Blackrock Broad Investment Grade 2009 Term Trust (BCT) N-CSRS Certified semi-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:           811-07250                                             

____BlackRock Broad Investment Grade 2009 Term Trust, Inc.____
(Exact name of registrant as specified in charter)

100 Bellevue Parkway, Wilmington, DE	19809
(Address of principal executive offices)	(Zip code)

Robert S. Kapito, President
BlackRock Broad Investment Grade 2009 Term Trust, Inc.
40 East 52nd Street, New York, NY 10022 (Name and address of agent for service)

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

Date of fiscal year end:___October 31, 2006__________________________________

Date of reporting period:__ April 30, 2006____________________________________

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

FIXED INCOME          LIQUIDITY          EQUITIES          ALTERNATIVES          BLACKROCK SOLUTIONS
	BlackRock
	Closed-End Funds
	Semi-Annual Report
	APRIL 30, 2006 (Unaudited)
	BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)
	BlackRock Core Bond Trust (BHK)
	BlackRock High Yield Trust (BHY)
	BlackRock Income Opportunity Trust (BNA)
	BlackRock Income Trust Inc. (BKT)
	BlackRock Limited Duration Income Trust (BLW)
	BlackRock Strategic Bond Trust (BHD)
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

TABLE OF CONTENTS

Letter to Shareholders	1
Trusts’ Summaries	2
Financial Statements
Portfolios of Investments	9
Statements of Assets and Liabilities	65
Statements of Operations	67
Statements of Cash Flows	69
Statements of Changes in Net Assets	71
Financial Highlights	74
Notes to Financial Statements	81
Dividend Reinvestment Plans	92
Additional Information	93
Section 19 Notices	94

Privacy Principles of the Trusts

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

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

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

LETTER TO SHAREHOLDERS

April 30, 2006

Dear Shareholder:

          We are pleased to report that during the six month period, the Trusts provided the opportunity to invest in various portfolios of fixed income securities. This report contains the Trusts’ unaudited and audited financial statements and a listing of the portfolios’ holdings.

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

          The following table shows the Trusts’ yields, closing market prices per share and net asset values (“NAV”) per share as of April 30, 2006.

Trust	Yield1		Market Price			NAV
BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)	5.92	%		$	15.20	$	14.44
BlackRock Core Bond Trust (BHK)	7.22				12.81		13.41
BlackRock High Yield Trust (BHY)	8.20				8.10		7.57
BlackRock Income Opportunity Trust (BNA)	7.18				10.34		10.80
BlackRock Income Trust Inc. (BKT)	7.13				6.19		6.45
BlackRock Limited Duration Income Trust (BLW)	8.17				17.89		19.08
BlackRock Strategic Bond Trust (BHD)	8.59				12.30		13.58

¹ Yield is based on closing market price. Past performance does not guarantee future results. These yields may increase/decrease due to an increase/decrease in the monthly distribution per share.

          BlackRock, Inc. (“BlackRock”), a world leader in asset management, has a proven commitment to managing fixed income securities. As of March 31, 2006, BlackRock managed $309 billion in fixed income securities, including 20 open-end and 48 closed-end bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world’s largest institutional investors. BlackRock Advisors, Inc., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock, Inc.

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

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

1

TRUST SUMMARIES (unaudited)
APRIL 30, 2006

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

Trust Information

Symbol on American Stock Exchange:	BCT
Initial Offering Date:	June 17, 1993
Closing Market Price as of 4/30/06:	$	15.20
Net Asset Value as of 4/30/06:	$	14.44
Yield on Closing Market Price as of 4/30/06 ($15.20):1		5.92%
Current Monthly Distribution per Share:2	$	0.075
Current Annualized Distribution per Share:2	$	0.900

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution is not constant and is subject to change.

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

	4/30/06	10/31/05	Change	High	Low
Market Price	$15.20	$15.86	(4.16)%	$15.86	$14.85
NAV	$14.44	$14.63	(1.30)%	$14.65	$14.41

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

Portfolio Composition

Composition	April 30, 2006		October 31, 2005
U.S. Government and Agency Securities	45	%	46	%
Corporate Bonds	20		18
Agency Multiple Class Mortgage Pass-Through Securities	16		16
Taxable Municipal Bonds	9		9
Interest Only Mortgage-Backed Securities	6		6
Inverse Floating Rate Mortgage Securities	3		4
Mortgage Pass-Through Securities	1		1

Corporate Credit Breakdown³

Credit Rating	April 30, 2006		October 31, 2005
AAA/Aaa	7	%	7	%
AA/Aa	54		54
A	22		23
BBB/Baa	8		15
BB/Ba	7		—
CCC/Caa	2		1

³ Using the higher of Standard & Poor’s (“S&P”), Moody’s Investors Service (“Moody’s”) or Fitch Ratings (“Fitch”) rating. Corporate bonds represented approximately 15.6% and 15.5% of net assets on April 30, 2006 and October 31, 2005, respectively.

2

TRUST SUMMARIES (unaudited)
APRIL 30, 2006

BlackRock Core Bond Trust (BHK)

Trust Information

Symbol on New York Stock Exchange:	BHK
Initial Offering Date:	November 27, 2001
Closing Market Price as of 4/30/06:	$	12.81
Net Asset Value as of 4/30/06:	$	13.41
Yield on Closing Market Price as of 4/30/06 ($12.81):1		7.22%
Current Monthly Distribution per Share:2	$	0.0771
Current Annualized Distribution per Share:2	$	0.9252

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	A change in the distribution rate was declared on June 2, 2006. The Monthly Distribution per Share was decreased to $0.0670. TheYield on Closing Market Price, Current Monthly Distribution and Current Annualized Distribution do not reflect the new distribution rate. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.

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

	4/30/06	10/31/05	Change	High	Low
Market Price	$12.81	$13.69	(6.43)%	$13.85	$12.45
NAV	$13.41	$14.27	(6.03)%	$14.36	$13.36

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

Portfolio Composition

Composition	April 30, 2006		October 31, 2005
Corporate Bonds	57	%	42	%
Mortgage Pass-Through Securities	11		15
Asset-Backed Securities	9		1
Agency Multiple Class Mortgage Pass-Through Securities	7		—
Commercial Mortgage-Backed Securities	7		6
Collateralized Mortgage Obligation Securities	4		2
U.S. Government and Agency Securities	2		31
Interest Only Asset-Backed Securities	1		—
Foreign Government Bonds	1		2
Interest Only Mortgage-Backed Securities	1		1

Corporate Credit Breakdown³

Credit Rating	April 30, 2006		October 31, 2005
AAA/Aaa	7	%	5	%
AA/Aa	28		25
A	12		13
BBB/Baa	12		13
BB/Ba	10		12
B	24		23
CCC/Caa	4		6
Not Rated	3		3

³ Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 55.8% and 53.3% of net assets on April 30, 2006 and October 31, 2005, respectively.

3

TRUST SUMMARIES (unaudited)
APRIL 30, 2006

BlackRock High Yield Trust (BHY)

Trust Information

Symbol on New York Stock Exchange:	BHY
Initial Offering Date:	December 23, 1998
Closing Market Price as of 4/30/06:	$	8.10
Net Asset Value as of 4/30/06:	$	7.57
Yield on Closing Market Price as of 4/30/06 ($8.10):1		8.20%
Current Monthly Distribution per Share:2	$	0.055333
Current Annualized Distribution per Share:2	$	0.663996

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.

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

	4/30/06	10/31/05	Change	High	Low
Market Price	$8.10	$7.36	10.05%	$8.89	$7.08
NAV	$7.57	$7.48	1.20%	$7.60	$7.38

The following charts show the portfolio composition and credit quality allocations of the Trust’s corporate bond investments:

Corporate Portfolio Composition

Composition	April 30, 2006		October 31, 2005
Energy	18	%	19	%
Financial Institutions	13		14
Basic Materials	11		12
Media	9		7
Telecommunications	9		8
Technology	6		5
Consumer Products	5		7
Aerospace & Defense	5		3
Industrials	5		6
Building & Development	4		3
Entertainment & Leisure	4		3
Containers & Packaging	3		2
Automotive	3		2
Health Care	2		4
Transportation	2		3
Ecological Services & Equipment	1		1
Real Estate	—		1

Corporate Credit Breakdown³

Credit Rating	April 30, 2006		October 31, 2005
BBB/Baa	3	%	3	%
BB/Ba	30		32
B	54		51
CCC/Caa	10		14
C	1		—
Not Rated	2		—

³ Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 133.1% and 133.8% of net assets on April 30, 2006 and October 31, 2005, respectively.

4

TRUST SUMMARIES (unaudited)
APRIL 30, 2006

BlackRock Income Opportunity Trust (BNA)

Trust Information

Symbol on New York Stock Exchange:	BNA
Initial Offering Date:	December 20, 1991
Closing Market Price as of 4/30/06:	$	10.34
Net Asset Value as of 4/30/06:	$	10.80
Yield on Closing Market Price as of 4/30/06 ($10.34):1		7.18%
Current Monthly Distribution per Share:2	$	0.0619
Current Annualized Distribution per Share:2	$	0.7428

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	A change in the distribution rate was declared on June 2, 2006. The Monthly Distribution per Share was decreased to $0.0550. The Yield on Closing Market Price, Current Monthly Distribution and Current Annualized Distribution do not reflect the new distribution rate. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.

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

	4/30/06	10/31/05	Change	High	Low
Market Price	$10.34	$10.90	(5.14)%	$11.06	$10.07
NAV	$10.80	$11.56	(6.57)%	$11.63	$10.76

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

Portfolio Composition

Composition	April 30, 2006		October 31, 2005
Corporate Bonds	45	%	35	%
U.S. Government and Agency Securities	13		37
Mortgage Pass-Through Securities	10		13
Asset-Backed Securities	9		—
Agency Multiple Class Mortgage Pass-Through Securities	9		5
Commercial Mortgaged-Backed Securities	4		4
Collateralized Mortgage Obligation Securities	4		1
Non-Agency Multiple Class Mortgage Pass-Through Securities	2		1
Federal Housing Administration Securities	1		1
Interest Only Asset-Backed Securities	1		1
Interest Only Mortgage-Backed Securities	1		1
Inverse Floating Rate Mortgage Securities	1		1

Corporate Credit Breakdown³

Credit Rating	April 30, 2006		October 31, 2005
AAA/Aaa	10	%	8	%
AA/Aa	20		17
A	10		9
BBB/Baa	13		19
BB/Ba	14		15
B	25		24
CCC/Caa	5		6
Not Rated	3		2

³ Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 49.1% and 46.6% of net assets on April 30, 2006 and October 31, 2005, respectively.

5

TRUST SUMMARIES (unaudited)
APRIL 30, 2006

BlackRock Income Trust Inc. (BKT)

Trust Information

Symbol on New York Stock Exchange:	BKT
Initial Offering Date:	July 22, 1988
Closing Market Price as of 4/30/06:	$	6.19
Net Asset Value as of 4/30/06:	$	6.45
Yield on Closing Market Price as of 4/30/06 ($6.19):1		7.13%
Current Monthly Distribution per Share:2	$	0.036787
Current Annualized Distribution per Share:2	$	0.441444

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.

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

	4/30/06	10/31/05	Change	High	Low
Market Price	$6.19	$5.90	4.92%	$6.52	$5.86
NAV	$6.45	$6.54	(1.22)%	$6.57	$6.44

The following chart shows the portfolio composition of the Trust’s long-term investments:

Portfolio Composition

Composition	April 30, 2006		October 31, 2005
Mortgage Pass-Through Securities	23	%	23	%
U.S. Government and Agency Securities	22		30
Collateralized Mortgage Obligation Securities	19		13
Agency Multiple Class Mortgage Pass-Through Securities	16		14
Interest Only Mortgage-Backed Securities	7		7
Principal Only Mortgage-Backed Securities	5		5
Non Agency Multiple Class Mortgage Pass-Through Securities	3		2
Federal Housing Administration Securities	2		2
Inverse Floating Rate Mortgage Securities	1		1
Interest Only Asset-Backed Securities	1		1
Corporate Bonds	1		—
Collateralized Mortgage Obligation Residual Securities	—		2

6

TRUST SUMMARIES (unaudited)
APRIL 30, 2006

BlackRock Limited Duration Income Trust (BLW)

Trust Information

Symbol on New York Stock Exchange:	BLW
Initial Offering Date:	July 30, 2003
Closing Market Price as of 4/30/06:	$	17.89
Net Asset Value as of 4/30/06:	$	19.08
Yield on Closing Market Price as of 4/30/06 ($17.89):1		8.17%
Current Monthly Distribution per Share:2	$	0.1218
Current Annualized Distribution per Share:2	$	1.4616

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	A change in the distribution rate was declared on June 2, 2006. The Monthly Distribution per Share was increased to $0.1250. The Yield on Closing Market Price, Current Monthly Distribution and Current Annualized Distribution do not reflect the new distribution rate.

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

	4/30/06	10/31/05	Change	High	Low
Market Price	$17.89	$17.48	2.35%	$18.68	$16.54
NAV	$19.08	$19.17	(0.47)%	$19.22	$18.97

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

Portfolio Composition

Composition	April 30, 2006		October 31, 2005
Corporate Bonds	42	%	43	%
Bank Loans	35		32
Mortgage Pass-Through Securities	14		15
U.S. Government and Agency Securities	4		4
Foreign Government Bonds	2		2
Collateralized Mortgage Obligations	1		1
Asset-Backed Securities	1		2
Interest Only Asset-Backed Securities	1		1

Corporate Credit Breakdown³

Credit Rating	April 30, 2006		October 31, 2005
A	3	%	3	%
AA/Aa	3		—
BBB/Baa	8		9
BB/Ba	26		33
B	48		43
CCC/Caa	9		8
Not Rated	3		4

³ Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 61.0% and 59.8% of net assets on April 30, 2006 and October 31, 2005, respectively.

7

TRUST SUMMARIES (unaudited)
APRIL 30, 2006

BlackRock Strategic Bond Trust (BHD)

Trust Information

Symbol on New York Stock Exchange:	BHD
Initial Offering Date:	February 26, 2002
Closing Market Price as of 4/30/06:	$	12.30
Net Asset Value as of 4/30/06:	$	13.58
Yield on Closing Market Price as of 4/30/06 ($12.30):1		8.59%
Current Monthly Distribution per Share:2	$	0.088
Current Annualized Distribution per Share:2	$	1.056

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.

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

	4/30/06	10/31/05	Change	High	Low
Market Price	$12.30	$12.45	(1.20)%	$13.23	$11.56
NAV	$13.58	$13.68	(0.73)%	$13.85	$13.52

The following charts show the portfolio composition and credit quality allocations of the Trust’s corporate bond investments:

Corporate Portfolio Composition

Composition	April 30, 2006		October 31, 2005
Financial Institutions	21	%	21	%
Energy	12		12
Media	11		10
Telecommunications	8		8
Consumer Products	7		9
Aerospace & Defense	7		5
Basic Materials	6		5
Health Care	5		7
Entertainment & Leisure	4		3
Technology	4		3
Automotive	3		3
Building & Development	3		2
Industrials	2		4
Real Estate	2		2
Ecological Services & Equipment	2		2
Transportation	2		2
Containers & Packaging	1		1
Conglomerates	—		1

Corporate Credit Breakdown³

Credit Rating	April 30, 2006		October 31, 2005
AAA/Aaa	4	%	3	%
AA/Aa	8		8
A	13		11
BBB/Baa	12		19
BB/Ba	13		11
B	39		36
CCC/Caa	8		9
Not Rated	3		3

³ Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 114.7% and 122.7% of net assets on April 30, 2006 and October 31, 2005, respectively.

8

CONSOLIDATED PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2006

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

Rating1	Principal Amount (000)			Description	Value
				LONG-TERM INVESTMENTS—80.0%
				Mortgage Pass-Through Securities—1.0%
				Federal National Mortgage Assoc.,
	$	411		5.50%, 1/01/17-2/01/17	$	408,649
		15		6.50%, 7/01/29		15,776
				Total Mortgage Pass-Through Securities		424,425
				Agency Multiple Class Mortgage Pass-Through Securities—13.0%
				Federal Home Loan Mortgage Corp.,
		2,168		Ser. 1510, Class G, 7.05%, 5/15/13		2,193,772
		2,000		Ser. 1598, Class J, 6.50%, 10/15/08		2,017,719
				Federal National Mortgage Assoc.,
		39	2	Ser. 13, Class SJ, 8.75%, 2/25/09		38,906
		1,000		Ser. 49, Class H, 7.00%, 4/25/13		1,020,140
		165	2	Ser. 214, Class SK, 10.00%, 12/25/08		170,458
		100	2	Government National Mortgage Assoc., REMIC Trust 2000, 5.731%, 12/16/27		99,953
				Total Agency Multiple Class Mortgage Pass-Through Securities		5,540,948
				Inverse Floating Rate Mortgage Securities—2.3%
AAA		185	2	Citicorp Mortgage Securities, Inc., 5.932%, 11/25/23		184,625
				Federal Home Loan Mortgage Corp.,
		162	2	Ser. 1425, Class SB, 9.258%, 12/15/07		163,227
		30	2	Ser. 1506, Class S, 11.833%, 5/15/08		30,595
		106	2	Ser. 1515, Class S, 11.291%, 5/15/08		107,365
		68	2	Ser. 1618, Class SA, 8.25%, 11/15/08		67,810
		32	2	Ser. 1661, Class SB, 11.297%, 1/15/09		32,833
		121	2	Ser. 1688, Class S, 8.794%, 12/15/13		120,771
				Federal National Mortgage Assoc.,
		95	2	Ser. 187, Class SB, 14.266%, 10/25/07		97,319
		85	2	Ser. 191, Class SD, 8.807%, 10/25/08		84,152
		118	2	Ser. 214, Class SH, 5.345%, 12/25/08		114,495
				Total Inverse Floating Rate Mortgage Securities		1,003,192
				Interest Only Mortgage-Backed Securities—4.4%
				Federal Home Loan Mortgage Corp.,
		110		Ser. 65, Class I, 918.03%, 8/15/20		1,394
		27		Ser. 141, Class H, 1,060.00%, 5/15/21		360
		—		Ser. 1114, Class J, 1,008.00%, 7/15/06		119
		234		Ser. 1645, Class IB, 5.50%, 9/15/08		6,457
		1,970		Ser. 2523, Class EH, 5.50%, 4/15/20		158,909
		281		Ser. 2543, Class IM, 5.00%, 9/15/12		1,869
		1,399		Ser. 2633, Class PI, 4.50%, 3/15/12		39,335
		841		Ser. 2672, Class TP, 5.00%, 9/15/16		6,417
		5,605		Ser. 2739, Class PI, 5.00%, 3/15/22		434,652
		1,920		Ser. 2775, Class UB, 5.00%, 12/15/17		65,532
		2,568		Ser. 2976, Class KI, 5.50%, 11/15/34		275,917
				Federal National Mortgage Assoc.,
		1		Ser. 8, Class HA, 1,199.999%, 1/25/08		10,416
		2,016		Ser. 13, Class IG, 5.00%, 10/25/22		120,404
		149	2	Ser. 20, Class SL, 12.666%, 9/25/08		15,044
		4		Ser. 49, Class L, 444.917%, 4/25/13		38,508
		2		Ser. 51, Class K, 1,006.50%, 4/25/07		9,063
		12,992		Ser. 70, Class ID, 5.00%, 4/25/22		654,938
		—		Ser. 72, Class H, 1,183.25%, 7/25/06		73
		296		Ser. 82, Class IR, 5.00%, 9/25/12		3,737
		4	2	Ser. 174, Class S, 111.644%, 9/25/22		10,982
		42	2	Ser. 208, Class S, 2.531%, 2/25/23		158
		—		Ser. G-21, Class L, 949.50%, 7/25/21		6,597
		15,981		Vendee Mortgage Trust, 0.04%, 10/15/31		30,828
				Total Interest Only Mortgage-Backed Securities		1,891,709

See Notes to Financial Statements.

9

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT) (continued)

Rating1	Principal Amount (000)			Description	Value
				Principal Only Mortgage-Backed Security—0.1%
Aaa	$	25	3	Salomon Brothers Mortgage Securities, Inc. VI, 12.50%, 10/23/17	$	21,808
				Asset-Backed Securities—0.0%
NR		235	2,4,5,6	Global Rated Eligible Asset Trust, 7.33%, 9/15/07		23
				Structured Mortgage Asset Residential Trust,
NR		568	2,5,6	Ser. 2, 8.24%, 12/15/06		57
NR		629	2,5,6	Ser. 3, 8.724%, 4/15/07		63
				Total Asset-Backed Securities		143
				Corporate Bonds—15.6%
				Energy—2.4%
A1		500		Conoco Funding Co., 5.45%, 10/15/06 (Canada)		500,382
BBB+		500	4	Israel Electric Corp. Ltd., 7.25%, 12/15/06 (Israel)		504,109
				Total Energy		1,004,491
				Financial Institutions—13.0%
Aa2		500		Bank of America Corp., 4.75%, 10/15/06		499,221
AAA		500		General Electric Capital Corp., 2.75%, 9/25/06		495,367
BB		500		General Motors Acceptance Corp., 6.125%, 9/15/06		497,595
AA-		500		Goldman Sachs Group, Inc., 2.85%, 10/27/06		494,025
A+		500		Lehman Brothers Holdings, Inc., 7.50%, 9/01/06		503,338
AA-		1,000		Morgan Stanley Group, Inc., 10.00%, 6/15/08		1,092,327
A+		500		SLM Corp., 3.50%, 9/30/06		496,987
Aa3		500		SunTrust Bank, 7.25%, 9/15/06		503,320
Aa1		500		U.S. Bank NA, 2.85%, 11/15/06		493,117
AA-		500		Wachovia Corp., 4.95%, 11/01/06		499,110
				Total Financial Institutions		5,574,407
				Transportation—0.2%
Caa2		100		American Airlines, Inc., 10.44%, 3/04/07		102,000
				Total Corporate Bonds		6,680,898
				U.S. Government and Agency Securities—36.3%
				U.S. Treasury Notes,
		3,200		3.50%, 11/15/06		3,175,001
		2,000		6.00%, 8/15/09		2,066,718
		385		6.625%, 5/15/07		391,527
		10,000		U.S. Treasury Strip, Zero Coupon, 8/15/06		9,871,875
				Total U.S. Government and Agency Securities		15,505,121
				Taxable Municipal Bonds—7.3%
AAA		500		Fresno California Pension Oblig., 7.80%, 6/01/14		552,350
AAA		500		Kern County California Pension Oblig., 6.98%, 8/15/09		524,340
				Los Angeles County California Pension Oblig.,
AAA		1,000		Ser. A, 8.62%, 6/30/06		1,005,110
AAA		500		Ser. D, 6.97%, 6/30/08		516,360
AAA		500		Orleans Parish Louisiana School Board, 6.60%, 2/01/08		509,475
				Total Taxable Municipal Bonds		3,107,635
				Total Long-Term Investments (cost $34,801,147)		34,175,879
				SHORT-TERM INVESTMENT—19.4%
				U.S. Government and Agency Zero Coupon Bond—19.4%
		8,300	7	Federal Home Loan Bank Discount Notes, 4.71%, 5/01/06 (cost $8,300,000)		8,300,000
				Total Investments—99.4% (cost $43,101,1478)	$	42,475,879
				Other assets in excess of liabilities—0.6%		239,030
				Net Assets—100%	$	42,714,909

1	Using the higher of S&P’s, Moody’s or Fitch’s rating.
2	Variable rate security. Rate shown is interest rate as of April 30, 2006.
3	Rate shown is interest rate or effective yield as of April 30, 2006 of the underlying collateral.
4	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2006, the Trust held 1.2% of its net assets, with a current market value of $504,132, in securities restricted as to resale.
5	Security is fair valued.
6	Illiquid security. As of April 30, 2006, the Trust held less than 0.1% of its net assets, with a current market value of $143 in these securities.
7	Rate shown is the yield to maturity as of April 30, 2006.
8	Cost for Federal income tax purposes is $43,101,147. The net unrealized depreciation on a tax basis is $625,268, consisting of $365,558 gross unrealized appreciation and $990,826 gross unrealized depreciation.

KEY TO ABBREVIATIONS

REMIC – Real Estate Mortgage Investment Conduit

See Notes to Financial Statements.

10

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2006

BlackRock Core Bond Trust (BHK)

Rating1	Principal Amount (000)			Description		Value
				LONG-TERM INVESTMENTS—98.9%
				Mortgage Pass-Through Securities—11.0%
				Federal Home Loan Mortgage Corp.,
	$	1,875		3.01%, 4/19/07	$	1,836,600
		88		5.00%, 8/01/33		83,307
		8,052		5.50%, 11/01/18-2/01/36		7,871,483
		3,294		6.00%, 2/01/13-12/01/18		3,331,696
		194	2	6.013%, 5/01/32		196,296
		31		7.00%, 9/01/31		32,120
				Federal National Mortgage Assoc.,
		870		1.75%, 6/16/06		866,246
		3,675	3	2.35%, 4/05/07		3,582,072
		52		4.50%, 2/01/20		49,949
		12,165		5.00%, 11/01/17-7/01/35		11,829,691
		4,262		5.50%, 1/01/18-1/01/36		4,156,375
		1,025		6.00%, 8/01/29-3/01/36		1,019,787
		382		7.00%, 1/01/31-7/01/32		392,674
		1,400		TBA, 5.00%, 5/16/21		1,362,813
		314		Government National Mortgage Assoc., 5.50%, 8/15/33		308,634
				Small Business Administration,
		908		Ser. P10B, Class 1, 4.754%, 8/01/14		856,938
		2,029		Ser. P10B, Class 1, 5.136%, 8/01/13		1,974,778
				Total Mortgage Pass-Through Securities		39,751,459
				Federal Housing Administration Security—0.3%
		1,062		FHA Hebre Home Hospital, 6.25%, 9/01/28		1,088,338
				Agency Multiple Class Mortgage Pass-Through Securities—7.0%
				Federal Home Loan Mortgage Corp.,
		2,553		Ser. 82, Class HJ, 5.50%, 9/25/32		2,518,808
		1,504		Ser. 2825, Class VP, 5.50%, 6/15/15		1,491,332
		1,300		Ser. 2883, Class DR, 5.00%, 11/15/19		1,200,368
		3,557		Ser. 2922, Class GA, 5.50%, 5/15/34		3,502,995
		1,910		Ser. 2927, Class BA, 5.50%, 10/15/33		1,885,104
		1,847		Ser. 2933 Class HD, 5.50%, 2/15/35		1,828,325
		1,600		Ser. 2968, Class EG, 6.00%, 10/15/34		1,578,522
				Federal National Mortgage Assoc.,
		1,635		Ser. 3 Class AP, 5.50%, 2/25/35		1,625,448
		3,472		Ser. 5, Class PK, 5.00%, 12/25/34		3,387,800
		2,136		Ser. 27, Class PC, 5.50%, 5/25/34		2,101,560
		2,129		Ser. 70, Class NA, 5.50%, 8/25/35		2,084,354
		1,974	2	Ser. 118, Class FD, 5.359%, 12/25/33		1,985,652
				Total Agency Multiple Class Mortgage Pass-Through Securities		25,190,268
				Asset-Backed Securities—8.8%
AAA		2,825		Citibank Credit Card Issuance Trust, 4.85%, 2/10/11		2,797,112
				Countrywide Asset-Backed Certificates,
AAA		2,572	2	Ser. 15, Class 2AV1, 5.059%, 4/25/36		2,572,692
AAA		2,702	2	Ser. 16, Class 4AV1, 5.059%, 1/25/35		2,702,945
AAA		2,825		DaimlerChrysler Auto Trust, 5.00%, 5/08/10		2,813,432
AAA		2,850		Ford Credit Auto Owner Trust, 5.07%, 12/15/10		2,835,422
AAA		2,825		MBNA Credit Card Master Note Trust, 4.90%, 7/15/11		2,802,534
AAA		2,207	2	Merrill Lynch Mortgage Investors, Inc., 5.069%, 9/25/36		2,207,649
AAA		2,630	2	New Century Home Equity Loan Trust, 5.039%, 1/25/36		2,630,585
				SLM Student Loan Trust,
AAA		2,179	2	Ser. 5, Class A1, 5.10%, 1/25/18		2,179,334
AAA		812	2	Ser. 9, Class A2, 5.12%, 10/25/12		812,235
AAA		2,293	2	Ser. 10, Class A1, 5.07%, 4/25/12		2,291,548
AAA		2,648	2	Structured Asset Investment Loan Trust, 5.039%, 1/25/36		2,649,966
AAA		2,725		USAA Auto Owner Trust, 5.04%, 12/15/11		2,705,887
				Total Asset-Backed Securities		32,001,341

See Notes to Financial Statements.

11

BlackRock Core Bond Trust (BHK) (continued)

Rating1	Principal Amount (000)			Description	Value
				Interest Only Asset-Backed Securities—1.1%
				Sterling Coofs Trust,
	$	28,253		Ser. 1, 2.362%, 4/15/29	$	1,977,731
		30,350		Ser. 2, 1.00%, 3/30/30		2,124,500
				Total Interest Only Asset-Backed Securities		4,102,231
				Interest Only Mortgage-Backed Securities—0.9%
				Federal Home Loan Mortgage Corp.,
		2,923		Ser. 2579, Class HI, 5.00%, 8/15/17		406,453
		7,231		Ser. 2611, Class QI, 5.50%, 9/15/32		1,331,487
		32,031	2	Federal National Mortgage Assoc., 1.741%, 11/25/34		1,410,164
				Total Interest Only Mortgage-Backed Securities		3,148,104
				Commercial Mortgage-Backed Securities—6.9%
AAA		2,180	2	Banc of America Commerical Mortgage, Inc., 4.894%, 11/10/42		2,123,455
AAA		1,808		Commercial Mortgage Acceptance Corp., 6.03%, 9/15/30		1,813,353
AAA		2,720		Credit Suisse First Boston Mortgage Securities Corp., 4.94%, 12/15/35		2,620,591
AAA		1,648		General Motors Acceptance Corp. Commercial Mortgage Securities, Inc., 7.179%, 8/15/36		1,711,936
AAA		2,683		Goldman Sachs Mortgage Securities Corp. II, 6.135%, 10/18/30		2,700,471
AAA		1,677		Heller Financial Commercial Mortgage Asset Co., 6.847%, 5/15/31		1,714,263
				JP Morgan Chase Commercial Mortgage Securities Corp.,
AAA		2,140		Ser. C1, Class A3, 5.857%, 10/12/35		2,163,647
AAA		2,180		Ser. CBX, Class A4, 4.529%, 1/12/37		2,071,680
AAA		1,770		JP Morgan Commercial Mortgage Finance Corp., 7.371%, 8/15/32		1,861,937
AAA		2,622		Morgan Stanley Capital Trust I, 6.48%, 11/15/30		2,670,614
AAA		3,500		Salomon Brothers Mortgage Securities VII, 7.52%, 12/18/09		3,717,713
				Total Commercial Mortgage-Backed Securities		25,169,660
				Collateralized Mortgage Obligation Securities—4.1%
				Federal Home Loan Mortgage Corp.,
		1,200		Ser. 2562, Class PG, 5.00%, 1/15/18		1,148,654
		372		Ser. 2582, Class TB, 3.50%, 10/15/21		370,317
		3,197		Ser. 2806, Class VC, 6.00%, 12/15/19		3,184,040
				First Union National Bank Commercial Mortgage,
AAA		3,150		Ser. C3, Class A3, 6.423%, 8/15/33		3,237,475
AAA		2,265		Ser. C4, Class A2, 6.223%, 12/12/33		2,327,197
AAA		2,350		General Motors Acceptance Corp. Commercial Mortgage Securities, Inc., 4.93%, 7/10/39		2,261,508
AAA		2,741		Structured Asset Securities Corp., 3.45%, 2/25/32		2,459,530
				Total Collateralized Mortgage Obligation Securities		14,988,721
				Corporate Bonds—55.8%
				Aerospace & Defense—2.2%
B-		384		Aero Invest, 10.634%, 3/22/15 (Norway) (EUR)		501,517
B+		30		Armor Holdings, Inc., 8.25%, 8/15/13		32,025
				BE Aerospace, Inc.,
BB-		1,310		8.50%, 10/01/10		1,396,787
B		475		8.875%, 5/01/11		495,781
B-		1,430		DI Finance/DynCorp. Intl., 9.50%, 2/15/13		1,494,350
B		80		DRS Technologies, Inc., 7.625%, 2/01/18		81,600
				Northrop Grumman Corp.,
BBB+		615		4.079%, 11/16/06		611,058
BBB+		960		7.875%, 3/01/26		1,128,825
NR		1,190		Raytheon Co., 7.00%, 5/15/06		1,204,975
BB		90		Sequa Corp., 8.875%, 4/01/08		94,050
A+		1,125		United Technologies Corp., 4.875%, 5/01/15		1,059,080
				Total Aerospace & Defense		8,100,048
				Automotive—0.8%
BB+		25		ArvinMeritor, Inc., 8.75%, 3/01/12		25,563
				Autonation, Inc.,
BB+		150	4	7.00%, 4/15/14		150,750
BB+		150	2,4	7.045%, 4/15/13		152,625
				Avis Budget Car Rental LLC,
BB-		30	2,4	7.576%, 5/15/14		30,862
BB-		65	4	7.75%, 5/15/16		66,300

See Notes to Financial Statements.

12

BlackRock Core Bond Trust (BHK) (continued)

Rating1	Principal Amount (000)			Description	Value
				Automotive—(cont’d)
A3	$	660		DaimlerChrysler NA Holding Corp., 7.45%, 3/01/27	$	681,184
CCC		90		Dura Operating Corp., 8.625%, 4/15/12		76,500
B		700		General Motors Corp., 8.25%, 7/15/23		507,500
B-		25		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		24,625
B+		300		Lear Corp., 8.11%, 5/15/09		294,750
CCC+		450		Metaldyne Corp., 10.00%, 11/01/13		434,250
B		100		Tenneco, Inc., 8.625%, 11/15/14		101,250
BB-		517		TRW Automotive, Inc., 9.375%, 2/15/13		555,775
				Total Automotive		3,101,934
				Basic Materials—3.4%
B+		40		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)		40,400
B+		850		AK Steel Corp., 7.75%, 6/15/12		860,625
B		80	2,4	BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 10.577%, 7/15/10		81,800
BB-		80	2	Bowater, Inc., 7.91%, 3/15/10		80,800
NR		4,330		Caraustar Industries, Inc., 9.875%, 4/01/11		4,557,325
BB+		30		Chemtura Corp., 6.875%, 6/01/16		29,925
				Domtar, Inc.,
B+		60		7.125%, 8/15/15 (Canada)		54,450
B+		180		7.875%, 10/15/11 (Canada)		174,600
B+		150		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		151,313
				Huntsman LLC,
B2		66		11.50%, 7/15/12		75,570
B2		225	2	12.318%, 7/15/11		235,688
BB		70		IMC Global, Inc., 10.875%, 6/01/08		75,425
				Ineos Group Holdings PLC,
B2		285		7.875%, 2/07/16 (United Kingdom) (EUR)		346,522
B-		730	4	8.50%, 2/15/16 (United Kingdom)		690,762
CCC+		1,045		Innophos, Inc., 8.875%, 8/15/14		1,076,350
BBB+		130		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		145,925
BB+		2,120		Lyondell Chemical Co., 9.50%, 12/15/08		2,204,800
B3		255		NewPage Corp., 10.00%, 5/01/12		273,487
BB+		480	2	Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)		483,000
				Rhodia SA,
CCC+		204		8.875%, 6/01/11 (France)		211,650
B3		16		10.25%, 6/01/10 (France)		17,880
BBB		380		Teck Cominco Ltd., 6.125%, 10/01/35 (Canada)		351,559
				Total Basic Materials		12,219,856
				Building & Development—1.4%
B-		75		Ahern Rentals, Inc., 9.25%, 8/15/13		78,187
B2		200	4	Compression Polymers Corp., 10.50%, 7/01/13		205,000
B-		635		ERICO Intl. Corp., 8.875%, 3/01/12		654,050
B-		640		Goodman Global Holding Co., Inc., 7.875%, 12/15/12		641,600
BB+		3,000		Hovnanian Enterprises, Inc., 10.50%, 10/01/07		3,176,250
				North American Energy Partners, Inc.,
Caa1		55		8.75%, 12/01/11 (Canada)		53,763
B		175		9.00%, 6/01/10 (Canada)		185,500
				Total Building & Development		4,994,350
				Consumer Products—2.2%
B3		90		ALH Finance LLC, 8.50%, 1/15/13		88,200
				Cenveo Corp.,
B-		250		7.875%, 12/01/13		243,750
B+		500		9.625%, 3/15/12		535,000
BBB+		530		Federated Department Stores, Inc., 6.79%, 7/15/27		526,934
B-		280		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		245,700
B		80		Gold Kist, Inc., 10.25%, 3/15/14		84,400
B-		800	4	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		766,000
B-		330		Lazydays RV Center, Inc., 11.75%, 5/15/12		330,413
B		385	2	Levi Strauss & Co., 9.74%, 4/01/12		401,362

See Notes to Financial Statements.

13

BlackRock Core Bond Trust (BHK) (continued)

Rating1	Principal Amount (000)			Description	Value
				Consumer Products—(cont’d)
				May Department Stores Co.,
BBB+	$	30		6.65%, 7/15/24	$	29,837
BBB+		230		7.875%, 3/01/30		254,255
CCC-		170		Movie Gallery, Inc., 11.00%, 5/01/12		89,250
B3		50	2,4	Nutro Products, Inc., 9.23%, 10/15/13		51,000
B		1,000		Pantry, Inc., 7.75%, 2/15/14		1,015,000
BB-		200		Quiksilver, Inc., 6.875%, 4/15/15		193,000
B-		925	4	Rite Aid Corp., 6.125%, 12/15/08		908,812
B		2,100		Sonic Automotive, Inc., 8.625%, 8/15/13		2,163,000
				Total Consumer Products		7,925,913
				Containers & Packaging—0.8%
B3		240	4	Covalence Specialty Materials Corp., 10.25%, 3/01/16		248,400
B1		250	4	Crown Americas LLC and Crown Americas Capital Corp., 7.75%, 11/15/15		255,625
CCC+		75		Graham Packaging Co., Inc., 8.50%, 10/15/12		76,687
B		1,500		Owens Brockway, 8.25%, 5/15/13		1,537,500
B-		75	4	Packaging Dynamics Finance Corp., 10.00%, 5/01/16		76,500
CCC+		445	4	Pregis Corp., 12.375%, 10/15/13		466,694
B+		250		Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11		256,875
				Total Containers & Packaging		2,918,281
				Ecological Services & Equipment—0.2%
BB-		230		Allied Waste NA, Inc., 5.75%, 2/15/11		219,650
CCC		590		Waste Services, Inc., 9.50%, 4/15/14		612,125
				Total Ecological Services & Equipment		831,775
				Energy—6.4%
				ANR Pipeline Co.,
B		260		7.375%, 2/15/24		267,150
B		810		9.625%, 11/01/21		970,987
B2		270		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		279,450
B		170	4	Chaparral Energy, Inc., 8.50%, 12/01/15		175,100
BB		20	4	Chesapeake Energy Corp., 6.875%, 11/15/20		19,700
B-		250		Clayton Williams Energy, Inc., 7.75%, 8/01/13		235,625
				CMS Energy Corp.,
BB-		30		7.50%, 1/15/09		30,825
BB-		95		8.50%, 4/15/11		101,888
BB-		30		9.875%, 10/15/07		31,763
BB-		160		Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)		165,200
				Compton Petroleum Finance Corp.,
B		100		7.625%, 12/01/13		99,125
B		255	4	7.625%, 12/01/13 (Canada)		252,769
A1		375		ConocoPhillips Holding Co., 6.95%, 4/15/29		414,531
BBB		1,980		Devon Financing Corp. LLC, 7.875%, 9/30/31		2,329,839
B2		690		Dresser, Inc., 9.375%, 4/15/11		723,638
B		180		Dynegy Danskammer LLC, 7.27%, 11/08/10		183,600
				El Paso Corp.,
B-		100		7.80%, 8/01/31		99,500
B-		65	4	9.625%, 5/15/12		71,825
B-		150	4	10.75%, 10/01/10		167,625
				El Paso Natural Gas Co.,
B		850		7.625%, 8/01/10		877,625
B		225		8.375%, 6/15/32		249,188
B		265		8.625%, 1/15/22		296,469
Ba2		175		Elwood Energy LLC, 8.159%, 7/05/26		184,385
A-		1,000		EnCana Corp., 6.50%, 8/15/34 (Canada)		1,018,028
B-		60		Exco Resources, Inc., 7.25%, 1/15/11		59,250
AA-		950		Florida Power & Light Co., 4.95%, 6/01/35		792,993
BB		80		Grant Prideco, Inc., 6.125%, 8/15/15		76,800
BBB+		175		Halliburton Co., 7.60%, 8/15/96		188,309
				Hilcorp Energy I LP/Hilcorp Finance Corp.,
B		250	4	7.75%, 11/01/15		246,250
B		49	4	10.50%, 9/01/10		53,410

See Notes to Financial Statements.

14

BlackRock Core Bond Trust (BHK) (continued)

Rating1	Principal Amount (000)			Description	Value
				Energy—(cont’d)
B-	$	170		KCS Energy, Inc., 7.125%, 4/01/12	$	171,275
BBB		1,025		Kinder Morgan Fin. Corp., 6.40%, 1/05/36		981,506
B+		94		Midwest Generation LLC, 8.56%, 1/02/16		100,718
				Mirant Americas Generation LLC,
B		40		8.30%, 5/01/11		41,300
B		50		8.50%, 10/01/21		50,375
B		220		9.125%, 5/01/31		231,000
B2		590		Mission Energy Holdings Co., 13.50%, 7/15/08		671,125
				NRG Energy, Inc.,
B1		50		7.25%, 2/01/14		50,250
B1		285		7.375%, 2/01/16		287,138
A-		360		Occidental Petroleum Corp., 7.20%, 4/01/28		399,563
B-		130		Orion Power Holdings, Inc., 12.00%, 5/01/10		147,713
BBB+		790		Peco Energy Capital Trust IV, 5.75%, 6/15/33		682,197
BBB		1,650		Pemex Project Funding Master Trust, 9.375%, 12/02/08		1,786,125
BBB		395		Petro Canada, 5.95%, 5/15/35 (Canada)		366,258
Baa2		850		Progress Energy, Inc., 7.75%, 3/01/31		967,209
				Reliant Energy, Inc.,
BB-		210		6.75%, 12/15/14		191,100
BB-		50		9.25%, 7/15/10		50,875
A-		700		Scottish Power PLC, 5.375%, 3/15/15 (United Kingdom)		669,862
Aa1		290	4	SP PowerAssets Ltd., 5.00%, 10/22/13 (Singapore)		276,982
A-		295		Suncor Energy, Inc., 5.95%, 12/01/34 (Canada)		284,211
BBB+		310		Talisman Energy, Inc., 5.85%, 2/01/37 (Canada)		282,884
B-		320	4	Targa Resources, Inc., 8.50%, 11/01/13		324,800
AA		1,050		Texaco Capital, Inc., 8.875%, 9/01/21		1,368,792
A2		550		Transcanada Pipelines Ltd., 5.85%, 3/15/36 (Canada)		519,594
BBB-		20		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26		20,500
B2		45		Whiting Petroleum Corp., 7.00%, 2/01/14		44,550
BB+		515		Williams Cos., Inc., 8.75%, 3/15/32		592,250
BBB-		950		XTO Energy, Inc., 6.10%, 4/01/36		896,422
				Total Energy		23,119,421
				Entertainment & Leisure—0.9%
B3		185	4	AMC Entertainment, Inc., 11.00%, 2/01/16		197,950
B		1,000		Circus & Eldorado Joint Venture, 10.125%, 3/01/12		1,070,000
B-		150		Gaylord Entertainment Co., 6.75%, 11/15/14		143,625
B3		360	4	Greektown Holdings LLC, 10.75%, 12/01/13		377,100
B		110		Poster Financial Group, Inc., 8.75%, 12/01/11		116,050
B		1,000		Resorts Intl. Hotel & Casino, Inc., 11.50%, 3/15/09		1,095,000
B+		100	4	San Pasqual Casino, 8.00%, 9/15/13		101,000
BB-		260		Seneca Gaming Corp., 7.25%, 5/01/12		260,000
B+		40		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		38,800
				Total Entertainment & Leisure		3,399,525
				Financial Institutions—20.9%
AA		550	4,5	Allstate Financial Global Funding II, 2.625%, 10/22/06		542,507
BB		320		American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		318,400
Aa2		1,645		Bank of America Corp., 4.50%, 8/01/10		1,592,244
Aa2		325		Bank One Corp., 3.70%, 1/15/08		317,023
Aa2		1,400		BankBoston NA, 6.375%, 3/25/08-4/15/08		1,427,886
AA+		4,970	2	Barclays Bank PLC NY, 4.90%, 3/13/09		4,970,000
B		40		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		44,000
AA		350	4	Belvoir Land LLC, 5.27%, 12/15/47		305,812
				Berkshire Hathaway Finance Corp.,
AAA		1,200		3.40%, 7/02/07		1,172,628
AAA		1,075		4.75%, 5/15/12		1,027,534
AA+		600		CitiFinancial, 6.25%, 1/01/08		609,240

See Notes to Financial Statements.

15

BlackRock Core Bond Trust (BHK) (continued)

Rating1	Principal Amount (000)			Description	Value
				Financial Institutions—(cont’d)
				Citigroup, Inc.,
AA+	$	3,010		3.625%, 2/09/09	$	2,883,980
AA+		5,470		4.125%, 2/22/10		5,232,262
AA+		1,960		4.25%, 7/29/09		1,897,721
AA+		525		6.875%, 2/15/98		546,676
BB		1,080		Crum & Forster Holdings Corp., 10.375%, 6/15/13		1,123,200
AAA		1,100	4	Depfa ACS Bank, 4.25%, 8/16/10 (Ireland)		1,053,869
AA-		900	2	Deutsche Bank AG, 3.843%, 3/15/07		885,600
B+		100		E*Trade Financial Corp., 7.375%, 9/15/13		101,750
BB		180		Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)		171,000
Aaa		525	4	Fort Irwin Land LLC, 5.03%, 12/15/25		469,639
AAA		3,625	2	General Electric Capital Corp., 3.45%, 1/15/08		3,611,770
BB		460		General Motors Acceptance Corp., 6.875%, 8/28/12		425,393
AA-		1,415		Goldman Sachs Group, Inc., 5.35%, 1/15/16		1,358,285
				HBOS Treasury Services PLC,
AA+		855	4	3.60%, 8/15/07 (United Kingdom)		838,088
AA+		825	4	3.75%, 9/30/08 (United Kingdom)		794,992
AA-		775		HSBC Bank USA, Inc., 5.875%, 11/01/34		734,495
				HSBC Finance Corp.,
AA-		1,820		4.75%, 5/15/09		1,787,331
AA-		635		6.375%, 8/01/10		653,183
AA		1,500	4	Irwin Land LLC, 5.40%, 12/15/47		1,315,388
Aa3		600		JP Morgan Chase & Co., 5.35%, 3/01/07		598,903
B-		255		K&F Acquisition, Inc., 7.75%, 11/15/14		260,738
AA		1,150	4	Metropolitan Global Funding I, 4.25%, 7/30/09		1,110,778
AA-		4,405	2	Morgan Stanley Group, Inc., 4.91%, 3/07/08		4,403,681
AA		2,125	4	Nationwide Building Society, 3.50%, 7/31/07 (United Kingdom)		2,080,216
B2		645	4	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)		638,550
AAA		850	4	New York Life Global Funding, 3.875%, 1/15/09		819,045
AA		350		Ohana Military Communities LLC, 6.193%, 4/01/49		353,027
A		500		Prudential Financial, Inc., 5.90%, 3/17/36		468,690
AA-		1,000	4	Prudential Funding LLC, 6.60%, 5/15/08		1,023,099
AAA		5,550	2,4	Rabobank Nederland Global, 5.01%, 4/06/09		5,548,638
				Rainbow National Services LLC,
B+		200	4	8.75%, 9/01/12		213,500
B+		1,455	4	10.375%, 9/01/14		1,633,237
Caa1		685		Standard Aero Holdings, Inc., 8.25%, 9/01/14		606,225
AA+		3,255	7	Structured Asset Receivable Trust, 1.649%, 1/21/10		3,254,801
Aa2		1,265		SunTrust Bank, 4.415%, 6/15/09		1,227,683
				SunTrust Banks, Inc.,
Aa3		1,635		3.625%, 10/15/07		1,598,465
Aa3		995		4.00%, 10/15/08		965,869
AAA		235	4	TIAA Global Markets, Inc., 3.875%, 1/22/08		229,686
Aa2		375		U.S. Bancorp, 3.95%, 8/23/07		368,977
B-		50	2	Universal City Florida Holding Co. I/II, 9.899%, 5/01/10		51,875
				US Bank NA,
Aa1		1,380		2.87%, 2/01/07		1,354,117
Aa2		2,790		6.50%, 2/01/08		2,846,938
AAA		495	4	USAA Capital Corp., 4.00%, 12/10/07		485,215
A+		1,985	2	Wachovia Capital Trust III, 5.80%, 3/15/42		1,948,402
				Wells Fargo & Co.,
Aa1		1,031		3.12%, 8/15/08		983,444
Aa1		355		4.20%, 1/15/10		341,219
Aa1		1,665		4.625%, 8/09/10		1,615,496
Aa1		435		4.875%, 1/12/11		425,037
Aa3		50		Western Financial Bank, 9.625%, 5/15/12		55,500
				Total Financial Institutions		75,722,947

See Notes to Financial Statements.

16

BlackRock Core Bond Trust (BHK) (continued)

Rating1		Principal Amount (000)			Description	Value
					Health Care—1.3%
B	$		440	4	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)	$	442,200
NR			20	6	Curative Health Services, Inc., 10.75%, 5/01/11		12,500
CCC			250		MedQuest, Inc., 11.875%, 8/15/12		208,750
B3			170		Select Medical Corp., 7.625%, 2/01/15		155,125
B			445		Tenet Healthcare Corp., 6.875%, 11/15/31		366,012
B			2,000		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		2,130,000
A			325		UnitedHealth Group, Inc., 5.80%, 3/15/36		297,088
B-			410		Universal Hospital Services, Inc., 10.125%, 11/01/11		426,912
A-			85		WellPoint, Inc., 5.95%, 12/15/34		79,361
A			675		Wyeth, 6.00%, 2/15/36		641,699
					Total Health Care		4,759,647
					Industrials—1.2%
B-			390		NationsRent Cos., Inc., 9.50%, 5/01/15		422,175
CCC+			420		Park-Ohio Industries, Inc., 8.375%, 11/15/14		396,900
B3			480	4	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		508,800
B			2,000		Terex Corp., 9.25%, 7/15/11		2,130,000
CCC+			210		Trimas Corp., 9.875%, 6/15/12		198,450
Caa1			655		United Rentals NA, Inc., 7.00%, 2/15/14		630,438
					Total Industrials		4,286,763
					Media—4.9%
					Affinion Group, Inc.,
B-			365	4	10.125%, 10/15/13		377,499
B-			200	4	11.50%, 10/15/15		205,000
B-			430		Allbritton Communications Co., 7.75%, 12/15/12		432,150
CCC			295		American Media Operations, Inc., 10.25%, 5/01/09		278,406
					AOL Time Warner, Inc.,
BBB+			90		6.625%, 5/15/29		87,254
BBB+			3,040		7.57%, 2/01/24		3,216,946
BBB+			205	5	7.625%, 4/15/31		221,256
BBB+			85		7.70%, 5/01/32		92,718
BBB			55	4	BSKYB Finance UK PLC, 6.50%, 10/15/35 (United Kingdom)		51,323
B+			180	2	Cablevision Systems Corp., 9.62%, 4/01/09		190,800
					Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,
Caa1			130	4	10.25%, 9/15/10		130,488
Caa1			710		10.25%, 9/15/10		718,875
					Comcast Corp.,
BBB+			1,840		6.45%, 3/15/37		1,756,825
BBB+			625		6.50%, 11/15/35		601,166
BB-			270		CSC Holdings, Inc., 7.875%, 12/15/07		275,400
					Echostar DBS Corp.,
BB-			175		5.75%, 10/01/08		172,375
BB-			75	4	7.125%, 2/01/16		73,125
BB-			125	2	8.24%, 10/01/08		127,500
B			250		General Cable Corp., 9.50%, 11/15/10		269,375
B+			180		Medianews Group, Inc., 6.875%, 10/01/13		163,800
B2			170	4	Network Communications, Inc., 10.75%, 12/01/13		174,675
					News America Holdings, Inc.,
BBB			985		7.625%, 11/30/28		1,043,725
BBB			825		7.70%, 10/30/25		877,470
BBB			625		8.45%, 8/01/34		716,088
B3			260		Nexstar Finance, Inc., 7.00%, 1/15/14		244,400
B2			600	2,4	Paxson Communications Corp., 8.318%, 1/15/12		615,750
					Primedia, Inc.,
B2			80		8.00%, 5/15/13		73,000
B2			440	2	10.545%, 5/15/10		451,000
BB-			250	4	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)		242,470
B			800	4	RH Donnelley Corp., 8.875%, 1/15/16		823,000
Caa1			190		Sirius Satellite Radio, Inc., 9.625%, 8/01/13		185,725

See Notes to Financial Statements.

17

BlackRock Core Bond Trust (BHK) (continued)

Rating1	Principal Amount (000)			Description	Value
				Media—(cont’d)
				TCI Communications, Inc.,
BBB+	$	200		7.125%, 2/15/28	$	200,943
BBB+		610		7.875%, 2/15/26		654,259
BBB+		10		7.875%, 8/01/13		10,893
BBB+		70		Time Warner Cos., Inc., 6.95%, 1/15/28		69,750
CCC+		100	4	Unity Media GmbH, 10.375%, 2/15/15 (Germany)		99,000
				Vertis, Inc.,
B3		645		9.75%, 4/01/09		657,900
CCC		225		10.875%, 6/15/09		216,000
Caa2		905		Young Broadcasting, Inc., 10.00%, 3/01/11		830,337
				Total Media		17,628,666
				Real Estate—1.9%
BB		3,165		American Real Estate Partners, 8.125%, 6/01/12		3,267,863
				AvalonBay Communities, Inc.,
BBB+		350		6.625%, 9/15/11		365,205
BBB+		775		8.25%, 7/15/08		817,531
				Rouse Co.,
BB+		895		3.625%, 3/15/09		832,630
BB+		1,650		5.375%, 11/26/13		1,526,692
				Total Real Estate		6,809,921
				Technology—1.4%
CCC+		410		Amkor Technology, Inc., 9.25%, 2/15/08		432,550
B+		250		Celestica, Inc., 7.625%, 7/01/13 (Canada)		250,000
				MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co.,
B2		20		8.00%, 12/15/14 (Luxembourg)		18,600
Ba3		170	2	8.16%, 12/15/11 (Luxembourg)		170,850
A-		1,230	4	Oracle Corp. and Ozark Holding, Inc., 5.25%, 1/15/16		1,163,018
B2		190	4	Sensata Technologies BV, 8.00%, 5/01/14		191,900
CCC+		280	4	SS&C Technologies, Inc., 11.75%, 12/01/13		298,900
BB		40		STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)		40,500
				Sungard Data Systems, Inc.,
B-		120	4	9.125%, 8/15/13		128,400
B-		340	2,4	9.431%, 8/15/13		362,100
B-		560	4	10.25%, 8/15/15		599,200
B		895		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		901,712
B-		330		UGS Corp., 10.00%, 6/01/12		361,350
				Total Technology		4,919,080
				Telecommunications—5.6%
A		1,700		Bellsouth Telecommunications, 6.65%, 12/15/95		775,450
BB-		210		Cincinnati Bell, Inc., 7.25%, 7/15/13		214,200
				Deutsche Telekom Intl. Finance BV,
A-		3,000		5.75%, 3/23/16		2,897,368
A-		25		8.25%, 6/15/30 (Netherlands)		29,904
B3		190	4	Hawaiian Telcom Communications, Inc., 10.789%, 5/01/13		195,700
				Intelsat Ltd.,
B2		65		8.25%, 1/15/13 (Bermuda)		66,300
B2		295		8.625%, 1/15/15 (Bermuda)		307,169
B2		325	2	9.614%, 1/15/12 (Bermuda)		330,688
				Lucent Technologies, Inc.,
B1		155		6.45%, 3/15/29		137,175
B1		805		6.50%, 1/15/28		706,387
B+		770	4	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16		800,800
B2		70		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		65,363
B1		155		PanAmSat Corp., 9.00%, 8/15/14		163,138
				Qwest Corp.,
BB+		200		7.875%, 9/01/11		209,500
BB+		470	2	8.16%, 6/15/13		512,300
BB+		155		Rogers Wireless, Inc., 7.25%, 12/15/12 (Canada)		160,038
A		780		SBC Communications, Inc., 6.45%, 6/15/34		759,147

See Notes to Financial Statements.

18

BlackRock Core Bond Trust (BHK) (continued)

Rating1	Principal Amount (000)			Description	Value
				Telecommunications—(cont’d)
A-	$	1,715		Sprint Capital Corp., 6.875%, 11/15/28	$	1,763,566
BBB+		1,550		Telecom Italia Capital SA, 6.00%, 9/30/34 (Luxembourg)		1,384,016
BBB+		725		Telefonica Europe BV, 7.75%, 9/15/10 (Netherlands)		778,408
A+		70		Verizon Global Funding Corp., 7.75%, 12/01/30		77,337
A+		125		Verizon Maryland, Inc., 5.125%, 6/15/33		95,940
				Verizon New Jersey, Inc.,
A+		230		7.85%, 11/15/29		239,324
A+		335		Ser. A, 5.875%, 1/17/12		330,314
A+		3,150		Verizon Virginia, Inc., 4.625%, 3/15/13		2,832,066
				Vodafone Group PLC,
A+		1,465	2	5.05%, 12/28/07 (United Kingdom)		1,465,486
A+		2,504		7.75%, 2/15/10 (United Kingdom)		2,678,560
B+		350	4	Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)		384,125
				Total Telecommunications		20,359,769
				Transportation—0.3%
Ba3		115		American Airlines, Inc., 7.324%, 4/15/11		111,550
A-		350		Canadian National Railway Co., 6.25%, 8/01/34 (Canada)		356,473
B		405		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		412,087
BB-		60	4	Hertz Corp., 8.875%, 1/01/14		63,825
B3		47		Horizon Lines LLC, 9.00%, 11/01/12		48,939
B+		50		OMI Corp., 7.625%, 12/01/13		51,375
				Total Transportation		1,044,249
				Total Corporate Bonds		202,142,145
				U.S. Government and Agency Securities—2.0%
		1,670		Aid to Israel, 5.50%, 4/26/24-9/18/33		1,606,483
		1,050		Resolution Funding Corp., Zero Coupon, 7/15/18-10/15/18		543,346
				Tennessee Valley Authority,
		1,655		Ser. C, 5.88%, 4/01/36		1,710,257
		2,650	3	Ser. D, 4.875%, 12/15/16		2,614,809
		1,725		U.S. Treasury Strip Principal, Zero Coupon, 11/15/21		755,765
				Total U.S. Government and Agency Securities		7,230,660
				Foreign Government Bonds—1.0%
				United Mexican States,
Baa1		400		6.75%, 9/27/34		403,000
Baa1		2,255		8.00%, 9/24/22		2,587,613
Baa1		500		8.125%, 12/30/19		576,250
				Total Foreign Government Bonds		3,566,863
				Total Long-Term Investments (cost $368,360,495)		358,379,790
				SHORT-TERM INVESTMENTS—1.5%
				Foreign Government Bond—1.1%
				France Treasury Bill,
		545	8	2.565%, 7/13/06		684,038
		2,632	8	2.52%, 7/13/06		3,303,406
				Total Foreign Government Bond		3,987,444
				U.S. Government and Agency Zero Coupon Bonds—0.4%
		300	8	Federal National Mortgage Assoc. Disc. Notes, 4.71%, 5/10/06		299,648
		700	5,8	U.S. Treasury Bills, 4.494%, 5/04/06		699,738
		200	5,8	U.S. Treasury Bills, 4.542%, 5/18/06		199,573
				Total U.S. Government and Agency Zero Coupon Bonds		1,198,959
				Total Short-Term Investments (cost $5,186,403)		5,186,403

See Notes to Financial Statements.

19

BlackRock Core Bond Trust (BHK) (continued)

Notional Amount (000)		Description	Value
		OUTSTANDING OPTIONS PURCHASED—0.3%
		Interest Rate Swaps,
$	5,200	Trust pays 3-month LIBOR, Trust receives 5.26%, expires 3/02/16	$	147,680
	5,200	Trust pays 5.26%, Trust receives 3-month LIBOR, expires 3/02/16		305,760
	5,300	Trust pays 3-month LIBOR, Trust receives 5.50%, expires 12/11/15		235,850
	5,300	Trust pays 5.50%, Trust receives 3-month LIBOR, expires 12/11/15		380,010
		Total Outstanding Options Purchased (cost $1,172,060)		1,069,300
		Total Investments before borrowed bond and outstanding options written—100.7% (cost $374,718,9589)		364,635,493

Principal Amount (000)
			BORROWED BOND—1.0%
	3,782	10	U.S. Treasury Bonds, 5.375%, 5/04/06 (cost $3,781,731)	3,781,731

Contracts/ Notional Amount (000)
			OUTSTANDING OPTIONS WRITTEN—(0.7)%
			Interest Rate Swaps,
	(5,300	)	Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/08		(297,595	)
	(5,300	)	Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/08		(92,061	)
	(13,300	)	Trust pays 3-month LIBOR, Trust receives 4.725%, expires 6/13/07		(934,857	)
	(13,300	)	Trust pays 4.725%, Trust receives 3-month LIBOR, expires 6/13/07		(60,648	)
	(11,500	)	Trust pays 3-month LIBOR, Trust receives 5.67%, expires 1/04/10		(419,750	)
	(11,500	)	Trust pays 5.67%, Trust receives 3-month LIBOR, expires 1/04/10		(518,650	)
	(74	)	U.S. Treasury Notes Future, expiring 5/26/06		(56,078	)
	(64	)	U.S. Treasury Notes Future, expiring 8/25/06		(43,500	)
			Total Outstanding Options Written (premium received $2,748,069)		(2,423,139	)
			Total Investments net of borrowed bond and outstanding options written—101.0%	$	365,994,085
			Liabilities in excess of other assets—(1.0)%		(3,712,678	)
			Net Assets—100%	$	362,281,407

1	Using the higher of S&P’s, Moody’s or Fitch’s rating.
2	Variable rate security. Rate shown is interest rate as of April 30, 2006.
3	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
4	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2006, the Trust held 9.2% of its net assets, with a current market value of $33,449,198, in securities restricted as to resale.
5	Security, or a portion thereof, pledged as collateral with a value of $1,764,818 on 1,711 long U.S. Treasury Bond futures contracts expiring June 2006 to September 2006, 70 short Eurodollar futures contracts expiring June 2006 to September 2006 and 898 short U.S. Treasury Note futures contracts expiring September 2006. The notional value of such contracts on April 30, 2006 was $72,193,350, with an unrealized gain of $697,757.
6	Issuer is in default and/or bankruptcy.
7	Illiquid security. As of April 30, 2006, the Trust held 0.9% of its net assets, with a current market value of $3,254,801 in these securities.
8	Rate shown is the yield to maturity as of April 30, 2006.
9	Cost for Federal income tax purposes is $376,278,421. The net unrealized depreciation on a tax basis is $11,642,928, consisting of $1,835,307 gross unrealized appreciation and $13,478,235 gross unrealized depreciation.
10	The interest rate and maturity date shown represent the terms of the bond borrowed transaction, not the security borrowed (see Note 1). A category in the Corporate Bonds section may contain multiple industries as defined by the SEC’s Standard Industry Codes.

KEY TO ABBREVIATIONS

EUR – European Monetary Unit
TBA – To Be Announced          

See Notes to Financial Statements.

20

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2006

BlackRock High Yield Trust (BHY)

Rating1	Principal Amount (000)			Description	Value
				LONG-TERM INVESTMENTS—137.2%
				Corporate Bonds—133.1%
				Aerospace & Defense—6.4%
				AAR Corp.,
BB-	$	435		6.875%, 12/15/07	$	436,631
NR		350		Ser. A2, 8.39%, 5/15/11		353,500
B		375		Argo-Tech Corp., 9.25%, 6/01/11		395,625
B+		125		Armor Holdings, Inc., 8.25%, 8/15/13		133,437
				BE Aerospace, Inc.,
BB-		735		8.50%, 10/01/10		783,694
B		65		8.875%, 5/01/11		67,844
NR		1,500	2	Condor Systems, Inc., 11.875%, 5/01/09		—
B-		745		DI Finance/DynCorp. Intl., 9.50%, 2/15/13		778,525
B		100		DRS Technologies, Inc., 7.625%, 2/01/18		102,000
				Sequa Corp.,
BB		40		9.00%, 8/01/09		43,000
BB		19		Ser. B, 8.875%, 4/01/08		19,855
				Total Aerospace & Defense		3,114,111
				Automotive—3.6%
BB+		65		ArvinMeritor, Inc., 8.75%, 3/01/12		66,463
				Autonation, Inc.,
BB+		90	3	7.00%, 4/15/14		90,450
BB+		80	3,4	7.045%, 4/15/13		81,400
				Avis Budget Car Rental LLC,
BB-		20	3,4	7.576%, 5/15/14		20,575
BB-		20	3	7.75%, 5/15/16		20,400
Caa2		150	4	Delco Remy Intl., Inc., 9.068%, 4/15/09		143,250
CCC		50		Dura Operating Corp., 8.625%, 4/15/12		42,500
BB		60		General Motors Acceptance Corp., 6.875%, 9/15/11		56,244
B		390		General Motors Corp., 8.25%, 7/15/23		282,750
B-		10		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		9,850
B+		105		Lear Corp., 8.11%, 5/15/09		103,162
CCC+		455		Metaldyne Corp., 10.00%, 11/01/13		439,075
CCC+		300		Stanadyne Corp., 10.00%, 8/15/14		276,000
B		95		Tenneco, Inc., 8.625%, 11/15/14		96,187
				Total Automotive		1,728,306
				Basic Materials—15.2%
B+		60		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)		60,600
B+		165		AK Steel Corp., 7.75%, 6/15/12		167,063
B-		205		Alpha Natural Resources LLC/Alpha Natural Resources Capital Corp., 10.00%, 6/01/12		224,987
BB-		150		Arch Western Finance LLC, 6.75%, 7/01/13		148,500
B		70	3,4	BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 10.577%, 7/15/10		71,575
BB-		130	4	Bowater, Inc., 7.91%, 3/15/10		131,300
NR		600		Caraustar Industries, Inc., 9.875%, 4/01/11		631,500
BB-		175		Cascades, Inc., 7.25%, 2/15/13 (Canada)		166,688
B+		170		Catalyst Paper Corp., 7.375%, 3/01/14 (Canada)		159,375
BB-		305		Century Alum Co., 7.50%, 8/15/14		316,437
BB+		50		Chemtura Corp., 6.875%, 6/01/16		49,875
				Domtar, Inc.,
B+		40		7.125%, 8/15/15 (Canada)		36,300
B+		180		7.875%, 10/15/11 (Canada)		174,600
B+		90		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		90,788
				Equistar Chemicals LP/Equistar Funding Corp.,
BB-		50		8.75%, 2/15/09		52,250
BB-		115		10.125%, 9/01/08		123,338
BB-		100		10.625%, 5/01/11		108,750

See Notes to Financial Statements.

21

BlackRock High Yield Trust (BHY) (continued)

Rating1	Principal Amount (000)			Description	Value
				Basic Materials—(cont’d)
				Huntsman LLC,
B2	$	95		11.50%, 7/15/12	$	108,775
Ba3		365		11.625%, 10/15/10		411,537
B2		175	4	12.318%, 7/15/11		183,312
BB		35		IMC Global, Inc., 10.875%, 6/01/08		37,713
B-		310	3	Ineos Group Holdings PLC, 8.50%, 2/15/16 (United Kingdom)		293,337
CCC+		645		Innophos, Inc., 8.875%, 8/15/14		664,350
Baa3		325		Ipsco, Inc., 8.75%, 6/01/13 (Canada)		351,812
BBB+		366		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		410,835
				Lyondell Chemical Co.,
BB+		260		10.50%, 6/01/13		291,200
BB+		230		Ser. A, 9.625%, 5/01/07		237,475
B-		340		Nalco Co., 8.875%, 11/15/13		351,050
B3		375		NewPage Corp., 10.00%, 5/01/12		402,187
BB+		400	4	Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)		402,500
NR		2,000	2	Republic Technologies Intl. LLC, 13.75%, 7/15/09		—
				Rhodia SA,
CCC+		169		8.875%, 6/01/11 (France)		175,338
B3		153		10.25%, 6/01/10 (France)		170,978
B-		50		Rockwood Specialties Group, Inc., 7.50%, 11/15/14		49,875
BB		125		Russel Metals, Inc., 6.375%, 3/01/14 (Canada)		122,500
				Total Basic Materials		7,378,700
				Building & Development—5.1%
B-		250		Ahern Rentals, Inc., 9.25%, 8/15/13		260,625
B+		40	4	Ainsworth Lumber Co. Ltd., 8.71%, 10/01/10 (Canada)		40,400
B2		150	3	Compression Polymers Corp., 10.50%, 7/01/13		153,750
B-		575		ERICO Intl. Corp., 8.875%, 3/01/12		592,250
				Goodman Global Holding Co., Inc.,
B2		45	4	7.491%, 6/15/12		45,844
B-		310		7.875%, 12/15/12		310,775
BB+		250		K Hovnanian Enterprises, Inc., 6.25%, 1/15/15		229,688
				North American Energy Partners, Inc.,
Caa1		335		8.75%, 12/01/11 (Canada)		327,462
B		375		9.00%, 6/01/10 (Canada)		397,500
Ba3		125		WCI Communities, Inc., 7.875%, 10/01/13		118,906
				Total Building & Development		2,477,200
				Business Equipment & Services—0.1%
BB+		60		Xerox Corp., 6.875%, 8/15/11		61,125
				Consumer Products—6.9%
B3		50		ALH Finance LLC, 8.50%, 1/15/13		49,000
B		175		B&G Foods, Inc., 8.00%, 10/01/11		179,156
				Cenveo Corp.,
B-		150		7.875%, 12/01/13		146,250
B+		200		9.625%, 3/15/12		214,000
B-		265		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		232,537
B		294		Gold Kist, Inc., 10.25%, 3/15/14		310,170
B-		380	3	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		363,850
B-		500		Lazydays RV Center, Inc., 11.75%, 5/15/12		500,625
B		50	4	Levi Strauss & Co., 9.74%, 4/01/12		52,125
CCC-		380		Merisant Co., 9.50%, 7/15/13		251,750
CCC-		120		Movie Gallery, Inc., 11.00%, 5/01/12		63,000
C		1,200	5	Nebco Evans Holding Co., 12.375%, 7/15/07		—
B2		95	3	Neiman-Marcus Group, Inc., 9.00%, 10/15/15		100,938
B3		30	3,4	Nutro Products, Inc., 9.23%, 10/15/13		30,600
B		265		Pantry, Inc., 7.75%, 2/15/14		268,975
BB-		100		Quiksilver, Inc., 6.875%, 4/15/15		96,500
B-		435	3	Rite Aid Corp., 6.125%, 12/15/08		427,387
BB		75		Smithfield Foods, Inc., 7.00%, 8/01/11		74,063
				Total Consumer Products		3,360,926

See Notes to Financial Statements.

22

BlackRock High Yield Trust (BHY) (continued)

Rating1	Principal Amount (000)			Description	Value
				Containers & Packaging—3.7%
B3	$	150	3	Covalence Specialty Materials Corp., 10.25%, 3/01/16	$	155,250
B1		160	3	Crown Americas LLC and Crown Americas Capital Corp., 7.75%, 11/15/15		163,600
B		540		Crown Cork & Seal, Inc., 8.00%, 4/15/23		522,450
B		115		Crown European Holdings SA, 7.375%, 12/15/26		106,663
CCC+		150		Graham Packaging Co., Inc., 8.50%, 10/15/12		153,375
B-		85	3	Packaging Dynamics Finance Corp., 10.00%, 5/01/16		86,700
CCC+		240	3	Pregis Corp., 12.375%, 10/15/13		251,700
B+		350		Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11		359,625
				Total Containers & Packaging		1,799,363
				Ecological Services & Equipment—0.8%
				Allied Waste NA, Inc.,
BB-		115		Ser. B, 5.75%, 2/15/11		109,825
BB-		80		Ser. B, 8.50%, 12/01/08		84,200
CCC		185		Waste Services, Inc., 9.50%, 4/15/14		191,938
				Total Ecological Services & Equipment		385,963
				Energy—24.2%
B+		137		AES Red Oak LLC, 8.54%, 11/30/19		147,918
B		195		ANR Pipeline Co., 9.625%, 11/01/21		233,756
B2		115		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		119,025
Ba1		228		CE Generation LLC, 7.416%, 12/15/18		234,724
B		100	3	Chaparral Energy, Inc., 8.50%, 12/01/15		103,000
				Chesapeake Energy Corp.,
BB		55		6.50%, 8/15/17		52,938
BB		20	3	6.875%, 11/15/20		19,700
BB		250		7.00%, 8/15/14		251,875
B-		200		Clayton Williams Energy, Inc., 7.75%, 8/01/13		188,500
				CMS Energy Corp.,
BB-		10		7.50%, 1/15/09		10,275
BB-		45		8.50%, 4/15/11		48,263
BB-		10		9.875%, 10/15/07		10,588
B		40	3	Colorado Interstate Gas Co., 6.80%, 11/15/15		40,450
				Compagnie Generale de Geophysique SA,
BB-		90		7.50%, 5/15/15 (France)		92,925
BB-		50	3	7.50%, 5/15/15 (France)		51,750
				Compton Petroleum Finance Corp.,
B		150		7.625%, 12/01/13		148,687
B		175	3	7.625%, 12/01/13 (Canada)		173,469
B		100	3	Copano Energy LLC, 8.125%, 3/01/16		102,500
B2		60		Dresser, Inc., 9.375%, 4/15/11		62,925
B		435		Dynegy Danskammer LLC, 7.27%, 11/08/10		443,700
				El Paso Corp.,
B-		60	3	7.75%, 6/15/10		61,500
B-		250	3	9.625%, 5/15/12		276,250
B-		215	3	10.75%, 10/01/10		240,262
B		65		El Paso Natural Gas Co., 7.625%, 8/01/10		67,113
Ba2		770		Elwood Energy LLC, 8.159%, 7/05/26		812,172
B-		275		Exco Resources, Inc., 7.25%, 1/15/11		271,562
B1		200		Foundation Pennsylvania Coal Co., 7.25%, 8/01/14		201,500
BB-		65		Frontier Oil Corp., 6.625%, 10/01/11		64,594
BB		50		Grant Prideco, Inc., 6.125%, 8/15/15		48,000
B		195		Hanover Compressor Co., 8.625%, 12/15/10		203,287
				Hilcorp Energy I LP/Hilcorp Finance Corp.,
B		115	3	7.75%, 11/01/15		113,275
B		170	3	10.50%, 9/01/10		185,300
BBB-		98		Homer City Funding LLC, 8.734%, 10/01/26		111,370
BB-		5		Hornbeck Offshore Services, Inc., 6.125%, 12/01/14		4,800
B-		400		KCS Energy, Inc., 7.125%, 4/01/12		403,000
				Midwest Generation LLC,
B+		228		8.56%, 1/02/16		244,601
Ba3		95		8.75%, 5/01/34		102,600

See Notes to Financial Statements.

23

BlackRock High Yield Trust (BHY) (continued)

Rating1	Principal Amount (000)			Description	Value
				Energy—(cont’d)
				Mirant Americas Generation LLC,
B	$	215		8.30%, 5/01/11	$	221,987
B		135		8.50%, 10/01/21		136,013
B		325		9.125%, 5/01/31		341,250
B2		685		Mission Energy Holdings Co., 13.50%, 7/15/08		779,187
				Newfield Exploration Co.,
BB-		30		6.625%, 9/01/14		29,663
BB-		20		8.375%, 8/15/12		21,475
				NRG Energy, Inc.,
B1		130		7.25%, 2/01/14		130,650
B1		465		7.375%, 2/01/16		468,487
B-		50	3	Ocean Rig AS, 8.375%, 7/01/13 (Norway)		52,625
B-		380		Orion Power Holdings, Inc., 12.00%, 5/01/10		431,775
BB-		70		Plains Exploration & Production Co., 7.125%, 6/15/14		71,225
B+		100		Pogo Producing Co., 6.875%, 10/01/17		97,500
Ba2		210		Pride Intl., Inc., 7.375%, 7/15/14		217,875
B		185		Range Resources Corp., 7.375%, 7/15/13		188,700
				Reliant Energy, Inc.,
BB-		390		6.75%, 12/15/14		354,900
BB-		180		9.25%, 7/15/10		183,150
Ba2		40		Sithe Independence Funding, 9.00%, 12/30/13		43,139
B-		200	3	Targa Resources, Inc., 8.50%, 11/01/13		203,000
B		160		Tennessee Gas Pipeline Co., 8.375%, 6/15/32		178,000
				Transcontinental Gas Pipe Line Corp.,
BBB-		65		7.25%, 12/01/26		66,625
BBB-		400		Ser. B, 8.875%, 7/15/12		451,500
BBB-		130		TXU Corp., 6.55%, 11/15/34		117,211
B3		75	3	Verasun Energy Corp., 9.875%, 12/15/12		79,875
				Whiting Petroleum Corp.,
B2		140		7.00%, 2/01/14		138,600
B2		250		7.25%, 5/01/13		250,000
				Williams Cos., Inc.,
BB+		355		7.625%, 7/15/19		374,525
BB+		125		8.75%, 3/15/32		143,750
				Total Energy		11,720,841
				Entertainment & Leisure—5.0%
B3		150	3	AMC Entertainment, Inc., 11.00%, 2/01/16		160,500
B-		75	3	French Lick Resorts & Casino LLC, 10.75%, 4/15/14		73,875
				Gaylord Entertainment Co.,
B-		280		6.75%, 11/15/14		268,100
B-		40		8.00%, 11/15/13		41,050
B3		210	3	Greektown Holdings LLC, 10.75%, 12/01/13		219,975
				MGM Mirage,
BB		270		6.00%, 10/01/09		265,950
BB		60		6.75%, 9/01/12		59,400
B		305		Poster Financial Group, Inc., 8.75%, 12/01/11		321,775
B-		185		Riddell Bell Holdings, Inc., 8.375%, 10/01/12		184,538
B+		60	3	San Pasqual Casino, 8.00%, 9/15/13		60,600
BB-		140		Seneca Gaming Corp., 7.25%, 5/01/12		140,000
Ba3		100	3	Station Casinos, Inc., 6.625%, 3/15/18		95,000
B		435		Virgin River Casino, 9.00%, 1/15/12		441,525
B+		70		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		67,900
				Total Entertainment & Leisure		2,400,188
				Financial Institutions—17.5%
B+		186		AES Ironwood LLC, 8.857%, 11/30/25		206,237
BB		185		American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		184,075
B		303		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		333,300
Ba2		1,000	3	Capital Guardian High Yield CBO Ltd., 11.45%, 5/24/13 (Cayman Islands)		1,003,200
BB		340		Crum & Forster Holdings Corp., 10.375%, 6/15/13		353,600
B		30		Crystal US Holdings 3 LLC/Crystal US Sub. 3 Corp., 10.50%, 10/01/14		23,550

See Notes to Financial Statements.

24

BlackRock High Yield Trust (BHY) (continued)

Rating1	Principal Amount (000)			Description	Value
				Financial Institutions—(cont’d)
				E*Trade Financial Corp.,
B+	$	90		7.375%, 9/15/13	$	91,575
B+		70		7.875%, 12/01/15		74,025
				Fairfax Financial Holdings Ltd.,
BB		50		6.875%, 4/15/08 (Canada)		48,750
BB		383		7.75%, 4/26/12 (Canada)		363,850
BB		50		8.30%, 4/15/26 (Canada)		44,000
Ba3		2,500	3	First Dominion Funding II, 11.614%, 4/25/14 (Cayman Islands)		2,371,500
				Ford Motor Credit Co.,
BB		35		5.70%, 1/15/10		30,665
BB		175		7.25%, 10/25/11		156,878
BB		310		General Motors Acceptance Corp., 6.875%, 8/28/12		286,781
B-		400		K&F Acquisition, Inc., 7.75%, 11/15/14		409,000
B2		625	3	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)		618,750
				Rainbow National Services LLC,
B+		310	3	8.75%, 9/01/12		330,925
B+		490	3	10.375%, 9/01/14		550,025
Caa1		650		Standard Aero Holdings, Inc., 8.25%, 9/01/14		575,250
B-		30	4	Universal City Florida Holding Co. I/II, 9.899%, 5/01/10		31,125
Aa3		70		Western Financial Bank, 9.625%, 5/15/12		77,700
C		2,676	3	Zais Investment Grade Ltd., 9.95%, 9/23/14 (Cayman Islands)		316,882
				Total Financial Institutions		8,481,643
				Health Care—3.2%
B		280	3	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)		281,400
				Coventry Health Care, Inc.,
BBB-		80		5.875%, 1/15/12		78,400
BBB-		80		6.125%, 1/15/15		78,200
NR		50	2	Curative Health Services, Inc., 10.75%, 5/01/11		31,250
BB+		150		HCA, Inc., 5.50%, 12/01/09		146,051
CCC		35		MedQuest, Inc., 11.875%, 8/15/12		29,225
B-		135		Norcross Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11		141,413
B3		110		Select Medical Corp., 7.625%, 2/01/15		100,375
B		195		Tenet Healthcare Corp., 6.875%, 11/15/31		160,388
B-		505		Universal Hospital Services, Inc., 10.125%, 11/01/11		525,831
				Total Health Care		1,572,533
				Industrials—6.1%
B		368		Blount, Inc., 8.875%, 8/01/12		382,720
B-		195		Concentra Operating Corp., 9.125%, 6/01/12		204,750
B+		163		JLG Industries, Inc., 8.375%, 6/15/12		171,965
B-		370		NationsRent Cos., Inc., 9.50%, 5/01/15		400,525
CCC+		210		Park-Ohio Industries, Inc., 8.375%, 11/15/14		198,450
BB-		250		Rent-A-Center, Inc., 7.50%, 5/01/10		248,125
B3		450	3	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		477,000
B		55		Terex Corp., 7.375%, 1/15/14		55,825
CCC+		210		Trimas Corp., 9.875%, 6/15/12		198,450
				United Rentals NA, Inc.,
Caa1		515		7.00%, 2/15/14		495,687
Caa1		130		7.75%, 11/15/13		130,650
				Total Industrials		2,964,147
				Media—12.4%
				Affinion Group, Inc.,
B-		175	3	10.125%, 10/15/13		180,906
B-		160	3	11.50%, 10/15/15		164,000
B-		265		Allbritton Communications Co., 7.75%, 12/15/12		266,325
CCC		170		American Media Operations, Inc., 10.25%, 5/01/09		160,438
B+		175	4	Cablevision Systems Corp., 9.62%, 4/01/09		185,500
				Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,
Caa1		605		10.25%, 9/15/10		612,562
Caa1		60	3	10.25%, 9/15/10		60,225

See Notes to Financial Statements.

25

BlackRock High Yield Trust (BHY) (continued)

Rating1	Principal Amount (000)			Description	Value
				Media—(cont’d)
				CSC Holdings, Inc.,
BB-	$	425	3	7.25%, 4/15/12	$	423,937
BB-		150		7.875%, 12/15/07		153,000
BB-		45		Ser. B, 7.625%, 4/01/11		45,675
BB		55		DirecTV Holdings LLC, 6.375%, 6/15/15		53,763
				Echostar DBS Corp.,
BB-		85		6.375%, 10/01/11		82,875
BB-		260	3	7.125%, 2/01/16		253,500
BB-		60	4	8.24%, 10/01/08		61,200
B2		90		Fisher Communications, Inc., 8.625%, 9/15/14		94,500
B		325		General Cable Corp., 9.50%, 11/15/10		350,187
B+		165		Medianews Group, Inc., 6.875%, 10/01/13		150,150
B2		100	3	Network Communications, Inc., 10.75%, 12/01/13		102,750
B3		240		Nexstar Finance, Inc., 7.00%, 1/15/14		225,600
B2		125	3,4	Paxson Communications Corp., 8.318%, 1/15/12		128,281
				Primedia, Inc.,
B2		105		8.00%, 5/15/13		95,813
B2		75		8.875%, 5/15/11		72,563
B2		275	4	10.545%, 5/15/10		281,875
BB-		150	3	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)		145,482
B		615	3	RH Donnelley Corp., 8.875%, 1/15/16		632,681
BB+		165		Scholastic Corp., 5.00%, 4/15/13		142,100
CCC+		75	3	Unity Media GmbH, 10.375%, 2/15/15 (Germany)		74,250
				Vertis, Inc.,
B3		280		9.75%, 4/01/09		285,600
CCC		145		10.875%, 6/15/09		139,200
Caa2		400		Young Broadcasting, Inc., 10.00%, 3/01/11		367,000
				Total Media		5,991,938
				Real Estate—0.6%
BB		300		American Real Estate Partners, 8.125%, 6/01/12		309,750
				Technology—7.6%
CCC+		170		Amkor Technology, Inc., 9.25%, 2/15/08		179,350
B+		350		Celestica, Inc., 7.625%, 7/01/13 (Canada)		350,000
BB+		60		Flextronics Intl. Ltd., 6.50%, 5/15/13 (Singapore)		59,400
BBB-		100	4	Freescale Semiconductor, Inc., 7.818%, 7/15/09		102,000
B+		60	3	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		66,225
				MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co., (Luxembourg)
Ba3		85		6.875%, 12/15/11		81,175
B2		110		8.00%, 12/15/14		102,300
Ba3		465	4	8.16%, 12/15/11		467,325
B2		110	3	Sensata Technologies BV, 8.00%, 5/01/14		111,100
CCC+		210	3	SS&C Technologies, Inc., 11.75%, 12/01/13		224,175
				STATS ChipPAC Ltd.,
BB		215		6.75%, 11/15/11 (Singapore)		210,163
BB		220		7.50%, 7/19/10 (Singapore)		222,750
				Sungard Data Systems, Inc.,
B-		95	3	9.125%, 8/15/13		101,650
B-		230	3,4	9.431%, 8/15/13		244,950
B-		445	3	10.25%, 8/15/15		476,150
B		395		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		397,962
B-		275		UGS Corp., 10.00%, 6/01/12		301,125
				Total Technology		3,697,800
				Telecommunications—11.8%
NR		1	2	Adelphia Business Solutions, 12.875%, 10/15/07		—
NR		2,000	2	Asia Global Crossing Ltd., 13.375%, 10/15/10 (Bermuda)		95,000
A		182		AT&T Corp., 7.30%, 11/15/11		196,559
B3		455		Centennial Communications Corp., 8.125%, 2/01/14		468,650
BB-		405		Cincinnati Bell, Inc., 7.25%, 7/15/13		413,100
BB-		260		Dobson Cellular Systems, Inc., 8.375%, 11/01/11		275,600

See Notes to Financial Statements.

26

BlackRock High Yield Trust (BHY) (continued)

Rating1	Principal Amount (000)			Description	Value
				Telecommunications—(cont’d)
B3	$	100	3	Hawaiian Telcom Communications, Inc., 10.789%, 5/01/13	$	103,000
				Intelsat Ltd.,
Caa1		60		6.50%, 11/01/13		47,100
B2		55		8.25%, 1/15/13 (Bermuda)		56,100
B2		245		8.625%, 1/15/15 (Bermuda)		255,106
B2		345	4	9.614%, 1/15/12 (Bermuda)		351,037
				Lucent Technologies, Inc.,
B1		135		6.45%, 3/15/29		119,475
B1		387		6.50%, 1/15/28		339,593
B+		445	3	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16		462,800
B2		205		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		191,419
				PanAmSat Corp.,
Ba3		210		6.875%, 1/15/28		189,000
B1		270		9.00%, 8/15/14		284,175
NR		600	2	PF Net Communications, Inc., 13.75%, 5/15/10		60
				Qwest Corp.,
BB+		600		7.875%, 9/01/11		628,500
BB+		230	4	8.16%, 6/15/13		250,700
BB+		125		8.875%, 3/15/12		137,188
				Rogers Wireless, Inc., (Canada)
BB+		35		7.25%, 12/15/12		36,138
BB-		395		8.00%, 12/15/12		414,256
B+		375	3	Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)		411,562
				Total Telecommunications		5,726,118
				Transportation—2.9%
Ba3		140		American Airlines, Inc., 7.324%, 4/15/11		135,800
B		270		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		274,725
BB-		75	3	Hertz Corp., 8.875%, 1/01/14		79,781
B3		430		Horizon Lines LLC, 9.00%, 11/01/12		447,737
B+		140		OMI Corp., 7.625%, 12/01/13		143,850
BB+		350		Overseas Shipholding Group, Inc., 7.50%, 2/15/24		347,813
				Total Transportation		1,429,706
				Total Corporate Bonds		64,600,358
				Bank Loans—3.6%
				Consumer Products—1.0%
				Dunkin Brands, Inc.,
		139		LIBOR + 5.60%, 3/01/07		139,099
		351		LIBOR + 4.30%, 3/01/07		349,626
				Total Consumer Products		488,725
				Financial Institutions—2.6%
				Navistar Financial Corp.,
		130		LIBOR + 4.75%, 2/28/09		130,506
		787		LIBOR + 5.00%, 2/28/09		789,681
		327		NTL, Inc., LIBOR, 3/23/11		326,633
				Total Financial Institutions		1,246,820
				Total Bank Loans		1,735,545
	Shares
				Common Stocks—0.5%
				Comsumer Products—0.0%
		14,992	5	Mattress Discounters Corp.		—
				Technology—0.5%
		68,358		Globix Corp.		231,050
				Total Common Stocks		231,050

See Notes to Financial Statements.

27

BlackRock High Yield Trust (BHY) (continued)

Units (000)			Description	Value
			Warrants—0.0%
	1	3,5,6,7	Mattress Discounters Corp., expires 7/15/07, strike price $0.01, 4.85 shares of 1 warrant	$	—
	54	6,7	Neon Communications, Inc., expires 12/02/12		1
	1	3,6,7	PF. Net Communications, Inc., expires 5/15/10, strike price $0.01, 36.87243 shares for 1 warrant		—
			Total Warrants		1
			Total Long-Term Investments (cost $75,713,3869)		66,566,954

Principal Amount (000)
			SHORT-TERM INVESTMENT—1.6%
			U.S. Government and Agency Zero Coupon Bond—1.6%
$	800	8	Federal Home Loan Bank Discount Notes, 4.71%, 5/01/06 (cost $800,000)		800,000
			Total Investments—138.8% (cost $76,513,3869)	$	67,366,954
			Liabilities in excess of other assets—(38.8)%		(18,847,047	)
			Net Assets—100%	$	48,519,907

1	Using the higher of S&P’s, Moody’s or Fitch’s rating.
2	Issuer is in default and/or bankruptcy.
3	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2006, the Trust held 31.0% of its net assets, with a current market value of $15,021,505, in securities restricted as to resale.
4	Variable rate security. Rate shown is interest rate as of April 30, 2006.
5	Security is fair valued.
6	Non-income producing security.
7	Illiquid security. As of April 30, 2006, the Trust held less than 0.1% of its net assets, with a current market value of $1 in these securities.
8	Rate shown is the yield to maturity as of April 30, 2006.
9	Cost for Federal income tax purposes is $76,541,156. The net unrealized depreciation on a tax basis is $9,174,202, consisting of $1,191,253 gross unrealized appreciation and $10,365,455 gross unrealized depreciation.

A category in the Corporate Bonds section may contain multiple industries as defined by the SEC’s Standard Industry Codes.

See Notes to Financial Statements.

28

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2006

BlackRock Income Opportunity Trust (BNA)

Rating1	Principal Amount (000)			Description	Value
				LONG-TERM INVESTMENTS—109.0%
				Mortgage Pass-Through Securities—11.0%
				Federal Home Loan Mortgage Corp.,
	$	1,106	2	4.359%, 1/01/35	$	1,094,838
		2,039	2	5.152%, 1/01/35		1,988,766
				Federal National Mortgage Assoc.,
		432	3	5.50%, 12/01/13-12/01/32		422,110
		36,745		5.50%, 5/18/35		36,008,454
		966		6.00%, 3/01/16-7/01/35		980,667
		187		7.00%, 2/01/24-10/01/28		191,804
		200		TBA, 6.00%, 5/01/36		199,062
		114		Government National Mortgage Assoc., 4/15/24-11/15/25		121,988
				Total Mortgage Pass-Through Securities		41,007,689
				Federal Housing Administration Securities—1.2%
				General Motors Acceptance Corp. Projects,
		347		Ser. 37, 7.43%, 5/01/22		346,626
		198		Ser. 44, 7.43%, 8/01/22		197,358
				Merrill Projects,
		155		Ser. 29, 7.43%, 10/01/20		154,921
		52		Ser. 42, 7.43%, 9/01/22		52,347
		1,827		Reilly Project, 7.40%, 4/01/21		1,823,416
		1,836		Westmore Project, 7.25%, 4/01/21		1,823,301
				Total Federal Housing Administration Securities		4,397,969
				Agency Multiple Class Mortgage Pass-Through Securities—9.6%
				Federal Home Loan Mortgage Corp.,
		3,572		Ser. 82, Class HJ, 5.50%, 9/25/32		3,524,451
		6,000		Ser. 2874, Class BC, 5.00%, 10/15/19		5,586,568
		1,390		Ser. 2883, Class DR, 5.00%, 11/15/19		1,283,470
		3,744		Ser. 2922, Class GA, 5.50%, 5/15/34		3,687,363
		2,057		Ser. 2927, Class BA, 5.50%, 10/15/33		2,030,112
		2,018		Ser. 2933 Class HD, 5.50%, 2/15/35		1,997,094
		1,725		Ser. 2968, Class EG, 6.00%, 10/15/34		1,701,844
				Federal National Mortgage Assoc.,
		3,687		Ser. 5, Class PK, 5.00%, 12/25/34		3,597,355
		2,278		Ser. 27, Class PC, 5.50%, 5/25/34		2,240,430
		1,855	2	Ser. 118, Class FD, 5.359%, 12/25/33		1,865,828
		6,500		TBA, 5.50%, 5/01/21		6,449,222
		1,751		Government National Mortgage Assoc., 6.00%, 6/20/15		1,767,742
				Total Agency Multiple Class Mortgage Pass-Through Securities		35,731,479
				Non-Agency Multiple Class Mortgage Pass-Through Securities—2.4%
AAA		8,544		Residential Funding Securities Corp., 8.50%, 5/25/33		9,042,261
AAA		11	2,4	Summit Mortgage Trust, 6.241%, 12/28/12		10,531
				Total Non-Agency Multiple Class Mortgage Pass-Through Securities		9,052,792
				Inverse Floating Rate Mortgage Securities—0.7%
				Federal Home Loan Mortgage Corp.,
		9	2	Ser. 1043, Class H, 21.938%, 2/15/21		10,211
		749	2	Ser. 1611, Class JC, 10.00%, 8/15/23		767,474
				Federal National Mortgage Assoc.,
		1,808	2	Ser. 23, Class PS, 8.863%, 4/25/23		1,821,249
		—	2	Ser. 46, Class S, 1,381.156%, 5/25/21		1,979
		—	2	Ser. 49, Class S, 518.05%, 12/25/21		1,569
		75	2	Ser. 87, Class S, 13.515%, 8/25/21		89,439
		—	2	Ser. 145, Class S, 18.659%, 10/25/06		139
				Total Inverse Floating Rate Mortgage Securities		2,692,060

See Notes to Financial Statements.

29

BlackRock Income Opportunity Trust (BNA) (continued)

Rating1	Principal Amount (000)			Description	Value
				Asset-Backed Securities—9.7%
AAA	$	3,025		Capital Auto Receivables Asset Trust, 5.03%, 10/15/09	$	3,009,403
AAA		3,125		Citibank Credit Card Issuance Trust, 4.85%, 2/10/11		3,094,150
				Countrywide Asset-Backed Certificates,
AAA		2,818	2	Ser. 15, Class 2AV1, 5.059%, 4/25/36		2,818,775
AAA		2,956	2	Ser. 16, Class 4AV1, 5.059%, 1/25/35		2,957,068
AAA		3,150		DaimlerChrysler Auto Trust, 5.00%, 5/08/10		3,137,101
AAA		3,400		Ford Credit Auto Owner Trust, 5.05%, 11/15/09		3,388,514
AAA		3,075		MBNA Credit Card Master Note Trust, 4.90%, 7/15/11		3,050,546
AAA		2,414	2	Merrill Lynch Mortgage Investors, Inc., 5.069%, 9/25/36		2,415,206
AAA		2,884	2	New Century Home Equity Loan Trust, 5.039%, 1/25/36		2,885,158
				SLM Student Loan Trust,
AAA		886	2	Ser. 9, Class A2, 5.12%, 10/25/12		885,682
AAA		2,508	2	Ser. 10, Class A1, 5.07%, 4/25/12		2,506,992
AAA		2,924	2	Structured Asset Investment Loan Trust, 5.039%, 1/25/36		2,926,484
AAA		3,075		USAA Auto Owner Trust, 5.01%, 9/15/10		3,061,598
				Total Asset-Backed Securities		36,136,677
				Interest Only Asset-Backed Securities—1.2%
AAA		1,238	2,4	Morgan Stanley Capital Trust I, 1.756%, 6/15/17		9,547
				Sterling Coofs Trust,
NR		28,253		Ser. 1, 2.362%, 4/15/29		1,977,731
NR		32,945		Ser. 2, 1.00%, 3/30/30		2,306,150
				Total Interest Only Asset-Backed Securities		4,293,428
				Interest Only Mortgage-Backed Securities—0.8%
				Federal Home Loan Mortgage Corp.,
		—		Ser. 176, Class M, 1,010.00%, 7/15/21		42
		—	2	Ser. 192, Class U, 1,009.033%, 2/15/22		5
		—		Ser. 200, Class R, 98,500.338%, 12/15/22		190
		—	2	Ser. 1054, Class I, 435.32%, 3/15/21		171
		—		Ser. 1056, Class KD, 1,084.50%, 3/15/21		1,139
		—		Ser. 1057, Class J, 1,008.001%, 3/15/21		2,311
		—	2	Ser. 1148, Class E, 592.552%, 10/15/21		527
		—		Ser. 1179, Class O, 1,009.389%, 11/15/21		135
		—		Ser. 1221, Class H, 1,006.50%, 3/15/07		40
		224		Ser. 1254, Class Z, 8.50%, 4/15/22		371
		427		Ser. 1831, Class PG, 6.50%, 3/15/11		37,976
		7,231		Ser. 2611, Class QI, 5.50%, 9/15/32		1,331,487
				Federal National Mortgage Assoc.,
		109		Ser. 5, Class H, 9.00%, 1/25/22		19,198
		8		Ser. 7, Class 2, 8.50%, 4/01/17		1,562
		23	2	Ser. 7, Class S, 584.13%, 3/25/21		2,740
		1	2	Ser. 10, Class S, 565.227%, 5/25/21		7,496
		1	2	Ser. 12, Class S, 597.224%, 5/25/21		6,263
		—	2	Ser. 17, Class S, 570.485%, 6/25/21		3,720
		—		Ser. 33, Class PV, 1,078.42%, 10/25/21		12,487
		—		Ser. 38, Class N, 1,008.50%, 4/25/21		396
		4		Ser. 46, Class H, 1,042.50%, 12/25/09		66,638
		475	2	Ser. 50, Class SI, 1.20%, 4/25/23		14,401
		—		Ser. 84, Class H, 1,100.633%, 8/25/06		1
		13		Ser. 89, Class 2, 8.00%, 6/01/18		2,747
		32,031	2	Ser. 90, Class JH, 1.741%, 11/25/34		1,410,164
		4		Ser. 94, Class 2, 9.50%, 8/01/21		1,033
		—		Ser. 99, Class L, 930.00%, 8/25/21		2,783
		3		Ser. 123, Class M, 1,009.50%, 10/25/20		471
		—	2	Ser. 136, Class S, 15.12%, 11/25/20		23,056
		—		Ser. 139, Class PT, 648.35%, 10/25/21		3,551
		5	2	Ser. 141, Class SA, 15.125%, 8/25/07		337
		5,729	2,4	Goldman Sachs Mortgage Securities Corp., 0.999%, 2/19/25		121,316
AAA		3,044	2	Salomon Brothers Mortgage Securities VII, 0.413%, 3/25/22		1,079
				Total Interest Only Mortgage-Backed Securities		3,075,833

See Notes to Financial Statements.

30

BlackRock Income Opportunity Trust (BNA) (continued)

Rating1	Principal Amount (000)			Description	Value
				Principal Only Mortgage-Backed Securities—0.1%
	$	122	3,5	Federal Home Loan Mortgage Corp., Zero Coupon, 2/15/24	$	108,061
				Federal National Mortgage Assoc.,
		72	5	Ser. 51, Class E, 8.00%, 2/25/23		55,783
		15	5	Ser. 70, Class A, 7.00%, 5/25/23		13,510
		32	5	Ser. 167, Class D, 8.50%, 10/25/17		30,576
		28	5	Ser. 203, Class 1, 8.00%, 2/01/23		23,069
		18	5	Ser. 228, Class 1, 7.00%, 5/01/23		14,511
				Total Principal Only Mortgage-Backed Securities		245,510
				Commercial Mortgage-Backed Securities—4.4%
AAA		2,320		Bear Stearns Commercial Mortgage Services, 4.945%, 2/11/41		2,235,900
AAA		2,970		Credit Suisse First Boston Mortgage Securities Corp., 4.94%, 12/15/35		2,861,454
AAA		2,090		First Union National Bank Commercial Mortgage Trust, 7.202%, 10/15/32		2,207,709
AAA		2,475		General Motors Acceptance Corp. Commercial Mortgage Securities, Inc., 4.547%, 12/10/41		2,346,609
				JP Morgan Chase Commercial Mortgage Securities Corp.,
AAA		1,990		Ser. C1, Class A3, 5.857%, 10/12/35		2,011,989
AAA		2,380		Ser. CBX, Class A4, 4.529%, 1/12/37		2,261,743
AAA		2,530	2	LB-UBS Commercial Mortgage Trust, 5.155%, 6/15/29		2,478,213
				Total Commercial Mortgage-Backed Securities		16,403,617
				Collateralized Mortgage Obligation Residual Securities—0.0%
				Collateralized Mortgage Obligation Trust,
AAA		—		Ser. 40, Class R, 580.50%, 4/01/18		229
AAA		—		Ser. 42, Class R, 6,000.00%, 10/01/14		4,306
				Federal Home Loan Mortgage Corp.,
		—		Ser. 19, Class R, 9,757.349%, 3/15/20		1,069
		—		Ser. 75, Class R, 9.50%, 1/15/21		3
		—		Ser. 75, Class RS, 16.26%, 1/15/21		3
		—		Ser. 173, Class R, 9.00%, 11/15/21		13
		—		Ser. 173, Class RS, 9.086%, 11/15/21		14
NR		6		Painewebber CMO Trust, 13.80%, 9/01/18		—
				Total Collateralized Mortgage Obligation Residual Securities		5,637
				Collateralized Mortgage Obligation Securities—3.8%
AAA		2,620		DLJ Commercial Mortgage Corp., 7.18%, 11/10/33		2,765,410
				Federal Home Loan Mortgage Corp.,
		397		Ser. 2582, Class TB, 3.50%, 10/15/21		395,782
		3,409		Ser. 2806, Class VC, 6.00%, 12/15/19		3,395,696
AA		2,630		First Union-Lehman Brothers-Bank of America, 6.778%, 11/18/35		2,800,649
AAA		2,310		GE Capital Commercial Mortgage Corp., 6.269%, 12/10/35		2,368,997
AAA		2,580		General Motor Acceptance Corp. Commercial Mortgage Securities, Inc., 4.93%, 7/10/39		2,482,848
				Total Collateralized Mortgage Obligation Securities		14,209,382
				Corporate Bonds—49.1%
				Aerospace & Defense—1.9%
B+		100		Armor Holdings, Inc., 8.25%, 8/15/13		106,750
				BE Aerospace, Inc.,
BB-		390		8.50%, 10/01/10		415,837
B		145		8.875%, 5/01/11		151,344
B-		1,630		DI Finance/DynCorp. Intl., 9.50%, 2/15/13		1,703,350
B		80		DRS Technologies, Inc., 7.625%, 2/01/18		81,600
				Raytheon Co.,
BBB		712		6.15%, 11/01/08		723,993
NR		2,500		7.00%, 5/15/06		2,531,460
BB		100		Sequa Corp., 8.875%, 4/01/08		104,500
A+		1,250		United Technologies Corp., 4.875%, 5/01/15		1,176,756
				Total Aerospace & Defense		6,995,590
				Automotive—0.6%
BB+		40		ArvinMeritor, Inc., 8.75%, 3/01/12		40,900
				Autonation, Inc.,
BB+		170	4	7.00%, 4/15/14		170,850
BB+		160	2,4	7.045%, 4/15/13		162,800

See Notes to Financial Statements.

31

BlackRock Income Opportunity Trust (BNA) (continued)

Rating1	Principal Amount (000)			Description	Value
				Automotive—(cont’d)
				Avis Budget Car Rental LLC,
BB-	$	30	2,4	7.576%, 5/15/14	$	30,863
BB-		75	4	7.75%, 5/15/16		76,500
CCC		100		Dura Operating Corp., 8.625%, 4/15/12		85,000
B		770		General Motors Corp., 8.25%, 7/15/23		558,250
B-		35		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		34,475
B+		345		Lear Corp., 8.11%, 5/15/09		338,962
CCC+		520		Metaldyne Corp., 10.00%, 11/01/13		501,800
B		110		Tenneco, Inc., 8.625%, 11/15/14		111,375
				Total Automotive		2,111,775
				Basic Materials—3.4%
B+		70		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)		70,700
B+		955		AK Steel Corp., 7.75%, 6/15/12		966,937
B		80	2,4	BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 10.577%, 7/15/10		81,800
BB-		90	2	Bowater, Inc., 7.91%, 3/15/10		90,900
NR		3,185		Caraustar Industries, Inc., 9.875%, 4/01/11		3,352,212
BB+		30		Chemtura Corp., 6.875%, 6/01/16		29,925
B+		80		Domtar, Inc., 7.125%, 8/15/15 (Canada)		72,600
B+		170		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		171,488
BB-		300		Equistar Chemicals LP/Equistar Funding Corp., 10.625%, 5/01/11		326,250
				Huntsman LLC,
B2		72		11.50%, 7/15/12		82,440
Ba3		230		11.625%, 10/15/10		259,325
B2		235	2	12.318%, 7/15/11		246,163
BB		70		IMC Global, Inc., 10.875%, 6/01/08		75,425
B-		750	4	Ineos Group Holdings PLC, 8.50%, 2/15/16 (United Kingdom)		709,687
CCC+		1,150		Innophos, Inc., 8.875%, 8/15/14		1,184,500
BBB+		135		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		151,538
				Lyondell Chemical Co.,
BB+		130		10.50%, 6/01/13		145,600
BB+		1,785		11.125%, 7/15/12		1,981,350
BB+		465		Ser. A, 9.625%, 5/01/07		480,113
B-		60		Nalco Co., 8.875%, 11/15/13		61,950
B3		295		NewPage Corp., 10.00%, 5/01/12		316,388
BB+		490	2	Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)		493,062
Ba3		1,000		Oregon Steel Mills, Inc., 10.00%, 7/15/09		1,058,750
				Rhodia SA, (France)
CCC+		204		8.875%, 6/01/11		211,650
B3		26		10.25%, 6/01/10		29,055
BBB		170		Teck Cominco Ltd., 6.125%, 10/01/35 (Canada)		157,276
				Total Basic Materials		12,807,084
				Building & Development—0.6%
B-		80		Ahern Rentals, Inc., 9.25%, 8/15/13		83,400
B2		230	4	Compression Polymers Corp., 10.50%, 7/01/13		235,750
B-		780		ERICO Intl. Corp., 8.875%, 3/01/12		803,400
B-		695		Goodman Global Holding Co., Inc., 7.875%, 12/15/12		696,737
				North American Energy Partners, Inc., (Canada)
Caa1		55		8.75%, 12/01/11		53,763
B		300		9.00%, 6/01/10		318,000
				Total Building & Development		2,191,050
				Consumer Products—2.1%
B3		95		ALH Finance LLC, 8.50%, 1/15/13		93,100
				Cenveo Corp.,
B-		275		7.875%, 12/01/13		268,125
B+		575		9.625%, 3/15/12		615,250
BBB+		560		Federated Department Stores, Inc., 6.79%, 7/15/27		556,760
B-		335		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		293,963
B		90		Gold Kist, Inc., 10.25%, 3/15/14		94,950
B-		855	4	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		818,662

See Notes to Financial Statements.

32

BlackRock Income Opportunity Trust (BNA) (continued)

Rating1	Principal Amount (000)			Description	Value
				Consumer Products—(cont’d)
B-	$	380		Lazydays RV Center, Inc., 11.75%, 5/15/12	$	380,475
B		470	2	Levi Strauss & Co., 9.74%, 4/01/12		489,975
CCC-		150		Movie Gallery, Inc., 11.00%, 5/01/12		78,750
B3		50	2,4	Nutro Products, Inc., 9.23%, 10/15/13		51,000
AA-		3,000		Procter & Gamble Co., 6.875%, 9/15/09		3,140,989
BB-		300		Quiksilver, Inc., 6.875%, 4/15/15		289,500
B-		790	4	Rite Aid Corp., 6.125%, 12/15/08		776,175
				Total Consumer Products		7,947,674
				Containers & Packaging—1.2%
B3		240	4	Covalence Specialty Materials Corp., 10.25%, 3/01/16		248,400
B1		150	4	Crown Americas LLC & Crown Americas Capital Corp., 7.75%, 11/15/15		153,375
BB-		1,850		Owens-Brockway Glass Container, Inc., 8.875%, 2/15/09		1,924,000
B-		85	4	Packaging Dynamics Finance Corp., 10.00%, 5/01/16		86,700
CCC+		430	4	Pregis Corp., 12.375%, 10/15/13		450,963
B+		280		Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11		287,700
B+		1,240		Stone Container Corp., 9.25%, 2/01/08		1,288,050
				Total Containers & Packaging		4,439,188
				Ecological Services & Equipment—0.9%
BB-		255		Allied Waste NA, Inc., 5.75%, 2/15/11		243,525
B		2,250		Casella Waste Systems, Inc., 9.75%, 2/01/13		2,393,438
CCC		600		Waste Services, Inc., 9.50%, 4/15/14		622,500
				Total Ecological Services & Equipment		3,259,463
				Energy—5.0%
				ANR Pipeline Co.,
B		145		7.375%, 2/15/24		148,988
B		565		9.625%, 11/01/21		677,294
B2		315		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		326,025
B		190	4	Chaparral Energy, Inc., 8.50%, 12/01/15		195,700
BB		20	4	Chesapeake Energy Corp., 6.875%, 11/15/20		19,700
B-		130		Clayton Williams Energy, Inc., 7.75%, 8/01/13		122,525
				CMS Energy Corp.,
BB-		35		7.50%, 1/15/09		35,963
BB-		115		8.50%, 4/15/11		123,338
BB-		30		9.875%, 10/15/07		31,763
BB-		180		Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)		185,850
				Compton Petroleum Finance Corp.,
B		135		7.625%, 12/01/13		133,819
B		190	4	7.625%, 12/01/13 (Canada)		188,337
A1		1,970	2	ConocoPhillips Australia Funding Co., 5.128%, 4/09/09		1,969,382
B2		445		Dresser, Inc., 9.375%, 4/15/11		466,694
B		200		Dynegy Danskammer LLC, 7.27%, 11/08/10		204,000
				El Paso Corp.,
B-		120		7.80%, 8/01/31		119,400
B-		100	4	9.625%, 5/15/12		110,500
B-		125	4	10.75%, 10/01/10		139,688
				El Paso Natural Gas Co.,
B		1,000		7.625%, 8/01/10		1,032,500
B		150		8.375%, 6/15/32		166,125
Ba2		258		Elwood Energy LLC, 8.159%, 7/05/26		272,187
A-		425		EnCana Corp., 6.50%, 8/15/34 (Canada)		432,662
B-		365		Exco Resources, Inc., 7.25%, 1/15/11		360,437
BBB-		480		FirstEnergy Corp., 6.45%, 11/15/11		494,971
AA-		575		Florida Power & Light Co., 4.95%, 6/01/35		479,969
BB		90		Grant Prideco, Inc., 6.125%, 8/15/15		86,400
BBB+		190		Halliburton Co., 7.60%, 8/15/96		204,450
				Hilcorp Energy I LP/Hilcorp Finance Corp.,
B		255	4	7.75%, 11/01/15		251,175
B		136	4	10.50%, 9/01/10		148,240
B-		215		KCS Energy, Inc., 7.125%, 4/01/12		216,612

See Notes to Financial Statements.

33

BlackRock Income Opportunity Trust (BNA) (continued)

Rating1	Principal Amount (000)			Description	Value
				Energy—(cont’d)
BBB+	$	1,250		Kinder Morgan Energy Partners LP, 7.30%, 8/15/33	$	1,321,926
BBB		1,000		Kinder Morgan, Inc., 6.50%, 9/01/12		1,028,411
B+		112		Midwest Generation LLC, 8.56%, 1/02/16		119,902
				Mirant Americas Generation LLC,
B		50		8.30%, 5/01/11		51,625
B		110		8.50%, 10/01/21		110,825
B		250		9.125%, 5/01/31		262,500
B2		1,020		Mission Energy Holdings Co., 13.50%, 7/15/08		1,160,250
				NRG Energy, Inc.,
B1		50		7.25%, 2/01/14		50,250
B1		285		7.375%, 2/01/16		287,137
B-		110	4	Ocean Rig AS, 8.375%, 7/01/13 (Norway)		115,775
B-		140		Orion Power Holdings, Inc., 12.00%, 5/01/10		159,075
Baa2		650		Progress Energy, Inc., 7.75%, 3/01/31		739,631
				Reliant Energy, Inc.,
BB-		325		6.75%, 12/15/14		295,750
BB-		40		9.25%, 7/15/10		40,700
A-		175		Scottish Power PLC, 5.375%, 3/15/15 (United Kingdom)		167,465
BBB+		65		Talisman Energy, Inc., 5.85%, 2/01/37 (Canada)		59,314
B-		360	4	Targa Resources, Inc., 8.50%, 11/01/13		365,400
AA		325		Texaco Capital, Inc., 8.875%, 9/01/21		423,674
A2		600		Transcanada Pipelines Ltd., 5.85%, 3/15/36 (Canada)		566,830
BBB-		30		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26		30,750
B3		120	4	Verasun Energy Corp., 9.875%, 12/15/12		127,800
B2		55		Whiting Petroleum Corp., 7.00%, 2/01/14		54,450
BB+		610		Williams Cos., Inc., 8.75%, 3/15/32		701,500
BBB-		1,075		XTO Energy, Inc., 6.10%, 4/01/36		1,014,373
				Total Energy		18,600,007
				Entertainment & Leisure—1.8%
B3		185	4	AMC Entertainment, Inc., 11.00%, 2/01/16		197,950
B-		250		Gaylord Entertainment Co., 6.75%, 11/15/14		239,375
B3		375	4	Greektown Holdings LLC, 10.75%, 12/01/13		392,813
Ba3		1,000		MGM Mirage, 9.75%, 6/01/07		1,037,500
BB+		2,000		Park Place Entertainment Corp., 8.875%, 9/15/08		2,120,000
B		205		Poster Financial Group, Inc., 8.75%, 12/01/11		216,275
B+		110	4	San Pasqual Casino, 8.00%, 9/15/13		111,100
BB-		290		Seneca Gaming Corp., 7.25%, 5/01/12		290,000
BB+		1,930		Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 5/01/12		2,069,925
B+		25		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		24,250
				Total Entertainment & Leisure		6,699,188
				Financial Institutions—16.4%
BB		350		American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		348,250
				Bank of America Corp.,
Aa2		2,000		4.50%, 8/01/10		1,935,859
Aa3		2,450		7.80%, 2/15/10		2,645,645
AA+		5,465	2	Barclays Bank PLC NY, 4.90%, 3/13/09		5,465,000
B		200		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		220,000
A+		500		Bear Stearns Co., Inc., 6.50%, 5/01/06		500,019
AAA		2,525		Berkshire Hathaway Finance Corp., 3.375%, 10/15/08		2,419,385
				Citigroup, Inc.,
AA+		5,975		4.125%, 2/22/10		5,715,314
AA+		550		6.875%, 2/15/98		572,708
				Credit Suisse First Boston, Inc.,
AA-		700	3	6.125%, 11/15/11		718,902
AA-		1,000		7.125%, 7/15/32		1,121,624
BB		1,090		Crum & Forster Holdings Corp., 10.375%, 6/15/13		1,133,600
AA-		950	2	Deutsche Bank AG, 3.843%, 3/15/07		934,800
B+		110		E*Trade Financial Corp., 7.375%, 9/15/13		111,925
BB		180		Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)		171,000

See Notes to Financial Statements.

34

BlackRock Income Opportunity Trust (BNA) (continued)

Rating1	Principal Amount (000)			Description	Value
				Financial Institutions—(cont’d)
				Fort Irwin Land LLC,
AA	$	780	4	Ser. A, Class II, 5.30%, 12/15/35	$	694,512
Aaa		575	4	Ser. A-1, 5.03%, 12/15/25		514,366
				General Electric Capital Corp.,
AAA		3,670	2	3.45%, 1/15/08		3,656,605
AAA		3,000		6.75%, 3/15/32		3,230,951
BB		510		General Motors Acceptance Corp., 6.875%, 8/28/12		471,631
AA-		1,000		Goldman Sachs Group, Inc., 6.60%, 1/15/12		1,041,824
AA-		1,035		Household Finance Corp., 6.375%, 10/15/11		1,071,076
B-		360		K&F Acquisition, Inc., 7.75%, 11/15/14		368,100
AAA		3,000		KFW Intl. Finance, Inc., 5.25%, 6/28/06		2,999,748
A+		1,500		Lehman Brothers Holdings, Inc., 6.625%, 1/18/12		1,568,792
AA-		4,840	2	Morgan Stanley Group, Inc., 4.91%, 3/07/08		4,838,551
B2		685	4	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)		678,150
AAA		6,100	2,4	Rabobank Nederland Global, 5.01%, 4/06/09		6,098,503
				Rainbow National Services LLC,
B+		225	4	8.75%, 9/01/12		240,188
B+		1,650	4	10.375%, 9/01/14		1,852,125
AA-		395	2	RBS Capital Trust I, 4.709%, 12/29/49		362,031
Caa1		775		Standard Aero Holdings, Inc., 8.25%, 9/01/14		685,875
A+		550	2	UBS Capital IX, 6.189%, 3/29/49		544,660
AA		2,000	2	UBS Preferred Funding Trust I, 8.622%, 10/29/49		2,219,854
B-		50	2	Universal City Florida Holding Co. I/II, 9.899%, 5/01/10		51,875
A+		580	2	Wachovia Capital Trust III, 5.80%, 3/15/42		578,007
Aa1		1,000		Wells Fargo & Co., 4.625%, 8/09/10		970,268
Aa1		2,000		Wells Fargo Bank, 7.55%, 6/21/10		2,152,407
Aa3		50		Western Financial Bank, 9.625%, 5/15/12		55,500
				Total Financial Institutions		60,959,630
				Health Care—0.6%
B		475	4	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)		477,375
NR		20	6	Curative Health Services, Inc., 10.75%, 5/01/11		12,500
CCC		275		MedQuest, Inc., 11.875%, 8/15/12		229,625
B3		210		Select Medical Corp., 7.625%, 2/01/15		191,625
B		475		Tenet Healthcare Corp., 6.875%, 11/15/31		390,688
A		350		UnitedHealth Group, Inc., 5.80%, 3/15/36		319,940
B-		450		Universal Hospital Services, Inc., 10.125%, 11/01/11		468,563
A-		120		WellPoint, Inc., 5.85%, 1/15/36		110,356
				Total Health Care		2,200,672
				Industrials—1.6%
BBB-		2,000		Briggs & Stratton Corp., 8.875%, 3/15/11		2,200,000
B+		1,306		Manitowoc, Inc., 10.50%, 8/01/12		1,431,703
B-		470		NationsRent Cos., Inc., 9.50%, 5/01/15		508,775
CCC+		465		Park-Ohio Industries, Inc., 8.375%, 11/15/14		439,425
B3		530	4	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		561,800
CCC+		150		Trimas Corp., 9.875%, 6/15/12		141,750
Caa1		770		United Rentals NA, Inc., 7.00%, 2/15/14		741,125
				Total Industrials		6,024,578
				Media—5.6%
				Affinion Group, Inc.,
B-		395	4	10.125%, 10/15/13		398,704
B-		220	4	11.50%, 10/15/15		225,500
B-		460		Allbritton Communications Co., 7.75%, 12/15/12		462,300
CCC		340		American Media Operations, Inc., 10.25%, 5/01/09		320,875
				AOL Time Warner, Inc.,
BBB+		1,635		7.57%, 2/01/24		1,730,167
BBB+		3,000		9.125%, 1/15/13		3,434,505
BBB+		1,415		AT&T Broadband Corp., 8.375%, 3/15/13		1,583,375
BBB		55	4	BSKYB Finance UK PLC, 6.50%, 10/15/35 (United Kingdom)		51,323
B+		161	2	Cablevision Systems Corp., 9.62%, 4/01/09		170,660

See Notes to Financial Statements.

35

BlackRock Income Opportunity Trust (BNA) (continued)

Rating1	Principal Amount (000)			Description	Value
				Media—(cont’d)
				Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,
Caa1	$	645		10.25%, 9/15/10	$	653,062
Caa1		180	4	10.25%, 9/15/10		180,675
BBB+		1,000		Comcast Cable Communications, Inc., 6.75%, 1/30/11		1,040,832
BB-		300		CSC Holdings, Inc., 7.875%, 12/15/07		306,000
				Echostar DBS Corp.,
BB-		180		5.75%, 10/01/08		177,300
BB-		75	4	7.125%, 2/01/16		73,125
BB-		135	2	8.24%, 10/01/08		137,700
B		250		General Cable Corp., 9.50%, 11/15/10		269,375
B+		200		Medianews Group, Inc., 6.875%, 10/01/13		182,000
B2		190	4	Network Communications, Inc., 10.75%, 12/01/13		195,225
				News America Holdings, Inc.,
BBB		145		8.15%, 10/17/36		161,888
BBB		2,475		8.45%, 8/01/34		2,835,708
B3		330		Nexstar Finance, Inc., 7.00%, 1/15/14		310,200
B2		500	2,4	Paxson Communications Corp., 8.318%, 1/15/12		513,125
				Primedia, Inc.,
B2		90		8.00%, 5/15/13		82,125
B2		460	2	10.545%, 5/15/10		471,500
BB-		285	4	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)		276,415
B		875	4	RH Donnelley Corp., 8.875%, 1/15/16		900,156
Caa1		130		Sirius Satellite Radio, Inc., 9.625%, 8/01/13		127,075
BBB+		1,495		TCI Communications, Inc., 8.75%, 8/01/15		1,723,812
CCC+		90	4	Unity Media GmbH, 10.375%, 2/15/15 (Germany)		89,100
				Vertis, Inc.,
B3		570		9.75%, 4/01/09		581,400
CCC		255		10.875%, 6/15/09		244,800
Caa2		965		Young Broadcasting, Inc., 10.00%, 3/01/11		885,387
				Total Media		20,795,394
				Real Estate—1.4%
BBB+		1,000		AvalonBay Communities, Inc., 6.625%, 9/15/11		1,043,443
				EOP Operating LP,
BBB		850		4.65%, 10/01/10		814,534
BBB		1,070		7.25%, 6/15/28		1,104,542
				Rouse Co.,
BB+		725		3.625%, 3/15/09		674,476
BB+		1,715		5.375%, 11/26/13		1,586,835
				Total Real Estate		5,223,830
				Technology—1.8%
CCC+		430		Amkor Technology, Inc., 9.25%, 2/15/08		453,650
B+		555		Celestica, Inc., 7.625%, 7/01/13 (Canada)		555,000
B+		100	4	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		110,375
				MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co.,
B2		15		8.00%, 12/15/14 (Luxembourg)		13,950
Ba3		290	2	8.16%, 12/15/11 (Luxembourg)		291,450
BB+		2,000		Seagate Technology Holdings, 8.00%, 5/15/09 (Cayman Islands)		2,070,000
B2		210	4	Sensata Technologies BV, 8.00%, 5/01/14		212,100
CCC+		295	4	SS&C Technologies, Inc., 11.75%, 12/01/13		314,912
				STATS ChipPAC Ltd.,
BB		350		6.75%, 11/15/11 (Singapore)		342,125
BB		50		7.50%, 7/19/10 (Singapore)		50,625
				Sungard Data Systems, Inc.,
B-		105	4	9.125%, 8/15/13		112,350
B-		315	2,4	9.431%, 8/15/13		335,475
B-		625	4	10.25%, 8/15/15		668,750
B		960		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		967,200
B-		390		UGS Corp., 10.00%, 6/01/12		427,050
				Total Technology		6,925,012

See Notes to Financial Statements.

36

BlackRock Income Opportunity Trust (BNA) (continued)

Rating1	Principal Amount (000)			Description	Value
				Telecommunications—3.7%
A	$	1,700		Bellsouth Telecommunications, 6.65%, 12/15/95	$	775,450
BB-		270		Cincinnati Bell, Inc., 7.25%, 7/15/13		275,400
A-		325		Deutsche Telekom Intl. Finance BV, 5.75%, 3/23/16		313,882
B3		170	4	Hawaiian Telcom Communications, Inc., 10.789%, 5/01/13		175,100
				Intelsat Ltd., (Bermuda)
B2		70		8.25%, 1/15/13		71,400
B2		300		8.625%, 1/15/15		312,375
B2		315	2	9.614%, 1/15/12		320,512
				Lucent Technologies, Inc.,
B1		170		6.45%, 3/15/29		150,450
B1		895		6.50%, 1/15/28		785,362
B+		935	4	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16		972,400
B2		80		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		74,700
B1		160		PanAmSat Corp., 9.00%, 8/15/14		168,400
				Qwest Corp.,
BB+		55		7.875%, 9/01/11		57,612
BB+		375	2	8.16%, 6/15/13		408,750
				Sprint Capital Corp.,
A-		1,205		6.875%, 11/15/28		1,239,124
A-		1,250		8.75%, 3/15/32		1,551,730
A+		575		Verizon Global Funding Corp., 7.75%, 6/15/32		629,203
				Verizon Maryland, Inc.,
A+		540		5.125%, 6/15/33		414,461
A+		1,355		Ser. A, 6.125%, 3/01/12		1,348,822
A+		750		Verizon Virginia, Inc., 4.625%, 3/15/13		674,301
				Vodafone Group PLC,
A+		1,615	2	5.05%, 12/28/07 (United Kingdom)		1,615,536
A+		1,000		7.75%, 2/15/10 (United Kingdom)		1,069,713
B+		3604		Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)		395,100
				Total Telecommunications		13,799,783
				Transportation—0.5%
Ba3		120		American Airlines, Inc., 7.324%, 4/15/11		116,400
A-		1,000		Canadian National Railway Co., 6.375%, 10/15/11 (Canada)		1,040,115
B		450		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		457,875
BB-		70	4	Hertz Corp., 8.875%, 1/01/14		74,462
B3		47		Horizon Lines LLC, 9.00%, 11/01/12		48,939
B+		60		OMI Corp., 7.625%, 12/01/13		61,650
				Total Transportation		1,799,441
				Total Corporate Bonds		182,779,359
				U.S. Government and Agency Securities—15.0%
				Overseas Private Investment Corp.,
		336		4.09%, 5/29/12		295,197
		939	2	4.30%, 5/29/12		845,550
		702		4.64%, 5/29/12		640,028
		396		4.68%, 5/29/12		351,191
		2,996		4.87%, 5/29/12		2,757,196
		3,706	2	5.40%, 5/29/12		3,558,763
		6,055	7	Resolution Funding Corp., Zero Coupon, 4/15/30		1,679,507
		1,152		Small Business Administration, 6.95%, 11/01/16		1,187,220
				Tennessee Valley Authority,
		1,800		Ser. C, 5.88%, 4/01/36		1,860,098
		2,900		Ser. D, 4.875%, 12/15/16		2,861,489
				U.S. Treasury Bonds,
		3,930		5.375%, 2/15/31		3,991,406
		32,000	3,7	6.00%, 2/15/26		34,664,999
		2,000	7	U.S. Treasury Strip Principal, Zero Coupon, 11/15/21		876,250
				Total U.S. Government and Agency Securities		55,568,894
				Total Long-Term Investments (cost $414,654,362)		405,600,326

See Notes to Financial Statements.

37

BlackRock Income Opportunity Trust (BNA) (continued)

Principal Amount (000)			Description	Value
			SHORT-TERM INVESTMENTS—0.6%
			U.S. Government and Agency Zero Coupon Bonds—0.6%
$	500	8	Federal Home Loan Bank Discount Notes, 4.71%, 5/01/06	$	500,000
	1,700	3,8	U.S. Treasury Bills, 4.502%, 5/04/06		1,699,365
			Total Short-Term Investments (cost $2,199,365)		2,199,365
Notional Amount (000)
			OUTSTANDING OPTIONS PURCHASED—0.3%
			Interest Rate Swaps,
	5,700		Trust pays 3-month LIBOR, Trust receives 5.26%, expires 3/02/16		161,880
	5,700		Trust pays 3-month LIBOR, Trust receives 5.50%, expires 12/11/15		253,650
	5,700		Trust pays 5.26%, Trust receives 3-month LIBOR, expires 3/02/16		335,160
	5,700		Trust pays 5.50%, Trust receives 3-month LIBOR, expires 12/11/15		408,690
			Outstanding Options Purchased (cost $1,270,530)		1,159,380
			Total investments before TBA sale commitment and outstanding options written—109.9%
			(cost $418,124,2589)		408,959,071
Principal Amount (000)
			TBA SALE COMMITMENT—(7.1)%
	(27,300)		Federal National Mortgage Assoc. TBA, 5.50%, 5/01/36 (proceeds $26,515,125)		(26,506,607	)
Contracts/ Notional Amount (000)
			OUTSTANDING OPTIONS WRITTEN—(0.7)%
			Interest Rate Swaps,
	(5,700)		Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/08		(320,055	)
	(5,700)		Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/08		(99,009	)
	(14,200)		Trust pays 3-month LIBOR, Trust receives 4.725%, expires 6/13/07		(998,118	)
	(14,200)		Trust pays 4.725%, Trust receives 3-month LIBOR, expires 6/13/07		(64,752	)
	(12,400)		Trust pays 3-month LIBOR, Trust receives 5.67%, expires 1/04/10		(452,600	)
	(12,400)		Trust pays 5.67%, Trust receives 3-month LIBOR, expires 1/04/10		(559,240	)
	(78)		U.S. Treasury Notes Future, expiring 5/26/06		(59,109	)
	(70)		U.S. Treasury Notes Future, expiring 8/25/06		(47,578	)
			Total outstanding options written (premium received $2,950,732)		(2,600,461	)
			Total Investments net of TBA sale commitment and outstanding options written—102.1%	$	379,852,003
			Liabilities in excess of other assets—(2.1)%		(7,725,147	)
			Net Assets—100%	$	372,126,856

1	Using the higher of S&P’s, Moody’s or Fitch’s rating.
2	Variable rate security. Rate shown is interest rate as of April 30, 2006.
3	Security, or a portion thereof, pledged as collateral with a value of $4,530,746 on 1,554 long U.S. Treasury Bond futures contracts expiring June 2006 to September 2006, 382 long U.S. Treasury Note futures contracts expiring September 2006, 64 short Eurodollar futures contracts expiring June 2006 to September 2006 and 1,051 short U.S. Treasury Note futures contracts expiring September 2006. The notional value of such contracts on April 30, 2006 was $81,183,353, with an unrealized gain of $490,139.
4	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2006, the Trust held 6.4% of its net assets, with a current market value of $23,950,488, in securities restricted as to resale.
5	Rate shown is interest rate or effective yield as of April 30, 2006 of the underlying collateral.
6	Issuer is in default and/or bankruptcy.
7	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
8	Rate shown is the yield to maturity as of April 30, 2006.
9	Cost for Federal income tax purposes is $421,002,197. The net unrealized depreciation on a tax basis is $12,043,126, consisting of $2,236,259 gross unrealized appreciation and $14,279,385 gross unrealized depreciation.

A category in the Corporate Bonds section may contain multiple industries as defined by the SEC’s Standard Industry Codes.

KEY TO ABBREVIATIONS

TBA – To Be Announced

See Notes to Financial Statements.

38

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2006

BlackRock Income Trust Inc. (BKT)

Rating1	Principal Amount (000)			Description	Value
				LONG-TERM INVESTMENTS—118.2%
				Mortgage Pass-Through Securities—27.1%
AAA	$	3,756	2	CWALT, Inc., 5.689%, 10/25/35	$	3,807,284
				Federal Home Loan Mortgage Corp.,
		1,127	2	4.173%, 1/01/35		1,110,814
		1,046	2	4.96%, 10/01/34		1,018,913
		39	2	5.28%, 2/01/25		39,166
		10,631		5.50%, 10/01/16-5/01/17		10,547,578
		36	2	5.55%, 11/01/30		35,974
		31	2	6.01%, 11/01/17		30,370
		73		6.50%, 5/01/29-5/01/30		75,163
		5		7.50%, 2/01/23		4,850
		57		8.00%, 11/01/15		56,730
		10		8.50%, 10/01/06-3/01/08		9,785
		181		9.00%, 9/01/20		194,114
				Federal National Mortgage Assoc.,
		26,082		5.00%, 6/01/33-2/01/36		24,736,417
		43,165		5.50%, 12/01/13-10/01/35		42,365,804
		10,412	3	5.50%, 9/01/17		10,345,752
		6,421		6.00%, 11/01/31-8/01/34		6,407,580
		3,159		6.50%, 2/01/26-5/01/31		3,226,129
		5,165		7.00%, 6/01/26-1/01/32		5,317,667
		4		7.50%, 2/01/22-9/01/23		4,360
		210		8.00%, 5/01/08-5/01/22		213,529
		4		9.50%, 1/01/19-9/01/19		4,658
		1,400		TBA, 6.00%, 5/11/36		1,393,437
				Government National Mortgage Assoc.,
		71		7.00%, 10/15/17		73,957
		498		7.50%, 8/15/21-12/15/23		522,127
		254		8.00%, 10/15/22-2/15/29		273,598
		34		9.00%, 6/15/18-9/15/21		38,702
				Total Mortgage Pass-Through Securities		111,854,458
				Federal Housing Administration Securities—2.2%
		508		GMAC Colonial, 7.40%, 12/01/22		507,048
				GMAC Projects,
		302		Ser. 51, 7.43%, 2/01/23		301,743
		907		Ser. 56, 7.43%, 11/01/22		906,042
		52		Merrill Projects, 7.43%, 5/15/23		51,998
		822		Reilly Project, 8.28%, 3/01/20		810,850
				USGI Projects,
		112		Ser. 87, 7.43%, 12/01/22		111,801
		449		Ser. 99, 7.43%, 10/01/23		448,371
		5,790		Ser. 6094, 7.43%, 6/01/21		5,784,064
				Total Federal Housing Administration Securities		8,921,917
				Agency Multiple Class Mortgage Pass-Through Securities—19.0%
				Federal Home Loan Mortgage Corp.,
		5,203	2	Ser. 11, Class A9, 2.463%, 1/25/28		4,162,625
		987		Ser. 40, Class K, 6.50%, 8/17/24		1,009,696
		3,000		Ser. 1598, Class J, 6.50%, 10/15/08		3,026,579
		10,200		Ser. 2542, Class UC, 6.00%, 12/15/22		10,168,835
		12,131		Ser. 2758, Class KV, 5.50%, 5/15/23		11,638,658
		1,615		Ser. 2765, Class UA, 4.00%, 3/15/11		1,537,839
				Federal National Mortgage Assoc.,
		1,369	2	Ser. 2, Class KP, Zero Coupon, 2/25/35		1,315,590
		7,260		Ser. 28, Class PB, 6.00%, 8/25/28		7,262,102
		2,647		Ser. 29, Class HC, 7.50%, 7/25/30		2,765,742
		2,129		Ser. 31, Class ZG, 7.50%, 5/25/34		2,312,371
		8,184		Ser. 32, Class VT, 6.00%, 9/25/15		8,179,716

See Notes to Financial Statements.

39

BlackRock Income Trust Inc. (BKT) (continued)

Rating1	Principal Amount (000)			Description	Value
				Agency Multiple Class Mortgage Pass-Through Securities—(cont’d)
				Federal National Mortgage Assoc., (cont’d)
	$	101	2	Ser. 38, Class F, 8.325%, 4/25/21	$	107,148
		2,380		Ser. 43, Class LC, 6.00%, 3/25/34		438,794
		12,264		Ser. 135, Class PB, 6.00%, 1/25/34		12,134,211
		—	2	Ser. 256, Class F, 6.469%, 11/25/23		—
		2,954		Freddie Mac Structured Pass-Through, 5.50%, 6/15/35		2,915,388
				Government National Mortgage Assoc.,
		1,386		Ser. 5, Class Z, 7.00%, 5/16/26		1,426,619
		2,500		Ser. 33, Class PB, 6.50%, 7/20/31		2,545,528
		10,505		Ser. 75, Class IJ, 5.50%, 7/20/25		491,784
		5,020		Ser. 89. Class PE, 6.00%, 10/20/34		5,069,102
				Total Agency Multiple Class Mortgage Pass-Through Securities		78,508,327
				Non-Agency Multiple Class Mortgage Pass-Through Securities—3.1%
		11,961		Residential Funding Securities Corp., 8.50%, 5/25/33		12,659,166
		72	2,4	Summit Mortgage Trust, 6.241%, 12/28/12		72,452
				Total Non-Agency Multiple Class Mortgage Pass-Through Securities		12,731,618
				Inverse Floating Rate Mortgage Securities—1.2%
				Federal Home Loan Mortgage Corp.,
		20	2	Ser. 1043, Class H, 21.938%, 2/15/21		21,923
		45	2	Ser. 1160, Class F, 18.381%, 10/15/21		45,037
		341	2,3	Ser. 1616, Class SB, 8.50%, 11/15/08		339,543
		1,085	2	Ser. 1688, Class S, 8.794%, 12/15/13		1,086,935
				Federal National Mortgage Assoc.,
		103	2	Ser. 38, Class SA, 10.186%, 4/25/21		104,843
		—	2	Ser. 46, Class S, 1,381.156%, 5/25/21		4,245
		—	2	Ser. 49, Class S, 518.05%, 12/25/21		3,368
		473	2	Ser. 72, Class S, 8.75%, 5/25/08		470,923
		165	2	Ser. 87, Class S, 13.515%, 8/25/21		195,424
		200	2	Ser. 93, Class S, 8.50%, 5/25/08		202,948
		—	2	Ser. 145, Class S, 18.659%, 10/25/06		283
		78	2	Ser. 170, Class SC, 9.00%, 9/25/08		78,565
		913	2	Ser. 196, Class SC, 7.433%, 10/25/08		906,986
		355	2	Ser. 214, Class SH, 5.345%, 12/25/08		343,486
		1,211	2	Ser. 247, Class SN, 10.00%, 12/25/23		1,212,868
		189	2	Kidder Peabody Acceptance Corp., 7.411%, 8/25/23		182,681
				Total Inverse Floating Rate Mortgage Securities		5,200,058
				Interest Only Asset-Backed Securities—1.2%
AAA		4,115	2,4	Morgan Stanley Capital Trust I, 1.756%, 6/15/17		31,731
				Sterling Coofs Trust,
		35,160		Ser. 1, 2.362%, 4/15/29		2,461,176
		33,705		Ser. 2, 1.00%, 3/30/30		2,359,350
				Total Interest Only Asset-Backed Securities		4,852,257
				Interest Only Mortgage-Backed Securities—8.1%
AAA		2,831		ABN Amro Mortgage Corp., 5.50%, 3/25/33		94,234
Aaa		81,798	2	Commercial Mortgage Acceptance Corp., 0.852%, 11/15/17		1,328,723
AAA		22,189	2,4	Credit Suisse First Boston Mortgage Securities Corp., 1.917%, 6/20/29		627,522
AAA	185,371		2	CWALT, Inc., 0.42%, 1/25/36		666,176
				Federal Home Loan Mortgage Corp.,
		6,413	2	Ser. 60, Class HS, 1.00%, 4/25/24		45,958
		—		Ser. 176, Class M, 1,010.00%, 7/15/21		90
		—	2	Ser. 192, Class U, 1,009.033%, 2/15/22		11
		35		Ser. 200, Class R, 98,500.338%, 12/15/22		417
		2,272		Ser. 204, 6.00%, 5/01/29		558,137
		—	2	Ser. 1054, Class I, 435.32%, 3/15/21		366
		—		Ser. 1056, Class KD, 1,084.50%, 3/15/21		2,444
		—		Ser. 1057, Class J, 1,008.001%, 3/15/21		4,961
		1	2	Ser. 1148, Class E, 592.552%, 10/15/21		1,131
		—		Ser. 1179, Class O, 1,009.389%, 11/15/21		290

See Notes to Financial Statements.

40

BlackRock Income Trust Inc. (BKT) (continued)

Principal Amount (000)			Description	Value
			Interest Only Mortgage-Backed Securities—(cont’d)
			Federal Home Loan Mortgage Corp., (cont’d)
$	—		Ser. 1221, Class H, 1,006.50%, 3/15/07	$	85
	382		Ser. 1706, Class IA, 7.00%, 10/15/23		19,288
	129		Ser. 1720, Class PK, 7.50%, 1/15/24		8,215
	4,867		Ser. 1914, Class PC, 0.75%, 12/15/11		57,330
	1,207	2	Ser. 2002, Class HJ, 3.00%, 10/15/08		3,852
	1,138	2	Ser. 2296, Class SA, 2.669%, 3/15/16		57,340
	632	2	Ser. 2444, Class ST, 2.889%, 9/15/29		30,034
	476		Ser. 2513, Class BI, 5.50%, 12/15/15		16,312
	1,838		Ser. 2542, Class MX, 5.50%, 5/15/22		300,495
	354		Ser. 2543, Class IM, 5.00%, 9/15/12		2,349
	3,625		Ser. 2545, Class NI, 5.50%, 3/15/22		492,067
	5,4402		Ser. 2559, Class IO, 0.94%, 8/15/30		28,901
	6,133		Ser. 2561, Class EW, 5.00%, 9/15/16		627,633
	13,197		Ser. 2611, Class QI, 5.50%, 9/15/32		2,430,145
	10,189		Ser. 2633, Class PI, 4.50%, 3/15/12		286,572
	4,433		Ser. 2653, Class MI, 5.00%, 4/15/26		550,306
	7,475		Ser. 2658, Class PI, 4.50%, 6/15/13		450,181
	5,662		Ser. 2672, Class TQ, 5.00%, 3/15/23		355,181
	5,477		Ser. 2676, Class JI, 5.50%, 8/15/13		143,972
	3,633		Ser. 2687, Class IL, 5.00%, 9/15/18		535,567
	12,837		Ser. 2687, Class IQ, 5.50%, 9/15/22		518,188
	6,533		Ser. 2693, Class IB, 4.50%, 6/15/13		417,071
	3,444		Ser. 2694, Class LI, 4.50%, 7/15/19		347,218
	6,353		Ser. 2773, Class OX, 5.00%, 2/15/18		844,734
	14,475	2	Ser. 2779, Class YS, 2.069%, 1/15/33		775,188
	20,026	2	Ser. 2780, Class SM, 0.919%, 4/15/34		397,122
	10,756		Ser. 2786, Class PI, 4.50%, 10/15/10		237,049
	6,727		Ser. 2825, Class NI, 5.50%, 3/15/30		1,784,095
	41,296	2	Ser. 2990, Class WR, 1.529%, 6/15/35		2,071,340
			Federal National Mortgage Assoc.,
	282		Ser. 5, Class H, 9.00%, 1/25/22		49,366
	16		Ser. 7, Class 2, 8.50%, 4/01/17		3,354
	50	2	Ser. 7, Class S, 584.13%, 3/25/21		5,882
	1	2	Ser. 10, Class S, 565.227%, 5/25/21		16,093
	1		Ser. 12, Class C, 1,016.898%, 2/25/22		14,176
	1	2	Ser. 12, Class S, 597.224%, 5/25/21		13,447
	8,088		Ser. 13, Class IG, 5.00%, 10/25/22		483,096
	8,978		Ser. 16, Class PI, 5.00%, 11/25/12		312,022
	1	2	Ser. 17, Class S, 570.485%, 6/25/21		7,987
	1		Ser. 33, Class PV, 1,078.42%, 10/25/21		26,806
	2,275	2	Ser. 33, Class SG, 3.131%, 3/25/09		66,017
	—		Ser. 38, Class N, 1,008.50%, 4/25/21		851
	1		Ser. 50, Class G, 1,158.628%, 12/25/21		10,755
	949	2	Ser. 50, Class SI, 1.20%, 4/25/23		28,802
	7,372		Ser. 51, Class IE, 5.50%, 4/25/26		451,043
	6,044		Ser. 55, Class GI, 5.00%, 7/25/19		787,053
	798	2	Ser. 60, Class SB, 1.60%, 10/25/22		22,792
	710		Ser. 62, Class IC, 5.50%, 7/25/15		31,251
	6,566		Ser. 66, Class CI, 5.00%, 7/25/33		1,230,433
	3,095	2	Ser. 68, Class SC, 3.131%, 1/25/24		150,532
	5,438		Ser. 71, Class EI, 5.50%, 8/25/33		1,076,885
	18,832	2	Ser. 73, Class ST, 1.171%, 8/25/35		411,972
	1,183		Ser. 82, Class IR, 5.00%, 9/25/12		14,927
	—		Ser. 84, Class H, 1,100.633%, 8/25/06		1
	13,505		Ser. 88, Class TI, 4.50%, 11/25/13		612,569
	29		Ser. 89, Class 2, 8.00%, 6/01/18		5,899
	39,822	2	Ser. 90, Class JH, 1.741%, 11/25/34		1,753,177
	16,699		Ser. 90, Class M, 6.00%, 1/25/28		2,960,605
	9		Ser. 94, Class 2, 9.50%, 8/01/21		2,219
	—		Ser. 99, Class L, 930.00%, 8/25/21		5,977
	1,687		Ser. 122, Class IA, 4.00%, 9/25/09		18,666

See Notes to Financial Statements.

41

BlackRock Income Trust Inc. (BKT) (continued)

Principal Amount (000)			Description	Value
			Interest Only Mortgage-Backed Securities—(cont’d)
			Federal National Mortgage Assoc., (cont’d)
$	3,741		Ser. 122, Class IC, 5.00%, 9/25/18	$	588,648
	—		Ser. 123, Class M, 1,009.50%, 10/25/20		1,011
	42	2	Ser. 136, Class S, 15.12%, 11/25/20		49,501
	1		Ser. 139, Class PT, 648.35%, 10/25/21		7,624
	11	2	Ser. 141, Class SA, 15.125%, 8/25/07		724
	2,854	2	Ser. 199, Class SB, 2.531%, 10/25/23		127,189
	5,440		Ser. 602, Class BI, 5.50%, 10/25/22		799,029
	808		Ser. W4, 6.50%, 12/25/28		123,290
	115		First Boston Mortgage Securities Corp., 10.965%, 4/25/17		19,012
			First Horizon Alternative Mortgage Securities,
	93,712	2	Ser. FA7, Class 1A7, 0.34%, 10/25/35		336,778
	238,901	2	Ser. FA9, Class A2, 1.00%, 12/25/35		821,223
	21,850	2	General Motors Acceptance Corp., Commercial Mortgage Securities, Inc., 1.504%, 7/15/27		641,848
	11,389	2,4	Goldman Sachs Mortgage Securities Corp., 0.999%, 2/19/25		241,167
			Government National Mortgage Assoc.,
	2,386		Ser. 39, Class ID, 5.00%, 5/20/33		496,478
	2,923		Ser. 58, Class IT, 5.50%, 7/20/33		357,626
	23,380	2	Ser. 89, Classl SA, 0.819%, 10/16/33		523,957
	96		Kidder Peabody Acceptance Corp., 9.50%, 4/22/18		21,743
	2,315		Morgan Stanley Cap. Trust I, 5.00%, 5/25/19		323,476
	12,672	5	Small Business Administration, 1.381%, 4/01/15		1
	114,589	2	Vendee Mortgage Trust, 0.053, 5/15/29		265,834
			Total Interest Only Mortgage-Backed Securities		33,439,104
			Principal Only Mortgage-Backed Securities—5.8%
			Countrywide Home Loans, Inc.,
	6,547	6	Ser. 26, 4.944%, 8/25/33		5,072,967
	1,195	6	Ser. J4, 5.142%, 6/25/33		924,907
	1,715	6	Ser. J5, 4.911%, 7/25/33		1,352,983
	1,338	6	Ser. J8, 4.787%, 9/25/23		1,008,983
			Drexel Burnham Lambert, Inc.,
	37	6	Ser. K, Class 1, 11.50%, 9/23/17		31,726
	438	6	Ser. V, Class 1, 11.50%, 9/01/18		380,899
			Federal Home Loan Mortgage Corp.,
	305	6	Ser. 8, Class A10, 6.3737%, 11/15/28		229,584
	207	6	Ser. 1418, Class M, 7.50%, 11/15/22		190,498
	577	6	Ser. 1571, Class G, 7.50%, 8/15/23		522,361
	2,701	6	Ser. 1691, Class B, 7.50%, 3/15/24		2,227,746
	274	6	Ser. 1739, Class B, 7.50%, 2/15/24		242,163
			Federal National Mortgage Assoc.,
	386	6	Ser. 2, Class KB, 8.00%, 1/25/23		305,550
	52	6	Ser. 7, Class J, 10.00%, 2/25/21		42,494
	1,182	6	Ser. 13, Class PR, 6.50%, 3/25/32		893,463
	154	6	Ser. 51, Class E, 8.00%, 2/25/23		119,766
	32	6	Ser. 70, Class A, 7.00%, 5/25/23		29,004
	70	6	Ser. 167, Class D, 8.50%, 10/25/17		65,646
	60	6	Ser. 203, Class 1, 8.00%, 2/01/23		49,529
	39	6	Ser. 228, Class 1, 7.00%, 5/01/23		31,155
	2,271	6	Ser. 249, Class B, 7.50%, 11/25/23		1,914,695
	321	6	Ser. 273, Class 1, 7.00%, 7/01/26		253,155
	5,740	6	Ser. 328, Class 1, 6.00%, 11/01/32		4,270,973
	4,408	6	Ser. 338, Class 1, 5.50%, 6/01/33		3,158,806
	443	6	Ser. W4, 5.985%, 2/25/29		317,849
	317	6	MASTR Asset Securitization Trust, 5.65%, 3/25/34		209,033
	20	6	Structured Mortgage Asset Residential Trust, 7.031%, 4/25/24		17,342
			Total Principal Only Mortgage-Backed Securities		23,863,277

See Notes to Financial Statements.

42

BlackRock Income Trust Inc. (BKT) (continued)

Rating1	Principal Amount (000)			Description	Value
				Collateralized Mortgage Obligation Residual Securities—0.0%
				Collateralized Mortgage Obligation Trust,
	$	5		Ser. 40, Class R, 580.50%, 4/01/18	$	518
		86		Ser. 42, Class R, 6,000.00%, 10/01/14		9,689
				Federal Home Loan Mortgage Corp.,
		—		Ser. 19, Class R, 9757.349%, 3/15/20		2,384
		—		Ser. 75, Class R, 9.50%, 1/15/21		6
		—		Ser. 75, Class RS, 16.26%, 1/15/21		6
		—		Ser. 173, Class R, 9.00%, 11/15/21		30
		—		Ser. 173, Class RS, 9.086%, 11/15/21		30
		13		Painewebber CMO Trust, 13.80%, 9/01/18		—
				Total Collateralized Mortgage Obligation Residual Securities		12,663
				Collateralized Mortgage Obligation Securities—22.9%
AAA		7,846		CWALT, Inc., 5.50%, 8/25/35		7,764,800
				Federal Home Loan Mortgage Corp.,
		304		Ser. 19, Class F, 8.50%, 3/15/20		303,834
		658		Ser. 1961, Class H, 6.50%, 5/15/12		662,845
		8,370		Ser. 2218, Class Z, 8.50%, 3/15/30		9,200,103
		15,385		Ser. 2461, Class Z, 6.50%, 6/15/32		15,614,929
		2,475		Ser. 2562, Class PG, 5.00%, 1/15/18		2,369,099
		403		Ser. 2582, Class TB, 3.50%, 10/15/21		401,088
		2,050		Ser. 2750, Class TC, 5.25%, 2/15/34		1,937,232
		3,470		Ser. 2806, Class VC, 6.00%, 12/15/19		3,456,431
		2,212		Ser. 2927, Class BZ, 5.50%, 2/15/35		1,981,389
				Federal National Mortgage Assoc.,
		3,600		Ser. 46, Class LW, 5.00%, 6/25/20		3,425,529
		3,780		Ser. 47, Class AK, 5.00%, 6/25/20		3,578,632
		5,114	2	Ser. 59, Class S, 5.676%, 10/25/22		648,261
		3,266		Ser. 68, Class PC, 5.50%, 7/25/35		3,232,578
		7,401	2	Ser. 73, Class DS, 4.656%, 8/25/35		6,111,409
				GSR Mortgage Loan Trust,
		5,027	2	Ser. 10, Class 2A1, 4.475%, 10/25/33		4,785,156
		4,904	2	Ser. 13, Class 1A1, 4.503%, 10/25/33		4,661,585
		38,425		MASTR Adjustable Rate Mortgages Trust, 0.977%, 4/25/34		959,186
				MASTR Alternative Loan Trust,
		2,081		Ser. 7, Class 4A3, 8.00%, 11/25/18		2,190,421
		1,925		Ser. 9, Class 15X2, 6.00%, 1/25/19		267,003
		8,775		MASTR Asset Securitization Trust, 5.25%, 10/25/14		8,508,590
		208,311	2	Residential Accredit Loans, Inc., 0.70%, 11/25/35		390,583
				Residential Asset Securitization Trust,
		983		Ser. A15, Class 1A8, Zero Coupon, 2/25/36		511,412
		7,463	2	Ser. A8, Class A2, 5.309%, 10/25/18		7,453,905
		150,584	2	Sequoia Mortgage Trust, 0.771%, 3/20/35		1,129,383
				Structured Adjustable Rate Mortgage Loan Trust,
		7,028	2	Ser. 18, Class 7AX, 5.50%, 9/25/35		1,170,967
		6,763		Ser. 20, Class 3AX, 5.50%, 10/25/35		1,109,263
		1,091		Washington Mutual., Zero Coupon, 11/25/35		780,094
				Total Collateralized Mortgage Obligation Securities		94,605,707
				Corporate Bond—0.9%
				Financial Institutions—0.9%
		3,672		Structured Asset Receivable Trust, 1.649%, 1/21/10		3,671,903
				U.S. Government and Agency Securities—26.7%
				Overseas Private Investment Corp.,
		306		4.09%, 5/29/12		268,360
		853	2	4.30%, 5/29/12		768,682
		638		4.64%, 5/29/12		581,844
		360		4.68%, 5/29/12		319,264
		2,724		4.87%, 5/29/12		2,506,542
		3,369	2	5.40%, 5/29/12		3,235,239

See Notes to Financial Statements.

43

BlackRock Income Trust Inc. (BKT) (continued)

Principal Amount (000)			Description	Value
			U.S. Government and Agency Securities—(cont’d)
$	13,000		Resolution Funding Corp., Zero Coupon, 4/15/30	$	3,605,877
			Small Business Administration,
	886		Ser. 20C-1, 7.15%, 3/01/17		918,577
	1,010		Ser. 20E-1, 7.60%, 5/01/16		1,050,115
	1,384		Ser. 20F-1, 7.55%, 6/01/16		1,439,479
	960		Ser. 20G-1, 7.70%, 7/01/16		1,001,259
	1,255		Ser. 20H-1, 7.25%, 8/01/16		1,299,985
	2,181		Ser. 20K-1, 6.95%, 11/01/16		2,247,915
			U.S. Treasury Notes,
	2,930	7	2.50%, 5/31/06		2,924,506
	21,000	7	3.75%, 3/31/07		20,780,156
	19,400	7	4.00%, 8/31/07		19,178,720
	129,000	7	U.S. Treasury Strip Principal, Zero Coupon, 11/15/24		48,037,794
			Total U.S. Government and Agency Securities		110,164,314
			Total Long-Term Investments (cost $519,530,065)		487,825,603
Notional Amount (000)
			OUTSTANDING OPTIONS PURCHASED—0.3%
			Interest Rate Swaps,
	5,700		Trust pays 3-month LIBOR, Trust receives 5.26%, expires 3/02/16		161,880
	5,700		Trust pays 3-month LIBOR, Trust receives 5.50%, expires 12/11/15		253,650
	5,700		Trust pays 5.26%, Trust receives 3-month LIBOR, expires 3/02/16		335,160
	5,700		Trust pays 5.50%, Trust receives 3-month LIBOR, expires 12/11/15		408,690
			Total Outstanding Options Purchased (cost $1,270,530)		1,159,380
			Total investments before borrowed bonds, investments sold short, TBA sale commitments and outstanding options written—118.5% (cost $520,800,5958)		488,984,983
Principal Amount (000)
			BORROWED BONDS—13.7%
			U.S. Treasury Bonds,
	13,302	9	5.375%, 5/01/06		13,301,738
	17,581	9	6.25%, 5/03/06		17,580,937
			U.S. Treasury Notes,
	13,894	9	4.00%, 5/03/06		13,894,250
	11,715	9	4.125%, 5/03/06		11,715,000
			Total Borrowed Bonds (cost $56,491,925)		56,491,925
			INVESTMENTS SOLD SHORT—(13.6)%
			U.S. Government and Agency Securities—(13.6)%
			U.S. Treasury Bonds,
	(12,930	)	5.375%, 2/15/31		(13,132,030	)
	(15,750	)	6.25%, 8/15/23		(17,413,593	)
			U.S. Treasury Notes,
	(14,900	)	4.00%, 2/15/15		(13,810,438	)
	(12,000	)	4.125%, 8/15/10		(11,643,750	)
			Total Investments Sold Short (proceeds $59,142,549)		(55,999,811	)
			TBA SALE COMMITMENTS—(5.6)%
			Federal National Mortgage Assoc., TBA,
	(10,000	)	5.00%, 5/01/36		(9,456,250	)
	(14,000	)	5.50%, 5/11/36		(13,593,132	)
			Total TBA Sale Commitments (proceeds $23,070,781)		(23,049,382	)

See Notes to Financial Statements.

44

BlackRock Income Trust Inc. (BKT) (continued)

Contracts/ Notional Amount (000)			Description	Value
			OUTSTANDING OPTIONS WRITTEN—(0.6)%
			Interest Rate Swaps,
$	(5,700	)	Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/08	$	(320,055	)
	(5,700	)	Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/08		(99,009	)
	(14,100	)	Trust pays 3-month LIBOR, Trust receives 4.725%, expires 6/13/07		(991,089	)
	(14,100	)	Trust pays 4.725%, Trust receives 3-month LIBOR, expires 6/13/07		(64,296	)
	(12,400	)	Trust pays 3-month LIBOR, Trust receives 5.67%, expires 1/04/10		(452,600	)
	(12,400	)	Trust pays 5.67%, Trust receives 3-month LIBOR, expires 1/04/10		(559,240	)
	(78	)	U.S. Treasury Notes Future, expiring 5/26/06		(59,109	)
	(70	)	U.S. Treasury Notes Future, expiring 8/25/06		(47,578	)
			Total Outstanding Options Written (premium received $2,942,962)		(2,592,976	)
			Total Investments net of borrowed bonds, investments sold short, TBA sale commitments and outstanding options written—112.4%	$	463,834,739
			Liabilities in excess of other assets—(12.4)%		(51,140,226	)
			Net Assets—100%	$	412,694,513

1	Using the higher of S&P’s, Moody’s or Fitch’s rating.
2	Variable rate security. Rate shown is interest rate as of April 30, 2006.
3	Security, or a portion thereof, pledged as collateral with a value of $40,531,144 on 1,538 short Eurodollar futures contracts expiring June 2006 to December 2008, 761 short U.S. Treasury Bond futures contracts expiring June 2006 and 365 short U.S. Treasury Note futures contracts expiring September 2006. The notional value of such contracts on April 30, 2006 was $482,810,216, with an unrealized gain of $5,942,425.
4	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2006, the Trust held 0.2% of its net assets, with a current market value of $972,872, in securities restricted as to resale.
5	Illiquid security. As of April 30, 2006, the Trust held less than 0.1% of its net assets, with a current market value of $1 in these securities.
6	Rate shown is interest rate or effective yield as of April 30, 2006 of the underlying collateral.
7	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
8	Cost for Federal income tax purposes is $524,519,650. The net unrealized depreciation on a tax basis is $35,534,667, consisting of $6,490,414 gross unrealized appreciation and $42,025,081 gross unrealized depreciation.
9	The interest rate and maturity date shown represent the terms of the borrowed transaction, not the security borrowed.

KEY TO ABBREVIATIONS

TBA – To Be Announced

See Notes to Financial Statements.

45

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2006

BlackRock Limited Duration Income Trust (BLW)

Rating1	Principal Amount (000)			Description		Value
				LONG-TERM INVESTMENTS—145.1%
				Corporate Bonds—61.0%
				Aerospace & Defense—3.6%
NR	$	1,560		AAR Corp., 8.39%, 5/15/11	$	1,575,600
B-		2,249		Aero Invest, 10.634%, 3/22/15 (Norway)		2,936,416
				BE Aerospace, Inc.,
BB-		615		8.50%, 10/01/10		655,744
B		210		8.875%, 5/01/11		219,187
B-		6,220	2	DI Finance/DynCorp. Intl., 9.50%, 2/15/13		6,499,900
B		310		DRS Technologies, Inc., 7.625%, 2/01/18		316,200
NR		4,750		Raytheon Co., 7.00%, 5/15/06		4,809,774
BB		5,350	2	Sequa Corp., 8.875%, 4/01/08		5,590,750
B+		2,755		Transdigm, Inc., 8.375%, 7/15/11		2,892,750
				Total Aerospace & Defense		25,496,321
				Automotive—2.6%
BB+		270		ArvinMeritor, Inc., 8.75%, 3/01/12		276,075
				Autonation, Inc.,
BB+		690	3,4	7.04%, 4/15/13		702,075
BB+		690	4	7.00%, 4/15/14		693,450
				Avis Budget Car Rental LLC,
BB-		130	3,4	1.00%, 5/15/14		133,738
BB-		310	4	7.75%, 5/15/16		316,200
A3		7,500	2	DaimlerChrysler NA Holding Corp., 4.05%, 6/04/08		7,265,939
CCC		420		Dura Operating Corp., 8.625%, 4/15/12		357,000
B		3,260		General Motors Corp., 8.25%, 7/15/23		2,363,500
B-		145		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		142,825
B+		945		Lear Corp., 8.11%, 5/15/09		928,462
CCC+		1,825	2	Metaldyne Corp., 10.00%, 11/01/13		1,761,125
B		450		Tenneco, Inc., 8.625%, 11/15/14		455,625
BB-		2,629		TRW Automotive, Inc., 9.375%, 2/15/13		2,826,175
				Total Automotive		18,222,189
				Basic Materials—6.3%
B+		390		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)		393,900
B+		1,920		AK Steel Corp., 7.75%, 6/15/12		1,944,000
B		350	3,4	BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.099%, 7/15/10		357,875
BB-		670	3	Bowater, Inc., 7.91%, 3/15/10		676,700
NR		4,250		Caraustar Industries, Inc., 9.875%, 4/01/11		4,473,125
BB+		120		Chemtura Corp., 6.875%, 6/01/16		119,700
				Domtar, Inc.,
B+		300		7.125%, 8/15/15 (Canada)		272,250
B+		880		7.875%, 10/15/11 (Canada)		853,600
B+		740		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		746,475
				Huntsman LLC,
B2		800	3	12.32%, 7/15/11		838,000
Ba3		1,950		11.625%, 10/15/10		2,198,625
B2		310		12.00%, 7/15/12		354,950
BB		300		IMC Global, Inc., 10.875%, 6/01/08		323,250
				Ineos Group Holdings PLC,
B2		1,490		7.875%, 2/07/16 (United Kingdom)		1,811,642
B-		2,8854		8.50%, 2/15/16 (United Kingdom)		2,729,931
CCC+		2,625		Innophos, Inc., 8.875%, 8/15/14		2,703,750
Baa3		5,000		Ipsco, Inc., 8.75%, 6/01/13 (Canada)		5,412,500
				Lyondell Chemical Co.,
BB+		560		10.50%, 6/01/13		627,200
BB+		3,020		11.125%, 7/15/12		3,352,200
BB+		750		Ser. A, 9.625%, 5/01/07		774,375
B-		215		Nalco Co., 8.875%, 11/15/13		221,988

See Notes to Financial Statements.

46

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating1	Principal Amount (000)			Description		Value
				Basic Materials—(cont’d)
				NewPage Corp.,
B3	$	1,500	2,3	11.399%, 5/01/12	$	1,635,000
B3		325		10.00%, 5/01/12		348,563
BB+		2,090	3	Nova Chemicals Corp., 7.561%, 11/15/13 (Canada)		2,103,062
				Rhodia SA,
CCC+		921		8.875%, 6/01/11 (France)		955,537
B3		81		10.25%, 6/01/10 (France)		90,518
				Rockwood Specialties Group, Inc.,
B-		450		7.50%, 11/15/14		448,875
B-		3,645		10.625%, 5/15/11		3,954,825
Ba1		3,250		US Steel LLC, 10.75%, 8/01/08		3,550,625
				Total Basic Materials		44,273,041
				Building & Development—1.6%
B-		350		Ahern Rentals, Inc., 9.25%, 8/15/13		364,875
B2		7504		Compression Polymers Corp., 10.50%, 7/01/13		768,750
BBB-		3,000	2	DR Horton, Inc., 5.875%, 7/01/13		2,866,521
B-		2,665		ERICO Intl. Corp., 8.875%, 3/01/12		2,744,950
				Goodman Global Holding Co., Inc.,
B2		375	3	7.491%, 6/15/12		382,031
B-		3,000		7.875%, 12/15/12		3,007,500
				North American Energy Partners, Inc.,
Caa1		150		8.75%, 12/01/11 (Canada)		146,625
B		550		9.00%, 6/01/10 (Canada)		583,000
				Total Building & Development		10,864,252
				Conglomerates—1.1%
Baa3		7,500	2	Tyco Intl. Group SA, 6.125%, 11/01/08 (Luxembourg)		7,577,843
				Consumer Products—6.0%
B3		300		ALH Finance LLC, 8.50%, 1/15/13		294,000
B+		5,510	2	Cenveo Corp., 9.625%, 3/15/12		5,895,700
Caa1		1,610	3	Duane Reade, Inc., 7.91%, 12/15/10		1,612,012
B-		1,333		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		1,169,708
B		2,140		Gold Kist, Inc., 10.25%, 3/15/14		2,257,700
B+		5,000	2	Group 1 Automotive, Inc., 8.25%, 8/15/13		5,100,000
BBB-		4,400		JC Penney Co., Inc., 8.00%, 3/01/10		4,744,246
B-		3,345	4	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		3,202,837
B-		1,550		Lazydays RV Center, Inc., 11.75%, 5/15/12		1,551,938
B		2,075	3	Levi Strauss & Co., 7.73%, 4/01/12		2,163,187
CCC-		1,750		Movie Gallery, Inc., 11.00%, 5/01/12		918,750
B2		223	4	Neiman-Marcus Group, Inc., 9.00%, 10/15/15		236,938
B3		210	3,4	Nutro Products, Inc., 10/15/13		214,200
BB-		600		Quiksilver, Inc., 6.875%, 4/15/15		579,000
				Rite Aid Corp.,
B-		635	4	6.125%, 12/15/08		623,888
BB-		5,000		8.125%, 5/01/10		5,131,250
B1		2,500		Sheridan Group, Inc., 10.25%, 8/15/11		2,575,000
B		3,500		Sonic Automotive, Inc., 8.625%, 8/15/13		3,605,000
				Total Consumer Products		41,875,354
				Containers & Packaging—0.9%
B3		875	4	Covalence Specialty Materials Corp., 10.25%, 3/01/16		905,625
B1		1,385	4	Crown Americas LLC and Crown Americas Capital Corp., 7.75%, 11/15/15		1,416,163
CCC+		585		Graham Packaging Co., Inc., 8.50%, 10/15/12		598,163
B-		250	4	Packaging Dynamics Finance Corp., 10.00%, 5/01/16		255,000
CCC+		1,670	4	Pregis Corp., 12.375%, 10/15/13		1,751,412
B+		1,500		Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11		1,541,250
				Total Containers & Packaging		6,467,613
				Ecological Services & Equipment—0.6%
B		2,000		Casella Waste Systems, Inc., 9.75%, 2/01/13		2,127,500
CCC		2,065		Waste Services, Inc., 9.50%, 4/15/14		2,142,438
				Total Ecological Services & Equipment		4,269,938

See Notes to Financial Statements.

47

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating1	Principal Amount (000)			Description		Value
				Energy—6.7%
BB+	$	5,500	2,4	AES Corp., 8.75%, 5/15/13	$	5,940,000
				ANR Pipeline Co.,
B		460		7.375%, 2/15/24		472,650
B		1,780		9.625%, 11/01/21		2,133,775
B2		1,040		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		1,076,400
B		810	4	Chaparral Energy, Inc., 8.50%, 12/01/15		834,300
				Chesapeake Energy Corp.,
BB		100	4	6.875%, 11/15/20		98,500
BB		4,000		7.50%, 9/15/13		4,155,000
B-		1,095		Clayton Williams Energy, Inc., 7.75%, 8/01/13		1,032,037
				CMS Energy Corp.,
BB-		150		7.50%, 1/15/09		154,125
BB-		220		8.50%, 4/15/11		235,950
BB-		140		9.875%, 10/15/07		148,225
BB-		750		Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)		774,375
				Compton Petroleum Finance Corp.,
B		525		7.625%, 12/01/13		520,406
B		790	4	7.625%, 12/01/13 (Canada)		783,087
B		800		Dynegy Danskammer LLC, 7.27%, 11/08/10		816,000
				El Paso Corp.,
B-		400		7.80%, 8/01/31		398,000
B-		525	4	9.625%, 5/15/12		580,125
B-		225	4	10.75%, 10/01/10		251,438
B		400		El Paso Natural Gas Co., 8.875%, 6/15/32		443,000
Ba2		225		Elwood Energy LLC, 8.159%, 7/05/26		237,066
B-		220		Exco Resources, Inc., 7.25%, 1/15/11		217,250
BB		380		Grant Prideco, Inc., 6.125%, 8/15/15		364,800
				Hilcorp Energy I LP/Hilcorp Finance Corp.,
B		930	4	7.75%, 11/01/15		916,050
B		2,434	4	10.50%, 9/01/10		2,653,060
B-		725		KCS Energy, Inc., 7.125%, 4/01/12		730,438
B+		5,665	2	Midwest Generation LLC, 8.56%, 1/02/16		6,089,588
				Mirant Americas Generation LLC,
B		175		8.30%, 5/01/11		180,688
B		480		8.50%, 10/01/21		483,600
B		910		9.125%, 5/01/31		955,500
B2		500		Mission Energy Holdings Co., 13.50%, 7/15/08		568,750
				NRG Energy, Inc.,
B1		210		7.25%, 2/01/14		211,050
B1		1,185		7.375%, 2/01/16		1,193,887
B-		450	4	Ocean Rig AS, 8.375%, 7/01/13 (Norway)		473,625
B-		580		Orion Power Holdings, Inc., 12.00%, 5/01/10		659,025
				Reliant Energy, Inc.,
BB-		1,035		6.75%, 12/15/14		941,850
BB-		170		9.25%, 7/15/10		172,975
B		5,000	2	Swift Energy Co., 9.375%, 5/01/12		5,337,500
B-		725	4	Targa Resources, Inc., 8.50%, 11/01/13		735,875
BBB-		100		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26		102,500
B3		500	4	Verasun Energy Corp., 9.875%, 12/15/12		532,500
B2		190		Whiting Petroleum Corp., 7.00%, 2/01/14		188,100
				Williams Cos., Inc.,
BB+		1,000		7.125%, 9/01/11		1,025,000
BB+		1,285		8.75%, 3/15/32		1,477,750
				Total Energy		47,295,820
				Entertainment & Leisure—1.2%
B3		505	4	AMC Entertainment, Inc., 11.00%, 2/01/16		540,350
B3		1,580	4	Greektown Holdings LLC, 10.75%, 12/01/13		1,655,050
Ba3		5,425	2	MGM Mirage, 9.75%, 6/01/07		5,628,437
B		250		Poster Financial Group, Inc., 8.75%, 12/01/11		263,750

See Notes to Financial Statements.

48

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating1		Principal Amount (000)			Description		Value
					Entertainment & Leisure—(cont’d)
B+		$	460	4	San Pasqual Casino, 8.00%, 9/15/13	$	464,600
B+			100		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		97,000
					Total Entertainment & Leisure		8,649,187
					Financial Institutions—6.9%
BB			1,480		American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		1,472,600
B			1,733		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		1,906,300
BB			3,360		Crum & Forster Holdings Corp., 10.375%, 6/15/13		3,494,400
B+	��		465		E*Trade Financial Corp., 7.375%, 9/15/13		473,138
BB			890	2	Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)		845,500
					Ford Motor Credit Co.,
BB			500		7.25%, 10/25/11		448,222
BB			2,800	2	7.375%, 2/01/11		2,538,082
					General Motors Acceptance Corp.,
BB			3,000	3	5.97%, 1/16/07		2,954,179
BB			5,620	2	6.875%, 8/28/12		5,199,067
B-			900		K&F Acquisition, Inc., 7.75%, 11/15/14		920,250
Baa2			5,000	4	Kazkommerts Intl. BV, 10.125%, 5/08/07 (Netherlands)		5,187,500
BBB			200	3	Marsh & McLennan Cos., Inc., 7/13/07		199,730
B2			2,460	4	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)		2,435,400
					Rainbow National Services LLC,
B+			925	4	8.75%, 9/01/12		987,438
B+			4,835	4	10.375%, 9/01/14		5,427,287
Caa1			2,175		Standard Aero Holdings, Inc., 8.25%, 9/01/14		1,924,875
AA+			6,614	5	Structured Asset Receivable Trust, 5.11%, 1/21/10		6,613,922
B-			220	3	Universal City Florida Holding Co. I/II, 7.96%, 5/01/10		228,250
Aa3			4,425	2	Western Financial Bank, 9.625%, 5/15/12		4,911,750
					Total Financial Institutions		48,167,890
					Health Care—2.8%
B			1,975	4	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)		1,984,875
B-			5,000	2	Concentra Operating Corp., 9.50%, 8/15/10		5,262,500
NR			80	6	Curative Health Services, Inc., 10.75%, 5/01/11		50,000
CCC			350		MedQuest, Inc., 11.875%, 8/15/12		292,250
B-			3,000		Norcross Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11		3,142,500
B3			965		Select Medical Corp., 7.625%, 2/01/15		880,562
B			1,360		Tenet Healthcare Corp., 6.875%, 11/15/31		1,118,600
B			4,500		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		4,792,500
B-			1,880		Universal Hospital Services, Inc., 10.125%, 11/01/11		1,957,550
					Total Health Care		19,481,337
					Industrials—1.9%
B-			4,000		Fasten Tech, Inc., 11.50%, 5/01/11		4,080,000
B-			1,880		NationsRent Cos., Inc., 9.50%, 5/01/15		2,035,100
CCC+			1,955		Park-Ohio Industries, Inc., 8.375%, 11/15/14		1,847,475
B3			2,240	4	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		2,374,400
CCC+			1,415		Trimas Corp., 9.875%, 6/15/12		1,337,175
Caa1			2,000		United Rentals NA, Inc., 7.00%, 2/15/14		1,925,000
					Total Industrials		13,599,150
					Media—8.5%
					Affinion Group, Inc.,
B-			1,400	4	10.125%, 10/15/13		1,447,250
B-			850	4	11.50%, 10/15/15		871,250
B-			740		Allbritton Communications Co., 7.75%, 12/15/12		743,700
CCC			1,300		American Media Operations, Inc., 10.25%, 5/01/09		1,226,875
B+			800	3	Cablevision Systems Corp., 8.716%, 4/01/09		848,000
CCC+			3,500		CBD Media Inc., 8.625%, 6/01/11		3,556,875
					Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,
Caa1			755		10.25%, 9/15/10		764,437
Caa1			865	4	10.25%, 9/15/10		868,244

See Notes to Financial Statements.

49

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating1	Principal Amount (000)			Description		Value
				Media—(cont’d)
BBB+	$	6,685	2	Comcast Cable Communications, Inc., 6.875%, 6/15/09	$	6,926,663
BB-		6,000	2	CSC Holdings, Inc., 7.875%, 12/15/07		6,120,000
B		1,300		Dex Media West LLC/Dex Media Finance Co., 9.875%, 8/15/13		1,430,000
				Echostar DBS Corp.,
BB-		2,800		5.75%, 10/01/08		2,758,000
BB-		5,100	2,3	5.81%, 10/01/08		5,202,000
BB-		200	4	7.125%, 2/01/16		195,000
CCC+		5,000		Houghton Mifflin Co., 9.875%, 2/01/13		5,362,500
B+		820		Medianews Group, Inc., 6.875%, 10/01/13		746,200
B2		810	4	Network Communications, Inc., 10.75%, 12/01/13		832,275
B3		1,400		Nexstar Finance, Inc., 7.00%, 1/15/14		1,316,000
B2		2,000	3,4	Paxson Communications Corp., 8.32%, 1/15/12		2,052,500
				Primedia, Inc.,
B2		400		8.00%, 5/15/13		365,000
B2		1,200	3	9.165%, 5/15/10		1,230,000
BB-		970	4	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)		940,782
B		4,000	4	RH Donnelley Corp., 8.875%, 1/15/16		4,115,000
B2		2,000		Salem Communications Corp., 7.75%, 12/15/10		2,040,000
B		460		Sinclair Broadcast Group, Inc., 4.875%, 7/15/18		405,961
Caa1		530		Sirius Satellite Radio, Inc., 9.625%, 8/01/13		518,075
CCC+		300	4	Unity Media GmbH, 10.375%, 2/15/15 (Germany)		297,000
				Vertis, Inc.,
B3		2,390		9.75%, 4/01/09		2,437,800
CCC		865		10.875%, 6/15/09		830,400
Caa2		3,280		Young Broadcasting, Inc., 10.00%, 3/01/11		3,009,400
				Total Media		59,457,187
				Real Estate—1.1%
BB		5,860	2	American Real Estate Partners, 8.125%, 6/01/12		6,050,450
BB+		2,000		Rouse Co., 5.375%, 11/26/13		1,850,536
				Total Real Estate		7,900,986
				Technology—3.0%
				Amkor Technology, Inc.,
CCC+		1,958		7.75%, 5/15/13		1,864,995
CCC+		1,100		9.25%, 2/15/08		1,160,500
B+		1,965		Celestica, Inc., 7.625%, 7/01/13 (Canada)		1,965,000
BB+		2,012		Flextronics Intl. Ltd., 6.50%, 5/15/13 (Singapore)		1,991,880
B+		430	4	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		474,613
				MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co.,
Ba3		810	3	7.741%, 12/15/11 (Luxembourg)		814,050
B2		135		8.00%, 12/15/14 (Luxembourg)		125,550
B2		890	4	Sensata Technologies BV, 8.00%, 5/01/14		898,900
CCC+		910	4	SS&C Technologies, Inc., 11.75%, 12/01/13		971,425
BB		200		STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)		202,500
				Sungard Data Systems, Inc.,
B-		1,735	3,4	8.525%, 8/15/13		1,847,775
B-		665	4	9.125%, 8/15/13		711,550
B-		2,430	4	10.25%, 8/15/15		2,600,100
B		3,615		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		3,642,112
B-		1,530		UGS Corp., 10.00%, 6/01/12		1,675,350
				Total Technology		20,946,300
				Telecommunications—5.5%
NR		386		Centennial Cellular Operating Co., Zero Coupon, 2/09/11		391,006
BB-		1,420		Cincinnati Bell, Inc., 7.25%, 7/15/13		1,448,400
A-		5,000	2	Deutsche Telekom Intl. Finance BV, 8.00%, 6/15/10 (Netherlands)		5,421,422
B3		860	4	Hawaiian Telcom Communications, Inc., 5/01/13		885,800
				Intelsat Ltd.,
B2		460		8.25%, 1/15/13 (Bermuda)		469,200
B2		1,470		8.625%, 1/15/15 (Bermuda)		1,530,638
B2		2,360	3	9.614%, 1/15/12 (Bermuda)		2,401,300

See Notes to Financial Statements.

50

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating1	Principal Amount (000)			Description		Value
				Telecommunications—(cont’d)
				Lucent Technologies, Inc.,
B1	$	105		6.45%, 3/15/29	$	92,925
B1		3,830		6.50%, 1/15/28		3,360,825
B+		3,850	4	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16		4,004,000
B2		200		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		186,750
B1		3,517		PanAmSat Corp., 9.00%, 8/15/14		3,701,642
BB		4,000	3	Qwest Communications Intl., Inc., 6.768%, 2/15/09		4,090,000
				Qwest Corp.,
BB+		2,500	3	7.741%, 6/15/13		2,725,000
BB+		1,000		7.875%, 9/01/11		1,047,500
BB+		3,675		9.125%, 3/15/12		4,033,312
BB+		460		Rogers Wireless, Inc., 7.25%, 12/15/12 (Canada)		474,950
B2		375	3	Rural Cellular Corp., 8.991%, 3/15/10		382,969
B+		1,500	4	Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)		1,646,250
				Total Telecommunications		38,293,889
				Transportation—0.7%
Ba3		520		American Airlines, Inc., 7.324%, 4/15/11		504,400
B		1,715		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		1,745,012
BB-		655	4	Hertz Corp., 8.875%, 1/01/14		696,756
B3		111		Horizon Lines LLC, 9.00%, 11/01/12		115,579
B+		190		OMI Corp., 7.625%, 12/01/13		195,225
BB+		1,650		Overseas Shipholding Group, Inc., 8.75%, 12/01/13		1,802,625
				Total Transportation		5,059,597
				Total Corporate Bonds		427,897,894
				Bank Loans—51.1%
				Aerospace & Defense—0.8%
		980		Arinc, Inc., Loan B, LIBOR + 2.00%, 2/15/11		981,225
		895		Camp Acquisition Co., Loan A, LIBOR + 3.25%, 8/30/11		897,486
		1,980		Dyncorp International LLC, Loan B, LIBOR + 2.75%, 1/31/11		2,003,100
		1,458		Transdigm, Inc., LIBOR + 2.25%, 4/12/11		1,475,061
				Total Aerospace & Defense		5,356,872
				Automotive—1.5%
		500		Dana Corp., LIBOR, 4/12/08		503,750
		1,224		Dayco Products, LLC, Loan B, LIBOR + 3.00%, 6/30/10		1,236,745
				Goodyear Tire & Rubber Co. (The),
		500		LIBOR + 2.75%, 4/01/10		506,667
		2,000		LIBOR + 3.50%, 4/01/11		2,027,500
		748		IAP Worldwide Services, Inc., LIBOR + 3.00%, 12/31/12		755,606
		1,000		Lear Corp., LIBOR + 2.50%, 3/23/12		1,003,000
		926		Metaldyne Co. LLC, Loan D, LIBOR + 4.50%, 12/31/09		942,196
		498		Precision Parts Intl., Loan B, LIBOR + 3.75%, 10/15/11		498,744
		517		Tenneco Automotive, Inc., Loan B1, LIBOR + 2.25%, 12/12/10		523,254
		2,469		TRW Automotive Acquisitions Corp., Loan B, LIBOR + 1.50%, 6/30/12		2,472,865
				Total Automotive		10,470,327
				Basic Materials—4.8%
				Basell NV,
		500		Loan B2, LIBOR + 2.50%, 9/30/13		507,083
		500		Loan C2, LIBOR + 3.00%, 9/30/14		507,083
		993		Berry Plastics Corp., LIBOR + 2.00%, 7/22/10		1,000,358
		877		Boise Cascade Corp., Loan D, LIBOR + 1.75%, 10/31/11		887,357
		2,190		Celanese, AG, LIBOR + 2.00%, 6/03/11		2,221,741
		3,000		Cognis Deutschland, LIBOR + 4.75%, 11/15/13		3,052,500
		969		Compass Minerals Group, Inc., LIBOR + 1.50%, 12/31/12		974,451
		4,239		Huntsman Intl. LLC, Loan B, LIBOR + 1.75%, 8/15/12		4,261,039
				Ineos Group Ltd.,
		3,250		Loan A4, LIBOR + 2.25%, 12/16/12-12/16/13		3,281,707
		1,750		Loan A4, LIBOR + 2.75%, 12/16/14		1,774,339

See Notes to Financial Statements.

51

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)		Description		Value
		Basic Materials—(cont’d)
		Invista B.V.,
$	1,359	Loan B1, LIBOR + 1.75%, 4/30/11	$	1,370,054
	691	Loan B2, LIBOR + 1.75%, 4/30/11		694,140
	2,000	ISP Chemco, Inc., LIBOR + 1.75%, 2/28/13		2,015,626
	600	John Maneely Co., Loan B, LIBOR + 3.00%, 3/31/13		609,250
	2,474	Nalco Co., Loan B, LIBOR + 1.75%, 11/01/10		2,500,425
	495	PQ Corp., LIBOR + 2.00%, 2/28/12		501,394
	990	Rockwood Specialties Group, Inc., Loan E, LIBOR + 2.00%, 8/15/12		1,001,602
		SP Newsprint,
	601	LIBOR + 2.25%, 1/08/10		608,203
	1,611	Loan B, LIBOR + 2.25%, 1/09/10		1,631,250
	4,000	UPC Technology Corp., LIBOR + 2.00%, 12/31/13		4,030,416
		Total Basic Materials		33,430,018
		Building & Development—1.4%
	239	Atrium Companies, Inc., LIBOR + 3.25%, 12/30/11		239,620
	1,500	Custom Building Products, Inc., LIBOR + 5.00%, 4/30/12		1,503,750
	250	Euramax International, Inc., LIBOR + 7.00%, 7/15/13		248,750
	1,250	Harmon Koval, 3.25%, 12/31/06		1,253,125
	479	Maxim Crane Works LP, LIBOR + 2.00%, 1/28/10		484,808
		Nacco Industries, Inc.,
	500	LIBOR + 2.00%, 3/31/13		504,375
	500	LIBOR + 2.00%, 4/15/13		500,000
	492	Nortek, Inc., Loan B, LIBOR + 2.00%, 8/24/11		495,842
		Ply Gem Industries, Inc.,
	94	CND, LIBOR + 2.25%, 8/15/11		94,570
	1,406	USD, LIBOR + 2.25%, 8/15/11		1,418,555
	950	Rhodes Ranch, LIBOR + 3.25%, 11/15/10		954,750
	1,995	United Subcontractors, Inc., LIBOR + 3.00%, 12/31/12		1,995,000
		Total Building & Development		9,693,145
		Conglomerates—3.5%
	500	AGY Holding Corp., LIBOR + 2.75%, 4/30/12		503,438
		Atlantis Plastics, Inc.,
	995	LIBOR + 7.25%, 9/30/11		1,004,950
	495	PRIME + 0.75%, 9/30/11		501,806
	1,080	Blount Intl., Loan B, LIBOR + 1.75%, 8/15/10		1,087,807
	1,975	Colfax Corp., Loan B, LIBOR + 2.00%, 11/30/11		2,000,165
	3,107	Fidelity National Information Solutions, Inc., Loan B, LIBOR + 1.75%, 3/30/13		3,124,431
	500	Gentek, Inc., 0.50%, 3/15/12		502,500
	1,474	Honeywell Security, Loan B, LIBOR + 3.25%, 6/28/10		1,482,985
		Invensys Intl. Holdings Ltd.,
	4,693	0.50%, 3/05/09-11/30/09		4,764,841
	1,113	Loan B1, LIBOR + 3.50%, 8/30/09		1,124,335
		Jarden Corp.,
	991	Loan B2, PRIME + 0.75%, 1/15/12		1,000,218
	1,192	PRIME + 1.00%, 1/24/12		1,199,129
	995	Mueller Group, Inc., Loan B, LIBOR + 2.25%, 9/30/12		1,007,438
	367	Penn Engineering & Manufacturing, LIBOR + 2.50%, 4/30/11		370,295
	1,345	Sensus Metering Systems, Inc., Loan B1, LIBOR + 2.50%, 12/30/09		1,353,023
	872	St. John Knits International, Inc., Loan B, LIBOR + 2.50%, 3/30/12		880,266
	2,481	Sungard Data Systems, Inc., Loan B, LIBOR + 2.50%, 1/05/13		2,508,943
		Total Conglomerates		24,416,570
		Consumer Products—9.5%
	1,000	Aearo Technologies, Inc., LIBOR + 6.50%, 9/30/13		1,020,000
	1,000	24 Hour Fitness Worldwide, Inc., Loan B, LIBOR + 3.00%, 6/30/12		1,011,667
	465	Adams Outdoor Advertising LP, LIBOR + 2.00%, 10/15/12		470,770
	1,050	Alimentation Couche-Tard, Inc., LIBOR + 1.75%, 12/31/10		1,060,500
	496	Arby’s Restaurant Group, Inc., Loan B, LIBOR + 2.25%, 7/31/12		501,419
		Berkline Bench Craft,
	1,000	LIBOR + 10.0%, 4/30/12		750,000
	938	Loan B, LIBOR + 3.75%, 10/31/11		885,938

See Notes to Financial Statements.

52

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)		Description		Value
		Consumer Products—(cont’d)
$	500	Buffets, Inc., LIBOR + 0.10%, 6/28/09	$	502,500
	1,995	Burger King Corp., Loan B1, LIBOR + 1.50%, 2/28/13		2,001,395
	1,500	Burlington Coat Factory Warehouse Corp., Loan B, LIBOR, 4/15/13		1,494,000
	496	Centerplate, Inc., PRIME + 1.25%, 10/15/10		499,962
	1,500	Central Garden & Pet Co., Loan B, LIBOR + 1.50%, 9/30/12		1,507,500
	496	Chiquita Brands Intl., Inc., Loan C, LIBOR + 2.00%, 7/15/13		500,592
	856	CKE Restaurants, Inc., LIBOR + 2.00%, 5/17/09		863,994
	999	Coinmach Corp., Loan B1, LIBOR + 2.50%, 12/15/12		1,014,393
	1,731	Commonwealth Brands, Inc., LIBOR + 2.25%, 12/15/12		1,751,381
	1,000	Denny’s Corp., LIBOR + 5.13%, 9/25/10		1,030,000
	494	Douglas Dynamics, LLC, LIBOR + 1.75%, 12/16/10		498,696
	2,901	Dr. Pepper Bottling Co. of Texas, Inc., Loan B, LIBOR + 2.00%, 12/30/10		2,915,526
		Dunkin Brands, Inc.,
	858	LIBOR + 4.25%, 3/01/07		855,992
	2,157	LIBOR + 5.63%, 3/01/07		2,151,546
	878	Eastman Kodak Co., Loan B2, 1.50%, 10/15/12		887,001
	1,000	Easton Bell Sports, Inc., Loan B, LIBOR + 1.75%, 3/31/12		1,010,417
	1,481	Eight O’Clock Coffee, Loan B, LIBOR + 3.00%, 12/15/06		1,492,359
	648	Hertz Corp., LIBOR + 2.25%, 12/31/12		654,422
	792	Keystone Foods Holdings LLC, LIBOR + 1.75%, 6/30/11		800,639
	438	Knoll, Inc., LIBOR + 1.75%, 10/15/12		442,832
	867	Language Line, Inc., Loan B, LIBOR + 4.25%, 6/14/11		868,832
	1,645	Le-Natures, Inc., Loan B, LIBOR + 3.00%, 5/30/10		1,665,562
	1,311	Maidenform, Inc., LIBOR + 1.75%, 5/14/10		1,317,716
	500	MD Beauty, Inc., LIBOR + 7.00%, 7/10/13		502,500
	2,738	Michael Foods, Inc., Loan B1, LIBOR + 2.00%, 11/30/10		2,766,779
	646	Movie Gallery, Inc., Loan B, LIBOR + 5.25%, 4/30/11		594,652
	1,661	Neiman-Marcus Group, Inc., LIBOR + 2.50%, 4/15/13		1,682,901
	1,712	New Page, Loan B, LIBOR + 3.00%, 4/30/12		1,714,281
	925	Nice Pak Products, LIBOR + 3.75%, 6/15/10		926,156
		Olympus Cable Holdings LLC,
	2,000	Loan A, PRIME + 1.25%, 6/30/10		1,944,376
	3,500	Loan B, PRIME + 2.00%, 9/30/10		3,421,250
	1,500	Orchard Supply Hardware Stores Corp., Loan B2, LIBOR + 2.50%, 12/09/07		1,500,000
		Oriental Trading Co., Inc.,
	500	LIBOR + 4.75%, 1/08/11		502,500
	2,559	Loan B, LIBOR + 2.25%, 6/30/09		2,571,624
	2,955	OSI Group LLC, Loan B, LIBOR + 2.00%, 9/15/11		2,985,782
	748	Pantry, Inc., LIBOR + 1.75%, 12/29/11		755,139
	948	PBM Products LLC, Loan B, LIBOR + 3.00%, 7/31/11		956,576
	713	Pierre Foods, Inc., Loan B, LIBOR + 2.00%, 7/15/10		720,467
	750	Pivotal Promontory LLC, LIBOR + 6.50%, 9/15/11		749,375
	1,470	Prestige Brands Holdings, Inc., Loan B, LIBOR + 2.25%, 4/07/11		1,486,538
	478	Propex Fabric, Inc., Loan B, LIBOR + 2.25%, 8/30/12		480,274
	3,452	R.H. Donnelley, Inc., Loan D2, LIBOR + 1.50%, 12/31/11		3,464,483
	398	Sealy Mattress Co., Loan D, LIBOR + 1.75%, 8/06/12		402,586
	603	Synventive Acquisition, Inc., LIBOR + 14.00%, 2/17/14		584,942
	499	Travelcenters of America, Inc., Loan B, LIBOR + 1.75%, 6/30/11-11/30/11		503,364
	948	Tupperware Corp., LIBOR + 1.50%, 11/07/12		948,387
	500	Warnaco, Inc., Loan B, LIBOR + 1.50%, 1/31/12		500,625
		Waterpik Technologies, Inc.,
	750	PRIME + 5.50%, 10/15/13		761,250
	500	PRIME + 1.25%, 4/15/13		502,500
		Total Consumer Products		66,356,858
		Containers & Packaging—2.3%
	735	Bway Corp., LIBOR + 2.00%, 6/30/11		742,702
	200	Covalence Specialty Materials Corp., LIBOR + 3.25%, 8/15/13		203,813
	344	Flexsol Packaging Corp., LIBOR + 3.25%, 11/30/11		344,146
	3,494	Georgia-Pacific Corp., LIBOR + 3.00%, 2/28/13-2/28/14		3,527,567

See Notes to Financial Statements.

53

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)		Description		Value
		Containers & Packaging—(cont’d)
		Graham Packaging Co. LP,
$	1,975	Loan B, LIBOR + 2.25%, 10/01/11	$	1,995,984
	1,429	Loan C, LIBOR + 4.25%, 4/01/12		1,459,524
	1,324	Graphic Packaging Intl., Inc., Loan C, LIBOR + 2.50%, 8/08/10		1,343,096
		Owens-Illinois Group, Inc.,
	3,170	Loan A1, LIBOR + 2.75%, 6/30/07		3,172,666
	589	Loan C1, LIBOR + 1.75%, 3/15/08		590,219
	499	Ranpak Corp., Loan B, LIBOR + 2.50%, 12/31/11		503,114
	568	Smurfit-Stone Container Corp., 0.50%, 11/15/10		574,741
	1,960	Solo Cup, Inc., LIBOR + 2.50%, 2/27/11		1,978,783
		Total Containers & Packaging		16,436,355
		Ecological Services & Equipment—0.1%
	500	Envirosolutions, Inc., LIBOR + 3.50%, 7/15/12		505,625
		Energy—3.4%
	429	AES Corp., LIBOR + 1.75%, 4/30/08		431,786
	746	Boart Longyear Co., LIBOR + 3.00%, 11/30/12		755,578
	993	Cellnet Technology, Inc., Loan B, LIBOR + 3.00%, 4/30/12		1,006,147
	1,493	Coffeyville Resources LLC, LIBOR + 2.50%, 7/15/12		1,512,866
	365	Cogentrix Delaware Holdings, Inc., LIBOR + 1.75%, 4/30/12		368,589
	249	Complete Production Services, Inc., Loan B, PRIME + 1.50%, 8/31/12		251,626
	923	El Paso Corp., 0.50%, 11/30/09		932,622
	1,496	Key Energy Services, Inc., Loan B, LIBOR + 3.25%, 8/15/12		1,513,707
	1,000	LSP General Finance Company LLC, LIBOR, 4/15/13		1,006,250
	500	MEG Energy Corp., Loan B, LIBOR, 4/15/13		505,250
	340	MGG Holdings, LIBOR + 2.00%, 12/15/10		343,891
	6,000	NRG Energy, LIBOR + 2.00%, 1/31/13		6,064,261
	998	Petro Geological Services, Loan B, LIBOR + 2.50%, 12/31/12		1,006,851
	389	Petrohawk, LIBOR + 4.50%, 7/31/10		393,750
	274	Pike Electric, Inc., Loan B, LIBOR + 1.50%, 6/30/12		276,760
	1,000	Plum Point Energy Associates, Loan B, LIBOR + 3.25%, 3/14/14		1,008,750
	1,990	Reliant Energy, Inc., LIBOR + 2.38%, 4/30/10		1,987,082
		SemCrude LP,
	693	CND, LIBOR + 2.25%, 2/28/11		693,866
	293	USD, LIBOR + 2.25%, 2/28/11		293,351
	1,500	Trinidad Energy Services Income Trust, PRIME + 2.50%, 4/15/11		1,503,750
	990	Universal Compression, Inc., LIBOR + 1.50%, 1/15/15		998,357
	994	Wolf Hollow I LP, LIBOR + 2.25%, 6/15/12-6/22/12		1,002,538
		Total Energy		23,857,628
		Entertainment & Leisure—2.7%
	983	Boyd Gaming Corp., Loan B, LIBOR + 1.50%, 5/14/11		991,711
	3,237	CCM Merger, Inc., Loan B, LIBOR + 2.00%, 7/31/12		3,255,460
	1,000	Century Theatres, Inc., LIBOR + 1.88%, 3/01/13		1,010,000
	2,000	Greektown Casino LLC, Loan B, LIBOR + 2.50%, 12/15/12		2,030,000
	490	Green Valley Ranch Gaming LLC, Loan B, LIBOR + 2.00%, 12/01/10		494,335
	498	Hit Entertainment Ltd., LIBOR + 2.25%, 8/31/12		500,485
	1,234	Isle of Capri Casinos, Inc., LIBOR + 1.75%, 1/31/11		1,248,879
	5,000	Metro-Goldwyn-Mayer Studios, Inc., Loan B, LIBOR + 2.25%, 4/15/12		5,051,875
	1,990	Penn National Gaming, Inc., Loan B, LIBOR + 1.75%, 5/31/12		2,013,631
	1,099	Wyndham Intl., Inc., Loan E, LIBOR + 4.50%, 9/11/07		1,099,350
	1,000	Wynn Las Vegas LLC, 1.00%, 12/31/11		1,009,167
		Yellowstone Mountain Club,
	4	TBD		4,272
	478	LIBOR + 2.38%, 10/15/10		478,197
		Total Entertainment & Leisure		19,187,362

See Notes to Financial Statements.

54

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)		Description		Value
		Financial Institutions—4.7%
$	1,000	Advantage Sales & Marketing, Inc., LIBOR + 2.00%, 4/15/13	$	1,007,500
	750	Ameritrade, Loan B, LIBOR + 1.50%, 1/31/13		752,625
	1,020	Arias Acquisitions, Inc., LIBOR + 3.75%, 7/30/11		1,014,900
	500	CCC Information Services Group, Inc., Loan B, LIBOR + 2.50%, 2/15/13		506,041
	4,000	Century Corp., PRIME + 2.00%, 12/31/09		3,900,000
	1,280	Global Cash Access LLC, LIBOR + 1.75%, 3/15/10		1,293,221
	994	Jostens, Inc., Loan C, LIBOR + 2.00%, 10/15/11		1,005,167
		N.E.W. Holdings I LLC,
	843	LIBOR + 3.00%, 7/15/11		851,454
	250	LIBOR + 7.00%, 7/15/12		253,750
		Navistar Financial Corp.,
	2,264	LIBOR + 5.00%, 2/28/09		2,272,491
	3,236	LIBOR + 5.00%, 2/28/09		3,248,633
	3,000	NTL, Inc., Loan A, LIBOR, 3/23/11		3,000,000
	1,247	Professional Service, Inc., Loan B, LIBOR + 3.00%, 10/31/12		1,253,109
		Roller Bearing Co. of America,
	2	TBD		1,667
	259	Loan B, LIBOR + 2.75%, 7/30/11		259,167
	6,000	Rouse Co., LIBOR + 1.30%, 8/21/06		6,000,000
	1,000	Targa Resources, Inc., LIBOR + 2.25%, 10/31/07		1,000,417
		TPG Springs,
	1,000	TBD, 3/22/13		1,816,985
	1,000	Loan C, TBD, 3/22/14		1,826,103
	450	Universal American Financial Corp., LIBOR + 2.25%, 5/25/09		451,125
	910	USI Holdings Corp., Loan B, LIBOR + 2.30%, 7/30/08		917,629
		Total Financial Institutions		32,631,984
		Health Care—4.4%
	1,995	CCS Medical, Loan B, LIBOR + 3.25%, 10/31/12		1,981,284
	2,955	Community Health Systems, Inc., LIBOR + 1.75%, 8/15/11		2,981,471
	2,337	Concentra Operating Corp., Loan B, LIBOR + 2.00%, 9/30/11		2,360,282
	1,883	Davita, Inc., Loan B, LIBOR + 2.00%, 6/30/12		1,901,478
��	1,500	DJ Orthopedics, Inc., LIBOR + 1.50%, 4/15/13		1,505,625
	796	Duloxetine Royalty Sub., LIBOR + 4.50%, 10/15/13		804,287
	990	Eye Care Centers of America, Inc., LIBOR + 3.00%, 2/28/12		999,900
	500	Global Healthcare Exchange LLC, Loan B, PRIME + 0.25%, 3/15/13		501,250
	2,000	HealthSouth Corp., Loan B, LIBOR + 3.25%, 3/15/13		2,021,428
	983	IASIS Healthcare Corp., Loan B, LIBOR + 2.25%, 6/30/11		994,577
	2,898	Jean Coutu Group, Inc., Loan B, LIBOR + 2.50%, 6/30/11		2,922,578
	647	Kinetic Concepts, Inc., Loan B2, LIBOR + 1.75%, 8/05/10		653,943
	1,000	Multiplan, Inc., LIBOR + 2.00%, 4/15/13		1,010,833
	1,000	National Renal Institutes, Inc., Loan B, PRIME + 1.25%, 4/15/13		1,008,750
		Quintiles Transnational Corp.,
	250	LIBOR + 2.00%, 3/31/14		254,141
	1,000	LIBOR + 4.00%, 3/31/13		1,006,563
	500	Radnet Management, Inc., Loan B, LIBOR + 4.00%, 3/15/11		498,750
	990	Select Medical Corp., Loan B, LIBOR + 1.75%, 2/28/12		980,787
	500	Triumph Healthcare, Inc., LIBOR + 8.50%, 9/15/12		470,000
	995	Vanguard Health Holding Co. II, LIBOR + 2.25%, 9/30/11		1,006,822
		Warner Chilcott Corp.,
	530	LIBOR + 2.75%, 1/18/11		532,997
	2,162	Loan B, LIBOR + 2.75%, 1/18/11		2,174,157
	871	Loan C, LIBOR + 2.75%, 1/18/11		876,079
	402	Loan D, LIBOR + 2.75%, 1/18/11		404,724
	983	Wellcare Holdings, LLC, LIBOR + 2.50%, 5/13/09		986,799
		Total Health Care		30,839,505

See Notes to Financial Statements.

55

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)		Description		Value
		Industrials—1.7%
$	998	Acosta, Inc., LIBOR + 2.25%, 12/15/12	$	1,007,475
	213	Alderwoods Group, Inc., Loan B2, LIBOR + 2.00%, 9/29/09		214,348
	998	Bolthouse Farms, Inc., LIBOR + 2.50%, 12/01/12		1,012,463
	3,182	Buhrmann U.S., Inc., Loan D1, LIBOR + 1.75%, 12/30/10		3,215,881
	2,000	Drummond Co., Inc., LIBOR + 1.25%, 2/15/12		1,998,750
	658	Novelis, Inc., Loan B, LIBOR + 1.75%, 12/30/11		664,167
	625	QTC Acquisition, Inc., LIBOR + 6.50%, 5/04/13		624,219
	1,748	Trimas Corp., Loan B, LIBOR + 3.75%, 12/31/09		1,772,503
	1,049	United Rentals NA, Inc., LIBOR + 2.00%, 2/12/11		1,059,279
	323	Worldspan LP, LIBOR + 2.75%, 6/30/07		324,025
		Total Industrials		11,893,110
		Media—4.7%
	1,719	American Lawyers Media, Inc., 0.75%, 3/15/10		1,725,706
		Bresnan Communications Group LLC,
	2	TBD		1,841
	998	LIBOR + 2.00%, 10/15/13		1,010,659
	4,000	Cablevision Systems Corp., LIBOR, 3/31/13		4,016,456
	3,434	Charter Communications Operating LLC, Loan B, LIBOR + 3.25%, 4/30/11		3,439,027
		Dex Media West LLC,
	874	Loan B1, LIBOR + 1.50%, 9/09/10		876,516
	3,476	Loan B2, LIBOR + 1.50%, 9/01/09		3,488,671
	2,333	DirecTV Holdings LLC, Loan B, LIBOR + 1.50%, 3/06/10		2,350,833
	1,294	Emmis Communications Co., Loan B, PRIME + 0.75%, 5/15/12		1,300,777
	2,568	Insight Midwest Holdings LLC, Loan C, LIBOR + 2.00%, 12/31/09		2,595,011
	500	Liberty Cablevision of Puerto Rico Ltd., LIBOR + 2.25%, 2/15/13		503,750
	1,980	Mediacom Communications Corp., Loan C, LIBOR + 2.00%, 9/30/10		1,987,116
	1,975	Mediacom Illinois LLC, Loan B, LIBOR + 1.75%, 3/31/13		1,983,025
	1,936	Mission Broadcasting, Inc., Loan B, LIBOR + 1.75%, 8/14/12		1,942,639
	500	NEP Supershooters LP, LIBOR + 8.00%, 8/01/11		495,000
	1,926	Nexstar Broadcasting, Inc., Loan B, LIBOR + 1.75%, 8/14/12		1,932,289
	750	Puerto Rico Cable Acquisition Co., LIBOR + 6.25%, 7/31/11		758,438
	998	Triple Crown Media, Inc., LIBOR + 3.25%, 12/30/12		995,006
	500	Wide Open West Finance LLC		500,000
	1,957	WMG Acquisition Corp., LIBOR + 2.00%, 4/08/11		1,974,796
		Total Media		33,877,556
		Publishing—0.1%
	748	Endurance Business Media, Loan B, LIBOR + 2.25%, 3/15/12		750,930
		Real Estate—0.9%
		Kyle Acquisition Group LLC,
	300	LIBOR + 2.00%, 7/31/10		302,625
	431	Loan B, LIBOR + 2.00%, 7/31/08		435,122
	1,000	Landsource Communities Development LLC, Loan B, LIBOR + 2.50%, 3/31/10		1,003,750
		Masonite Intl. Corp.,
	247	CND, LIBOR + 2.00%, 3/31/13		245,316
	248	USD, LIBOR + 2.00%, 3/31/13		245,733
	606	Stewart Enterprises, Inc., Loan B, LIBOR + 1.75%, 11/30/11		610,526
	2,250	Trizec Properties LLC, LIBOR + 1.40%, 4/06/07		2,248,594
	1,000	Williams Scotsman, Inc., Loan B, LIBOR + 2.25%, 6/30/10		1,006,667
		Total Real Estate		6,098,333
		Technology—1.0%
	750	Affiliated Computer Services, Inc., Loan B, LIBOR + 2.00%, 3/31/13		755,860
	377	Coinstar, Inc., LIBOR + 2.25%, 7/15/11		381,404
	495	Federal IT Systems, Inc., LIBOR + 2.75%, 4/30/11		499,022
	1,000	Nuance Communications, Inc., LIBOR + 2.00%, 12/29/13		1,006,667
	2,500	Sensata Technologies BV, LIBOR + 1.75%, 4/30/13		2,513,282
	1,434	Verifone, Inc., Loan B, LIBOR + 1.75%, 6/30/11		1,441,081
	216	Westcom Corp., Loan B, LIBOR + 2.75%, 12/31/10		216,031
				6,813,347

See Notes to Financial Statements.

56

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)			Description		Value
			Telecommunications—3.1%
$	1,000		Alaska Communications Systems Holdings, Inc., LIBOR + 1.75%, 1/31/12	$	1,008,000
	1,000		Atlantic Broadband Finance LLC, Loan B1, LIBOR + 2.75%, 1/30/11		1,014,375
	650		Cavalier Telecom, Loan B, LIBOR + 4.50%, 3/31/12		662,187
	991		Centennial Cellular Operating Co., LIBOR + 2.25%, 2/09/11		1,003,945
			Communication Supply Corp.,
	96		LIBOR + 0.75%, 2/28/12		96,394
	404		LIBOR + 2.75%, 2/28/12		404,856
	1,481		Consolidated Communications, Inc., Loan D, LIBOR + 1.75%, 4/07/12		1,494,211
	500		Country Road Communications LLC, LIBOR, 6/30/13		506,250
	750		Fairpoint Communications, Inc., LIBOR + 1.75%, 2/15/12		754,125
	988		Intelsat Zeus Ltd., 0.75%, 7/31/11		994,598
	2,000		Iowa Telecommunications Services, Inc., Loan B, LIBOR + 1.75%, 11/30/11		2,017,084
			IPC Acquisition Corp.,
	959		LIBOR + 2.75%, 8/15/11		972,056
	500		LIBOR + 7.25%, 8/15/12		507,916
	1,000		Madison River Capital LLC, Loan B1, LIBOR + 2.25%, 7/31/12		1,010,938
	2,273		Nextel Partners Operating Corp., Loan D, LIBOR + 1.50%, 5/31/12		2,273,200
			Ntelos, Inc.,
	1,493		LIBOR + 2.50%, 2/24/10		1,512,649
	748		LIBOR + 5.00%, 2/24/12		760,984
	2,000		Qwest Corp., Loan A, LIBOR + 4.75%, 6/30/07		2,044,584
	1,933		Valor Telecommunication Enterprises II LLC, Loan B, LIBOR + 1.75%, 2/28/12		1,935,750
	1,000		Wind Acquisition Finance SA, TBD, 6/17/12		1,259,347
			Total Telecommunications		22,233,449
			Transportation—0.5%
	875		Delta Air Lines, Inc., Loan A, LIBOR + 2.75%, 4/15/08		888,437
	721		Sirva Worldwide, Inc., LIBOR + 4.50%, 11/30/10		718,145
	606		Transport Industries LP, Loan B, LIBOR + 2.50%, 9/30/11		614,563
			UAL Corp.,
	125		LIBOR + 3.75%, 6/30/06		126,813
	875		Loan B, LIBOR + 3.75%, 1/31/12		887,688
			Total Transportation		3,235,646
			Total Bank Loans		358,084,620
			Mortgage Pass-Through Securities—20.9%
			Federal National Mortgage Assoc.,
	38		5.00%, 6/01/20-7/01/20		37,084
	896	2	5.00%, 8/01/20		873,256
	494		5.50%, 12/01/28-10/01/33		481,117
	9,773	2	5.50%, 11/01/33		9,519,280
	17,000	2	7.25%, 1/15/10		18,122,928
	120,700		TBA, 5.00%, 5/16/21		117,493,967
			Total Mortgage Pass-Through Securities		146,527,632
			Interest Only Asset-Backed Securities—1.0%
			Sterling Coofs Trust,
	48,972		Ser. 1, 2.362%, 4/15/29		3,428,067
	54,298		Ser. 2, 1.00%, 3/30/30		3,800,841
			Total Interest Only Asset-Backed Securities		7,228,908
			Asset-Backed Securities—1.5%
	2,379	2	Honda Auto Receivables Class A3, 2.30%, 10/18/07		2,362,514
	7,910	2	MBNA Credit Card Master Note Trust, 5.75%, 10/15/08		7,912,249
			Total Asset-Backed Securities		10,274,763
			Collateralized Mortgage Obligations—1.9%
			GSR Mortgage Loan Trust,
	7,181	2,3	Ser. 10, Class 2A1, 4.506%, 10/25/33		6,835,937
	7,160	2,3	Ser. 13, Class 1A1, 4.531%, 10/25/33		6,805,234
			Total Collateralized Mortgage Obligations		13,641,171

See Notes to Financial Statements.

57

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating1	Principal Amount (000)			Description		Value
				U.S. Government and Agency Securities—5.3%
				U.S. Treasury Notes,
	$	20,425	2	3.375%, 9/15/09	$	19,643,425
		10,000	2	3.75%, 3/31/07		9,895,313
		6,000	2	3.875%, 5/15/09		5,832,188
		1,815	2	4.25%, 8/15/15		1,707,234
				Total U.S. Government and Agency Securities		37,078,160
				Foreign Government Bonds—2.4%
BB-		952		Bolivarian Republic of Venezuela, 4.563%, 12/18/07		952,319
BB		5,000	2	Republic of Colombia, 9.75%, 4/23/09		5,505,000
BB		5,000		Republic of Peru, 9.125%, 2/21/12		5,555,000
BB-		5,000		Republic of Turkey, 11.375%, 11/27/06		5,162,500
				Total Foreign Government Bonds		17,174,819
		Units (000)
				Warrants—0.0%
		10	7,8	Reliant Resources, Inc., Expires 8/25/08, strike price $0.001, 1 share for 1 warrant		62,769
				Total Long-Term Investments (cost $1,013,480,006)		1,017,970,736
		Principal Amount (000)
				SHORT-TERM INVESTMENTS—0.9%
				Commercial Paper—0.9%
		2,760	9	Ford Motor Credit Co., 4.84%, 5/02/06		2,760,000
		3,620	9	General Motors Acceptance Corp., 4.84%, 5/02/06		3,620,000
				Total Short-Term Investments (cost $6,380,000)		6,380,000
				Total Investments—146.0% (cost $1,019,860,00610)	$	1,024,350,736
				Liabilities in excess of other assets—(46.0)%		(322,870,026	)
				Net Assets—100%	$	701,480,710

1	Using the higher of S&P’s, Moody’s or Fitch’s rating.
2	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
3	Variable rate security. Rate shown is interest rate as of April 30, 2006.
4	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2006, the Trust held 10.8% of its net assets, with a current market value of $75,520,012, in securities restricted as to resale.
5	Illiquid security. As of April 30, 2006, the Trust held 0.9% of its net assets, with a current market value of $6,613,922 in these securities.
6	Issuer is in default and/or bankruptcy.
7	Security is fair valued.
8	Non-income producing security.
9	Rate shown is the yield to maturity as of April 30, 2006.
10	Cost for Federal income tax purposes is $1,020,072,728. The net unrealized appreciation on a tax basis is $4,278,008, consisting of $13,603,272 gross unrealized appreciation and $9,325,264 gross unrealized depreciation.

A category in the Corporate Bonds and Bank Loans sections may contain multiple industries as defined by the SEC’s Standard Industry Codes.

KEY TO ABBREVIATIONS

CND — Canadian Dollar

TBA — To Be Announced

TBD — To Be Determined

USD — U.S. Dollar

See Notes to Financial Statements.

58

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2006

BlackRock Strategic Bond Trust (BHD)

Rating1	Principal Amount (000)			Description		Value
				LONG-TERM INVESTMENTS—121.9%
				Corporate Bonds—114.7%
				Aerospace & Defense—7.9%
NR	$	250		AAR Corp., 8.39%, 5/15/11	$	252,500
				BE Aerospace, Inc.,
BB-		195		8.50%, 10/01/10		207,919
B		65		8.875%, 5/01/11		67,844
B-		1,275		DI Finance/DynCorp. Intl., 9.50%, 2/15/13		1,332,375
B		80		DRS Technologies, Inc., 7.625%, 2/01/18		81,600
A-		2,000		Lockheed Martin Corp., 8.50%, 12/01/29		2,527,455
BBB+		1,000		Northrop Grumman Corp., 7.125%, 2/15/11		1,060,409
BBB		650		Raytheon Co., 4.85%, 1/15/11		629,453
BB		350		Sequa Corp., 8.875%, 4/01/08		365,750
A+		1,000		United Technologies Corp., 6.35%, 3/01/11		1,035,829
				Total Aerospace & Defense		7,561,134
				Automotive—3.0%
BB+		35		ArvinMeritor, Inc., 8.75%, 3/01/12		35,788
				Autonation, Inc.,
BB+		110	2	7.00%, 4/15/14		110,550
BB+		110	2,3	7.045%, 4/15/13		111,925
				Avis Budget Car Rental LLC,
BB-		20	2,3	7.576%, 5/15/14		20,575
BB-		55	2	7.75%, 5/15/16		56,100
A3		1,000	4	DaimlerChrysler NA Holding Corp., 7.30%, 1/15/12		1,053,616
CCC		60		Dura Operating Corp., 8.625%, 4/15/12		51,000
B		500		General Motors Corp., 8.25%, 7/15/23		362,500
B-		30		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		29,550
B+		145		Lear Corp., 8.11%, 5/15/09		142,462
CCC+		310		Metaldyne Corp., 10.00%, 11/01/13		299,150
B		70		Tenneco, Inc., 8.625%, 11/15/14		70,875
BB-		492		TRW Automotive, Inc., 9.375%, 2/15/13		528,900
				Total Automotive		2,872,991
				Basic Materials—6.9%
B+		30		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)		30,300
B+		280		AK Steel Corp., 7.75%, 6/15/12		283,500
B		80	2,3	BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 10.577%, 7/15/10		81,800
BB-		60	3	Bowater, Inc., 7.91%, 3/15/10		60,600
NR		2,175		Caraustar Industries, Inc., 9.875%, 4/01/11		2,289,187
BB+		20		Chemtura Corp., 6.875%, 6/01/16		19,950
				Domtar, Inc., (Canada)
B+		40		7.125%, 8/15/15		36,300
B+		140		7.875%, 10/15/11		135,800
B+		120		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		121,050
				Huntsman LLC,
B2		99		11.50%, 7/15/12		113,355
Ba3		50		11.625%, 10/15/10		56,375
B2		185	3	12.318%, 7/15/11		193,787
BB		70		IMC Global, Inc., 10.875%, 6/01/08		75,425
B-		595	2	Ineos Group Holdings PLC, 8.50%, 2/15/16 (United Kingdom)		563,019
CCC+		1,155		Innophos, Inc., 8.875%, 8/15/14		1,189,650
				Lyondell Chemical Co.,
BB+		177		9.50%, 12/15/08		184,080
BB+		130		10.50%, 6/01/13		145,600
B-		55		Nalco Co., 8.875%, 11/15/13		56,788
B3		210		NewPage Corp., 10.00%, 5/01/12		225,225
BB+		355	3	Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)		357,219

See Notes to Financial Statements.

59

BlackRock Strategic Bond Trust (BHD) (continued)

Rating1	Principal Amount (000)			Description		Value
				Basic Materials—(cont’d)
				Rhodia SA, (France)
CCC+	$	235		8.875%, 6/01/11	$	243,812
B3		20		10.25%, 6/01/10		22,350
BBB		169		Weyerhaeuser Co., 6.125%, 3/15/07		170,036
				Total Basic Materials		6,655,208
				Building & Development—2.9%
B-		75		Ahern Rentals, Inc., 9.25%, 8/15/13		78,187
BB+		1,000		Beazer Homes USA, Inc., 8.625%, 5/15/11		1,038,750
B2		150	2	Compression Polymers Corp., 10.50%, 7/01/13		153,750
B-		595		ERICO Intl. Corp., 8.875%, 3/01/12		612,850
B-		665		Goodman Global Holding Co., Inc., 7.875%, 12/15/12		666,662
				North American Energy Partners, Inc., (Canada)
Caa1		55		8.75%, 12/01/11		53,763
B		200		9.00%, 6/01/10		212,000
				Total Building & Development		2,815,962
				Conglomerates—0.4%
A+		325		Honeywell Intl., Inc., 7.50%, 3/01/10		347,693
				Consumer Products—8.3%
B3		90		ALH Finance LLC, 8.50%, 1/15/13		88,200
B+		2,245		Cenveo Corp., 9.625%, 3/15/12		2,402,150
B-		265		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		232,537
BBB+		1,000		General Mills, Inc., 5.125%, 2/15/07		997,850
B		320		Gold Kist, Inc., 10.25%, 3/15/14		337,600
B-		580	2	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		555,350
B-		380		Lazydays RV Center, Inc., 11.75%, 5/15/12		380,475
B		270	3	Levi Strauss & Co., 9.74%, 4/01/12		281,475
CCC-		105		Movie Gallery, Inc., 11.00%, 5/01/12		55,125
B3		30	2,3	Nutro Products, Inc., 9.23%, 10/15/13		30,600
B		500		Pantry, Inc., 7.75%, 2/15/14		507,500
BB-		100		Quiksilver, Inc., 6.875%, 4/15/15		96,500
B-		540	2	Rite Aid Corp., 6.125%, 12/15/08		530,550
B		1,400		Sonic Automotive, Inc., 8.625%, 8/15/13		1,442,000
				Total Consumer Products		7,937,912
				Containers & Packaging—1.3%
B1		400	2	Crown Americas LLC and Crown Americas Capital Corp., 7.75%, 11/15/15		409,000
CCC+		55		Graham Packaging Co., Inc., 8.50%, 10/15/12		56,238
B-		70	2	Packaging Dynamics Finance Corp., 10.00%, 5/01/16		71,400
CCC+		515	2	Pregis Corp., 12.375%, 10/15/13		540,106
B+		180		Smurfit-Stone Container Enterprises, Inc., 9.75%, 2/01/11		184,950
				Total Containers & Packaging		1,261,694
				Ecological Services & Equipment—2.5%
BB-		265		Allied Waste NA, Inc., 5.75%, 2/15/11		253,075
B		1,500		Casella Waste Systems, Inc., 9.75%, 2/01/13		1,595,625
CCC		550		Waste Services, Inc., 9.50%, 4/15/14		570,625
				Total Ecological Services & Equipment		2,419,325
				Energy—13.7%
				ANR Pipeline Co.,
B		185		7.375%, 2/15/24		190,088
B		655		9.625%, 11/01/21		785,181
B2		245		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		253,575
B		130	2	Chaparral Energy, Inc., 8.50%, 12/01/15		133,900
BB		20	2	Chesapeake Energy Corp., 6.875%, 11/15/20		19,700
B-		270		Clayton Williams Energy, Inc., 7.75%, 8/01/13		254,475
				CMS Energy Corp.,
BB-		95		7.50%, 1/15/09		97,613
BB-		85		8.50%, 4/15/11		91,163
BB-		90		9.875%, 10/15/07		95,288
BB-		120		Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)		123,900

See Notes to Financial Statements.

60

BlackRock Strategic Bond Trust (BHD) (continued)

Rating1	Principal Amount (000)			Description		Value
				Energy—(cont’d)
				Compton Petroleum Finance Corp.,
B	$	150		7.625%, 12/01/13	$	148,688
B		250	2	7.625%, 12/01/13 (Canada)		247,812
A1		1,000		ConocoPhillips Holding Co., 6.95%, 4/15/29		1,105,415
BBB+		1,000	4	Dominion Resources, Inc., 5.70%, 9/17/12		987,211
B2		470		Dresser, Inc., 9.375%, 4/15/11		492,912
BBB		250		DTE Energy Co., 7.05%, 6/01/11		261,631
B		130		Dynegy Danskammer LLC, 7.27%, 11/08/10		132,600
				El Paso Corp.,
B-		165		7.75%, 1/15/32		164,588
B-		205		7.80%, 8/01/31		203,975
B-		165	2	9.625%, 5/15/12		182,325
B-		100	2	10.75%, 10/01/10		111,750
B		175		El Paso Natural Gas Co., 8.375%, 6/15/32		193,812
Ba2		33		Elwood Energy LLC, 8.159%, 7/05/26		35,121
B-		215		Exco Resources, Inc., 7.25%, 1/15/11		212,312
BBB-		1,075		FirstEnergy Corp., 7.375%, 11/15/31		1,168,006
BB		60		Grant Prideco, Inc., 6.125%, 8/15/15		57,600
				Hilcorp Energy I LP/Hilcorp Finance Corp.,
B		100	2	7.75%, 11/01/15		98,500
B		97	2	10.50%, 9/01/10		105,730
B-		195		KCS Energy, Inc., 7.125%, 4/01/12		196,462
				Midwest Generation LLC,
B+		561		8.56%, 1/02/16		602,741
Ba3		370		8.75%, 5/01/34		399,600
				Mirant Americas Generation LLC,
B		50		8.30%, 5/01/11		51,625
B		110		8.50%, 10/01/21		110,825
B		280		9.125%, 5/01/31		294,000
B2		120		Mission Energy Holdings Co., 13.50%, 7/15/08		136,500
				NRG Energy, Inc.,
B1		50		7.25%, 2/01/14		50,250
B1		285		7.375%, 2/01/16		287,137
A-		250		Occidental Petroleum Corp., 6.75%, 1/15/12		265,555
B-		110	2	Ocean Rig AS, 8.375%, 7/01/13 (Norway)		115,775
B-		140		Orion Power Holdings, Inc., 12.00%, 5/01/10		159,075
Baa2		1,000		Progress Energy, Inc., 7.75%, 3/01/31		1,137,893
				Reliant Energy, Inc.,
BB-		285		6.75%, 12/15/14		259,350
BB-		130		9.25%, 7/15/10		132,275
B-		400	2	Targa Resources, Inc., 8.50%, 11/01/13		406,000
BBB-		30		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26		30,750
B3		120	2	Verasun Energy Corp., 9.875%, 12/15/12		127,800
B2		60		Whiting Petroleum Corp., 7.00%, 2/01/14		59,400
				Williams Cos., Inc.,
BB+		100		7.125%, 9/01/11		102,500
BB+		210		8.75%, 3/15/32		241,500
				Total Energy		13,121,884
				Entertainment & Leisure—4.0%
B3		200	2	AMC Entertainment, Inc., 11.00%, 2/01/16		214,000
B3		250	2	Greektown Holdings LLC, 10.75%, 12/01/13		261,875
BB		195		MGM Mirage, 6.00%, 10/01/09		192,075
B		55		Poster Financial Group, Inc., 8.75%, 12/01/11		58,025
B		1,000		Resorts Intl. Hotel & Casino, Inc., 11.50%, 3/15/09		1,095,000
BBB-		1,500		Royal Caribbean Cruises Ltd., 8.75%, 2/02/11 (Liberia)		1,650,000
B+		70	2	San Pasqual Casino, 8.00%, 9/15/13		70,700
BB-		190		Seneca Gaming Corp., 7.25%, 5/01/12		190,000
B+		140		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		135,800
				Total Entertainment & Leisure		3,867,475

See Notes to Financial Statements.

61

BlackRock Strategic Bond Trust (BHD) (continued)

Rating1	Principal Amount (000)			Description		Value
				Financial Institutions—24.0%
AA	$	185	2	Allstate Financial Global Funding LLC, 5.25%, 2/01/07	$	184,959
BB		230		American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		228,850
Aa3		650	2	Barclays Bank PLC, 8.55%, 9/29/49 (United Kingdom)		724,554
B		190		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		209,000
A+		325		Bear Stearns Co., Inc., 6.50%, 5/01/06		325,012
B2		2,000		Bluewater Finance Ltd., 10.25%, 2/15/12 (Cayman Islands)		2,095,000
AA+		3,000	4	Citigroup, Inc., 5.75%, 5/10/06		3,000,436
BB		590		Crum & Forster Holdings Corp., 10.375%, 6/15/13		613,600
B+		110		E*Trade Financial Corp., 7.375%, 9/15/13		111,925
				Fairfax Financial Holdings Ltd., (Canada)
BB		300		6.875%, 4/15/08		292,500
BB		180		7.75%, 4/26/12		171,000
				Ford Motor Credit Co.,
BB		750		5.80%, 1/12/09		679,251
BB		1,600	3	6.638%, 1/15/10		1,448,766
BB		75		7.25%, 10/25/11		67,233
AAA		2,000	4	General Electric Capital Corp., 3.45%, 7/16/07		1,958,342
BB		330		General Motors Acceptance Corp., 6.875%, 8/28/12		305,173
AA		1,500	4	HSBC Bank USA, Inc., 3.875%, 9/15/09		1,434,252
B-		225		K&F Acquisition, Inc., 7.75%, 11/15/14		230,063
AAA		850	4	KFW Intl. Finance, Inc., 5.25%, 6/28/06		849,928
A		325		MetLife, Inc., 6.125%, 12/01/11		333,018
B2		565	2	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)		559,350
				Rainbow National Services LLC,
B+		210	2	8.75%, 9/01/12		224,175
B+		2,245	2	10.375%, 9/01/14		2,520,013
Caa1		655		Standard Aero Holdings, Inc., 8.25%, 9/01/14		579,675
AA+		855	5	Structured Asset Receivable Trust, 1.649%, 1/21/10		855,429
AAA		1,000	2	TIAA Global Markets, Inc., 3.875%, 1/22/08		977,386
B-		50	3	Universal City Florida Holding Co. I/II, 9.899%, 5/01/10		51,875
Aa1		2,000	4	Wells Fargo & Co., 3.50%, 4/04/08		1,937,382
Aa3		50		Western Financial Bank, 9.625%, 5/15/12		55,500
				Total Financial Institutions		23,023,647
				Health Care—5.6%
B		280	2	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)		281,400
NR		10	6	Curative Health Services, Inc., 10.75%, 5/01/11		6,250
CCC		65		MedQuest, Inc., 11.875%, 8/15/12		54,275
AA		1,000	4	Merck & Co., Inc., 4.375%, 2/15/13		918,974
B3		110		Select Medical Corp., 7.625%, 2/01/15		100,375
B		215		Tenet Healthcare Corp., 6.875%, 11/15/31		176,838
B		1,500		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		1,597,500
B-		290		Universal Hospital Services, Inc., 10.125%, 11/01/11		301,962
A-		1,000		WellPoint, Inc., 5.95%, 12/15/34		933,662
A		1,000		Wyeth, 6.50%, 2/01/34		1,016,586
				Total Health Care		5,387,822
				Industrials—2.6%
B-		300		NationsRent Cos., Inc., 9.50%, 5/01/15		324,750
CCC+		700		Park-Ohio Industries, Inc., 8.375%, 11/15/14		661,500
B3		350	2	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		371,000
CCC+		440		Trimas Corp., 9.875%, 6/15/12		415,800
Caa1		775		United Rentals NA, Inc., 7.00%, 2/15/14		745,937
				Total Industrials		2,518,987
				Media—13.0%
NR		1,000	6	Adelphia Communications Corp., 10.50%, 7/15/04		485,000
				Affinion Group, Inc.,
B-		345	2	10.125%, 10/15/13		356,644
B-		140	2	11.50%, 10/15/15		143,500
B-		165		Allbritton Communications Co., 7.75%, 12/15/12		165,825
CCC		355		American Media Operations, Inc., 10.25%, 5/01/09		335,031

See Notes to Financial Statements.

62

BlackRock Strategic Bond Trust (BHD) (continued)

Rating1	Principal Amount (000)			Description		Value
				Media—(cont’d)
BBB+	$	1,000		AOL Time Warner, Inc., 7.70%, 5/01/32	$	1,090,804
B+		120	3	Cablevision Systems Corp., 9.62%, 4/01/09		127,200
				Charter Communications Holdings II, LLC/Charter Communications Holdings II Capital Corp.,
Caa1		315		10.25%, 9/15/10		318,938
Caa1		105	2	10.25%, 9/15/10		105,394
BBB+		1,000	4	Comcast Cable Communications, Inc., 6.875%, 6/15/09		1,036,150
BB-		200		CSC Holdings, Inc., 7.875%, 12/15/07		204,000
				Echostar DBS Corp.,
BB-		550		5.75%, 10/01/08		541,750
BB-		45	2	7.125%, 2/01/16		43,875
BB-		200	3	8.24%, 10/01/08		204,000
B+		130		Medianews Group, Inc., 6.875%, 10/01/13		118,300
B2		130	2	Network Communications, Inc., 10.75%, 12/01/13		133,575
BBB		1,500	4	News America, Inc., 6.20%, 12/15/34		1,374,593
B3		350		Nexstar Finance, Inc., 7.00%, 1/15/14		329,000
B2		500	2,3	Paxson Communications Corp., 8.318%, 1/15/12		513,125
				Primedia, Inc.,
B2		80		8.00%, 5/15/13		73,000
B2		270	3	10.545%, 5/15/10		276,750
BB-		230	2	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)		223,072
B		990	2	RH Donnelley Corp., 8.875%, 1/15/16		1,018,462
B		70		Sinclair Broadcast Group, Inc., 4.875%, 7/15/18		61,777
Caa1		200		Sirius Satellite Radio, Inc., 9.625%, 8/01/13		195,500
BBB+		1,000		TCI Communications, Inc., 7.875%, 2/15/26		1,072,556
CCC+		75	2	Unity Media GmbH, 10.375%, 2/15/15 (Germany)		74,250
				Vertis, Inc.,
B3		445		9.75%, 4/01/09		453,900
CCC		370		10.875%, 6/15/09		355,200
BBB		85		Viacom, Inc., 6.625%, 5/15/11		87,600
Caa2		980		Young Broadcasting, Inc., 10.00%, 3/01/11		899,150
				Total Media		12,417,921
				Real Estate—2.6%
BB		860		American Real Estate Partners, 8.125%, 6/01/12		887,950
A		500		ERP Operating LP, 6.95%, 3/02/11		526,603
Ba3		1,000		Felcore Lodging LP, 8.50%, 6/01/11		1,075,000
				Total Real Estate		2,489,553
				Technology—5.0%
				Amkor Technology, Inc.,
CCC		70		5.00%, 3/15/07		69,137
CCC+		370		9.25%, 2/15/08		390,350
B+		565		Celestica, Inc., 7.625%, 7/01/13 (Canada)		565,000
B+		100	2	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		110,375
				MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co., (Luxembourg)
Ba3		160		6.875%, 12/15/11		152,800
B2		20		8.00%, 12/15/14		18,600
Ba3		300	3	8.16%, 12/15/11		301,500
B2		140	2	Sensata Technologies BV, 8.00%, 5/01/14		141,400
CCC+		295	2	SS&C Technologies, Inc., 11.75%, 12/01/13		314,913
BB		50		STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)		50,625
				Sungard Data Systems, Inc.,
B-		160	2	9.125%, 8/15/13		171,200
B-		410	2,3	9.431%, 8/15/13		436,650
B-		580	2	10.25%, 8/15/15		620,600
B		990		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		997,425
B-		370		UGS Corp., 10.00%, 6/01/12		405,150
				Total Technology		4,745,725
				Telecommunications—9.3%
BB-		190		Cincinnati Bell, Inc., 7.25%, 7/15/13		193,800
B3		130	2	Hawaiian Telcom Communications, Inc., 10.789%, 5/01/13		133,900

See Notes to Financial Statements.

63

BlackRock Strategic Bond Trust (BHD) (continued)

Rating1	Principal Amount (000)			Description		Value
				Telecommunications—(cont’d)
				Intelsat Ltd., (Bermuda)
B2	$	50		8.25%, 1/15/13	$	51,000
B2		240		8.625%, 1/15/15		249,900
B2		295	3	9.614%, 1/15/12		300,162
				Lucent Technologies, Inc.,
B1		25		6.45%, 3/15/29		22,125
B1		905		6.50%, 1/15/28		794,137
B+		500	2	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16		520,000
B2		160		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		149,400
B1		125		PanAmSat Corp., 9.00%, 8/15/14		131,563
				Qwest Corp.,
BB+		200		7.875%, 9/01/11		209,500
BB+		3403		8.16%, 6/15/13		370,600
BB+		85		Rogers Wireless, Inc., 7.25%, 12/15/12 (Canada)		87,763
A		1,500	4	SBC Communications, Inc., 6.45%, 6/15/34		1,459,898
BBB+		1,000		Telecom Italia Capital SA, 4.95%, 9/30/14 (Luxembourg)		914,857
A+		2,000	4	Verizon New England, Inc., 6.50%, 9/15/11		2,029,823
A+		1,000		Vodafone Group PLC, 7.75%, 2/15/10 (United Kingdom)		1,069,713
B+		250	2	Wind Acquisition Finance SA, 10.75%, 12/01/15 (Luxembourg)		274,375
				Total Telecommunications		8,962,516
				Transportation—1.7%
Ba3		125		American Airlines, Inc., 7.324%, 4/15/11		121,250
A-		500		Canadian National Railway Co., 6.90%, 7/15/28 (Canada)		547,537
B		475		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		483,312
BB-		40	2	Hertz Corp., 8.875%, 1/01/14		42,550
B3		39		Horizon Lines LLC, 9.00%, 11/01/12		40,609
B+		50		OMI Corp., 7.625%, 12/01/13		51,375
BB+		300		Overseas Shipholding Group, Inc., 8.25%, 3/15/13		317,250
				Total Transportation		1,603,883
				Total Corporate Bonds		110,011,332
				U.S. Government and Agency Securities—5.1%
		410		U.S. Treasury Bonds, 5.375%, 2/15/31		416,406
				U.S. Treasury Notes,
		1,010	4	2.50%, 5/31/06		1,008,106
		933	4	2.625%, 11/15/06		921,192
		810	4	4.125%, 8/15/10		785,953
		1,000	4	4.25%, 8/15/13		954,219
		75		4.25%, 8/15/15		70,547
		710	4	4.75%, 5/15/14		696,909
				Total U.S. Government and Agency Securities		4,853,332
				Foreign Government Bond—1.2%
Baa1		1,000		United Mexican States, 8.125%, 12/30/19		1,152,500
				Supranational—0.9%
AAA		850	4	European Investment Bank, 4.875%, 9/06/06 (Luxembourg)		848,863
				Total Investments—121.9% (cost $117,648,6687)	$	116,866,027
				Liabilities in excess of other assets—(21.9)%		(20,991,212	)
				Net Assets—100%	$	95,874,815

1	Using the higher of S&P’s, Moody’s or Fitch’s rating.
2	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2006, the Trust held 17.3% of its net assets, with a current market value of $16,551,289, in securities restricted as to resale.
3	Variable rate security. Rate shown is interest rate as of April 30, 2006.
4	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
5	Illiquid security. As of April 30, 2006, the Trust held 0.9% of its net assets, with a current market value of $855,428 in these securities.
6	Issuer is in default and/or bankruptcy.
7	Cost for Federal income tax purposes is $117,709,536. The net unrealized depreciation on a tax basis is $843,509, consisting of $2,224,866 gross unrealized appreciation and $3,068,375 gross unrealized depreciation.

A category in the Corporate Bonds section may contain multiple industries as defined by the SEC’s Standard Industry Codes.

See Notes to Financial Statements.

64

STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
April 30, 2006

	Broad Investment Grade 2009 Term Trust Inc.1 (BCT)			Core Bond Trust (BHK)
Assets
Investments at value2	$	42,475,879		$	364,635,493
Investment in affiliates		21,008			78,040
Cash		34,885			15,953
Foreign currency at value3		—			3,943,936
Receivable from investments sold		—			3,717,673
Variation margin receivable		—			138,425
Deposits with brokers as collateral for borrowed bonds		—			3,781,731
Interest receivable		421,886			5,732,457
Unrealized appreciation on interest rate swaps		—			1,271,645
Other assets		249			2,927
		42,953,907			383,318,280
Liabilities
Reverse repurchase agreement		—			6,238,469
Payable to custodian		—			—
Payable for investments purchased		—			9,420,649
Payable for dollar rolls		—			1,358,654
Variation margin payable		—			—
Unrealized loss on foreign currency exchange contracts		—			87,119
Loan payable		—			—
Investments sold short at value4		—			—
Outstanding options written at value5		—			2,423,139
TBA sale commitments		—			—
Unrealized depreciation on credit default swaps		—			25,729
Interest payable		—			1,089,591
Interest rate floors at value		—			—
Investment advisory fee payable		19,311			143,469
Administration fee payable		5,267			—
Deferred Trustees’fees		21,008			78,040
Payable to affiliates		9,873			33,704
Other accrued expenses		183,539			138,310
		238,998			21,036,873
Net Assets	$	42,714,909		$	362,281,407
Composition of Net Assets:
Par value	$	29,571		$	27,019
Paid-in capital in excess of par		41,775,250			386,195,641
Cost of shares held in treasury7		—			—
Undistributed (distributions in excess of) net investment income		4,621,859			(3,822,436	)
Accumulated net realized loss		(3,086,503	)		(6,750,360	)
Net unrealized appreciation (depreciation)		(625,268	)		(13,368,457	)
Net assets, April 30, 2006	$	42,714,909		$	362,281,407
Net asset value8	$	14.44		$	13.41
1 Consolidated Statement of Assets and Liabilities
2 Investments at cost	$	43,101,147		$	374,718,958
3 Foreign currency at cost		—			3,964,702
4 Proceeds received		—			—
5 Premium received		—			2,748,069
6 Proceeds for TBA sale commitments		—			—
7 Shares held in treasury		—			—
8 Shares outstanding		2,957,093			27,018,774

See Notes to Financial Statements.

65

High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Strategic Bond Trust (BHD)
$	67,366,954		$	408,959,071		$	488,984,983		$	1,024,350,736		$	116,866,027
	30,048			147,162			175,389			71,824			16,091
	52,144			1,279			—			65,449			92,654
	—			—			—			5,243,625			—
	1,008,478			28,157,924			23,228,059			2,766,049			244,199
	—			158,721			—			—			—
	—			—			56,491,925			—			—
	1,671,980			6,307,534			5,374,973			14,512,352			2,253,575
	—			1,495,232			882,655			—			—
	405			23,732			3,384			27,242			694
	70,130,009			445,250,655			575,141,368			1,047,037,277			119,473,240
	—			10,073,888			74,729,625			190,267,010			21,709,642
	—			—			81,827			—			—
	1,162,262			32,198,633			1,398,177			36,544,085			1,707,137
	—			—			—			117,191,633			—
	—			—			336,845			—			—
	—			—			—			380,718			—
	20,250,000			—			—			—			—
	—			—			55,999,811			—			—
	—			2,600,461			2,592,976			—			—
	—			26,506,607			23,049,382			—			—
	—			28,725			—			—			—
	71,474			1,151,417			1,817,881			504,961			29,962
	—			—			1,775,077			—			—
	41,448			184,725			220,928			451,399			54,341
	1,856			64,276			94,677			—			—
	30,048			147,162			175,389			71,824			16,091
	1,273			26,898			72,642			—			9,776
	51,741			141,007			101,618			144,937			71,476
	21,610,102			73,123,799			162,446,855			345,556,567			23,598,425
$	48,519,907		$	372,126,856		$	412,694,513		$	701,480,710		$	95,874,815
$	6,413		$	344,497		$	639,425		$	36,768		$	7,058
	92,953,912			406,532,068			525,523,492			700,832,170			98,695,235
	—			(17,377,850	)		—			—			—
	(86,097	)		665,352			(2,357,127	)		3,442,279			(173,367	)
	(35,207,889	)		(5,703,315	)		(91,704,526	)		(6,970,474	)		(1,871,470	)
	(9,146,432	)		(12,333,896	)		(19,406,751	)		4,139,967			(782,641	)
$	48,519,907		$	372,126,856		$	412,694,513		$	701,480,710		$	95,874,815
$	7.57		$	10.80		$	6.45		$	19.08		$	13.58
$	76,513,386		$	418,124,258		$	520,800,595		$	1,019,860,006		$	117,648,668
	—			—			—			5,160,474			—
	—			—			59,142,549			—			—
	—			2,950,732			2,942,962			—			—
	—			26,515,125			23,070,781			—			—
	—			1,757,400			—			—			—
	6,413,025			34,449,693			63,942,536			36,768,498			7,058,402

66

STATEMENTS OF OPERATIONS (unaudited)
For the six months ended April 30, 2006

	Broad Investment Grade 2009 Term Trust Inc.1 (BCT)			Core Bond Trust (BHK)
Investment Income
Interest income	$	1,416,653		$	12,360,137
Income from affiliates		667			3,152
Total investment income		1,417,320			12,363,289
Expenses
Investment advisory		117,171			1,158,212
Administration		31,956			—
Transfer agent		5,381			7,421
Custodian		35,657			118,065
Reports to shareholders		15,800			52,106
Directors/Trustees		6,491			23,625
Registration		905			10,534
Independent accountants		15,573			31,169
Legal		6,587			41,806
Insurance		1,320			15,303
Deferred Trustees’ fee		667			3,152
Miscellaneous		5,583			28,530
Total expenses excluding interest expense		243,091			1,489,923
Interest expense		—			811,474
Total expenses		243,091			2,301,397
Less fees waived by Advisor		—			—
Less fees paid indirectly		—			(4,165	)
Net expenses		243,091			2,297,232
Net investment income		1,174,229			10,066,057
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		(410,099	)		(7,160,472	)
Foreign currency		—			(275,726	)
Futures		—			476,720
Swaps		—			(93,546	)
Options written		—			32,156
Short sales		—			—
		(410,099	)		(7,020,868	)
Net change in unrealized appreciation/depreciation on:
Investments		5,643			833,211
Foreign currency		—			44,886
Futures		—			(4,909,357	)
Interest rate floors		—			—
Swaps		(176	)		(567,414	)
Options written		—			149,247
Short sales		—			—
		5,467			(4,449,427	)
Net gain (loss)		(404,632	)		(11,470,295	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	769,597		$	(1,404,238	)

¹  Consolidated Statement of Operations.

See Notes to Financial Statements.

67

High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Strategic Bond Trust (BHD)
$	3,099,052		$	14,558,942		$	19,402,060		$	32,802,787		$	4,633,675
	2,947			2,567			8,024			3,142			551
	3,101,999			14,561,509			19,410,084			32,805,929			4,634,226
	361,799			1,159,884			1,344,271			2,681,434			460,058
	34,457			193,314			310,216			—			—
	7,964			14,480			37,105			8,869			7,421
	54,054			137,298			134,547			242,900			52,180
	19,711			55,998			77,319			88,125			15,954
	6,431			28,278			23,951			35,756			7,039
	10,534			10,505			22,082			11,250			10,534
	18,473			37,664			33,947			25,489			18,275
	5,222			37,599			37,833			56,957			10,458
	2,116			18,264			17,864			30,086			3,772
	1,429			2,567			8,024			3,142			551
	5,927			30,117			34,787			30,749			7,779
	528,117			1,725,968			2,081,946			3,214,757			594,021
	508,127			1,559,715			4,990,462			3,580,988			599,944
	1,036,244			3,285,683			7,072,408			6,795,745			1,193,965
	—			—			—			—			(122,682	)
	(3,063	)		(3,326	)		(13,726	)		(32,942	)		(3,326	)
	1,033,181			3,282,357			7,058,682			6,762,803			1,067,957
	2,068,818			11,279,152			12,351,402			26,043,126			3,566,269
	(664,711	)		(4,516,079	)		(4,354,535	)		(4,961,151	)		(1,114,598	)
	—			—			—			48,800			—
	—			(1,167,912	)		5,731,356			—			—
	—			(62,051	)		(21,862	)		—			—
	24,255			34,894			—			156,854			—
	—			(178,937	)		127,133			—			—
	(640,456	)		(5,890,085	)		1,482,092			(4,755,497	)		(1,114,598	)
	1,281,345			(3,772,560	)		(9,897,703	)		4,714,881			603,909
	—			—			—			(458,789	)		—
	—			(3,839,385	)		258,791			—			—
	—			—			2,608,823			—			—
	—			(564,481	)		(416,775	)		(4,008	)		—
	—			161,502			161,801			—			—
	—			(865,035	)		1,869,484			—			—
	1,281,345			(8,879,959	)		(5,415,579	)		4,252,084			603,909
	640,889			(14,770,044	)		(3,933,487	)		(503,413	)		(510,689	)
$	2,709,707		$	(3,490,892	)	$	8,417,915		$	25,539,713		$	3,055,580

68

STATEMENTS OF CASH FLOWS (unaudited)
For the six months ended April 30, 2006

	Broad Investment Grade 2009 Term Trust Inc.1 (BCT)			Core Bond Trust (BHK)
Reconciliation of Net Increase (Decrease) in Net Assets Resulting from Operations to Net Cash Flows Provided by Operating Activities
Net Increase (Decrease) in net assets resulting from operations	$	769,597		$	(1,404,238	)
Purchases of long-term investments		(745,043	)		(1,058,379,654	)
Proceeds from sales of long-term investments		3,232,147			1,182,296,960
Net proceeds (purchases) of short-term investments		(2,430,755	)		(5,055,903	)
Decrease (Increase) in deposits with brokers as collateral for borrowed bonds		—			(3,781,731	)
Net amortization of premium and discount on investments		152,441			1,975,673
Net realized loss on investments		410,099			7,160,472
Decrease (Increase) in unrealized appreciation/depreciation on investments		(5,644	)		(833,211	)
Net effect of exchange rates on foreign currency		—			(275,726	)
Decrease in investments sold short		—			—
Decrease in outstanding options written		—			(117,931	)
Increase (Decrease) in TBA sale commitments		—			—
Decrease in interest rate floors		—			—
Decrease in interest rate swaps		—			573,973
Decrease in credit default swaps		176			27,969
Increase in investments in affiliates		(2,167	)		(17,756	)
Decrease (Increase) in receivable for investments sold		—			28,039,294
Decrease in foreign currency exchange contracts		—			136,396
Increase in variation margin receivable		—			(66,269	)
Decrease in interest receivable		87,724			2,282,961
Decrease in other assets		3,553			21,076
Increase (Decrease) in payable for investments purchased		—			(44,128,779	)
Decrease in payable for dollar rolls		—			(5,914,216	)
Increase in variation margin payable		—			—
Increase (Decrease) in interest payable		(4,386	)		(56,760	)
Decrease in investment advisory fee payable		(1,178	)		(58,494	)
Decrease in administration fee payable		(321	)		—
Increase in deferred Directors/Trustees fees		2,167			17,756
Increase in payable to affiliates		1,810			12,308
Increase (Decrease) in accrued expenses		(186,391	)		(20,004	)
Total adjustments		514,232			103,838,404
Net cash provided by operating activities	$	1,283,829		$	102,434,166
Increase (Decrease) in Cash and Foreign Currency
Net cash provided by operating activities	$	1,283,829		$	102,434,166
Cash used for financing activities:
Capital contributions		—			—
Increase (Decrease) in reverse repurchase agreements		—			(80,637,587	)
Decrease in loan payable		—			—
Cash dividends paid		(1,330,692	)		(21,828,144	)
Net cash used for financing activities		(1,330,692	)		(102,465,731	)
Net increase (decrease) in cash		(46,863	)		(31,565	)
Cash and foreign currency at beginning of period		81,748			3,991,454
Cash and foreign currency (overdraft) at end of period	$	34,885		$	3,959,889

¹ Consolidated Statement of Cash Flows.

See Notes to Financial Statements.

69

High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Strategic Bond Trust (BHD)
$	2,709,707		$	(3,490,892	)	$	8,417,915		$	25,539,713		$	3,055,580
	(29,831,588	)		(1,521,764,979	)		(506,589,117	)		(997,994,938	)		(31,765,553	)
	29,115,588			1,713,047,482			585,695,018			956,548,869			39,752,259
	947,816			368,023			746,357			(2,316,641	)		711,567
	—			—			16,605,100			8,670,825			—
	(12,362	)		(449,551	)		6,624,846			1,116,183			103,900
	664,711			4,516,079			4,354,535			4,961,151			1,114,598
	(1,281,345	)		3,772,560			9,897,703			(4,714,881	)		(603,909	)
	—			—			—			48,800			—
	—			—			(16,102,372	)		—			—
	—			(128,168	)		(87,307	)		—			—
	—			(95,589,254	)		1,544,378			—			—
	—			—			1,775,077			—			—
	—			571,946			416,775			—			—
	—			31,082			—			4,008			—
	(3,813	)		(18,736	)		(26,587	)		(25,923	)		(3,291	)
	(630,310	)		167,095,278			23,036,092			(916,974	)		(179,464	)
	—			—			—			458,430			—
	—			(41,868	)		—			—			—
	24,423			1,796,664			21,109			52,619			313,862
	6,336			1,572			21,059			20,505			9,007
	879,236			(137,042,626	)		(47,549,504	)		29,190,224			1,453,618
	—			—			—			(2,518,249	)		—
	—			—			204,144			—			—
	(5,701	)		(138,672	)		(198,670	)		154,679			(15,503	)
	(2,332	)		(20,288	)		(10,551	)		(19,178	)		(6,212	)
	(222	)		(3,382	)		(2,435	)		—			—
	3,813			18,736			26,587			25,923			3,291
	1,240			12,721			15,416			—			3,074
	(17,377	)		(54,936	)		(63,278	)		9,998			(21,953	)
	(141,887	)		135,979,683			80,354,375			(7,244,570	)		10,869,291
$	2,567,820		$	132,488,791		$	88,772,290		$	18,295,143		$	13,924,871
$	2,567,820		$	132,488,791		$	88,772,290		$	18,295,143		$	13,924,871
	15,047			—			—			—			—
	—			(110,105,312	)		(74,828,625	)		14,256,748			(10,172,906	)
	(500,000	)		—			—			—			—
	(2,128,680	)		(22,460,305	)		(14,113,526	)		(29,020,420	)		(3,726,836	)
	(2,613,633	)		(132,565,617	)		(88,942,151	)		(14,763,672	)		(13,899,742	)
	(45,813	)		(76,826	)		(169,861	)		3,531,471			25,129
	97,957			78,105			88,034			1,777,603			67,525
$	52,144		$	1,279		$	(81,827	)	$	5,309,074		$	92,654

70

STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended April 30, 2006 (unaudited) and the year ended October 31, 2005

	Broad Investment Grade 2009 Term Trust Inc.1 (BCT)						Core Bond Trust (BHK)
	2006			2005			2006			2005
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	1,174,229		$	2,365,140		$	10,066,057		$	20,946,361
Net realized gain (loss)		(410,099	)		785,483			(7,020,868	)		17,026,631
Net change in unrealized appreciation/depreciation		5,467			(3,333,736	)		(4,449,427	)		(26,925,832	)
Net increase (decrease) in net assets resulting from operations		769,597			(183,113	)		(1,404,238	)		11,047,160
Dividends and Distributions:
Net investment income2		(1,330,692	)		(3,053,790	)		(14,403,952	)		(27,245,732	)
Net realized gain		—			(742,526	)		(7,424,192	)		(9,450,897	)
Tax return of capital		—			—			—			—
Total dividends and distributions		(1,330,692	)		(3,796,316	)		(21,828,144	)		(36,696,629	)
Capital Share Transactions:
Reinvestment of dividends		—			—			—			—
Total increase (decrease)		(561,095	)		(3,979,429	)		(23,232,382	)		(25,649,469	)
Net Assets
Beginning of period		43,276,004			47,255,433			385,513,789			411,163,258
End of period	$	42,714,909		$	43,276,004		$	362,281,407		$	385,513,789
End of period undistributed (distributions in excess of) net investment income	$	4,621,859		$	4,778,321		$	(3,822,436	)	$	515,459

1	Consolidated Statement of Changes in Net Assets.
2	A portion of the dividends from net investment income for the six months ended April 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.

See Notes to Financial Statements.

71

High Yield Trust (BHY)						Income Opportunity Trust (BNA)						Income Trust Inc. (BKT)
2006			2005			2006			2005			2006			2005
$	2,068,818		$	4,365,000		$	11,279,152		$	24,695,470		$	12,351,402		$	28,144,451
	(640,456	)		863,475			(5,890,085	)		14,315,363			1,482,092			(15,436,336	)
	1,281,345			(3,198,856	)		(8,879,959	)		(30,139,747	)		(5,415,579	)		(3,057,050	)
	2,709,707			2,029,619			(3,490,892	)		8,871,086			8,417,915			9,651,065
	(2,128,680	)		(5,087,371	)		(12,794,617	)		(27,821,573	)		(14,113,526	)		(30,667,298	)
	—			—			(9,665,688	)		(9,614,909	)		—			—
	—			—			—			—			—			(4,798,184	)
	(2,128,680	)		(5,087,371	)		(22,460,305	)		(37,436,482	)		(14,113,526	)		(35,465,482	)
	15,047			67,545			—			—			—			1,569,925
	596,074			(2,990,207	)		(25,951,197	)		(28,565,396	)		(5,695,611	)		(24,244,492	)
	47,923,833			50,914,040			398,078,053			426,643,449			418,390,124			442,634,616
$	48,519,907		$	47,923,833		$	372,126,856		$	398,078,053		$	412,694,513		$	418,390,124
$	(86,097	)	$	(26,235	)	$	665,352		$	2,180,817		$	(2,357,127	)	$	(595,003	)

72

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended April 30, 2006 (unaudited) and the year ended October 31, 2005

	Limited Duration Income Trust (BLW)						Strategic Bond Trust (BHD)
	2006			2005			2006			2005
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	26,043,126		$	53,638,295		$	3,566,269		$	7,734,392
Net realized loss		(4,755,497	)		(2,199,531	)		(1,114,598	)		(324,159	)
Net change in unrealized appreciation/depreciation		4,252,084			(32,007,565	)		603,909			(7,608,367	)
Net increase (decrease) in net assets resulting from operations		25,539,713			19,431,199			3,055,580			(198,134	)
Dividends and Distributions:
Net investment income1		(29,020,420	)		(49,020,501	)		(3,726,836	)		(7,935,935	)
Net realized gain		—			(5,497,247	)		—			—
Tax return of capital		—			—			—			(1,898,203	)
Total dividends and distributions		(29,020,420	)		(54,517,748	)		(3,726,836	)		(9,834,138	)
Capital Share Transactions:
Reinvestment of dividends		—			822,572			—			145,218
Total decrease		(3,480,707	)		(34,263,977	)		(671,256	)		(9,887,054	)
Net Assets
Beginning of period		704,961,417			739,225,394			96,546,071			106,433,125
End of period	$	701,480,710		$	704,961,417		$	95,874,815		$	96,546,071
End of period undistributed (distributions in excess of) net investment income	$	3,442,279		$	6,419,573		$	(173,367	)	$	(12,800	)

¹ A portion of the dividends from net investment income for the six months ended April 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.

See Notes to Financial Statements.

73

CONSOLIDATED FINANCIAL HIGHLIGHTS

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

	Six Months Ended				Year Ended October 31,
	April 30, 2006
	(unaudited)				2005			2004			2003			2002			2001
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period		$	14.63		$	15.98		$	16.02		$	17.33		$	16.05		$	13.64
Investment operations:
Net investment income			0.40			0.80			0.61			1.28			2.01			1.17
Net realized and unrealized gain (loss)			(0.14	)		(0.87	)		0.25			(1.40	)		0.04			2.01
Net increase (decrease) from investment operations			0.26			(0.07	)		0.86			(0.12	)		2.05			3.18
Dividends and distributions from:
Net investment income			(0.45	)		(1.03	)		(0.90	)		(1.19	)		(0.77	)		(0.77	)
Net realized gains			—			(0.25	)		—			—			—			—
Total dividends and distributions			(0.45	)		(1.28	)		(0.90	)		(1.19	)		(0.77	)		(0.77	)
Net asset value, end of period		$	14.44		$	14.63		$	15.98		$	16.02		$	17.33		$	16.05
Market price, end of period		$	15.20		$	15.86		$	15.80		$	15.85		$	16.18		$	14.39
TOTAL INVESTMENT RETURN1			(1.32	)%		8.74	%		5.45	%		5.32	%		18.34	%		27.66	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses			1.14	%2		2.37	%		2.48	%		2.43	%		2.50	%		3.52	%
Net expenses			1.14	%2		2.37	%		2.48	%		2.43	%		2.50	%		3.52	%
Net expenses excluding interest expense and excise tax			1.14	%2		1.19	%		1.11	%		1.18	%		1.16	%		1.16	%
Net investment income			5.51	%2		5.23	%		3.83	%		7.54	%		12.22	%		7.93	%
SUPPLEMENTAL DATA:
Average net assets		$	42,961		$	45,264		$	47,191		$	49,882		$	48,731		$	43,701
Portfolio turnover			2	%		116	%		20	%		39	%		35	%		19	%
Net assets, end of period (000)		$	42,715		$	43,276		$	47,255		$	47,381		$	51,244		$	47,466
Reverse repurchase agreements outstanding, end of period (000)		$	—		$	—		$	19,263		$	19,953		$	23,669		$	13,373
Asset coverage, end of period3		$	—		$	—		$	3,453		$	3,375		$	3,165		$	4,550
Reverse repurchase agreements average daily balance (000)		$	—		$	7,865		$	22,055		$	19,409		$	18,388		$	18,080
Reverse repurchase agreements weighted average interest rate			—	%		2.32	%		1.20	%		1.21	%		1.82	%		4.94	%

1	Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee of future results.
2	Annualized.
3	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

74

FINANCIAL HIGHLIGHTS

BlackRock Core Bond Trust (BHK)

														For the period
	Six Months Ended				Year Ended October 31									November 30, 20011
	April 30, 2006													through
	(unaudited)				2005			2004			2003			October 31, 2002
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period		$	14.27		$	15.22		$	14.75		$	14.33			$	14.33	2
Investment operations:
Net investment income			0.37			0.78			0.92			0.83				0.99
Net realized and unrealized gain (loss)			(0.43	)		(0.37	)		0.66			0.77				0.04
Net increase (decrease) from investment operations			(0.06	)		0.41			1.58			1.60				1.03
Dividends and distributions from:
Net investment income			(0.53	)3		(1.01	)		(0.86	)		(1.00	)			(1.00	)
Net realized gains			(0.27	)		(0.35	)		(0.25	)		(0.18	)			—
Total dividends and distributions			(0.80	)		(1.36	)		(1.11	)		(1.18	)			(1.00	)
Capital charges with respect to issuance of shares			—			—			—			—				(0.03	)
Net asset value, end of period		$	13.41		$	14.27		$	15.22		$	14.75			$	14.33
Market price, end of period		$	12.81		$	13.69		$	14.02		$	13.57			$	13.82
TOTAL INVESTMENT RETURN4			(0.62	)%		7.46	%		11.93	%		6.62	%			(1.02	)%
RATIOS TO AVERAGE NET ASSETS:
Total expenses			1.23	%5		1.50	%		1.32	%		1.05	%			1.04	%5
Net expenses			1.23	%5		1.50	%		1.32	%		1.05	%			1.04	%5
Net expenses excluding interest expense			0.79	%5		0.85	%		0.92	%		0.87	%			0.93	%5
Net investment income			5.38	%5		5.20	%		6.20	%		5.58	%			7.67	%5
SUPPLEMENTAL DATA:
Average net assets		$	377,526		$	402,783		$	401,212		$	401,049			$	380,277
Portfolio turnover			47	%		220	%		398	%		161	%			73	%
Net assets, end of period (000)		$	362,281		$	385,514		$	411,163		$	398,540			$	387,238
Reverse repurchase agreements outstanding, end of period (000)		$	6,238		$	86,876		$	102,474		$	91,668			$	165,215
Asset coverage, end of period6		$	59,072		$	5,438		$	5,012		$	5,348			$	3,342
Reverse repurchase agreements average daily balance (000)		$	38,309		$	91,130		$	145,094		$	67,591			$	35,207
Reverse repurchase agreements weighted average interest rate			4.27	%		2.86	%		1.11	%		1.05	%			1.04	%

1	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
2	Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.
3	A portion of the dividends from net investment income for the six months ended April 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.
4	Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
5	Annualized.
6	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

75

FINANCIAL HIGHLIGHTS

BlackRock High Yield Trust (BHY)

	Six Months Ended				Year Ended October 31,
	April 30, 2006
	(unaudited)				2005			2004			2003			2002			2001
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period		$	7.48		$	7.95		$	6.96		$	6.13		$	7.20		$	10.60
Investment operations:
Net investment income			0.32			0.68			0.92			1.06			1.20			1.32
Net realized and unrealized gain (loss)			0.10			(0.36	)		1.02			0.89			(0.98	)		(3.13	)
Net increase (decrease) from investment operations			0.42			0.32			1.94			1.95			0.22			(1.81	)
Dividends and distributions from:
Net investment income			(0.33	)1		(0.79	)		(0.92	)		(1.07	)		(1.20	)		(1.48	)
Tax return of capital			—			—			(0.03	)		(0.05	)		(0.09	)		(0.11	)
Total dividends and distributions			(0.33	)		(0.79	)		(0.95	)		(1.12	)		(1.29	)		(1.59	)
Net asset value, end of period		$	7.57		$	7.48		$	7.95		$	6.96		$	6.13		$	7.20
Market price, end of period		$	8.10		$	7.36		$	9.30		$	10.25		$	8.68		$	9.18
TOTAL INVESTMENT RETURN2			14.96	%		(13.49	)%		0.28	%		32.87	%		7.97	%		(11.31	)%
RATIOS TO AVERAGE NET ASSETS:
Total expenses			4.34	%3		3.52	%		2.69	%		3.07	%		3.45	%		4.90	%
Net expenses			4.33	%3		3.51	%		2.68	%		3.07	%		3.45	%		4.90	%
Net expenses excluding interest expense			2.20	%3		2.10	%		1.96	%		2.22	%		2.20	%		2.03	%
Net investment income			8.67	%3		8.71	%		12.16	%		16.37	%		16.29	%		14.23	%
SUPPLEMENTAL DATA:
Average net assets		$	48,142		$	50,104		$	48,186		$	41,326		$	46,751		$	58,553
Portfolio turnover			44	%		102	%		156	%		30	%		147	%		71	%
Net assets, end of period (000)		$	48,520		$	47,924		$	50,914		$	44,438		$	38,953		$	45,520
Loan outstanding, end of period (000)		$	20,250		$	20,750		$	19,250		$	19,250		$	19,250		$	23,000
Asset coverage, end of period4		$	3,396		$	3,310		$	3,645		$	3,308		$	3,024		$	2,893
Loan average daily balance (000)		$	20,999		$	20,425		$	19,250		$	19,250		$	22,664		$	28,449
Loan weighted average interest rate			2.39	%		2.87	%		1.80	%		1.96	%		2.65	%		5.90	%

1	A portion of the dividends from net investment income for the six months ended April 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.
2	Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee of future results.
3	Annualized.
4	Per $1,000 of loan outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

76

FINANCIAL HIGHLIGHTS

BlackRock Income Opportunity Trust (BNA)

	Six Months Ended			Year Ended October 31,
	April 30, 2006
	(unaudited)			2005			2004			2003			2002			2001
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	11.56		$	12.38		$	11.93		$	11.83		$	11.47		$	11.03
Investment operations:
Net investment income		0.33			0.72			0.76			0.84			1.15			0.87
Net realized and unrealized gain (loss)		(0.44	)		(0.45	)		0.53			0.31			(0.05	)		0.34
Net increase (decrease) from investment operations		(0.11	)		0.27			1.29			1.15			1.10			1.21
Dividends and distributions from:
Net investment income		(0.37	)1		(0.81	)		(0.84	)		(0.81	)		(0.75	)		(0.23	)
Net realized gains		(0.28	)		(0.28	)		—			(0.24	)		—			—
Tax return of capital		—			—			—			—			—			(0.54	)
Total dividends and distributions		(0.65	)		(1.09	)		(0.84	)		(1.05	)		(0.75	)		(0.77	)
Increase resulting from Trust shares repurchased		—			—			—			—			0.01			—
Net asset value, end of period	$	10.80		$	11.56		$	12.38		$	11.93		$	11.83		$	11.47
Market price, end of period	$	10.34		$	10.90		$	11.38		$	10.95		$	10.50		$	10.41
TOTAL INVESTMENT RETURN2		0.64	%		5.53	%		12.04	%		14.71	%		8.44	%		15.09	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.70	%3		1.72	%		1.11	%		1.29	%		1.40	%		3.62	%
Net expenses		1.70	%3		1.72	%		1.11	%		1.29	%		1.40	%		3.62	%
Net expenses excluding interest expense		0.89	%3		0.87	%		0.84	%		0.89	%		0.93	%		1.01	%
Net investment income		5.83	%3		5.97	%		6.29	%		6.99	%		10.04	%		7.76	%
SUPPLEMENTAL DATA:
Average net assets	$	389,832		$	413,777		$	415,131		$	413,543		$	394,495		$	388,478
Portfolio turnover		23	%		396	%		300	%		46	%		153	%		83	%
Net assets, end of period (000)	$	372,127		$	398,078		$	426,643		$	410,981		$	407,480		$	397,756
Reverse repurchase agreements outstanding, end of period (000)	$	10,074		$	120,179		$	94,644		$	103,378		$	85,704		$	136,385
Asset coverage, end of period4	$	37,940		$	4,312		$	5,508		$	4,976		$	5,755		$	3,916
Reverse repurchase agreements average daily balance (000)	$	75,066		$	122,457		$	97,264		$	136,172		$	36,153		$	151,804
Reverse repurchase agreements weighted average interest rate		4.19	%		2.87	%		1.14	%		1.22	%		1.93	%		4.92	%

1	A portion of the dividends from net investment income for the six months ended April 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.
2	Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee of future results.
3	Annualized.
4	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

77

FINANCIAL HIGHLIGHTS

BlackRock Income Trust Inc. (BKT)

	Six Months Ended				Year Ended October 31,
	April 30, 2006
	(unaudited)				2005			2004			2003			2002			2001
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period		$	6.54		$	6.95		$	7.21		$	8.13		$	8.06		$	7.23
Investment operations:
Net investment income			0.19			0.44			0.51			0.61			0.99			0.56
Net realized and unrealized gain (loss)			(0.06	)		(0.30	)		(0.16	)		(0.52	)		(0.35	)		0.83
Net increase from investment operations			0.13			0.14			0.35			0.09			0.64			1.39
Dividends and distributions from:
Net investment income			(0.22	)1		(0.48	)		(0.61	)		(1.01	)		(0.57	)		(0.56	)
Tax return of capital			—			(0.07	)		—			—			—			—
Total dividends and distributions			(0.22	)		(0.55	)		(0.61	)		(1.01	)		(0.57	)		(0.56	)
Net asset value, end of period		$	6.45		$	6.54		$	6.95		$	7.21		$	8.13		$	8.06
Market price, end of period		$	6.19		$	5.90		$	7.50		$	7.71		$	8.07		$	7.26
TOTAL INVESTMENT RETURN2			8.61	%		(14.63	)%		5.97	%		15.41	%		15.35	%		23.23	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses			3.42	%3		2.80	%		1.37	%		1.36	%		2.05	%		2.54	%
Net expenses			3.41	%3		2.79	%		1.37	%		1.36	%		2.05	%		2.54	%
Net expenses excluding interest expense			1.00	%3		0.99	%		0.97	%		1.02	%		1.03	%		1.03	%
Net investment income			5.97	%3		6.54	%		7.13	%		8.18	%		12.28	%		7.43	%
SUPPLEMENTAL DATA:
Average net assets		$	417,050		$	430,035		$	447,984		$	472,676		$	506,533		$	470,185
Portfolio turnover			40	%		60	%		120	%		64	%		125	%		32	%
Net assets, end of period (000)		$	412,695		$	418,390		$	442,635		$	457,301		$	511,385		$	506,764
Reverse repurchase agreements outstanding, end of period (000)		$	74,730		$	149,558		$	223,736		$	121,767		$	205,792		$	118,634
Asset coverage, end of period4		$	6,523		$	3,798		$	2,978		$	4,756		$	3,485		$	5,272
Reverse repurchase agreements average daily balance (000)		$	153,871		$	180,553		$	158,278		$	135,804		$	173,501		$	148,204
Reverse repurchase agreements weighted average interest rate			4.33	%		2.81	%		1.12	%		1.17	%		1.81	%		4.78	%

1	A portion of the dividends from net investment income for the six months ended April 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.
2	Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee of future results.
3	Annualized.
4	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

78

FINANCIAL HIGHLIGHTS

BlackRock Limited Duration Income Trust (BLW)

	Six Months Ended April 30, 2006 (unaudited)									For the period July 30, 20031 through October 31, 2003
				Year Ended October 31,
				2005			2004
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	19.17		$	20.13		$	19.74		$	19.10	2
Investment operations:
Net investment income		0.71			1.46			1.46			0.33
Net realized and unrealized gain (loss)		(0.01	)		(0.94	)		0.43			0.60
Net increase from investment operations		0.70			0.52			1.89			0.93
Dividends and distributions from:
Net investment income		(0.79	)		(1.33	)		(1.49	)		(0.25	)
Net realized gains		—			(0.15	)		(0.01	)		—
Total dividends and distributions		(0.79	)		(1.48	)		(1.50	)		(0.25	)
Capital charges with respect to issuance of shares		—			—			—			(0.04	)
Net asset value, end of period	$	19.08		$	19.17		$	20.13		$	19.74
Market price, end of period	$	17.89		$	17.48		$	19.95		$	18.80
TOTAL INVESTMENT RETURN3		6.94	%		(5.30	)%		14.64	%		(4.77	)%
RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.95	%4		1.71	%		1.26	%		0.82	%4
Net expenses		1.94	%4		1.71	%		1.25	%		0.82	%4
Net expenses excluding interest expense		0.91	%4		0.92	%		0.90	%		0.79	%4
Net investment income		7.47	%4		7.42	%		7.34	%		6.87	%4
SUPPLEMENTAL DATA:					��
Average net assets (000)	$	703,127		$	722,668		$	730,369		$	686,655
Portfolio turnover		25	%		70	%		215	%		127	%
Net assets, end of period (000)	$	701,481		$	704,961		$	739,225		$	724,747
Reverse repurchase agreements outstanding, end of period (000)	$	190,267		$	176,010		$	159,416		$	118,993
Asset coverage, end of period5	$	4,687		$	5,005		$	5,637		$	7,091
Reverse repurchase agreements average daily balance (000)	$	164,219		$	186,660		$	195,845		$	26,591
Reverse repurchase agreements weighted average interest rate		4.48	%		3.08	%		1.32	%		0.76	%

1	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
2	Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from the initial offering price of $20.00 per share.
3	Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
4	Annualized.
5	Per $1,000 reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

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FINANCIAL HIGHLIGHTS

BlackRock Strategic Bond Trust (BHD)

	Six Months Ended April 30, 2006 (unaudited)												For the period February 28, 20021 through October 31, 2002
				Year Ended October 31,
				2005			2004			2003
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	13.68		$	15.10		$	15.07		$	12.63		$	14.33	2
Investment operations:
Net investment income		0.51			1.10			1.39			1.59			0.98
Net realized and unrealized gain (loss)		(0.08	)		(1.13	)		0.25			2.34			(1.77	)
Net increase (decrease) from investment operations		0.43			(0.03	)		1.64			3.93			(0.79	)
Dividends and distributions from:
Net investment income		(0.53	)3		(1.12	)		(1.61	)		(1.49	)		(0.84	)
Tax return of capital		—			(0.27	)		—			—			—
Total dividends and distributions		(0.53	)		(1.39	)		(1.61	)		(1.49	)		(0.84	)
Capital charges with respect to issuance of shares		—			—			—			—			(0.07	)
Net asset value, end of period	$	13.58		$	13.68		$	15.10		$	15.07		$	12.63
Market price, end of period	$	12.30		$	12.45		$	16.70		$	15.27		$	12.35
TOTAL INVESTMENT RETURN4		3.04	%		(18.11	)%		21.54	%		37.36	%		(12.34	)%
RATIOS TO AVERAGE NET ASSETS:
Total expenses		2.49	%5		2.14	%		1.49	%		2.01	%		2.57	%5
Net expenses		2.23	%5		1.87	%		1.23	%		1.71	%		2.26	%5
Net expenses excluding interest expense and excise tax		0.98	%5		0.92	%		0.89	%		1.01	%		1.25	%5
Net investment income		7.44	%5		7.58	%		9.23	%		11.32	%		10.68	%5
SUPPLEMENTAL DATA:
Average net assets	$	96,683		$	101,990		$	106,330		$	98,498		$	95,675
Portfolio turnover		26	%		51	%		31	%		32	%		22	%
Net assets, end of period (000)	$	95,875		$	96,546		$	106,433		$	106,045		$	88,594
Reverse repurchase agreements outstanding, end of period (000)	$	21,710		$	31,883		$	13,188		$	45,872		$	44,223
Asset coverage, end of period6	$	5,416		$	4,028		$	9,071		$	3,312		$	3,003
Reverse repurchase agreements average daily balance (000)	$	26,863		$	30,406		$	27,652		$	46,036		$	44,889
Reverse repurchase agreements weighted average interest rate		4.50	%		3.20	%		1.33	%		1.51	%		1.45	%

1	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
2	Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.
3	A portion of the dividends from net investment income for the six months ended April 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.
4	Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
5	Annualized.
6	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

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NOTES TO FINANCIAL STATEMENTS (unaudited)

Note 1. Organization & Accounting Policies

BlackRock Broad Investment Grade 2009 Term Trust Inc. (“Broad Investment Grade”), BlackRock Core Bond Trust (“Core Bond”), BlackRock High Yield Trust (“High Yield”), BlackRock Income Opportunity Trust (“Income Opportunity”), BlackRock Income Trust Inc. (“Income Trust”), BlackRock Limited Duration Income Trust (“Limited Duration”) and BlackRock Strategic Bond Trust (“Strategic Bond”) (collectively, the “Trusts”) are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended. Broad Investment Grade, Income Opportunity and Income Trust are organized as Maryland corporations. Core Bond, High Yield, Limited Duration and Strategic Bond are organized as Delaware statutory trusts.

          On December 3, 1999, Broad Investment Grade transferred a substantial portion of its total assets to a 100% owned regulated investment company subsidiary called BCT Subsidiary, Inc. The financial statements and these notes to the financial statements for Broad Investment Grade are consolidated and include the operations of both Broad Investment Grade and its wholly owned subsidiary after elimination of all intercompany transactions and balances.

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

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

Investment Valuation: The Trusts value most of their investments on the basis of current market quotations provided by dealers or pricing services selected under the supervision of each Trust’s Board (the “Board”) of Directors/Trustees (the “Trustees”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, 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. Exchange-traded options are valued at their last sales price as of the close of options trading on applicable exchanges. In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close of business. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Swap quotations are provided by dealers selected under the supervision of the Board. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value per share. Investments or assets for which such current market quotations are not readily available are valued at fair value (“Fair Value Assets”) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.

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

Investment Transactions and Investment Income: Investment transactions are recorded on the trade date. The cost of investments sold and the related gain or loss is determined by use of the specific identification method, generally first-in, first out, for both financial reporting and federal income tax purposes. Each Trust records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.

          Each Trust may from time to time purchase in the secondary market certain mortgage pass-through securities packaged or master serviced by affiliates or mortgage-related securities containing loans or mortgages originated by PNC Bank or its affiliates, including Midland Loan Services, Inc., each of which is an affiliate of BlackRock Advisors, Inc. It is possible under certain circumstances, that PNC Mortgage Securities Corp. or its affiliates, including Midland Loan Services, Inc., could have interests that are in conflict with the holders of these mortgage-backed securities, and such holders could have rights against PNC Mortgage Securities Corp. or its affiliates, including Midland Loan Services, Inc.

Repurchase Agreements: In connection with transactions in repurchase agreements, a Trust’s custodian takes possession of the underlying collateral securities, the value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Trust may be delayed or limited.

Reverse Repurchase Agreements: The Trusts may enter into reverse repurchase agreements with qualified third-party broker-dealers as determined by and under the direction of the Trusts’ Board. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time a Trust enters into a reverse repurchase agreement, it will establish and maintain a segregated account with the lender, containing liquid investment grade securities having a value not less than the repurchase price, including accrued interest of the reverse repurchase agreement.

Dollar Rolls: The Trusts may enter into dollar rolls in which a Trust sells securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. During the roll period the Trusts forgo principal and interest paid on the securities. The Trusts will be compensated by the interest earned on the cash proceeds of the initial sale and/or by the lower repurchase price at the future date.

Loan Payable: High Yield has a $32 million committed credit facility (the “facility”). Under the terms of the facility, the Trust borrows at the London Interbank Offered Rate (“LIBOR”) plus facility and administrative fees. In addition, the Trust pays a liquidity fee on the unused

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portion of the facility. The Trust may borrow up to 33 1/3% of its total assets up to the committed amount. In accordance with the terms of the facility, the Trust has pledged its portfolio assets as collateral for the borrowing.

Bank Loans: In the process of buying, selling and holding bank loans, a Trust may receive and/or pay certain fees. These fees are in addition to interest payments received and may include facility fees, commitment fees, amendment fees, commissions and prepayment penalty fees. When a Trust buys a bank loan it may receive a facility fee and when it sells a bank loan it may pay a facility fee. On an ongoing basis, a Trust may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a bank loan. In certain circumstances, a Trust may receive a prepayment penalty fee upon the prepayment of a bank loan by a borrower. Other fees received by a Trust may include covenant waiver fees and covenant modification fees.

Option Writing/Purchasing: When a Trust writes or purchases an option, an amount equal to the premium received or paid by the Trust is recorded as an asset or a liability and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or a loss on investment transactions. A Trust, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.

Options, when used by the Trusts, help in maintaining a targeted duration. Duration is a measure of the price sensitivity of a security or a portfolio to relative changes in interest rates. For instance, a duration of “one” means that a portfolio’s or a security’s price would be expected to change by approximately one percent with a one percent change in interest rates, while a duration of five would imply that the price would move approximately five percent in relation to a one percent change in interest rates.

          Option writing and purchasing may be used by the Trusts as an attempt to manage the duration of positions, or collections of positions, so that changes in interest rates do not adversely affect the targeted duration of the portfolio unexpectedly. A call option gives the purchaser of the option the right (but not obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying position 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 position at the exercise price at any time or at a specified time during the option period. Put or call options can be purchased or sold to help manage the targeted duration of the portfolio.

          The main risk that is associated with purchasing options is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered the loss. The risk associated with writing call options is that a Trust may forgo the opportunity for a profit if the market value of the underlying position increases and the option is exercised. The risk in writing put options is that a Trust may incur a loss if the market value of the underlying position decreases and the option is exercised. In addition, the Trust risks not being able to enter into a closing transaction for the written option as the result of an illiquid market.

Stripped Mortgage-Backed Securities: Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. In certain cases, one class will receive all of the interest (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). The yield to maturity on IOs is sensitive to the rate of principal repayments (including prepayments) on the related underlying mortgage assets, and principal payments may have a material effect on yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Trust may not fully recoup its initial investment in IOs. Such securities will be considered liquid only if so determined in accordance with guidelines established by the Trustees.

Credit Default Swaps: Credit default swaps are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to make a specific payment should a negative credit event take place. Risks arise from the possible inability of the counterparties to meet the terms of their contracts.

          During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by “marking-to-market” to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract, if any.

          The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Trusts closely monitor swaps and do not anticipate non-performance by any counterparty.

Total Return Swaps: Total return swaps are agreements in which one party commits to pay interest in exchange for a market-linked return. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Trust will receive a payment from or make a payment to the counterparty.

          During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by “marking-to-market” to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract, if any.

          The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Trusts closely monitor swaps and do not anticipate non-performance by any counterparty.

Interest Rate Swaps: 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. Alternatively, a party may pay a fixed rate and receive a floating rate. Interest rate swaps are efficient as asset/liability management tools. In more complex swaps, the notional principal amount may decline (or amortize) over time.

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          During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by “marking-to-market” to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract, if any.

          The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Trusts closely monitor swaps and do not anticipate non-performance by any counterparty.

Swap Options: Swap options 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. Premiums received or paid from writing or purchasing options are recorded as liabilities or assets and are subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by a Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commission, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or loss on investment transactions.

          The main risk that is associated with purchasing swap options is that the swap option expires without being exercised. In this case, the option expires worthless and the premium paid for the swap option is considered the loss. The main risk that is associated with the writing of a swap option is the market risk of an unfavorable change in the value of the interest rate swap underlying the written swap option.

          Swap options may be used by the Trusts to manage the duration of the Trusts’ portfolios in a manner similar to more generic options described above.

Interest Rate Caps: Interest rate caps are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the excess, if any, of a floating rate over a specified fixed or floating rate.

          Interest rate caps are intended to both manage the duration of the Trusts’ portfolios and their exposure to changes in short-term interest rates. Owning interest rate caps reduces a portfolio’s duration, making it less sensitive to changes in interest rates from a market value perspective. The effect on income involves protection from rising short-term interest rates, which the Trusts experience primarily in the form of leverage.

          The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate cap. However, the Trusts do not anticipate non-performance by any counterparty.

          Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate cap. The asset or liability is subsequently adjusted to the current market value of the interest rate cap purchased or sold. Changes in the value of the interest rate cap are recognized as unrealized gains and losses.

Interest Rate Floors: Interest rate floors are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the deficiency, if any, of a floating rate under a specified fixed or floating rate.

          Interest rate floors are used by the Trusts to both manage the duration of the portfolios and their exposure to changes in short-term interest rates. Selling interest rate floors reduces a portfolio’s duration, making it less sensitive to changes in interest rates from a market value perspective. The Trusts’ leverage provides extra income in a period of falling rates. Selling floors reduces some of that extra income by partially monetizing it as an up-front payment which the Trusts receive.

          The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate floor. However, the Trusts do not anticipate non-performance by any counterparty.

          Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate floor. The asset or liability is subsequently adjusted to the current market value of the interest rate floor purchased or sold. Changes in the value of the interest rate floor are recognized as unrealized gains and losses.

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

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

Forward Currency Contracts: The Trusts enter into forward currency contracts primarily to facilitate settlement of purchases and sales of foreign securities and to help manage the overall exposure to foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date (usually the security transaction settlement date) at a negotiated forward rate. In the event that a security fails to settle within the normal settlement period, the forward currency contract is renegotiated at a new rate. The gain or loss arising from the difference between the settlement value of the original and renegotiated forward contracts is isolated and is included in net realized gains (losses) from foreign currency transactions. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contract.

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          Forward currency contracts, when used by the Trusts, help to manage the overall exposure to the foreign currency backing some of the investments held by the Trusts. Forward currency contracts are not meant to be used to eliminate all of the exposure to the foreign currency, rather they allow the Trusts to limit their exposure to foreign currency within a narrow band consistent with the objectives of the Trusts.

Foreign Currency Translation: 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.
(ii)	purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.

          The Trusts isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Trusts isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period.

          Net realized and unrealized foreign exchange gains and losses includes realized foreign exchange gains and losses from sales and maturities of foreign portfolio securities, maturities of foreign reverse repurchase agreements, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of interest and discount recorded on the Trusts’ books and the U.S. dollar equivalent amounts actually received or paid and changes in unrealized foreign exchange gains and losses in the value of portfolio securities and other assets and liabilities arising as a result of changes in the exchange rate.

          Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

Short Sales: The Trusts may make short sales of securities as a method of managing potential price declines in similar securities owned. When a Trust makes a short sale, it may borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Trusts may have to pay a fee to borrow the particular securities and may be obligated to pay over any payments received on such borrowed securities. A gain, limited to the price at which a Trust sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon the termination of a short sale if the market price is greater or less than the proceeds originally received.

Bonds Borrowed Agreements: In a bonds borrowed agreement, the Trust borrows securities from a third party, with the commitment that they will be returned to the lender on an agreed-upon date. Bonds borrowed agreements are primarily entered into to settle short positions. In a bonds borrowed agreement, the Trust’s prime broker or third party broker takes possession of the underlying collateral securities or cash to settle such short positions. The value of the underlying collateral securities or cash approximates the principal amount of the bonds borrowed transaction, including accrued interest. To the extent that bonds borrowed transactions exceed one business day, the value of the collateral with any counterparty is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the lender defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the lender of the security, realization of the collateral by the Trust may be delayed or limited.

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

Federal Income Taxes: It is each Trust’s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient amounts of their taxable income to shareholders. Therefore, no federal income tax provisions have been recorded. As part of a tax planning strategy, Broad Investment Grade has retained a portion of its taxable income and will pay excise tax on the undistributed amounts.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and if necessary other sources. Net long-term capital gains, if any, in excess of loss carry-forwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.

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

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

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

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

84

Note 2. Agreements

Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the “Advisor”), which is a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc. (“BFM”), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the Trusts. BlackRock, Inc. is an indirect, majority owned subsidiary of The PNC Financial Services Group, Inc.

          Broad Investment Grade, High Yield, Income Opportunity and Income Trust each have an Administration Agreement with the Advisor. The Investment Management Agreement for Core Bond, Limited Duration and Strategic Bond covers both investment advisory and administration services.

          Each Trust’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.55% for Broad Investment Grade, 0.60% for Income Opportunity and 0.65% for Income Trust, of each Trust’s average net assets and 0.55% for Core Bond and Limited Duration, 1.05% for High Yield and 0.75% for Strategic Bond, of each Trust’s average weekly managed assets. “Managed assets” means the total assets of a Trust (including any assets attributable to any borrowing that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fees or other expenses on Strategic Bond as a percentage of its average weekly managed assets as follows: 0.20% for the first five years of the Trust’s operations, 0.15% in year six, 0.10% in year seven and 0.05% in year eight.

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

          The administration fee paid to the Advisor by Broad Investment Grade, High Yield, Income Opportunity and Income Trust is computed weekly and payable monthly based on an annual rate of 0.15%, 0.10%, 0.10%, and 0.15%, respectively of the Trusts’ average weekly managed assets.

          Pursuant to the Investment Management and Administration agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for cost of employees that provide pricing, secondary market support, and compliance services to each Trust. For the six months ended April 30, 2006, the Trusts reimbursed the Advisor the following amounts:

Trust	Amount		Trust	Amount
Broad Investment Grade	$	1,810	Income Trust	$	15,416
Core Bond		12,308	Limited Duration		12,308
High Yield		1,240	Strategic Bond		3,074
Income Opportunity		12,721

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

Note 3. Portfolio Investments

Purchases and sales of investment securities, other than short-term investments, dollar rolls and U.S. government securities, for the six months ended April 30, 2006 aggregated as follows:

Trust	Purchases		Sales		Trust	Purchases		Sales
Broad Investment Grade	$	745,043	$	1,532,147	Income Trust	$	219,612,080	$	257,643,221
Core Bond		144,923,988		126,123,948	Limited Duration		284,728,115		245,433,084
High Yield		29,831,578		29,115,588	Strategic Bond		29,976,664		37,961,637
Income Opportunity		54,557,912		261,304,878

          Purchases and sales of U.S. government securities for the six months ended April 30, 2006 aggregated as follows:

Trust	Purchases		Sales		Trust	Purchases		Sales
Broad Investment Grade	$	—	$	1,700,000	Income Trust	$	13,270,156	$	54,405,378
Core Bond		73,314,807		215,852,225	Strategic Bond		1,788,888		1,790,622
Income Opportunity		66,680,965		190,368,090

          Details of open forward currency contracts at April 30, 2006 were as follows:

Trust	Foreign Currency	Settlement Date	Contract to Purchase / Receive		Value at Settlement Date		Value at April 30, 2006		Unrealized Depreciation
Core Bond	Sold:
	Euro	6/13/06	1,903,360	€	$	2,321,467	$	2,408,586	$	87,119
Limited Duration	Sold:
	Euro	6/13/06	6,586,400	€		8,033,221		8,334,689		301,467
	British Pounds	6/15/06	2,000,500	£		3,571,157		3,650,408		79,251
									$	380,718

85

          Income Trust held interest rate floors at April 30, 2006. Under the agreement, Income Trust pays the excess, if any, of a fixed rate over a floating rate. Income Trust received a transaction fee for the floor. Transaction fees are amortized through the termination of the agreement. Details of open interest rate floors held at April 30, 2006 were as follows:

Notional Amount (000)	Variable Rate			Floating Rate		Termination Date		Amortized Cost			Value at April 30, 2006			Unrealized Appreciation
$225,000		4.80	%		3-month LIBOR		03/25/11	$	(2,490,000	)	$	(1,107,787	)	$	1,382,213
177,000		4.95			3-month LIBOR		03/25/11		(1,893,900	)		(667,290	)		1,226,610
									(4,383,900	)		(1,775,077	)		2,608,823

Details of open interest rate swaps at April 30, 2006 were as follows:

Trust	Notional Amount (000)		Fixed Rate		Floating Rate		Termination Date		Unrealized Appreciation (Depreciation)
Core Bond	$	5,600	4.415	%(b)		3-month LIBOR		09/27/08	$	(114,646	)
		19,435	3.215	(b)		3-month LIBOR		06/14/06		(41,777	)
		14,300	3.210	(b)		3-month LIBOR		06/17/06		(37,263	)
		800	4.780	(b)		3-month LIBOR		10/27/19		(66,390	)
		41,200	4.510	(a)		3-month LIBOR		10/29/14		2,812,079
		50,000	3.000	(a)		3-month LIBOR		04/16/07		1,056,232
		14,100	4.305	(b)		3-month LIBOR		06/17/10		(548,834	)
		20,000	4.458	(b)		3-month LIBOR		04/18/10		(636,029	)
		2,800	4.500	(a)		3-month LIBOR		05/26/15		210,168
		4,800	4.372	(b)		3-month LIBOR		06/30/15		(409,716	)
		17,500	4.385	(b)		3-month LIBOR		08/02/07		6,871
		6,200	4.725	(b)		3-month LIBOR		08/02/15		(369,664	)
		24,400	4.444	(b)		3-month LIBOR		08/17/07		(259,172	)
		4,600	5.000	(b)		3-month LIBOR		11/07/10		(69,618	)
		5,000	4.870	(b)		3-month LIBOR		01/25/16		(260,596	)
										1,271,645
Income Opportunity Trust	$	7,800	4.415	%(b)		3-month LIBOR		09/27/08		(159,686	)
		50,000	3.000	(a)		3-month LIBOR		04/16/07		1,056,232
		20,735	3.215	(b)		3-month LIBOR		06/14/06		(44,571	)
		15,300	3.210	(b)		3-month LIBOR		06/17/06		(39,869	)
		27,500	4.399	(a)		3-month LIBOR		10/25/14		2,086,467
		900	4.780	(b)		3-month LIBOR		10/27/19		(74,689	)
		13,800	4.510	(a)		3-month LIBOR		10/29/14		941,910
		13,300	4.305	(b)		3-month LIBOR		06/17/10		(517,695	)
		10,000	4.458	(b)		3-month LIBOR		04/18/10		(318,014	)
		3,000	4.500	(a)		3-month LIBOR		05/26/15		225,180
		5,200	4.372	(b)		3-month LIBOR		06/30/15		(443,859	)
		10,375	4.368	(b)		3-month LIBOR		07/15/10		(397,578	)
		18,800	4.385	(b)		3-month LIBOR		08/02/07		7,382
		22,200	4.444	(b)		3-month LIBOR		08/17/07		(235,804	)
		8,000	4.670	(b)		3-month LIBOR		09/20/15		(514,503	)
		5,000	5.000	(b)		3-month LIBOR		11/07/10		(75,671	)
										1,495,232
Income Trust		24,000	3.55	%(b)		3-month LIBOR		10/24/06		(194,092	)
		11,000	4.415	(b)		3-month LIBOR		09/27/08		(225,198	)
		2,800	5.940	(b)		3-month LIBOR		12/07/15		73,809
		50,000	3.000	(a)		3-month LIBOR		04/16/07		1,056,232
		19,000	4.889	(a)		3-month LIBOR		04/22/14		756,828
		22,295	3.215	(b)		3-month LIBOR		06/14/06		(47,924	)
		16,400	3.210	(b)		3-month LIBOR		06/17/06		(42,735	)
		12,500	4.399	(a)		3-month LIBOR		10/25/14		948,394
		900	4.780	(b)		3-month LIBOR		10/27/19		(74,689	)
		9,400	4.902	(a)		3-month LIBOR		03/17/15		427,327
		25,000	4.883	(b)		3-month LIBOR		03/21/15		(1,180,497	)
		16,000	4.925	(a)		3-month LIBOR		03/22/15		680,561
		3,000	4.500	(a)		3-month LIBOR		05/26/15		225,180
		4,500	4.442	(a)		3-month LIBOR		07/11/15		(356,337	)
		10,210	4.368	(b)		3-month LIBOR		07/15/10		(391,255	)
		18,300	4.385	(b)		3-month LIBOR		08/02/07		7,185
		12,000	4.320	(b)		3-month LIBOR		09/08/10		(493,479	)
		5,500	4.870	(b)		3-month LIBOR		01/25/16		(286,655	)
										882,655

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

86

The terms of the open credit default swap agreements at April 30, 2006 were to receive the quarterly notional amount multiplied by 0.40% and pay Barclays Bank, upon default event of Dow Jones CDX, the par value of the notional amount of Dow Jones CDX. Details of open credit default swaps at April 30, 2006 were as follows:

Trust	Notional Amount (000)			Termination Date	Unrealized Depreciation
Core Bond	$	(10,750	)	06/20/11	$	(15,835	)
		(10,750	)	06/20/11		(9,894	)
						(25,729	)
Income Opportunity Trust		(12,000	)	06/20/11	$	(17,680	)
		(12,000	)	06/20/11		(11,045	)
						(28,725	)

Transactions in options written during the six months ended April 30, 2006 were as follows:

Trust		Contracts/ Notional Amount			Premium Received
Core Bond	Options outstanding at October 31, 2005	$	60,200,070		$	2,716,753
	Options written		138			69,239
	Options expired		—			—
	Options terminated in closing purchase transactions		(70	)		(37,923	)
	Options outstanding at April 30, 2006	$	60,200,138		$	2,748,069
Income Opportunity Trust	Options outstanding at October 31, 2005	$	64,600,076		$	2,917,398
	Options written		148			74,492
	Options expired		—			—
	Options terminated in closing purchase transactions		(76	)		(41,158	)
	Options outstanding at April 30, 2006	$	64,600,148		$	2,950,732
Income Trust	Options outstanding at October 31, 2005	$	64,400,000		$	2,868,468
	Options written		148			74,494
	Options expired		—			—
	Options terminated in closing purchase transactions		—			—
	Options outstanding at April 30, 2006	$	64,400,148		$	2,942,962

Note 4. Borrowings

Details of open reverse repurchase agreements at April 30, 2006 were as follows (please see Corresponding Underlying Collateral Chart on pages 88-90):

Trust/Counter Party	Rate	Trade Date	Maturity Date	Net Closing Amount		Par
Core Bond
Lehman Brothers	4.800%	04/10/06	05/05/06	$	3,589,983	$	3,578,531
	4.950	04/28/06	05/16/06		2,666,521		2,659,938
							6,238,469
Income Opportunity
Lehman Brothers	4.760	04/10/06	05/05/06		892,824		890,000
	4.730	04/24/06	05/05/06		4,435,238		4,430,000
	4.750	04/10/06	05/04/06		3,007,035		2,997,938
	4.820	04/10/06	05/04/06		1,761,357		1,755,950
							10,073,888
Income Trust
Lehman Brothers	4.770	04/26/06	05/12/06		20,857,622		20,816,250
	4.730	04/26/06	05/12/06		19,316,745		19,278,750
	4.840	04/13/06	05/17/06		33,592,609		33,525,000
	4.850	04/28/06	05/16/06		1,179,904		1,109,625
							74,729,625
Limited Duration
Credit Suisse First Boston LLC	4.940	03/10/06	05/02/06		9,278,997		9,212,000
	4.840	03/10/06	05/02/06		5,346,830		5,309,000
	4.625	04/03/06	05/02/06		16,591,971		16,532,500
	4.670	03/04/06	05/02/06		5,946,521		5,925,000
	4.550	04/03/06	05/02/06		9,897,402		9,862,500
	4.950	04/25/06	05/02/06		2,802,312		2,402,000
							49,243,000

87

Trust/Counter Party	Rate	Trade Date	Maturity Date	Net Closing Amount		Par
Limited Duration (con’t)
Lehman Brothers	1.500%	01/04/06	TBD	$	1,557,000	$	1,557,000
	3.250	01/09/06	TBD		1,384,000		1,384,000
	4.770	03/10/06	05/15/06		9,379,864		9,302,214
	5.000	03/22/06	05/10/06		909,020		903,000
	4.850	04/08/06	05/15/06		364,040		361,701
	2.750	03/27/06	TBD		737,000		737,000
	4.850	03/27/06	05/15/06		746,070		741,376
	4.730	04/03/06	05/02/06		3,282,908		3,270,875
	4.625	04/03/06	05/02/06		1,741,837		1,735,594
	5.100	04/06/06	05/02/06		1,410,175		1,405,000
	4.920	04/10/06	05/11/06		10,317,128		10,275,000
	5.100	04/10/06	05/12/06		5,782,283		5,757,000
	5.100	04/11/06	05/10/06		3,366,300		3,353,000
	5.100	04/11/06	05/10/06		885,374		882,000
	5.200	04/12/06	05/19/06		4,848,307		4,826,000
	3.400	04/25/06	05/02/06		13,261,413		13,223,000
	5.000	04/19/06	05/12/06		21,551,652		21,486,000
	5.250	04/19/06	05/04/06		5,731,678		5,720,000
	5.050	04/19/06	05/04/06		4,659,132		4,650,000
	4.790	04/24/06	05/12/06		18,510,653		18,508,750
	5.150	04/24/06	05/16/06		21,001,904		20,939,000
	5.050	04/26/06	05/16/06		3,034,065		3,026,000
	5.200	04/26/06	05/16/06		4,680,137		4,668,000
	5.020	04/27/06	05/12/06		2,317,015		2,312,500
							141,024,010
Strategic Bond
Credit Suisse First Boston LLC	4.980	04/20/06	05/16/06		4,326,912		4,312,000
	4.870	04/20/06	05/04/06		9,646,031		9,633,000
							13,945,000
Lehman Brothers	4.920	04/10/06	05/04/06		1,197,916		1,194,000
	4.920	04/10/06	05/04/06		897,813		895,000
	4.920	04/11/06	05/04/06		287,863		287,000
	4.790	04/12/06	05/19/06		3,719,525		3,703,755
	4.800	04/20/06	05/19/06		713,541		710,887
	5.000	04/26/06	05/01/06		287,120		287,000
	5.100	04/28/06	05/16/06		688,752		687,000
							7,764,642

Details of underlying collateral for open reverse repurchase agreements at April 30, 2006 were as follows:

Trust / Counter Party	Description	Rate	Maturity Date		Original Face		Current Face		Market Value
Core Bond
Lehman Brothers	Federal National Mortgage Assoc.	2.350%	05/05/07	$	3,675,000	$	3,675,000	$	3,582,072
	Tennessee Valley Authority	4.875	12/15/16		2,650,000		2,650,000		2,614,809
									6,196,881
Income Opportunity
Lehman Brothers	U.S. Treasury Strip	0.000	11/15/21		2,000,000		2,000,000		876,250
	U.S. Treasury Bond	6.000	02/15/26		6,710,000		6,710,000		7,268,817
	Resolution Funding Corp.	0.000	05/15/30		6,055,000		6,055,000		1,679,507
									9,824,574
Income Trust
Lehman Brothers	U.S. Treasury Notes	3.750	03/31/07		21,000,000		21,000,000		20,780,156
	U.S. Treasury Notes	4.000	08/31/07		19,400,000		19,400,000		19,178,719
	U.S. Treasury Strip	0.000	11/15/24		90,000,000		90,000,000		33,514,740
	U.S. Treasury Notes	2.500	05/31/06		1,100,000		1,100,000		438,799
									73,912,414

88

Trust / Counter Party	Description	Rate		Maturity Date		Original Face		Current Face		Market Value
Limited Duration
Credit Suisse First Boston LLC	General Motors Acceptance Corp.	6.875	%	08/28/12	$	7,500,000	$	7,500,000	$	6,938,257
	Deutsche Telekom Intl. Finance BV	8.000		06/15/10		5,000,000		5,000,000		5,421,422
	U.S. Treasury Notes	3.375		12/15/08		17,000,000		17,000,000		16,378,437
	U.S. Treasury Notes	3.875		05/15/09		6,000,000		6,000,000		5,832,188
	U.S. Treasury Notes	3.750		03/31/07		10,000,000		10,000,000		9,895,313
	Ford Motor Credit Co.	7.375		02/01/11		5,800,000		5,800,000		5,257,456
										49,723,073
Lehman Brothers	Metaldyne Corp.	10.000		11/01/13		1,825,000		1,825,000		1,761,125
	New Page Corp.	11.399		04/01/12		1,500,000		1,500,000		1,635,000
	Federal National Mortgage Assoc.	5.500		09/01/33		6,335,498		3,802,594		3,703,248
	Federal National Mortgage Assoc.	5.000		06/01/20		657,205		614,014		598,702
	Federal National Mortgage Assoc.	5.500		07/01/33		2,207,045		1,286,170		1,252,567
	Federal National Mortgage Assoc.	5.500		06/01/33		800,952		444,464		432,852
	Federal National Mortgage Assoc.	5.500		03/01/32		1,100,000		410,794		400,062
	Federal National Mortgage Assoc.	5.500		03/01/33		1,006,453		336,201		327,418
	Federal National Mortgage Assoc.	5.500		08/01/33		1,212,613		585,905		570,598
	Federal National Mortgage Assoc.	5.500		10/01/33		3,379,155		1,827,099		1,779,699
	Federal National Mortgage Assoc.	5.000		08/01/20		306,253		285,600		278,170
	Echostar DBS Corp.	5.810		10/01/08		1,000,000		1,000,000		1,020,000
	Federal National Mortgage Assoc.	5.500		04/01/29		636,638		130,544		127,372
	Federal National Mortgage Assoc.	5.500		02/01/32		397,360		130,351		126,987
	Federal National Mortgage Assoc.	5.500		04/01/33		248,208		111,657		108,740
	Fairfax Financial Holdings Ltd.	7.750		04/26/12		890,000		890,000		845,500
	Federal National Mortgage Assoc.	5.500		12/01/28		129,812		26,983		26,341
	Federal National Mortgage Assoc.	5.500		01/01/33		263,772		123,072		119,895
	Federal National Mortgage Assoc.	5.500		05/01/33		1,132,320		629,185		612,747
	Federal National Mortgage Assoc.	5.500		11/01/33		188,819		88,816		86,495
	U.S. Treasury Notes	3.375		09/15/09		3,425,000		3,425,000		3,264,988
	U.S. Treasury Notes	4.250		08/15/15		1,815,000		1,815,000		1,707,234
	Cenveo Corp.	9.625		03/15/12		1,500,000		1,500,000		1,605,000
	Honda Auto Receivables	2.300		10/18/07		7,125,000		7,125,000		2,838,156
	MBNA Credit Card Master Note Trust	5.750		10/15/08		7,910,000		7,910,000		7,912,249
	Sequa Corp.	8.875		04/01/08		5,350,000		5,350,000		5,590,750
	Republic of Colombia	9.750		04/23/09		900,000		900,000		990,900
	Group 1 Automotive Inc.	8.250		08/15/13		4,800,000		4,800,000		4,896,000
	Swift Energy Co.	9.375		05/01/12		5,000,000		5,000,000		5,337,500
	GSR Mortgage Loan Trust	4.475		10/25/33		10,000,000		7,211,239		6,864,871
	GSR Mortgage Loan Trust	4.698		10/25/33		10,000,000		7,214,101		6,856,801
	Tyco Intl. Group SA	6.125		11/01/08		7,500,000		7,500,000		7,577,843
	DaimlerChrysler NA Holding Corp.	4.050		06/04/08		7,500,000		7,500,000		7,265,939
	Comcast Cable Communications, Inc.	6.875		06/15/09		6,685,000		6,685,000		6,926,663
	DI Finance	9.500		02/15/13		6,220,000		6,220,000		6,499,900
	American Real Estate Partnership	8.125		06/01/12		5,100,000		5,100,000		5,265,750
	Federal National Mortgage Assoc.	7.250		01/15/10		17,000,000		17,000,000		18,122,928
	CSC Holdings, Inc.	7.875		12/15/07		6,000,000		6,000,000		6,120,000
	Midwest Generation LLC	8.560		01/02/16		6,365,000		5,664,733		6,089,588
	AES Corp.	8.750		05/15/13		5,000,000		5,000,000		5,400,000
	MGM Mirage	9.750		06/01/07		5,425,000		5,425,000		5,628,438
	Western Financial Bank	9.625		05/15/12		3,000,000		3,000,000		3,330,000
	Concentra Operating Corp.	9.500		08/15/10		5,000,000		5,000,000		5,262,500
	DR Horton Inc.	5.875		07/01/13		2,500,000		2,500,000		2,388,767
										149,556,283

89

Trust / Counter Party	Description	Rate	Maturity Date		Original Face		Current Face		Market Value
Strategic Bond
Credit Suisse First Boston LLC	Wells Fargo & Co.	3.500%	04/04/08	$	2,000,000	$	2,000,000	$	1,937,382
	HSBC Bank USA, Inc.	3.875	09/15/09		1,500,000		1,500,000		1,434,252
	Comcast Cable Communications, Inc.	6.875	06/15/09		1,000,000		1,000,000		1,036,150
	SBC Communications, Inc.	6.450	06/15/34		1,500,000		1,500,000		1,459,898
	Dominion Resources, Inc.	5.700	09/17/12		1,000,000		1,000,000		987,211
	DaimlerChrysler NA Holding Corp.	7.300	01/15/12		1,000,000		1,000,000		1,053,616
	Citigroup, Inc.	5.750	05/10/06		500,000		500,000		500,073
	General Electric Cap. Corp.	3.450	07/16/07		2,000,000		2,000,000		1,958,342
	Verizon New England, Inc.	6.500	09/15/11		2,000,000		2,000,000		2,029,823
	Merck & Co., Inc.	4.375	02/15/13		1,000,000		1,000,000		918,974
	News America, Inc.	6.200	12/15/34		1,000,000		1,000,000		916,395
									14,232,116
Lehman Brothers	Citigroup, Inc.	5.750	05/10/06		2,100,000		2,100,000		2,100,306
	European Investment Bank	4.875	09/06/06		600,000		600,000		599,198
	U.S. Treasury Notes	4.250	08/15/13		1,000,000		1,000,000		954,219
	U.S. Treasury Notes	2.625	11/15/06		933,000		933,000		921,192
	U.S. Treasury Notes	2.500	05/31/06		1,010,000		1,010,000		1,008,106
	U.S. Treasury Notes	4.125	08/15/10		810,000		810,000		785,953
	U.S. Treasury Notes	4.750	05/15/14		710,000		710,000		696,909
	KFW Intl. Finance	5.250	06/28/06		700,000		700,000		699,940
									7,765,823

Note 5. Commitments

Bridge Debt Commitments: At April 30, 2006, High Yield and Limited Duration had $2,712,188 and $16,690,389, respectively, in commitments outstanding to fund high yield bridge debt. The Trusts are entitled to a fee upon the expiration of the commitment period, generally within six months of the initial commitment date. The bridge debt terms approximate market rates at the time the commitment is entered into.

Note 6. Income Tax Information

The tax character of distributions paid during the year ended October 31, 2005 were as follows:

	Year ended October 31, 2005
Distributions Paid from:	Ordinary Income		Non-taxable Return of Capital		Long-term Capital Gains		Total Distributions
Broad Investment Grade	$	3,271,251	$	—	$	525,065	$	3,796,316
Core Bond		27,245,722		—		9,450,907		36,696,629
High Yield		5,087,371		—		—		5,087,371
Income Opportunity		28,509,597		—		8,926,885		37,436,482
Income Trust		30,667,298		4,798,184		—		35,465,482
Limited Duration		52,882,982		—		1,634,766		54,517,748
Strategic Bond		7,935,935		1,898,203		—		9,834,138

          For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year end. These amounts may be used to offset future realized capital gains, if any:

Trust	Capital Loss Carryforward Amount		Expires
Broad Investment Grade	$	2,518,895	2011
		684,360	2012
	$	3,203,255
High Yield	$	2,558,868	2007
		3,270,311	2008
		15,159,280	2009
		8,468,860	2010
		4,771,417	2011
		316,410	2012
	$	34,545,146

Trust	Capital Loss Carryforward Amount		Expires
Income Trust	$	33,107,952	2007
		1,352,206	2008
		13,940,898	2009
		21,960,613	2011
		10,100,201	2012
		3,861,222	2013
	$	84,323,092
Limited Duration	$	2,008,113	2013
Strategic Bond	$	432,713	2011
		318,492	2013
	$	751,205

90

Note 7. Capital

There are 200 million of $0.01 par value common shares authorized for each of the Broad Investment Grade, Income Opportunity and Income Trusts. There are an unlimited number of $0.001 par value common shares authorized for Core Bond, High Yield, Limited Duration and Strategic Bond. At April 30, 2006, the shares owned by affiliates of the Advisor of Limited Duration were 6,021.

          During the six months ended April 30, 2006, High Yield issued additional shares under its dividend reinvestment plan of 1,921. During the year ended October 31, 2005, High Yield, Income Trust, Limited Duration and Strategic Bond issued additional shares under their dividend reinvestment plans of 7,498, 227,068, 41,211, and 9,684, respectively.

Note 8. Dividends

Subsequent to April 30, 2006, the Board of each of the Trusts declared dividends per common share payable May 31, 2006 to shareholders of record on May 15, 2006. The per share common dividends declared were as follows:

Trust	Common Dividend Per Share
Broad Investment Grade	$	0.075000
Core Bond		0.077100
High Yield		0.055333
Income Opportunity		0.061900
Income Trust		0.036787
Limited Duration		0.121800
Strategic Bond		0.088000

91

DIVIDEND REINVESTMENT PLANS

          Pursuant to each Trust’s respective Dividend Reinvestment Plan (the “Plan”), shareholders of Broad Investment Grade, Income Opportunity and Income Trust may elect, while shareholders of Core Bond, High Yield, Limited Duration and Strategic Bond are automatically enrolled, to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

          After Broad Investment Grade and/or Income Opportunity Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ account, by the purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“open market purchases”). The Trust will not issue any new shares under the Plan.

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

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

          Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants who request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commisson. All correspondence concerning the Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021 or (800) 699-1BFM.

92

ADDITIONAL INFORMATION

          On February 15, 2006, BlackRock, Inc. (“BlackRock”) and Merrill Lynch & Co., Inc. (“Merrill Lynch”) announced that they had entered into an agreement pursuant to which Merrill Lynch would contribute its investment management business, Merrill Lynch Investment Managers, to BlackRock, one of the largest publicly traded investment management firms in the United States, to form a new asset management company that will be one of the world’s preeminent, diversified global money management organizations with approximately $1 trillion in assets under management. Based in New York, BlackRock currently manages assets for institutional and individual investors worldwide through a variety of equity, fixed income, cash management and alternative investment products. The new company will operate under the BlackRock name and be governed by a board of directors with a majority of independent members. The new company will offer a full range of equity, fixed income, cash management and alternative investment products with strong representation in both retail and institutional channels, in the U.S. and in non-U.S. markets. It will have over 4,500 employees in 18 countries and a major presence in most key markets, including the United States, the United Kingdom, Asia, Australia, the Middle East and Europe. Merrill Lynch will own no more than 49.8% of the total issued and outstanding capital stock of the new company and it will own no more than 45% of the new company’s common stock, and The PNC Financial Services Group, Inc. (“PNC”), which currently holds a majority interest in BlackRock, will retain approximately 34% of the new company’s common stock. Each of Merrill Lynch and PNC has agreed that it will vote all of its shares on all matters in accordance with the recommendation of BlackRock’s board. Completion of the transaction is subject to various regulatory approvals, client consents, approval by BlackRock shareholders and customary conditions. The transaction has been approved by the boards of directors of Merrill Lynch, BlackRock and PNC and is expected to close at the end of the third quarter of 2006.

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

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

          During the period, there were no material changes in the Trusts’ investment objective or policies or to their charters or by-laws that have not been approved by shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolio.

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

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

93

SECTION 19 NOTICES

          Set forth below is a summary of notices sent by each Trust, if any, pursuant to Section 19 of the Invesment Company Act of 1940. Section 19 requires each Trust to accompany dividend payments with a notice if any part of that payment is from a source other than accumulated net income, not including profits or losses from the sale of securities or other properties. These notices are not for tax reporting purposes and were provided only for informational purposes in order to comply with the requirements of Section 19 of the Investment Company Act of 1940. In January 2007, after the completion of each Trust’s tax year, shareholders will receive a Form 1099-DIV which will reflect the amount of income, capital gain and return of capital paid by the Trust taxable in calendar year 2006 and reportable on your 2006 federal and other income tax returns.

								Distributions
								from proceeds			Distributions
		Total			Net Investment			from the sale			from return
		Distributions			Income			of securities			of capital
Core Bond
	Nov-05		$	0.07710		$	0.05490		$	—		$	0.02220
	Dec-05		$	0.07710		$	0.06824		$	—		$	0.00886
	Dec-05		$	0.26057		$	—		$	0.26057		$	—
	Apr-06		$	0.07710		$	0.05028		$	—		$	0.02682
High Yield
	Feb-06		$	0.05533		$	0.05037		$	—		$	0.00496
Income Opportunity
	Dec-05		$	0.26057		$	—		$	0.26057		$	—
Income Trust
	Mar-06		$	0.03679		$	0.03469		$	—		$	0.00210
	Apr-06		$	0.03679		$	0.02674		$	—		$	0.01005
Strategic Bond
	Feb-06		$	0.08800		$	0.06096		$	—		$	0.02704
	Mar-06		$	0.08800		$	0.04932		$	—		$	0.03868

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BlackRock Closed-End Funds

Directors/Trustees	Transfer Agent
Ralph L. Schlosstein, Chairman	Computershare Trust Company, N.A.
Andrew F. Brimmer, Lead Trustee	250 Royall Street
Richard E. Cavanagh	Canton, MA 02021
Kent Dixon	(800) 699-1BFM
Frank J. Fabozzi	Independent Registered Public Accounting Firm
R. Glenn Hubbard	Deloitte & Touche LLP
Robert S. Kapito	200 Berkeley Street
Officers	Boston, MA 02116
Robert S. Kapito, President	Legal Counsel
Henry Gabbay, Treasurer	Skadden, Arps, Slate, Meagher & Flom LLP
Bartholomew Battista, Chief Compliance Officer	4 Times Square
Anne Ackerley, Vice President	New York, NY 10036
Jeff Gary, Vice President	Legal Counsel – Independent Directors/Trustees
James Kong, Assistant Treasurer	Debevoise & Plimpton LLP
Vincent B. Tritto, Secretary	919 Third Avenue
Brian P. Kindelan, Assistant Secretary	New York, NY 10022
Investment Advisor	This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
Sub-Advisor1	BlackRock Closed-End Funds
BlackRock Financial Management, Inc.	c/o BlackRock Advisors, Inc.
40 East 52nd Street	100 Bellevue Parkway
New York, NY 10022	Wilmington, DE 19809
Accounting Agent and Custodian	(800) 227-7BFM
State Street Bank and Trust Company
2 Avenue de Lafayette
Boston, MA 02111
1        For Core Bond, Limited Duration and Strategic Bond.

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 699-1BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor’s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov.

Information on how proxies relating to the Trusts’ voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust’s Form N-Q will be available on the Commission’s website at http://www.sec.gov. Each Trust’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Each Trust’s Form N-Q may also be obtained, upon request, by calling (800) 699-1BFM.

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.
CEF-SEMI-3

Item 2. Code of Ethics.Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.

Item 6. Schedule of Investments.
The Registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable for semi-annual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.

Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.
No such purchases were made during the period covered by this report.

Item 10. Submission of Matters to a Vote of Security Holders.
No matters were voted on by shareholders during the period covered by this report.

Item 11. Controls and Procedures. (a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

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

Item 12. Exhibits.

(a) (1) Not applicable.

(a) (2) Separate certifications of the Principal Executive and Financial Officers pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.CERT.

(b) Certification of Principal Executive and Financial Officers pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906 CERT.

2

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)      BlackRock Broad Investment Grade 2009 Term Trust, Inc.

By:      /s/ Henry Gabbay               
Name: Henry Gabbay
Title: Treasurer
Date: July 6, 2006

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

By:      /s/ Robert S. Kapito               
Name: Robert S. Kapito
Title: Principal Executive Officer
Date: July 6, 2006

By:      /s/ Henry Gabbay               
Name: Henry Gabbay
Title: Principal Financial Officer
Date: July 6, 2006

3