offshore funds; Member of the Board of Trustees of New York University, Chair of the Financial Affairs Committee and a member of the Executive Committee, the Ad Hoc Committee on Board Governance, and the Committee on Trustees; Co-Chairman of the NYU Hospitals Center Board of Trustees, Chairman of the Development/- Trustee Stewardship Committee and Chairman of the Finance Committee; Trustee, The Boys’ Club of New York.	35 RICs consisting of 101 Portfolios	None
Henry Gabbay 40 East 52nd Street New York, NY 10022 1947	Director	Since 2007	Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	172 RICs consisting of 283 Portfolios	None

³ Messrs. Davis and Fink are both “interested persons,” as defined in the Investment Company Act of 1940, of the Fund/Master LLC based on their positions with BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Fund/Master LLC based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock, Inc. and PNC securities. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 57

Officers and Directors (continued)

Name, Address and Year of Birth	Position(s) Held with Fund/ Master LLC	Length of Time Served	Principal Occupation(s) During Past Five Years
Fund/Master LLC Officers1
Anne F. Ackerley 40 East 52nd Street New York, NY 10022 1962	President and Chief Executive Officer	Since 2009	Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised Funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Global Client Group (GCG) since 2009; Chief Operating Officer of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.
Jeffrey Holland, CFA 40 East 52nd Street New York, NY 10022 1971	Vice President	Since 2009	Director of BlackRock, Inc. since 2006; Chief Operating Officer of BlackRock’s U.S. Retail Group since 2009; Co-head of Product Development and Management for BlackRock’s U.S. Retail Group from 2007 to 2009; Product Manager of Raymond James & Associates from 2003 to 2006.
Brendan Kyne 40 East 52nd Street New York, NY 10022 1977	Vice President	Since 2009	Director of BlackRock, Inc. since 2008; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009, co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008; Associate of BlackRock, Inc. from 2002 to 2004.
Brian Schmidt 40 East 52nd Street New York, NY 10022 1958	Vice President	Since 2009	Managing Director of BlackRock, Inc. since 2004; Various positions with U.S. Trust Company from 1991 to 2003 including Director from 2001 to 2003 and Senior Vice President from 1998 to 2003; Vice President, Chief Financial Officer and Treasurer of Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc. and Excelsior Funds Trust from 2001 to 2003.
Neal J. Andrews 40 East 52nd Street New York, NY 10022 1966	Chief Financial Officer	Since 2007	Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay M. Fife 40 East 52nd Street New York, NY 10022 1970	Treasurer	Since 2007	Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised Funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.

58 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Officers and Directors (concluded)

Name, Address and Year of Birth	Position(s) Held with Fund/ Master LLC	Length of Time Served	Principal Occupation(s) During Past Five Years
Fund/Master LLC Officers1 (concluded)
Brian P. Kindelan 40 East 52nd Street New York, NY 10022 1959	Chief Compliance Officer	Since 2007	Chief Compliance Officer of the BlackRock-advised Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, LLC from 2001 to 2004.
Howard B. Surloff 40 East 52nd Street New York, NY 10022 1965	Secretary	Since 2007	Managing Director and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006.

¹ Officers of the Fund/Master LLC serve at the pleasure of the Board.

Further information about the Fund’s Officers and Directors is available in the Fund’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Financial Management, Inc.
New York, NY 10022

Custodian
State Street Bank and
Trust Company
Boston, MA 02101

Distributor
BlackRock
Investments, LLC
New York, NY 10022

Transfer Agent
PNC Global Investment
Servicing (U.S.) Inc.
Wilmington, DE 19809

Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540

Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Address of the Fund
100 Bellevue Parkway
Wilmington, DE 19809

Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Fund and Master LLC, retired. The Fund’s and Master LLC’s Board of Directors wishes Mr. Burke well in his retirement.

Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Fund and Master LLC, and Jeffrey Holland and Brian Schmidt became Vice Presidents of the Fund and Master LLC.

Effective August 1, 2009, Jean Margo Reid resigned as a Director of the Fund and Master LLC. The Board wishes Ms. Reid well in her future endeavors.

Effective September 9, 2009, Brendan Kyne became a Vice President of the Fund and Master LLC.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 59

Additional Information

General Information

Electronic Delivery

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1)	Access the BlackRock website at http://www.blackrock.com/edelivery
2)	Click on the applicable link and follow the steps to sign up
3)	Log into your account

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it 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 Fund at (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund/Master LLC uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund/Master LLC votes proxies relating to securities held in the Fund’s/Master LLC’s portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Quarterly Portfolio Schedule

The Fund/Master LLC files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling (202) 551-8090. The Fund’s/Master LLC’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

60 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

Additional Information (concluded)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

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 non-public 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 non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009 61

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds

BlackRock All-Cap Energy & Resources Portfolio

BlackRock Asset Allocation Portfolio†

BlackRock Aurora Portfolio

BlackRock Balanced Capital Fund†

BlackRock Basic Value Fund

BlackRock Capital Appreciation Portfolio

BlackRock Energy & Resources Portfolio

BlackRock Equity Dividend Fund

BlackRock EuroFund

BlackRock Focus Growth Fund

BlackRock Focus Value Fund

BlackRock Fundamental Growth Fund

BlackRock Global Allocation Fund†

BlackRock Global Dynamic Equity Fund

BlackRock Global Emerging Markets Fund

BlackRock Global Financial Services Fund

BlackRock Global Growth Fund

BlackRock Global Opportunities Portfolio

BlackRock Global SmallCap Fund

BlackRock Health Sciences Opportunities Portfolio

BlackRock Healthcare Fund

BlackRock Index Equity Portfolio*

BlackRock International Fund

BlackRock International Diversification Fund

BlackRock International Index Fund

BlackRock International Opportunities Portfolio

BlackRock International Value Fund

BlackRock Large Cap Core Fund

BlackRock Large Cap Core Plus Fund

BlackRock Large Cap Growth Fund

BlackRock Large Cap Value Fund

BlackRock Latin America Fund

BlackRock Mid-Cap Growth Equity Portfolio

BlackRock Mid-Cap Value Equity Portfolio

BlackRock Mid Cap Value Opportunities Fund

BlackRock Natural Resources Trust

BlackRock Pacific Fund

BlackRock Science & Technology Opportunities Portfolio

BlackRock Small Cap Core Equity Portfolio

BlackRock Small Cap Growth Equity Portfolio

BlackRock Small Cap Growth Fund II

BlackRock Small Cap Index Fund

BlackRock Small Cap Value Equity Portfolio

BlackRock Small/Mid-Cap Growth Portfolio

BlackRock S&P 500 Index Fund

BlackRock U.S. Opportunities Portfolio

BlackRock Utilities and Telecommunications Fund

BlackRock Value Opportunities Fund

Fixed Income Funds

BlackRock Bond Portfolio

BlackRock Emerging Market Debt Portfolio

BlackRock GNMA Portfolio

BlackRock Government Income Portfolio

BlackRock High Income Fund

BlackRock High Yield Bond Portfolio

BlackRock Income Portfolio†

BlackRock Income Builder Portfolio†

BlackRock Inflation Protected Bond Portfolio

BlackRock Intermediate Government Bond Portfolio

BlackRock International Bond Portfolio

BlackRock Long Duration Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock Managed Income Portfolio

BlackRock Short-Term Bond Fund

BlackRock Strategic Income Portfolio

BlackRock Total Return Fund

BlackRock Total Return Portfolio II

BlackRock World Income Fund

Municipal Bond Funds

BlackRock AMT-Free Municipal Bond Portfolio

BlackRock California Municipal Bond Fund

BlackRock Delaware Municipal Bond Portfolio

BlackRock High Yield Municipal Fund

BlackRock Intermediate Municipal Fund

BlackRock Kentucky Municipal Bond Portfolio

BlackRock Municipal Insured Fund

BlackRock National Municipal Fund

BlackRock New Jersey Municipal Bond Fund

BlackRock New York Municipal Bond Fund

BlackRock Ohio Municipal Bond Portfolio

BlackRock Pennsylvania Municipal Bond Fund

BlackRock Short-Term Municipal Fund

Target Risk & Target Date Funds

BlackRock Prepared Portfolios

Conservative Prepared Portfolio

Moderate Prepared Portfolio

Growth Prepared Portfolio

Aggressive Growth Prepared Portfolio

BlackRock Lifecycle Prepared Portfolios

Prepared Portfolio 2010

Prepared Portfolio 2015

Prepared Portfolio 2020

Prepared Portfolio 2025

Prepared Portfolio 2030

Prepared Portfolio 2035

Prepared Portfolio 2040

Prepared Portfolio 2045

Prepared Portfolio 2050

*	See the prospectus for information on specific limitations on investments in the fund.
†	Mixed asset fund.

BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.

62 BLACKROCK TOTAL RETURN FUND OF BLACKROCK BOND FUND, INC. SEPTEMBER 30, 2009

This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

10251-1-9/09

Item 2 –	Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.
Item 3 –	Audit Committee Financial Expert – The registrant’s board of directors or trustees, as applicable (the “board of directors”) has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
	Robert M. Hernandez
	Fred G. Weiss
	Richard R. West
	Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.
Item 4 –	Principal Accountant Fees and Services

	(a) Audit Fees				(b) Audit-Related Fees1				(c) Tax Fees2				(d) All Other Fees3
Entity Name	Current Fiscal Year End		Previous Fiscal Year End		Current Fiscal Year End		Previous Fiscal Year End		Current Fiscal Year End		Previous Fiscal Year End		Current Fiscal Year End		Previous Fiscal Year End
BlackRock Total Return Fund of BlackRock Bond Fund, Inc.	$	6,800	$	6,800	$	0	$	0	$	6,100	$	6,100	$	1,028	$	1,049
Master Total Return Portfolio of Master Bond LLC	$	51,300	$	48,300	$	0	$	0	$	9,200	$	9,200	$	0	$	0

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services include tax compliance, tax advice and tax planning.

3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

          The registrant’s audit committee (the “Committee”) has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant’s affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the

Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operation or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the Committee oversees. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

          Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to one or more of its members the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates’ Aggregate Non-Audit Fees:

Entity Name	Current Fiscal Year End		Previous Fiscal Year End
BlackRock Total Return Fund of BlackRock Bond Fund, Inc.	$	414,628	$	412,149
Master Total Return Portfolio of Master Bond LLC	$	416,700	$	414,200

	(h) The registrant’s audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
	Regulation S-X Rule 2-01(c)(7)(ii) – $407,500, 0%
Item 5 –	Audit Committee of Listed Registrants – Not Applicable
Item 6 –	Investments
	(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
	(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 –	Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 –	Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9 –	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 –	Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.
Item 11 –	Controls and Procedures
11(a) –	The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15(d)-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) –	There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 –	Exhibits attached hereto
12(a)(1) –	Code of Ethics – See Item 2
12(a)(2) –	Certifications – Attached hereto
12(a)(3) –	Not Applicable
12(b) –	Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and Master Total Return Portfolio of Master Bond LLC
By:	/s/ Anne F. Ackerley
	Anne F. Ackerley
	Chief Executive Officer of
	BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and Master Total Return Portfolio of Master Bond LLC
Date: November 20, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By:	/s/ Anne F. Ackerley
	Anne F. Ackerley
	Chief Executive Officer (principal executive officer) of
	BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and Master Total Return Portfolio of Master Bond LLC
Date: November 20, 2009
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and Master Total Return Portfolio of Master Bond LLC
Date: November 20, 2009