Edgar Filing: BLACKROCK MUNIHOLDINGS INVESTMENT QUALITY FUND

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 811-08349

Name of Fund: BlackRock MuniHoldings Investment Quality Fund (MFL)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings Investment Quality Fund, 55 East 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2011

Date of reporting period: 02/28/2011

Item 1 – Report to Stockholders


	February 28, 2011

Semi-Annual Report (Unaudited)

BlackRock Municipal Income Quality Trust (BYM)

BlackRock Municipal Income Investment Quality Trust (BAF)

BlackRock Municipal Bond Trust (BBK)

BlackRock Municipal Bond Investment Trust (BIE)

BlackRock Municipal Income Trust II (BLE)

BlackRock MuniHoldings Investment Quality Fund (MFL)

BlackRock MuniVest Fund, Inc. (MVF)

Not FDIC Insured • No Bank Guarantee • May Lose Value




Table of Contents


		Page


Dear Shareholder		3
Semi-Annual Report:
Municipal Market Overview		4
Trust Summaries		5
The Benefits and Risks of Leveraging		12
Derivative Financial Instruments		12
Financial Statements:
Schedules of Investments		13
Statements of Assets and Liabilities		42
Statements of Operations		43
Statements of Changes in Net Assets		44
Statements of Cash Flows		46
Financial Highlights		47
Notes to Financial Statements		54
Officers and Trustees		61
Additional Information		62



2	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Dear Shareholder

Over the past 12 months, we have seen a sluggish, stimulus-driven economic recovery at long last gain real traction, accelerate, and transition into a consumption-driven expansion. For the most part, 2010 was plagued with widely fluctuating economic data, but as the year drew to a close, it became clear that cyclical stimulus had beaten out structural problems as economic data releases generally became more positive and financial markets showed signs of continuing improvement. Although the sovereign debt crises and emerging market inflation that troubled the global economy in 2010 remain a challenge, overall investor sentiment considerably improved. Near the end of the period, geopolitical tensions across the Middle East North Africa (“MENA”) region along with rising oil prices introduced new cause for concern about the future of the global economy. As of this writing, economic news remains fairly positive although we face additional uncertainties related to the aftermath of the devastating earthquake in Japan, with particular focus on the damage to nuclear power plants.

In the United States, strength from the corporate sector and increasing consumer spending have been key drivers of economic growth, while the housing and labor markets have been the heaviest burdens. While housing has yet to show any meaningful sign of improvement, labor statistics have delivered a mixed bag month after month, but became increasingly encouraging toward the end of the period when the unemployment rate fell to its lowest level since April 2009.

Global equity markets experienced uneven growth and high volatility over the course of 2010, but ended the year strong. Following a strong start to 2011, stocks lost their momentum on the back of geopolitical events in the MENA region and a sharp rise in oil prices. Overall, equities posted strong returns for the 12-month period. US stocks outpaced most international markets and small cap stocks outperformed large caps as investors moved into higher-risk assets.

Fixed income markets saw yields trend lower over most of 2010, until the fourth quarter brought an abrupt reversal in sentiment and risk tolerance that drove yields sharply upward (pushing bond prices down) through year end. Improving economic data continued to pressure fixed income yields in 2011; however, escalating geopolitical risks have acted as a counterweight, restoring relative stability to yield movements. Nevertheless, the yield curve remained steep and higher-risk sectors outperformed the fixed income market.

The tax-exempt municipal market enjoyed a powerful rally during the period of low interest rates in 2010; however, when the yield trend reversed, the market was dealt an additional blow as it became evident that the Build America Bond program would expire at year end. In addition, negative headlines regarding fiscal challenges faced by state and local governments damaged investor confidence and further heightened volatility in the municipal market. Tax-exempt mutual funds experienced heavy outflows, resulting in wider quality spreads and further downward pressure on municipal bond prices. These headwinds began to abate as the period came to a close and municipals finally posted gains in February, following a five-month run of negative performance.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates remained low. Yields on money market securities remain near all-time lows.


Total returns as of February 28, 2011	6-month		12-month

US large cap equities (S&P 500 Index)	27.73	%	22.57	%

US small cap equities (Russell 2000 Index)	37.55		32.60

International equities (MSCI Europe, Australasia, Far East Index)	23.77		20.00

3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)	0.07		0.14

US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)	(6.04	)	4.76

US investment grade bonds (Barclays Capital US Aggregate Bond Index)	(0.83	)	4.93

Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)	(3.51	)	1.72

US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)	10.05		17.34

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

While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can offer investors the next best thing: partnership with the world’s largest asset management firm and a unique global perspective that allows us to identify trends early and capitalize on market opportunities. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder^® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.

Sincerely,

-s- Rob Kopito

Rob Kopito
President, BlackRock Advisors, LLC



	THIS PAGE NOT PART OF YOUR FUND REPORT		3

Municipal Market Overview

As of February 28, 2011

The municipal market began the six-month period with yields at historic lows as investor concerns were focused on the possibility of deflation and a double-dip in the US economy. However, as these fears soon abated, yields began drifting higher in October, and ultimately, a “perfect storm” of negative events resulted in the worst quarterly performance that the municipal market has seen since the Fed tightening cycle of 1994. Treasury yields lost their support as concerns about the US deficit raised questions over the willingness of foreign investors to continue to purchase Treasury securities, at least at the previous historically low yields. Municipal valuations also suffered a quick and severe setback as it became evident that the Build America Bond (“BAB”) program would expire at year-end. The program had opened the taxable market to municipal issuers, which had successfully alleviated supply pressure in the traditional tax-exempt marketplace, bringing down yields in that space.

(LINE GRAPH)

The financial media has been replete with interviews, articles and presentations publicizing the stress experienced in municipal finance, resulting in a loss of confidence among retail investors who buy individual bonds or mutual funds. From the middle of November through year-end, funds specializing in tax-exempt bonds witnessed weekly outflows averaging over $2.5 billion. Long-term and high-yield funds saw the greatest redemptions, followed by state-specific funds to a lesser but still significant degree. Demand usually is strong at the beginning of a new year against a backdrop of low new-issue supply, but the mutual fund outflows continued into February, putting additional upward pressure on municipal yields. Political uncertainty surrounding the midterm elections and the approach taken by the new Congress on issues such as income tax rates and alternative minimum tax (and the previously mentioned BAB non-extension) exacerbated the situation. All these conditions, combined with the seasonal illiquidity surrounding year-end holidays and dealers closing their fiscal books, sapped willing market participation from the trading community.

As demand for municipal securities from traditional retail investors was declining and trading desk liquidity was being curtailed, there was no comparable reduction in supply. As it became evident that the BAB program would be retired, issuers rushed deals to market both in the taxable municipal space and, to a lesser degree, in the traditional tax-exempt space. This imbalance in the supply/demand technicals provided the classic market action, leading to wider quality spreads and higher bond yields. The municipal curve steepened as the issuance was concentrated in longer (greater than 20-year) maturities. Curve steepening that began in October accelerated in November, spurred on by Treasury weakness, heavy supply and record outflows. As measured by Thomson Municipal Market Data, yields on AAA-rated municipals rose nearly 103 basis points (“bps”) for maturities 25 years and longer from August 31, 2010, to February 28, 2011. The spread between two-year and 30-year maturities widened from 332 bps to 398 bps over the period.

The fundamental picture for municipalities will be subject to scrutiny for months to come, as the challenges to state and local budgets are real and need to be addressed with significant cuts to expenses and tax revenue increases. The debates around austerity measures needed to succeed in balancing these budgets are not over whether action needs to be taken, but over degree, approach and political will to accomplish these needs. The attention shone upon municipal finance has the potential to improve this market for the future if these efforts result in greater means toward disclosure and accuracy (and timeliness) of reporting. Early tests to judge progress will come soon as California, Illinois and Puerto Rico need to take austerity measures and access financing in the municipal market to address relatively immediate fiscal imbalances. BlackRock favors a more constructive outlook for the municipal market as the typical, and this year particularly atypical, weakness passes.



4	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Trust Summary as of February 28, 2011	BlackRock Municipal Income Quality Trust

Trust Overview

Effective November 9, 2010, BlackRock Insured Municipal Income Trust changed its name to BlackRock Municipal Income Quality Trust.

BlackRock Municipal Income Quality Trust’s (BYM) (the “Trust”) investment objective is to provide current income exempt from federal income taxes, including the alternative minimum tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in municipal bonds exempt from federal income taxes, including the alternative minimum tax. The Trust also invests primarily in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.


	No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Effective November 9, 2010, the Trust’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of its assets to be invested in insured municipal securities. Accordingly, the Trust was moved from the Lipper Insured Municipal Debt Funds (Leveraged) category into the Lipper General Municipal Debt Funds (Leveraged) category. For the six months ended February 28, 2011, the Trust returned (9.53)% based on market price and (7.89)% based on net asset value (“NAV”). For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (10.86)% based on market price and (7.86)% based on NAV, and the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (11.51)% based on market price and (6.90)% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s performance was negatively impacted by its long duration during a period of rising rates. The Trust’s holdings of longer maturity bonds also detracted from performance as the municipal yield curve bear-steepened (long rates increased more than short rates). Conversely, the Trust’s performance was positively impacted by its holdings of pre-refunded bonds and securities with higher coupons that are priced to shorter call dates. These types of securities performed well due to their shorter duration as municipal rates rose sharply. In addition, the Trust benefited from its holdings in the housing sector, which had strong performance over the period.


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

Trust Information


Symbol on New York Stock Exchange (“NYSE”)		BYM
Initial Offering Date		October 31, 2002
Yield on Closing Market Price as of February 28, 2011 ($13.34)¹		6.93%
Tax Equivalent Yield²		10.66%
Current Monthly Distribution per Common Share³		$0.077
Current Annualized Distribution per Common Share³		$0.924
Leverage as of February 28, 2011⁴		39%


	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	Tax equivalent yield assumes the maximum federal tax rate of 35%.

	³	The distribution rate is not constant and is subject to change.

	⁴	Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

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



	2/28/11		8/31/10		Change			High		Low

Market Price	$	13.34	$	15.26		(12.58	)%	$	15.42	$	11.71
Net Asset Value	$	13.03	$	14.64		(11.00	)%	$	14.69	$	12.20

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

Sector Allocations


	2/28/11		8/31/10

Transportation	23	%	21	%
Utilities	21		24
County/City/Special District/School District	21		21
State	15		15
Health	7		7
Tobacco	6		6
Education	3		3
Corporate	2		2
Housing	2		1

Credit Quality Allocations⁵


	2/28/11		8/31/10

AAA/Aaa	25	%	57	%
AA/Aa	54		24
A	12		12
BBB/Baa	9		5
Not Rated	—		2	⁶


	⁵	Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.

	⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2010, the market value of these securities was $10,513,600 representing 2% of the Trust’s long-term investments.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	5




Trust Summary as of February 28, 2011	BlackRock Municipal Income Investment Quality Trust

Trust Overview

Effective November 9, 2010, BlackRock Insured Municipal Income Investment Trust changed its name to BlackRock Municipal Income Investment Quality Trust.

BlackRock Municipal Income Investment Quality Trust’s (BAF) (the “Trust”) investment objective is to provide current income exempt from federal income tax, including the alternative minimum tax and Florida intangible property tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in municipal bonds exempt from federal income taxes, including the alternative minimum tax. The Trust also invests primarily in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008, allowing the Trust the flexibility to invest in municipal obligations regardless of geographical location.


	No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Effective November 9, 2010, the Trust’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of its assets to be invested in insured municipal securities. Accordingly, the Trust was moved from the Lipper Insured Municipal Debt Funds (Leveraged) category into the Lipper General Municipal Debt Funds (Leveraged) category. For the six months ended February 28, 2011, the Trust returned (13.50)% based on market price and (7.61)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (10.86)% based on market price and (7.86)% based on NAV, and the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (11.51)% based on market price and (6.90)% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s holdings of high-quality essential service bonds with premium coupons (6% or higher) benefited performance, as they held their value better than lower-coupon bonds in the rising interest rate environment. Conversely, exposure to longer-duration and longer-maturity bonds detracted from performance as the long end of the yield curve steepened during the period. Additionally, holdings in health care and transportation hindered performance as both sectors underperformed the broad municipal market.


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

Trust Information


Symbol on NYSE		BAF
Initial Offering Date		October 31, 2002
Yield on Closing Market Price as of February 28, 2011 ($13.10)¹		6.82%
Tax Equivalent Yield²		10.49%
Current Monthly Distribution per Common Share³		$0.0745
Current Annualized Distribution per Common Share³		$0.8940
Leverage as of February 28, 2011⁴		37%


	¹	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

	²	Tax equivalent yield assumes the maximum federal tax rate of 35%.

	³	The distribution rate is not constant and is subject to change.

	⁴	Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

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



	2/28/11		8/31/10		Change			High		Low

Market Price	$	13.10	$	15.64		(16.24	)%	$	15.92	$	11.92
Net Asset Value	$	13.49	$	15.08		(10.54	)%	$	15.08	$	12.76

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

Sector Allocations


	2/28/11		8/31/10

County/City/Special District/School District	33	%	36	%
Utilities	26		27
Transportation	15		15
Health	12		10
State	11		11
Education	1		—
Housing	1		1
Tobacco	1		—

Credit Quality Allocations⁵


	2/28/11		8/31/10

AAA/Aaa	8	%	59	%
AA/Aa	79		25
A	9		13
BBB/Baa	4		—
Not Rated	—		3⁶


	⁵	Using the higher of S&P’s or Moody’s ratings.

	⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2010, the market value of these securities was $5,171,100 representing 3% of the Trust’s long-term investments.



6	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Trust Summary as of February 28, 2011	BlackRock Municipal Bond Trust

Trust Overview

BlackRock Municipal Bond Trust’s (BBK) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from regular federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.


	No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the six months ended February 28, 2011, the Trust returned (10.59)% based on market price and (8.61)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (10.86)% based on market price and (7.86)% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s exposure to the long end of the yield curve and holdings of low-coupon, long-duration bonds during a period of rising rates had a negative impact on performance. The Trust’s exposure to Puerto Rico credits and the health sector also detracted from performance, as did holdings of lower-quality credits, where spreads widened amid the backdrop of poor relative performance across the municipal market. Conversely, the Trust benefited from its holdings of tax-backed credits (state, county, city and school district) as well as its exposure to corporate-backed credits, which experienced some buy-side demand from non-traditional cross-over buyers.


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

Trust Information


Symbol on NYSE		BBK
Initial Offering Date		April 30, 2002
Yield on Closing Market Price as of February 28, 2011 ($13.61)¹		7.58%
Tax Equivalent Yield²		11.66%
Current Monthly Distribution per Common Share³		$0.086
Current Annualized Distribution per Common Share³		$1.032
Leverage as of February 28, 2011⁴		38%


	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	Tax equivalent yield assumes the maximum federal tax rate of 35%.

	³	A change in the distribution rate was declared on March 1, 2011. The Monthly Distribution per Common Share was increased to $0.0885. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

	⁴	Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

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



	2/28/11		8/31/10		Change			High		Low

Market Price	$	13.61	$	15.79		(13.81	)%	$	16.00	$	12.20
Net Asset Value	$	13.47	$	15.29		(11.90	)%	$	15.30	$	12.70

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

Sector Allocations


	2/28/11		8/31/10

Health	24	%	23	%
Housing	15		14
State	14		15
County/City/Special District/School District	11		13
Corporate	10		8
Education	10		10
Transportation	9		9
Utilities	5		5
Tobacco	2		3

Credit Quality Allocations⁵


	2/28/11		8/31/10

AAA/Aaa	8	%	26	%
AA/Aa	40		20
A	19		22
BBB/Baa	19		20
BB/Ba	5		1
B	3		3
CCC/Caa	1		1
Not Rated⁶	5		7


	⁵	Using the higher of S&P’s or Moody’s ratings.

	⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2011 and August 31, 2010, the market value of these securities was $4,946,681 representing 2% and $6,207,616 representing 3%, respectively, of the Trust’s long-term investments.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	7




Trust Summary as of February 28, 2011	BlackRock Municipal Bond Investment Trust

Trust Overview

BlackRock Municipal Bond Investment Trust’s (BIE) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008, allowing the Trust the flexibility to invest in municipal obligations regardless of geographical location.


	No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the six months ended February 28, 2011, the Trust returned (13.80)% based on market price and (9.43)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (10.86)% based on market price and (7.86)% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. Exposure to longer-duration and longer-maturity bonds detracted from the Trust’s performance as the long end of the yield curve steepened during the period. Additionally, holdings in health care and transportation hindered performance as both sectors underperformed the broad municipal market. Conversely, exposure to housing and corporate-backed bonds aided performance as both sectors outperformed the broad municipal market. The Trust’s holdings of high-quality essential service bonds with premium coupons (6% or higher) also benefited performance, as they held their value better than lower-coupon bonds in the rising interest rate environment.


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

Trust Information


Symbol on NYSE		BIE
Initial Offering Date		April 30, 2002
Yield on Closing Market Price as of February 28, 2011 ($13.00)¹		7.27%
Tax Equivalent Yield²		11.18%
Current Monthly Distribution per Common Share³		$0.0788
Current Annualized Distribution per Common Share³		$0.9456
Leverage as of February 28, 2011⁴		43%


	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	Tax equivalent yield assumes the maximum federal tax rate of 35%.

	³	A change in the distribution rate was declared on March 1, 2011. The Monthly Distribution per Common Share was increased to $0.081. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

	⁴	Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

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



	2/28/11		8/31/10		Change			High		Low

Market Price	$	13.00	$	15.60		(16.67	)%	$	15.76	$	12.14
Net Asset Value	$	13.58	$	15.51		(12.44	)%	$	15.51	$	12.76

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

Sector Allocations


	2/28/11		8/31/10

Health	23	%	22	%
Utilities	19		18
Transportation	18		18
County/City/Special District/School District	17		19
State	8		8
Education	8		8
Housing	5		5
Corporate	1		1
Tobacco	1		1

Credit Quality Allocations⁵


	2/28/11		8/31/10

AAA/Aaa	10	%	14	%
AA/Aa	66		64
A	18		17
BBB/Baa	5		4
BB/Ba	1		—
Not Rated	—		1


	⁵	Using the higher of S&P’s or Moody’s ratings.



8	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Trust Summary as of February 28, 2011	BlackRock Municipal Income Trust II

Trust Overview

BlackRock Municipal Income Trust II’s (BLE) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.


	No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the six months ended February 28, 2011, the Trust returned (11.27)% based on market price and (6.98)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (10.86)% based on market price and (7.86)% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. At the beginning of the period, the Trust’s longer duration stance was beneficial as rates declined and credit spreads tightened; however, the sharp reversal of these trends mid-period resulted in an overall negative impact on performance for the period. In addition, the Trust’s emphasis on lower-quality bonds hurt performance as credit spreads widened over the period. Contributing positively to performance was the Trust’s reduced exposure to the tobacco sector, which was the worst performing sector for the period. Additionally, a general reduction of capital appreciation bond (“CAB”) holdings proved beneficial in the rising rate environment as CABs are highly sensitive to interest rate fluctuations.


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

Trust Information


Symbol on NYSE Amex		BLE
Initial Offering Date		July 30, 2002
Yield on Closing Market Price as of February 28, 2011 ($13.02)¹		7.70%
Tax Equivalent Yield²		11.85%
Current Monthly Distribution per Common Share³		$0.0835
Current Annualized Distribution per Common Share³		$1.0020
Leverage as of February 28, 2011⁴		38%


	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	Tax equivalent yield assumes the maximum federal tax rate of 35%.

	³	The distribution rate is not constant and is subject to change.

	⁴	Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

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



	2/28/11		8/31/10		Change			High		Low

Market Price	$	13.02	$	15.22		(14.45	)%	$	15.35	$	11.87
Net Asset Value	$	13.12	$	14.63		(10.32	)%	$	14.63	$	12.41

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

Sector Allocations


	2/28/11		8/31/10

Health	20	%	19	%
State	18		17
Utilities	12		13
Corporate	11		11
Transportation	11		11
County/City/Special District/School District	10		12
Education	8		7
Housing	6		6
Tobacco	4		4

Credit Quality Allocations⁵


	2/28/11		8/31/10

AAA/Aaa	13	%	18	%
AA/Aa	28		21
A	29		30
BBB/Baa	15		17
BB/Ba	5		1
B	4		6
CCC/Caa	1		1
Not Rated⁶	5		6


	⁵	Using the higher of S&P’s or Moody’s ratings.

	⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2011 and August 31, 2010, the market value of these securities was $7,192,827 representing 1% and $13,839,185 representing 3%, respectively, of the Trust’s long-term investments.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	9




Trust Summary as of February 28, 2011	BlackRock MuniHoldings Investment Quality Fund

Trust Overview

Effective November 9, 2010, BlackRock MuniHoldings Insured Investment Fund changed its name to BlackRock MuniHoldings Investment Quality Fund.

BlackRock MuniHoldings Investment Quality Fund’s (MFL) (the “Trust”) investment objective is to provide shareholders with current income exempt from federal income tax and to provide shareholders with the opportunity to own shares the value of which is exempt from Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008, allowing the Trust the flexibility to invest in municipal obligations regardless of geographical location.


	No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Effective November 9, 2010, the Trust’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of its assets to be invested in insured municipal securities. Accordingly, the Trust was moved from the Lipper Insured Municipal Debt Funds (Leveraged) category into the Lipper General Municipal Debt Funds (Leveraged) category. For the six months ended February 28, 2011, the Trust returned (10.49)% based on market price and (8.76)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (10.86)% based on market price and (7.86)% based on NAV, and the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (11.51)% based on market price and (6.90)% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. Exposure to longer-duration and longer-maturity bonds detracted from the Trust’s performance as the long end of the yield curve steepened during the period. Additionally, holdings in health care and transportation hindered performance as both sectors underperformed the broad municipal market. Conversely, exposure to housing bonds aided performance as that sector outperformed the broad municipal market. The Trust’s holdings of high-quality essential service bonds with premium coupons (6% or higher) also benefited performance, as they held their value better than lower-coupon bonds in the rising interest rate environment.


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

Trust Information


Symbol on NYSE		MFL
Initial Offering Date		September 26, 1997
Yield on Closing Market Price as of February 28, 2011 ($12.68)¹		7.10%
Tax Equivalent Yield²		10.92%
Current Monthly Distribution per Common Share³		$0.075
Current Annualized Distribution per Common Share³		$0.900
Leverage as of February 28, 2011⁴		41%


	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 equivalent yield assumes the maximum federal tax rate of 35%.

	³	A change in the distribution rate was declared on March 1, 2011. The Monthly Distribution per Common Share was increased to $0.0765. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

	⁴	Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

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



	2/28/11		8/31/10		Change			High		Low

Market Price	$	12.68	$	14.65		(13.45	)%	$	14.87	$	11.68
Net Asset Value	$	12.96	$	14.69		(11.78	)%	$	14.69	$	12.23

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

Sector Allocations


	2/28/11		8/31/10

Utilities	26	%	26	%
Transportation	24		27
County/City/Special District/School District	18		18
Health	12		11
State	11		12
Housing	5		4
Education	3		2
Tobacco	1		—

Credit Quality Allocations⁵


	2/28/11		8/31/10

AAA/Aaa	6	%	64	%
AA/Aa	82		24
A	8		11
BBB/Baa	3		—
Not Rated⁶	1		1


	⁵	Using the higher of S&P’s or Moody’s ratings.

	⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2011 and August 31, 2010, the market value of these securities was $3,022,118 representing 1% and $5,793,997 representing 1%, respectively, of the Trust’s long-term investments.



10	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Trust Summary as of February 28, 2011	BlackRock MuniVest Fund, Inc.

Trust Overview

BlackRock MuniVest Fund, Inc.’s (MVF) (the “Trust”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, primarily in long term municipal obligations rated investment grade at the time of investment and invests primarily in long term municipal obligations with maturities of more than ten years at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.


	No assurance can be given that the Trust’s investment objective will be achieved

Performance

For the six months ended February 28, 2011, the Trust returned (9.59)% based on market price and (7.91)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (10.86)% based on market price and (7.86)% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. At the beginning of the period, the Trust benefited from tightening credit quality spreads driven by generous investor cash flows into tax-exempt mutual funds. Spreads were pushed even tighter by heightened demand from taxable investors for corporate-backed municipal debt due to its attractive valuation relative to the corporate sector. In this environment of strong demand, we were able to sell lower-quality securities that had outperformed and had previously been very limited in their liquidity. Toward the end of the period, the Trust’s position in cash and cash equivalents proved beneficial when the municipal market saw net cash flows into mutual funds turn dramatically negative. However, as municipal rates rose on credit concerns and the Build America Bonds program neared its expiration, while long-term investment rates (i.e., rates on US Treasuries and other fixed income securities) were generally increasing, the Trust’s longer duration stance had an overall negative impact on performance.


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



Trust Information


Symbol on NYSE Amex	MVF
Initial Offering Date	September 29, 1988
Yield on Closing Market Price as of February 28, 2011 ($9.04)¹		7.83%
Tax Equivalent Yield²		12.05%
Current Monthly Distribution per Common Share³		$0.059
Current Annualized Distribution per Common Share³		$0.708
Leverage as of February 28, 2011⁴		43%


	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	Tax equivalent yield assumes the maximum federal tax rate of 35%.

	³	The distribution rate is not constant and is subject to change.

	⁴	Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

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



	2/28/11		8/31/10		Change			High		Low

Market Price	$	9.04	$	10.38		(12.91)	%	$	10.45	$	8.53
Net Asset Value	$	8.88	$	10.01		(11.29)	%	$	10.03	$	8.45

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

Sector Allocations


	2/28/11		8/31/10

Health	24	%	22	%
Corporate	16		17
Transportation	15		13
Utilities	11		12
County/City/Special District/School District	10		10
State	8		8
Education	7		7
Housing	7		7
Tobacco	2		4

Credit Quality Allocations⁵


	2/28/11		8/31/10

AAA/Aaa	18	%	23	%
AA/Aa	41		35
A	23		23
BBB/Baa	15		15
B	—		1
Not Rated⁶	3		3


	⁵	Using the higher of S&P’s or Moody’s ratings.

	⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2011 and August 31, 2010, the market value of these securities was $12,857,530 representing 1% and $21,938,423 representing 2%, respectively, of the Trust’s long-term investments.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	11

The Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the yield and NAV of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

To leverage, the Trusts issue preferred shares (“Preferred Shares”), which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trust’s holders of Common Shares (“Common Shareholders”) will benefit from the incremental net income.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates.At the same time, the securities purchased by the Trust with assets received from the Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of Preferred Shares (“Preferred Shareholders”) are significantly lower than the income earned on the Trust’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup on the Common Shares will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Trust pays interest expense on the higher short-term interest rate whereas the Trust’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Trusts’ Preferred Shares and/or debt securities does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAV positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

The Trusts may also leverage their assets through the use of TOBs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect each Trust’s NAV per share.

The use of leverage may enhance opportunities for increased returns to the Trusts and Common Shareholders, but as described above, it also creates risks as short or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, each Trust’s net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Trusts’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Trust to incur losses. The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate Preferred Shares issued by the Trust. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by the Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Trusts are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Trust anticipates that the total economic leverage from Preferred Shares and/or TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of February 28, 2011, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:



			Percent of Leverage

BYM			39%
BAF			37%
BBK			38%
BIE			43%
BLE			38%
MFL			41%
MVF			43%

Derivative Financial Instruments

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



12	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments February 28, 2011 (Unaudited)	BlackRock Municipal Income Quality Trust (BYM)
	(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)		Value

Alabama — 3.9%
Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40	$	3,800	$	3,742,848
Birmingham Airport Authority, RB (AGM), 5.50%, 7/01/40		5,800		5,651,230
Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39		1,495		1,556,609
County of Jefferson Alabama, RB, Series A, 4.75%, 1/01/25		2,800		2,301,124

				13,251,811

Arizona — 0.6%
State of Arizona, COP, Department of Administration, Series A (AGM):
5.00%, 10/01/27		1,500		1,504,080
5.25%, 10/01/28		650		658,034

				2,162,114

California — 30.1%
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.75%, 7/01/39		625		625,356
California Infrastructure & Economic Development Bank, RB, Bay Area Toll Bridges, First Lien, Series A (AMBAC), 5.00%, 1/01/28 (a)		10,100		11,328,564
Coast Community College District California, GO, Refunding, CAB, Election of 2002, Series C (AGM):
5.58%, 8/01/13 (b)		7,450		6,009,319
5.40%, 8/01/36 (c)		4,200		743,022
Fresno Unified School District California, GO, Election of 2001, Series E (AGM), 5.00%, 8/01/30		1,100		1,047,420
Golden State Tobacco Securitization Corp. California, RB, Series 2003-A-1 (a):
6.63%, 6/01/13		6,500		7,320,560
6.75%, 6/01/13		14,500		16,370,790
Los Angeles Municipal Improvement Corp., RB, Series B1 (NPFGC), 4.75%, 8/01/37		4,000		3,406,840
Metropolitan Water District of Southern California, RB, Series B-1 (NPFGC), 5.00%, 10/01/33		17,500		17,600,450
Monterey Peninsula Community College District, GO, CAB, Series C (AGM) (c):
5.15%, 8/01/31		13,575		3,358,862
5.16%, 8/01/32		14,150		3,230,728
Orange County Sanitation District, COP, Series B (AGM), 5.00%, 2/01/31		2,500		2,526,700
Sacramento Unified School District California, GO, Election of 2002 (NPFGC), 5.00%, 7/01/30		2,700		2,666,871


	Par
Municipal Bonds	(000)		Value

California (concluded)
San Diego Unified School District California, GO, CAB, Election of 2008, Series C, 6.86%, 7/01/38 (c)	$	2,000	$	329,980
San Francisco City & County Public Utilities Commission, Refunding RB, Series A (AGM), 5.00%, 11/01/31		15,000		15,007,800
San Joaquin Hills Transportation Corridor Agency California, Refunding RB, CAB, Series A (NPFGC), 5.50%, 1/15/31 (c)		53,000		9,086,850
San Jose Unified School District Santa Clara County California, GO, Election of 2002, Series B (NPFGC), 5.00%, 8/01/29		2,350		2,359,165

				103,019,277

Colorado — 0.3%
Regional Transportation District, COP, Series A, 5.38%, 6/01/31		960		965,126

District of Columbia — 2.6%
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40		9,500		8,925,250

Florida — 14.6%
Broward County School Board Florida, COP, Series A (AGM), 5.25%, 7/01/33		2,000		1,896,600
City of Tallahassee Florida, RB (NPFGC), 5.00%, 10/01/32		3,000		2,918,760
County of Broward Florida, RB, Series A, 5.25%, 10/01/34		5,950		5,986,712
County of Duval Florida, COP, Master Lease Program (AGM), 5.00%, 7/01/33		2,800		2,631,272
County of Miami-Dade Florida, RB:
CAB, Sub-Series A (NPFGC), 5.25%, 10/01/38 (c)		25,520		3,538,858
Jackson Health System (AGC), 5.75%, 6/01/39		2,300		2,321,735
Water & Sewer System (AGM), 5.00%, 10/01/39		10,100		9,584,799
County of Miami-Dade Florida, Refunding RB (AGM), 5.00%, 7/01/35		1,300		1,231,620
Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 3 (Ginnie Mae), 5.45%, 7/01/33		4,020		4,039,055
Florida State Department of Environmental Protection, RB, Series B (NPFGC), 5.00%, 7/01/27		7,500		7,582,200
Miami-Dade County School Board, COP, Refunding, Series B (AGC), 5.25%, 5/01/31		2,385		2,401,814
Orange County School Board, COP, Series A (AGC), 5.50%, 8/01/34		5,590		5,604,702
Sarasota County Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 7/01/39		300		297,663

				50,035,790

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:


ACA	ACA Financial Guaranty Corp.
AGC	Assured Guaranty Corp.
AGM	Assured Guaranty Municipal Corp.
AMBAC	American Municipal Bond Assurance Corp.
AMT	Alternative Minimum Tax (subject to)
ARB	Airport Revenue Bonds
BHAC	Berkshire Hathaway Assurance Corp.
CAB	Capital Appreciation Bonds
CIFG	CDC IXIS Financial Guaranty
COP	Certificates of Participation
EDA	Economic Development Authority
EDC	Economic Development Corp.
ERB	Education Revenue Bonds
FHA	Federal Housing Administration
GARB	General Airport Revenue Bonds
GO	General Obligation Bonds
HDA	Housing Development Authority
HFA	Housing Finance Agency
HRB	Housing Revenue Bonds
IDA	Industrial Development Authority
IDB	Industrial Development Board
IDRB	Industrial Development Revenue Bonds
ISD	Independent School District
MRB	Mortgage Revenue Bonds
NPFGC	National Public Finance Guarantee Corp.
PILOT	Payment in Lieu of Taxes
PSF-GTD	Permanent School Fund Guaranteed
RB	Revenue Bonds
SBPA	Stand-by Bond Purchase Agreement
S/F	Single-Family
VRDN	Variable Rate Demand Notes


See Notes to Financial Statements.

	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	13



Schedule of Investments (continued)	BlackRock Municipal Income Quality Trust (BYM)
	(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)		Value

Georgia — 2.6%
City of Atlanta Georgia, Refunding RB, General, Series C, 6.00%, 1/01/30	$	7,500	$	8,155,875
Gwinnett County Hospital Authority, Refunding RB, Gwinnett Hospital System, Series D (AGM), 5.50%, 7/01/41		900		853,002

				9,008,877

Hawaii — 1.4%
Hawaii State Harbor, RB, Series A, 5.50%, 7/01/35		5,000		4,843,250

Illinois — 5.3%
Chicago Board of Education Illinois, GO, Refunding, Chicago School Reform Board, Series A (NPFGC), 5.50%, 12/01/26		2,500		2,550,050
Chicago Park District, GO, Harbor Facilities, Series C, 5.25%, 1/01/40		600		584,304
City of Chicago Illinois, RB, Series A (AGC), 5.00%, 1/01/38		7,310		6,838,651
County of Cook Illinois, GO, Refunding, Series A, 5.25%, 11/15/33		1,475		1,449,911
Illinois Municipal Electric Agency, RB, Series A (NPFGC), 5.25%, 2/01/27		4,800		4,853,328
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28		710		693,535
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34		1,400		1,350,664

				18,320,443

Indiana — 2.1%
Indiana Municipal Power Agency, RB:
Series A (NPFGC), 5.00%, 1/01/37		2,050		1,901,355
Series B, 5.75%, 1/01/34		450		453,591
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A:
(AGC), 5.50%, 1/01/38		2,000		2,051,020
(NPFGC), 5.50%, 7/01/20		2,630		2,912,146

				7,318,112

Iowa — 1.5%
Iowa Finance Authority, RB, Series A (AGC), 5.63%, 8/15/37		5,000		5,011,550

Kentucky — 0.5%
Kentucky State Property & Buildings Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29		1,500		1,537,050

Louisiana — 2.2%
State of Louisiana, RB, Series A (AGM), 5.00%, 5/01/31		7,500		7,557,225

Michigan — 2.8%
City of Detroit Michigan, RB:
Senior Lien, Series A (NPFGC), 5.00%, 7/01/30		1,000		903,330
Senior Lien, Series A (NPFGC), 5.00%, 7/01/34		2,480		2,263,223
System, Second Lien, Series A (BHAC), 5.50%, 7/01/36		2,900		2,856,906
System, Second Lien, Series B (NPFGC), 5.00%, 7/01/36		100		87,876
City of Detroit Michigan, Refunding RB, Second Lien, Series E (BHAC), 5.75%, 7/01/31		3,000		3,048,180
Kalamazoo Hospital Finance Authority, RB, Bronson Methodist Hospital (AGM), 5.25%, 5/15/36		465		427,265

				9,586,780

Nebraska — 1.3%
Nebraska Investment Finance Authority, Refunding RB, Series A:
5.90%, 9/01/36		2,450		2,507,232
6.05%, 9/01/41		1,860		1,882,766

				4,389,998


	Par
Municipal Bonds	(000)		Value

Nevada — 1.6%
County of Clark Nevada, RB:
Las Vegas-McCarran International Airport, Series A (AGC), 5.25%, 7/01/39	$	4,100	$	3,841,823
System, Subordinate Lien, Series C (AGM), 5.00%, 7/01/26		1,650		1,625,580

				5,467,403

New York — 2.4%
New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-4, 5.50%, 1/15/33		1,950		2,002,533
New York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36		1,300		1,383,382
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 140th Series, 5.00%, 12/01/34		5,000		4,965,250

				8,351,165

North Carolina — 0.7%
North Carolina Medical Care Commission, RB, Novant Health Obligation, Series A, 4.75%, 11/01/43		2,875		2,438,345

Ohio — 0.5%
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37		610		645,649
Ohio Higher Educational Facility Commission, Refunding RB, Summa Health System, 2010 Project (AGC), 5.25%, 11/15/40		1,125		1,042,661

				1,688,310

Puerto Rico — 1.6%
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39		5,300		5,486,295

Rhode Island — 0.8%
Rhode Island Health & Educational Building Corp., Refunding RB, Public Schools Financing Program, Series E (AGC), 6.00%, 5/15/29		2,625		2,799,825

South Carolina — 1.4%
South Carolina State Ports Authority, RB, 5.25%, 7/01/40		5,000		4,854,000

Tennessee — 4.1%
Knox County Health Educational & Housing Facilities Board Tennessee, Refunding RB, CAB, Series A (AGM) (c):
5.88%, 1/01/23		9,260		4,757,418
5.90%, 1/01/24		8,500		4,101,930
5.91%, 1/01/25		6,850		3,108,119
5.93%, 1/01/26		5,000		2,125,000

				14,092,467

Texas — 27.8%
City of Houston Texas, RB, Senior Lien, Series A, 5.50%, 7/01/34		4,165		4,199,694
City of San Antonio Texas, Refunding RB (NPFGC):
5.13%, 5/15/29		9,250		9,296,805
5.13%, 5/15/34		10,000		10,030,000
Comal ISD, GO, School Building (PSF-GTD), 5.00%, 2/01/36		2,500		2,525,975
Coppell ISD Texas, GO, Refunding, CAB (PSF-GTD), 5.64%, 8/15/30 (c)		10,030		3,792,243
County of Harris Texas, GO (NPFGC) (c):
5.57%, 8/15/25		7,485		3,936,811
5.60%, 8/15/28		10,915		4,742,895
County of Harris Texas, Refunding RB, Senior Lien, Toll Road (AGM), 5.00%, 8/15/30		5,510		5,515,290
Harris County-Houston Sports Authority, Refunding RB (NPFGC) (c):
CAB, Junior Lien, Series H, 5.93%, 11/15/38		5,785		593,830
CAB, Junior Lien, Series H, 5.94%, 11/15/39		6,160		582,490
Third Lien, Series A-3, 5.97%, 11/15/38		26,890		2,687,924
Third Lien, Series A-3, 5.98%, 11/15/39		27,675		2,559,937


See Notes to Financial Statements.

14	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments (continued)	BlackRock Municipal Income Quality Trust (BYM)
	(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Texas (concluded)
Lewisville ISD Texas, GO, Refunding, CAB, School Building (NPFGC), 4.67%, 8/15/24 (c)	$	3,815	$	1,947,214
Mansfield ISD Texas, GO, School Building (PSF-GTD), 5.00%, 2/15/33		2,980		3,050,864
North Texas Tollway Authority, Refunding RB, First Tier:
Series A, 6.00%, 1/01/28		625		655,994
System, (NPFGC), 5.75%, 1/01/40		23,050		22,019,204
Texas State Turnpike Authority, RB, First Tier, Series A (AMBAC), 5.00%, 8/15/42		20,000		17,085,400

				95,222,570

Washington — 5.2%
Chelan County Public Utility District No. 1, RB, Chelan Hydro System, Series C (AMBAC), 5.13%, 7/01/33		3,655		3,657,339
County of King Washington, Refunding RB (AGM), 5.00%, 1/01/36		2,200		2,184,380
Port of Seattle Washington, RB, Series A (NPFGC), 5.00%, 4/01/31		4,500		4,460,400
Washington Health Care Facilities Authority, RB:
MultiCare Health Care, Series C (AGC), 5.50%, 8/15/43		6,400		6,120,512
Providence Health & Services, Series A, 5.00%, 10/01/39		1,000		885,110
Providence Health & Services, Series A, 5.25%, 10/01/39		675		620,798

				17,928,539

Wisconsin — 0.4%
Wisconsin Health & Educational Facilities Authority, RB,
Ascension Health Senior Credit Group, 5.00%,
11/15/33		1,500		1,381,380

Total Municipal Bonds — 118.3%				405,642,952




Municipal Bonds Transferred to Tender Option Bond Trusts (d)

Arizona — 0.4%
Phoenix Civic Improvement Corp., RB, Junior Lien, Series A, 5.00%, 7/01/34	1,300	1,311,388

California — 10.9%
California State University, RB, Systemwide, Series A (AGM), 5.00%, 11/01/33	3,379	3,202,755
California State University, Refunding RB, Systemwide, Series A (AGM), 5.00%, 11/01/32	8,000	7,682,320
Foothill-De Anza Community College District, GO, Election of 1999, Series C (NPFGC), 5.00%, 8/01/36	7,500	7,320,450
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32	5,000	4,890,450
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33	449	452,607
San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), 5.00%, 5/01/33	4,870	4,736,075
University of California, RB, Series C (NPFGC), 4.75%, 5/15/37	10,000	8,964,400

		37,249,057

District of Columbia — 0.3%
District of Columbia, RB, Series A, 5.50%, 12/01/30	1,080	1,162,242


Municipal Bonds Transferred to Tender Option Bond Trusts (d)	Par (000)		Value

Florida — 4.0%
City of Tallahassee Florida, RB (NPFGC), 5.00%, 10/01/37	$	5,000	$	4,787,150
Florida State Board of Education, GO, Series D, 5.00%, 6/01/37		2,999		2,994,075

Orange County School Board, COP, Series A (NPFGC), 5.00%, 8/01/30		6,000		5,911,800

				13,693,025

Hawaii — 2.9%
Honolulu City & County Board of Water Supply, RB,
Series A (NPFGC), 5.00%, 7/01/33		10,000		10,042,100

Illinois — 8.2%
Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33		4,499		4,514,114
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A (NPFGC), 5.00%, 12/15/28		24,010		23,564,375

				28,078,489

Massachusetts — 3.8%
Massachusetts School Building Authority, RB, Series A (AGM), 5.00%, 8/15/30		12,987		13,158,069

Nevada — 1.9%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/39		4,197		4,391,419
Clark County Water Reclamation District, GO, Series B, 5.75%, 7/01/34		2,024		2,157,979

				6,549,398

New York — 4.8%
Erie County Industrial Development Agency, RB, City School District of Buffalo Project, Series A (AGM), 5.75%, 5/01/28		4,494		4,801,911
Metropolitan Transportation Authority, RB, Series A (NPFGC), 5.00%, 11/15/31		7,002		6,992,433
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.25%, 11/15/34		4,500		4,559,445

				16,353,789

Ohio — 0.2%
State of Ohio, RB, Cleveland Clinic Health, Series B, 5.50%, 1/01/34		620		620,732

South Carolina — 0.2%
South Carolina State Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 1/01/38		600		621,978

Texas — 2.8%
Northside ISD Texas, GO, School Building (PSF-GTD), 5.13%, 6/15/29		9,500		9,755,913

Utah — 1.5%
Utah Transit Authority, RB, Series A (AGM), 5.00%, 6/15/36		5,000		5,014,800

Virginia — 0.1%
Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35		400		403,364

Washington — 1.0%
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32		3,494		3,529,596

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 43.0%				147,543,940

Total Long-Term Investments (Cost — $576,752,468) — 161.3%				553,186,892


See Notes to Financial Statements.

	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	15




Schedule of Investments (concluded)	BlackRock Municipal Income Quality Trust (BYM)
	(Percentages shown are based on Net Assets)


Short-Term Securities	Par (000)		Value

New York — 0.5%
City of New York New York, GO, VRDN, Sub-Series A-6 (AGM Insurance, Dexia Credit Local SBPA), 0.23%, 3/01/11 (e)	$	1,700	$	1,700,000


	Shares

Money Market Fund — 0.7%
FFI Institutional Tax-Exempt Fund, 0.13% (f)(g)		2,376,259		2,376,259

Total Short-Term Securities
(Cost — $4,076,259) — 1.2%				4,076,259

*Total Investments (Cost — $580,828,727) — 162.5%**				557,263,151
Other Assets Less Liabilities — 1.1%				3,821,897
Liability for Trust Certificates, Including Interest Expense and Fees Payable — (23.6)%				(80,966,277	)
Preferred Shares, at Redemption Value — (40.0)%				(137,256,220	)

Net Assets Applicable to Common Shares — 100.0%			$	342,862,551


*	The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes, were as follows:


Aggregate cost	$	500,494,695

Gross unrealized appreciation	$	10,332,280
Gross unrealized depreciation		(34,478,336	)

Net unrealized depreciation	$	(24,146,056	)


(a)	US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

(c)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(d)	Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

(e)	Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

(f)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:



Affiliate	Shares Held at August 31, 2010		Net Activity			Shares Held at February 28, 2011		Income

FFI Institutional Tax-Exempt Fund		9,416,737		(7,040,478	)		2,376,259	$	6,948


(g)	Represents the current yield as of report date.

•	Financial futures contracts sold as of February 28, 2011 were as follows:



Contracts	Issue		Exchange		Expiration		Notional Value		Unrealized Depreciation

195		10-Year U.S. Treasury Note		Chicago Board of Trade		June 2011	$	23,110,176	$	(103,964	)


•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:



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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivatives and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:



Valuation Inputs	Level 1		Level 2		Level 3		Total

Assets:
Investments in Securities:
Long-Term Investments¹		—	$	553,186,892		—	$	553,186,892
Short-Term Securities	$	2,376,259		1,700,000		—		4,076,259

Total	$	2,376,259	$	554,886,892		—	$	557,263,151


¹	See above Schedule of Investments for values in each state or political subdivision.



	Derivative Financial Instruments²

Valuation Inputs	Level 1			Level 2		Level 3		Total

Liabilities:
Interest rate contracts	$	(103,964	)		—		—	$	(103,964	)


²	Derivative financial instruments are financial futures contracts, which are shown at the unrealized appreciation/depreciation on the instrument.


See Notes to Financial Statements.

16	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments February 28, 2011 (Unaudited)	BlackRock Municipal Income Investment Quality Trust (BAF)
	(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Alabama — 2.2%
Birmingham Airport Authority, RB (AGM), 5.00%, 7/01/25	$	520	$	522,662
Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC):
6.13%, 6/01/34		1,000		1,059,990
6.00%, 6/01/39		1,000		1,041,210

				2,623,862

Arizona — 0.4%
State of Arizona, COP, Department of Administration, Series A (AGM), 5.25%, 10/01/28		465		470,747

California — 12.3%
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38		2,155		2,179,093
California Health Facilities Financing Authority, Refunding RB, Sutter Health, Series B, 6.00%, 8/15/42		1,120		1,109,024
County of Sacramento California, RB, Senior Series A (AGC), 5.50%, 7/01/41		1,400		1,373,554
Los Angeles Community College District California, GO:
Election of 2001, Series A (NPFGC), 5.00%, 8/01/32		1,000		975,560
Election of 2008, Series C, 5.25%, 8/01/39		1,000		985,430
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38		1,175		1,163,132
Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/39		3,810		3,693,300
Oxnard Union High School District, GO, Refunding, Election of 2004, Series A (AGM), 5.00%, 8/01/40		1,000		890,240
San Diego Public Facilities Financing Authority, Refunding RB, Series B (AGC), 5.38%, 8/01/34		1,125		1,145,160
San Jacinto Unified School District, GO, Election of 2006 (AGM), 5.25%, 8/01/32		1,000		968,710

				14,483,203

Colorado — 1.6%
Colorado Health Facilities Authority, RB, Hospital, NCMC Inc. Project, Series B (AGM), 6.00%, 5/15/26		1,425		1,531,818
Regional Transportation District, COP, Series A, 5.00%, 6/01/25		300		300,417

				1,832,235

Florida — 12.6%
City of Jacksonville Florida, RB (NPFGC), 5.00%, 10/01/31		5,000		4,968,000
City of Miami Florida, RB (NPFGC), 5.25%, 1/01/28		1,660		1,664,615
Village Center Community Development District, RB, Series A (NPFGC), 5.00%, 11/01/32		10,000		8,178,100

				14,810,715

Georgia — 4.2%
Augusta-Richmond County Georgia, RB (AGM), 5.25%, 10/01/39		1,000		1,000,600
City of Atlanta Georgia, Refunding RB, General, Series C, 6.00%, 1/01/30		2,500		2,718,625
Gwinnett County Hospital Authority, Refunding RB, Gwinnett Hospital System, Series D (AGM), 5.50%, 7/01/41		1,350		1,279,503

				4,998,728


Municipal Bonds	Par (000)		Value

Illinois — 11.5%
Chicago Board of Education Illinois, GO, Refunding,
Chicago School Reform Board, Series A (NPFGC), 5.50%, 12/01/26	$	745	$	759,915
Chicago Transit Authority, RB, Federal Transit
Administration Section 5309, Series A (AGC), 6.00%, 6/01/26		1,300		1,405,196
City of Chicago Illinois, GO, Refunding, Projects, Series A (AGM):
5.00%, 1/01/29		1,425		1,353,878
5.00%, 1/01/30		570		538,057
City of Chicago Illinois, RB, General, Third Lien, Series C (AGM):
5.25%, 1/01/30		1,000		1,001,330
5.25%, 1/01/35		820		798,196
City of Chicago Illinois, Refunding RB, Second Lien (NPFGC), 5.50%, 1/01/30		1,000		1,023,080
Illinois Municipal Electric Agency, RB, Series A (NPFGC):
5.25%, 2/01/28		1,560		1,572,558
5.25%, 2/01/35		1,250		1,216,750
Railsplitter Tobacco Settlement Authority, RB:
5.50%, 6/01/23		915		874,072
6.00%, 6/01/28		260		253,971
State of Illinois, RB:
(AGM), 5.00%, 6/15/27		1,000		996,620
Build Illinois, Series B, 5.25%, 6/15/28		1,750		1,762,723

				13,556,346

Indiana — 4.2%
Indiana Finance Authority, Refunding RB, Trinity Health, Series B, 4.50%, 12/01/37		3,000		2,451,960
Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38		2,415		2,476,607

				4,928,567

Iowa — 0.9%
Iowa Finance Authority, Refunding RB, Iowa Health System (AGC), 5.25%, 2/15/29		1,125		1,110,814

Louisiana — 4.7%
East Baton Rouge Sewerage Commission, RB, Series A, 5.25%, 2/01/39		2,250		2,257,132
Louisiana State Citizens Property Insurance Corp., RB, Series C-3 (AGC), 6.13%, 6/01/25		2,510		2,748,425
New Orleans Aviation Board Louisiana, Refunding GARB, Restructuring (AGC):
Series A-1, 6.00%, 1/01/23		375		414,143
Series A-2, 6.00%, 1/01/23		150		165,657

				5,585,357

Maine — 0.9%
City of Portland Maine, RB, General (AGM), 5.25%, 1/01/35		1,095		1,091,967

Michigan — 16.6%
City of Detroit Michigan, RB:
Second Lien, Series B (AGM), 6.25%, 7/01/36		1,700		1,804,074
Second Lien, Series B (AGM), 7.00%, 7/01/36		200		223,666
Second Lien, Series B (NPFGC), 5.50%, 7/01/29		1,790		1,731,020
Senior Lien, Series B (AGM), 7.50%, 7/01/33		1,500		1,772,175
Senior Lien, Series B (BHAC), 5.50%, 7/01/35		4,750		4,724,398
System, Second Lien, Series A (BHAC), 5.50%, 7/01/36		2,330		2,295,376
City of Detroit Michigan, Refunding RB, Second Lien:
Series C-1 (AGM), 7.00%, 7/01/27		1,800		2,069,424
Series E (BHAC), 5.75%, 7/01/31		2,300		2,336,938
Michigan State Building Authority, RB, Facilities Program, Series H (AGM), 5.00%, 10/15/26		365		365,485


See Notes to Financial Statements.

	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	17




Schedule of Investments (continued)	BlackRock Municipal Income Investment Quality Trust (BAF)
	(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Michigan (concluded)
Michigan State Building Authority, Refunding RB, Facilities Program, Series I (AGC):
5.25%, 10/15/24	$	565	$	584,374
5.25%, 10/15/25		300		306,495
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39		1,205		1,344,611

				19,558,036

Minnesota — 5.1%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38		5,680		5,999,670

Nevada — 1.8%
County of Clark Nevada, RB, Las Vegas-McCarran International Airport, Series A (AGC), 5.25%, 7/01/39		2,295		2,150,484

New Jersey — 5.1%
New Jersey EDA, RB, School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34		1,000		1,052,550
New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38		1,300		1,320,748
New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29		1,575		1,573,063
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGC), 5.50%, 12/15/38		2,000		2,050,780

				5,997,141

New York — 4.3%
New York City Municipal Water Finance Authority, RB, Second General Resolution, Series EE, 5.38%, 6/15/43		1,545		1,566,614
New York City Transitional Finance Authority, RB, Fiscal 2009:
Series S-3, 5.25%, 1/15/39		900		906,291
Series S-4 (AGC), 5.50%, 1/15/29		2,465		2,573,682

				5,046,587

Ohio — 0.5%
Ohio Higher Educational Facility Commission, Refunding RB, Summa Health System, 2010 Project (AGC), 5.25%, 11/15/40		625		579,256

Pennsylvania — 0.8%
Pennsylvania Turnpike Commission, Refunding RB, Sub-Series B-1 (AGM), 5.00%, 12/01/37		1,000		932,940

Puerto Rico — 2.2%
Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGM), 5.50%, 7/01/30		1,170		1,167,145
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39		1,350		1,397,453

				2,564,598

Texas — 21.4%
Austin Community College District, RB, Educational Facilities Project, Round Rock Campus, 5.25%, 8/01/33		2,000		2,012,120
City of Austin Texas, Refunding RB, Series A (AGM):
5.00%, 11/15/28		705		717,436
5.00%, 11/15/29		895		904,541
City of Houston Texas, Refunding RB, Combined, First Lien, Series A (AGC):
6.00%, 11/15/35		2,600		2,822,378
6.00%, 11/15/36		2,215		2,399,753
5.38%, 11/15/38		1,000		1,020,200


Municipal Bonds	Par (000)		Value

Texas (concluded)
Dallas Area Rapid Transit, Refunding RB, Senior Lien, 5.25%, 12/01/38	$	1,500	$	1,511,280
Frisco ISD Texas, GO, School Building (AGC):
5.38%, 8/15/39		1,415		1,440,470
5.50%, 8/15/41		3,365		3,465,849
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31		500		542,810
Lubbock Cooper ISD Texas, GO, School Building (AGC), 5.75%, 2/15/42		500		512,495
North Texas Tollway Authority, RB, System, First Tier, Series K-1 (AGC), 5.75%, 1/01/38		1,500		1,510,215
North Texas Tollway Authority, Refunding RB, System, First Tier:
(AGM), 6.00%, 1/01/43		1,000		1,029,860
Series A (AGC), 5.75%, 1/01/40		1,500		1,507,440
Series A (NPFGC), 5.13%, 1/01/28		2,895		2,864,226
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37		1,000		1,031,440

				25,292,513

Utah — 1.3%
City of Riverton Utah, RB, IHC Health Services Inc., 5.00%, 8/15/41		1,625		1,521,439

Virginia — 0.9%
Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/35		1,000		1,094,710

Total Municipal Bonds — 115.5%				136,229,915




Municipal Bonds Transferred to
Tender Option Bond Trusts (a)

Alabama — 1.3%
Mobile Board of Water & Sewer Commissioners, RB (NPFGC), 5.00%, 1/01/31	1,500	1,498,020

California — 2.1%
San Diego Community College District California, GO, Election of 2002 (AGM), 5.00%, 5/01/30	2,500	2,481,550

District of Columbia — 0.7%
District of Columbia Water & Sewer Authority, RB, Series A, 6.00%, 10/01/35	760	825,081

Florida — 26.5%
City of Jacksonville Florida, RB, Better Jacksonville (NPFGC), 5.00%, 10/01/27	3,930	3,956,370
County of Pinellas Florida, RB (AGM), 5.00%, 10/01/32	9,500	9,076,328
Florida State Board of Education, GO, Public Education, Series A (AGM), 5.00%, 6/01/27	9,000	9,108,450
Palm Beach County School District, COP, Refunding, Series D (AGM), 5.00%, 8/01/28	9,190	9,147,359

		31,288,507

Illinois — 5.0%
Chicago Transit Authority, Refunding RB, Federal Transit Administration Section 5309 (AGM), 5.00%, 6/01/28	2,999	2,832,783
Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33	2,999	3,009,410

		5,842,193


See Notes to Financial Statements.

18	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments (concluded)	BlackRock Municipal Income Investment Quality Trust (BAF)
	(Percentages shown are based on Net Assets)


Municipal Bonds Transferred to Tender Option Bond Trusts (a)	Par (000)		Value

Kentucky — 0.8%
Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27	$	898	$	931,964

Nevada — 1.8%
Clark County Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38		2,000		2,144,320

Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 38.2%				45,011,635

Total Long-Term Investments
(Cost — $183,499,520) — 153.7%				181,241,550




Short-Term Securities	Shares

FFI Institutional Tax-Exempt Fund, 0.13% (b)(c)		5,323,892		5,323,892

Total Short-Term Securities (Cost — $5,323,892) — 4.5%				5,323,892

*Total Investments (Cost — $188,823,412) — 158.2%**				186,565,442
Liabilities in Excess of Other Assets — (0.4)%				(480,374	)
Liability for Trust Certificates, Including Interest Expense and Fees Payable — (22.0)%				(25,887,547	)
Preferred Shares, at Redemption Value — (35.8)%				(42,278,454	)

Net Assets Applicable to Common Shares — 100.0%			$	117,919,067


*	The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes, were as follows:


Aggregate cost	$	163,232,643

Gross unrealized appreciation	$	2,730,254
Gross unrealized depreciation		(5,263,721	)

Net unrealized depreciation	$	(2,533,467	)


(a)	Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

(b)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:



Affiliate	Shares Held at August 31, 2010		Net Activity		Shares Held at February 28, 2011		Income

FFI Institutional Tax-Exempt Fund		1,211,264		4,112,628		5,323,892	$	2,595


(c)	Represents the current yield as of report date.

•	Financial futures contracts sold as of February 28, 2011 were as follows:

Contracts

Issue

Exchange

Expiration

Notional
Value

Unrealized
Depreciation

10-Year U.S.

Chicago

June 2011

5,570,145

(25,058

)

Treasury Note

Board of Trade


•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:

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

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

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

The following tables summarize the inputs used as of February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:



Valuation Inputs	Level 1		Level 2		Level 3		Total

Assets:
Investments in
Securities:
Long-Term Investments¹		—	$	181,241,550		—	$	181,241,550
Short-Term Securities	$	5,323,892		—		—		5,323,892

Total	$	5,323,892	$	181,241,550		—	$	186,565,442


¹	See above Schedule of Investments for values in each state or political subdivision.



	Derivative Financial Instruments²

Valuation Inputs	Level 1			Level 2		Level 3		Total

Liabilities:
Interest rate contracts	$	(25,058	)		—		—	$	(25,058	)


²	Derivative financial instruments are financial futures contracts, which are shown at the unrealized appreciation/depreciation on the instrument.


See Notes to Financial Statements.

	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	19




Schedule of Investments February 28, 2011 (Unaudited)	BlackRock Municipal Bond Trust (BBK)
	(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Alabama — 3.4%
Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC):
6.00%, 6/01/34	$	1,150	$	1,205,522
6.00%, 6/01/39		450		468,544
Hoover City Board of Education, GO, Refunding, 4.25%, 2/15/40		3,750		3,131,550

				4,805,616

Arizona — 4.8%
Arizona State University, RB, Series D, 5.50%, 7/01/26		200		211,662
Mohave County Unified School District No. 20 Kingman, GO, School Improvement Project of 2006, Series C (AGC), 5.00%, 7/01/26		200		205,338
Pima County IDA, Refunding IDRB, Tucson Electric Power, 5.75%, 9/01/29		900		872,802
Salt Verde Financial Corp., RB, Senior:
5.00%, 12/01/32		1,500		1,297,680
5.00%, 12/01/37		2,065		1,733,712
San Luis Facility Development Corp., RB, Senior Lien, Regional Detention Center Project:
6.25%, 5/01/15		300		289,518
7.00%, 5/01/20		300		286,317
7.25%, 5/01/27		600		561,066
State of Arizona, COP, Department of Administration, Series A (AGM), 5.00%, 10/01/29		750		748,163
University Medical Center Corp. Arizona, RB, 6.50%, 7/01/39		500		509,600

				6,715,858

California — 15.3%
California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 6.30%, 6/01/55 (a)		4,500		25,875
California HFA, RB, Home Mortgage, Series G, AMT, 5.05%, 2/01/29		2,285		2,129,186
California Health Facilities Financing Authority, Refunding RB, Sutter Health, Series B, 5.88%, 8/15/31		1,900		1,908,835
Carlsbad Unified School District, GO, Election of 2006, Series B, 6.09%, 5/01/34 (b)		1,000		568,640
Dinuba Unified School District, GO, Election of 2006 (AGM):
5.63%, 8/01/31		250		258,715
5.75%, 8/01/33		500		517,855
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 7.46%, 8/01/34 (b)		1,650		803,847
Norwalk-La Mirada Unified School District California, GO, Refunding, CAB, Election of 2002, Series E (AGC), 6.47%, 8/01/38 (a)		8,000		1,212,320
Palomar Community College District, GO, CAB, Election of 2006, Series B:
6.09%, 8/01/30 (a)		1,500		397,860
7.57%, 8/01/39 (b)		2,000		708,220
San Diego Community College District California, GO, CAB, Election of 2002, 6.24%, 8/01/19 (b)		2,800		1,592,080
State of California, GO, Refunding:
(CIFG), 4.50%, 8/01/28		500		452,200
Veterans, AMT, 5.05%, 12/01/36		1,000		865,550
State of California, GO, Various Purpose:
5.75%, 4/01/31		2,000		2,063,800
6.00%, 3/01/33		2,050		2,151,721
6.50%, 4/01/33		1,950		2,115,594
5.50%, 3/01/40		2,350		2,326,453
Val Verde Unified School District California, Special Tax Bonds, Refunding, Junior Lien, 6.25%, 10/01/28		1,585		1,459,674

				21,558,425


Municipal Bonds	Par (000)		Value

Colorado — 1.9%
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33	$	1,070	$	1,120,547
Sand Creek Metropolitan District, GO, Refunding, Limited Tax, Series B:
4.75%, 12/01/35		1,000		879,510
5.00%, 12/01/40		800		720,136

				2,720,193

Delaware — 0.8%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40		1,200		1,168,356

District of Columbia — 6.3%
District of Columbia, Refunding RB, Friendship Public Charter School Inc. (ACA), 5.25%, 6/01/33		595		452,140
District of Columbia, Tax Allocation Bonds, Gallery Place Project (AGM), 5.40%, 7/01/31		6,000		6,019,560
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40		2,500		2,348,750

				8,820,450

Florida — 6.4%
Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center of Florida, 6.75%, 11/15/21		1,180		1,196,024
Palm Beach County Housing Finance Authority, HRB, Indian Trace Apartments, Series A, AMT (AGM), 5.63%, 1/01/44		7,255		7,121,145
Stevens Plantation Community Development District, Special Assessment Bonds, Series A, 7.10%,
5/01/35		940		721,817

				9,038,986

Idaho — 1.7%
Idaho Health Facilities Authority, RB, St. Luke’s Regional Medical Center (AGM), 5.00%, 7/01/35		500		474,350
Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/33		1,750		1,845,358

				2,319,708

Illinois — 10.6%
Illinois Finance Authority, RB:
MJH Education Assistance IV LLC, Sub-Series B, 5.38%, 6/01/35 (c)(d)		425		114,104
Navistar International, Recovery Zone, 6.50%, 10/15/40		1,285		1,298,608
Roosevelt University Project, 6.50%, 4/01/44		1,000		1,001,880
Rush University Medical Center, Series C, 6.63%, 11/01/39		650		665,346
Illinois Finance Authority, Refunding RB, Series A:
Friendship Village Schaumburg, 5.63%, 2/15/37		210		160,220
Lake Forest Hospital, 5.75%, 7/01/29		4,000		4,040,240
OSF Healthcare System, 6.00%, 5/15/39		1,050		976,017
Railsplitter Tobacco Settlement Authority, RB:
6.25%, 6/01/24		1,000		1,002,050
6.00%, 6/01/28		1,150		1,123,331
Village of Bolingbrook Illinois, GO, Refunding, Series B (NPFGC), 6.22%, 1/01/36 (a)		23,065		4,465,615

				14,847,411

Indiana — 2.0%
County of Monroe Indiana, Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 1, Canterbury House Apartments, Mandatory Put Bonds, AMT, 5.90%, 12/01/34 (e)		1,835		1,845,753
Indiana Finance Authority, Refunding RB, Improvement, U.S. Steel Corp., 6.00%, 12/01/26		1,000		988,460

				2,834,213


See Notes to Financial Statements.

20	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments (continued)	BlackRock Municipal Bond Trust (BBK)
	(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Iowa — 1.1%
Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:
5.75%, 9/01/30	$	500	$	501,810
6.00%, 9/01/39		1,000		1,005,750

				1,507,560

Kansas — 3.5%
Kansas Development Finance Authority, RB, University of Kansas Tenant, Series O, 4.75%, 6/15/41		700		632,457
Wichita Airport Authority, RB, Special, Cessna Citation Service Center, Series A, AMT, 6.25%, 6/15/32		5,000		4,308,450

				4,940,907

Kentucky — 0.4%
Kentucky Economic Development Finance Authority, RB, Louisville Arena, Sub-Series A-1 (AGC), 6.00%, 12/01/38		500		509,655

Louisiana — 2.2%
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35		1,050		1,068,722
Louisiana Public Facilities Authority, Refunding RB, Entergy Gulf States Louisiana, LLC Project, Series A, 5.00%, 9/01/28		2,000		1,967,920

				3,036,642

Maryland — 2.1%
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25		500		467,915
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Doctor’s Community Hospital, 5.63%, 7/01/30		2,900		2,477,876

				2,945,791

Michigan — 3.8%
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38		1,250		1,315,637
Michigan State Hospital Finance Authority, Refunding RB:
Henry Ford Health System, Series A, 5.25%, 11/15/46		1,065		888,306
Hospital, Henry Ford Health, 5.75%, 11/15/39		1,000		928,540
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39		1,950		2,175,927

				5,308,410

Minnesota — 4.0%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38		5,350		5,651,098

Mississippi — 3.1%
Mississippi Development Bank Special Obligation, RB, Jackson County Limited Tax Note (AGC), 5.50%, 7/01/32		1,750		1,780,292
University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/36		2,500		2,522,925

				4,303,217

Montana — 1.8%
Montana Facility Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 4.75%, 1/01/40		2,750		2,489,988

Multi-State — 8.1%
Centerline Equity Issuer Trust, 7.20%, 11/15/52 (f)(g)		10,500		11,416,230


Municipal Bonds	Par (000)		Value

Nebraska — 2.0%
Douglas County Hospital Authority No. 2, RB, Health Facilities, Immanuel Obligation Group, 5.50%, 1/01/30	$	425	$	415,705
Nebraska Investment Finance Authority, Refunding RB, Series A:
5.90%, 9/01/36		1,200		1,228,032
6.05%, 9/01/41		1,165		1,179,260

				2,822,997

Nevada — 1.2%
City of Las Vegas Nevada, Special Assessment Bonds, Summerlin Area, 5.65%, 6/01/23		1,315		1,095,145
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29		575		538,994

				1,634,139

New Jersey — 14.3%
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (c)(d)		915		91,500
New Jersey EDA, RB:
Cigarette Tax, 5.50%, 6/15/24		3,710		3,419,878
Cigarette Tax (Radian), 5.50%, 6/15/31		1,500		1,288,350
Continental Airlines Inc. Project, AMT, 7.20%, 11/15/30 (e)		3,000		3,004,680
New Jersey EDA, Refunding RB, First Mortgage, Winchester, Series A, 5.80%, 11/01/31		1,500		1,423,770
New Jersey EDA, Special Assessment Bonds, Refunding, Kapkowski Road Landfill Project, 6.50%, 4/01/28		7,500		7,488,675
New Jersey Educational Facilities Authority, Refunding RB:
College of New Jersey, Series D (AGM), 5.00%, 7/01/35		1,000		987,450
University of Medicine & Dentistry, Series B, 7.13%, 12/01/23		630		708,492
University of Medicine & Dentistry, Series B, 7.50%, 12/01/32		800		878,944
New Jersey State Housing & Mortgage Finance Agency, RB, Series AA, 6.50%, 10/01/38		810		872,167

				20,163,906

New Mexico — 1.5%
Village of Los Ranchos de Albuquerque New Mexico, Refunding RB, Albuquerque Academy Project, 4.50%, 9/01/40		2,500		2,108,325

New York — 7.9%
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (c)(d)		455		136,486
Hudson Yards Infrastructure Corp., RB, Series A, 5.00%, 2/15/47		500		419,205
New York City Housing Development Corp., RB, Series A, AMT, 5.50%, 11/01/34		3,000		2,968,410
New York City Industrial Development Agency, RB:
American Airlines Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (e)		3,165		3,228,933
Queens Baseball Stadium, PILOT (AGC), 6.50%, 1/01/46		700		727,776
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49		800		795,944
New York State Dormitory Authority, RB:
The New School (AGM), 5.50%, 7/01/43		1,550		1,555,487
Rochester Institute of Technology, Series A, 6.00%, 7/01/33		1,000		1,056,970
University of Rochester, Series A, 5.13%, 7/01/39		250		245,400

				11,134,611


See Notes to Financial Statements.

	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	21




Schedule of Investments (continued)	BlackRock Municipal Bond Trust (BBK)
	(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

North Carolina — 8.2%
City of Charlotte North Carolina, Refunding RB, Series A, 5.50%, 7/01/34	$	225	$	228,265
Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35		2,945		2,218,498
North Carolina Capital Facilities Finance Agency, RB, Duke Energy Carolinas, Series B, 4.38%, 10/01/31		2,475		2,283,410
North Carolina Medical Care Commission, RB, Series A:
Novant Health Obligation, 4.75%, 11/01/43		4,000		3,392,480
WakeMed, (AGC), 5.88%, 10/01/38		1,000		1,015,910
North Carolina Medical Care Commission, Refunding RB, Caromont Health (AGC):
4.50%, 2/15/30		750		673,620
4.63%, 2/15/35		1,000		876,760
University Health System, Series D, 6.25%, 12/01/33		800		835,856

				11,524,799

Oklahoma — 1.3%
Tulsa Airports Improvement Trust, RB, Series A, Mandatory Put Bonds, AMT, 7.75%, 6/01/35 (e)		1,725		1,763,416

Oregon — 2.1%
City of Portland Oregon, Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 6, Pacific Tower Apartments, AMT, 6.05%, 11/01/34		515		515,438
Oregon Health & Science University, RB, Series A, 5.75%, 7/01/39		1,250		1,273,925
Oregon State Facilities Authority, Refunding RB, Limited College Project, Series A:
5.00%, 10/01/34		850		769,207
5.25%, 10/01/40		500		461,955

				3,020,525

Pennsylvania — 3.0%
Delaware River Port Authority, RB, Series D (AGC), 5.00%, 1/01/40		2,600		2,515,032
Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania Inc. Project, Series B, 4.50%, 12/01/42		2,000		1,758,080

				4,273,112

Puerto Rico — 1.9%
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37		2,000		1,975,800
Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.75%, 8/01/41 (a)		5,000		666,350

				2,642,150

Rhode Island — 2.4%
Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39		1,000		1,099,760
Rhode Island Housing & Mortgage Finance Corp., RB, Homeownership Opportunity, Series 54, AMT, 4.85%, 10/01/41		1,500		1,322,205
State of Rhode Island, COP, Series C, School for the Deaf (AGC), 5.38%, 4/01/28		900		925,209

				3,347,174

South Carolina — 0.9%
County of Florence South Carolina, RB, McLeod Regional Medical Center, Series A, 5.00%, 11/01/37		1,350		1,210,923

Tennessee — 0.2%
Memphis-Shelby County Sports Authority Inc., Refunding RB, Memphis Arena Project, Series A, 5.38%, 11/01/28		275		276,777


Municipal Bonds	Par (000)		Value

Texas — 14.9%
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B:
7.13%, 12/01/31	$	500	$	542,810
7.25%, 12/01/35		1,750		1,895,162
Harris County Housing Finance Corp., Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 9, Copperwood Ranch Apartments, Mandatory Put Bonds, AMT, 5.95%, 11/01/35 (e)		2,420		2,441,901
Harris County-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 6.17%, 11/15/41 (a)		11,690		1,071,155
Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, 5.25%, 11/01/40		2,500		2,222,450
Lower Colorado River Authority, Refunding RB (NPFGC), 5.00%, 5/15/13 (h)		15		16,376
Matagorda County Navigation District No. 1 Texas, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29		1,500		1,545,810
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40		2,000		2,028,440
Texas State Turnpike Authority, RB (AMBAC):
CAB, 6.08%, 8/15/35 (a)		50,000		8,592,500
First Tier, Series A, 5.00%, 8/15/42		750		640,703

				20,997,307

Virginia — 0.5%
Henrico County EDA, RB, Bon Secours Health, Series B-1 (AGC), 4.50%, 11/01/42		860		715,967

Washington — 1.0%
Washington Health Care Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/39		1,400		1,431,052

Wisconsin — 1.8%
Wisconsin Health & Educational Facilities Authority, RB, Aurora Health Care, 6.40%, 4/15/33		1,350		1,362,946
Wisconsin Housing & EDA, Refunding RB, Series A, AMT, 4.75%, 9/01/33		1,340		1,217,578

				2,580,524

Wyoming — 0.9%
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26		1,200		1,237,248

Total Municipal Bonds — 149.3%				209,823,666




Municipal Bonds Transferred to Tender Option Bond Trusts (i)

Colorado — 2.5%
Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 9/01/36	3,750	3,504,225

Massachusetts — 1.0%
Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41	1,450	1,450,623

New York — 4.3%
New York City Municipal Water Finance Authority, RB:
Fiscal 2009, Series A, 5.75%, 6/15/40	450	474,776
Series FF-2, 5.50%, 6/15/40	405	416,807
New York City Municipal Water Finance Authority, Refunding RB, Series A, 4.75%, 6/15/30	3,000	2,973,600
New York State Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/38	2,199	2,147,937

		6,013,120


See Notes to Financial Statements.

22	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments (concluded)	BlackRock Municipal Bond Trust (BBK)
	(Percentages shown are based on Net Assets)


Municipal Bonds Transferred to Tender Option Bond Trusts (i)	Par (000)		Value

Ohio — 2.2%
County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41	$	1,260	$	1,153,291
Ohio Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic Health, Series A, 5.25%, 1/01/33		2,000		1,934,260

				3,087,551

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 10.0%				14,055,519

Total Long-Term Investments (Cost — $233,041,707) — 159.3%				223,879,185





Short-Term Securities	Shares

FFI Institutional Tax-Exempt Fund, 0.13% (j)(k)		1,592,687