Edgar Filing: BLACKROCK BROAD INVESTMENT GRADE 2009 TERM TRUST INC

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:__811-07250____________________________________

__________________________The BlackRock Broad Investment Grade 2009 Term Trust Inc. ________________
(Exact name of registrant as specified in charter)

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

Robert S. Kapito, President

The BlackRock Broad Investment Grade 2009 Term Trust Inc.

_________________________40 East 52nd Street, New York, NY 10022_________________________
(Name and address of agent for service)

Registrant’s telephone number, including area code:_302 797-2162__________________

Date of fiscal year end:____October 31, 2004__________________________________

Date of reporting period: __ April 30, 2004____________________________________

Item 1.

Reports to Shareholders.

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

FIXED INCOME LIQUIDITY EQUITIES ALTERNATIVES BLACKROCK SOLUTIONS

BlackRock
Closed-End Funds
Semi-Annual Report

APRIL 30, 2004 (UNAUDITED)

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

BlackRock Core Bond Trust (BHK)

BlackRock High Yield Trust (BHY)

BlackRock Income Opportunity Trust (BNA)

BlackRock Income Trust Inc. (BKT)

BlackRock Limited Duration Income Trust (BLW)

BlackRock Strategic Bond Trust (BHD)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE

TABLE OF CONTENTS

Letter to Shareholders	1

Trust Summaries	2

Portfolios of Investments	9

Financial Statements

Statements of Assets and Liabilities	47

Statements of Operations	49

Statements of Cash Flows	51

Statements of Changes in Net Assets	53

Financial Highlights	56

Notes to Financial Statements	63

Dividend Reinvestment Plans	74

Additional Information	75

Privacy Principles of the Trusts

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

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

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

LETTER TO SHAREHOLDERS

April 30, 2004

Dear Shareholder:

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

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

The following table shows the Trusts’ yields, closing market prices per share and net asset values (“NAV”) per share as of April 30, 2004.


Trust	Yield¹		Market Price		NAV

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)	5.75	%	$	15.65	$	15.75

BlackRock Core Bond Trust (BHK)	8.02			13.09		14.62

BlackRock High Yield Trust (BHY)	10.56			9.56		7.77

BlackRock Income Opportunity Trust (BNA)	7.92			10.61		11.93

BlackRock Income Trust Inc. (BKT)	8.78			6.98		6.99

BlackRock Limited Duration Income Trust (BLW)	7.97			18.82		19.85

BlackRock Strategic Bond Trust (BHD)	10.61			14.70		15.16

¹ Yield is based on market price.

BlackRock, Inc. (“BlackRock”), a world leader in asset management, has a proven commitment to fixed income. As of March 31, 2004, BlackRock managed $225 billion in bonds, including 18 open-end and 47 closed-end bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world’s largest institutional investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly-owned subsidiary of BlackRock, Inc.

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

Sincerely,

Laurence D. Fink
Chief Executive Officer
BlackRock Advisors, Inc.

Ralph L. Schlosstein
President
BlackRock Advisors, Inc.

TRUST SUMMARIES (unaudited)
APRIL 30, 2004

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

Trust Information


Symbol on American Stock Exchange:	BCT

Initial Offering Date:	June 17, 1993

Closing Market Price as of 4/30/04:	$15.65

Net Asset Value as of 4/30/04:	$15.75

Yield on Closing Market Price as of 4/30/04 ($15.65):¹	5.75	%

Current Monthly Distribution per Share:²	$0.075

Current Annualized Distribution per Share:²	$0.900

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

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


	4/30/04	10/31/03	Change		High	Low

Market Price	$15.65	$15.85	(1.26	)%	$16.52	$15.20

NAV	$15.75	$16.02	(1.69	)%	$16.58	$15.68

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

Sector Breakdown


Composition	April 30, 2004		October 31, 2003

U.S. Government and Agency Securities	60	%	56	%

Agency Multiple Class Mortgage Pass-Throughs	11		8

Interest Only Mortgage-Backed Securities	9		12

Corporate Bonds	7		8

Taxable Municipal Bonds	5		5

Inverse Floating Rate Mortgages	5		8

Commercial Mortgage-Backed Securities	1		1

Mortgage Pass-Throughs	1		1

Other	1		1

Corporate Credit Breakdown³


Credit Rating	April 30, 2004		October 31, 2003

AA/Aa	38	%	35	%

A	37		43

BBB/Baa	23		21

CCC/Caa	2		1

³Using the higher of Standard & Poor’s (“S&P”), Moody’s Investors Service (“Moody’s”) or Fitch Ratings (“Fitch”) rating. Corporate bonds represented approximately 9.9% and 11.0% of net assets on April 30, 2004, and October 31, 2003, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2004

BlackRock Core Bond Trust (BHK)

Trust Information


Symbol on New York Stock Exchange:	BHK

Initial Offering Date:	November 27, 2001

Closing Market Price as of 4/30/04:	$13.09

Net Asset Value as of 4/30/04:	$14.62

Yield on Closing Market Price as of 4/30/04 ($13.09):¹	8.02	%

Current Monthly Distribution per Share:²	$0.0875

Current Annualized Distribution per Share:²	$1.0500

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

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


	4/30/04	10/31/03	Change		High	Low

Market Price	$13.09	$13.57	(3.54	)%	$14.50	$12.99

NAV	$14.62	$14.75	(0.88	)%	$15.45	$14.59

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

Sector Breakdown


Composition	April 30, 2004		October 31, 2003

Corporate Bonds	40	%	46	%

U.S. Government and Agency Securities	36		16

Mortgage Pass-Throughs	16		26

Foreign Government Bonds	4		7

Interest Only Mortgage-Backed Securities	2		1

Commercial Mortgage-Backed Securities	1		2

Asset Backed Securities	1		—

Taxable Municipal Bonds	—		2

Corporate Credit Breakdown³


Credit Rating	April 30, 2004		October 31, 2003

AAA/Aaa	3	%	3	%

AA/Aa	15		11

A	27		25

BBB/Baa	18		21

BB/Ba	12		12

B	20		23

CCC/Caa	4		5

Not Rated	1		—

³Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 61.2% and 61.6% of net assets on April 30, 2004, and October 31, 2003, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2004

BlackRock High Yield Trust (BHY)

Trust Information


Symbol on New York Stock Exchange:	BHY

Initial Offering Date:	December 23, 1998

Closing Market Price as of 4/30/04:		$9.56

Net Asset Value as of 4/30/04:		$7.77

Yield on Closing Market Price as of 4/30/04 ($9.56):¹		10.56%

Current Monthly Distribution per Share:²		$0.084167

Current Annualized Distribution per Share:²		$1.010004

¹Yield on closing market price is calculated by dividing the annualized distribution per share by the closing market price. ²The distribution is not constant and is subject to change.

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


	4/30/04	10/31/03	Change		High	Low

Market Price	$9.56	$10.25	(6.73	)%	$11.75	$9.56

NAV	$7.77	$6.96	11.64	%	$7.83	$6.80

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

Corporate Sector Breakdown


Composition	April 30, 2004		October 31, 2003

Finance & Banking	13	%	12	%

Media	13		11

Consumer Products	11		12

Energy	9		7

Chemical	7		7

Telecommunication	6		4

Electronics	6		7

Industrial Equipment	6		5

Container & Glass	5		4

Transportation	5		7

Home Furnishing	3		4

Automotive	3		3

Health Care	2		2

Aero & Defense	2		2

Ecological Services & Equipment	2		2

Building & Development	2		6

Conglomerates	2		2

Other	3		3

Corporate Credit Breakdown³


Credit Rating	April 30, 2004		October 31, 2003

BBB/Baa	2	%	3	%

BB/Ba	17		12

B	50		52

CCC/Caa	29		25

CC/Ca	1		5

Not Rated	1		3

³Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 115.3% and 135.4% of net assets on April 30, 2004, and October 31, 2003, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2004

BlackRock Income Opportunity Trust (BNA)

Trust Information


Symbol on New York Stock Exchange:	BNA

Initial Offering Date:	December 20, 1991

Closing Market Price as of 4/30/04:	$10.61

Net Asset Value as of 4/30/04:	$11.93

Yield on Closing Market Price as of 4/30/04 ($10.61):¹	7.92	%

Current Monthly Distribution per Share:²	$0.07

Current Annualized Distribution per Share:²	$0.84

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

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


	4/30/04	10/31/03	Change		High	Low

Market Price	$10.61	$10.95	(3.11	)%	$11.63	$10.53

NAV	$11.93	$11.93	—	%	$12.40	$11.82

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

Sector Breakdown


Composition	April 30, 2004		October 31, 2003

Corporate Bonds	53	%	59	%

Mortgage Pass-Throughs	23		29

U.S. Government and Agency Securities	16		7

Interest Only Mortgage-Backed Securities	4		2

Federal Housing Administration	1		2

Asset-Backed Securities	1		—

Inverse Floating Rate Mortgages	1		1

Foreign Government Bonds	1		—

Corporate Credit Breakdown³


Credit Rating	April 30, 2004		October 31, 2003

AAA/Aaa	5	%	6	%

AA/Aa	12		12

A	23		22

BBB/Baa	21		19

BB/Ba	15		17

B	21		22

CCC/Caa	3		2

³Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 66.2% and 71.2% of net assets on April 30, 2004, and October 31, 2003, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2004

BlackRock Income Trust Inc. (BKT)

Trust Information


Symbol on New York Stock Exchange:	BKT

Initial Offering Date:	July 22, 1988

Closing Market Price as of 4/30/04:		$6.98

Net Asset Value as of 4/30/04:		$6.99

Yield on Closing Market Price as of 4/30/04 ($6.98):¹		8.78%

Current Monthly Distribution per Share:²		$0.051042

Current Annualized Distribution per Share:²		$0.612504

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

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


	4/30/04	10/31/03	Change		High	Low

Market Price	$6.98	$7.71	(9.47	)%	$7.96	$6.93

NAV	$6.99	$7.21	(3.05	)%	$7.25	$6.99

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

Sector Breakdown


Composition	April 30, 2004		October 31, 2003

U.S. Government and Agency Securities	35	%	30	%

Mortgage Pass-Throughs	23		32

Interest Only Mortgage-Backed Securities	13		15

Principal Only Mortgage-Backed Securities	9		11

Agency Multiple Class Mortgage Pass-Throughs	7		3

Collateralized Mortgage Obligation Residuals	6		—

Inverse Floating Rate Mortgages	2		4

Federal Housing Administration	2		3

Commercial Mortgage-Backed Securities	2		2

Asset-Backed Securities	1		—

TRUST SUMMARIES (unaudited)
APRIL 30, 2004

BlackRock Limited Duration Income Trust (BLW)

Trust Information


Symbol on New York Stock Exchange:	BLW

Initial Offering Date:	July 30, 2003

Closing Market Price as of 4/30/04:	$18.82

Net Asset Value as of 4/30/04:	$19.85

Yield on Closing Market Price as of 4/30/04 ($18.82):¹	7.97	%

Current Monthly Distribution per Share:²	$0.125

Current Annualized Distribution per Share:²	$1.500

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

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


	4/30/04	10/31/03	Change		High	Low

Market Price	$18.82	$18.80	0.11	%	$20.45	$18.15

NAV	$19.85	$19.74	0.56	%	$20.32	$19.63

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

Sector Breakdown


Composition	April 30, 2004		October 31, 2003

Corporate Bonds	43	%	47	%

Bank Loans	28		20

Mortgage Pass-Throughs	16		24

U.S. Government and Agency Securities	8		8

Foreign Government Bonds	2		1

Collateralized Mortgage Obligation Residuals	2		—

Asset-Backed Securities	1		—

Corporate Credit Breakdown³


Credit Rating	April 30, 2004		October 31, 2003

A	6	%	6	%

BBB/Baa	8		8

BB/Ba	27		26

B	58		60

CCC/Caa	1		—

³Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 63.7% and 64.6% of net assets on April 30, 2004, and October 31, 2003, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2004

BlackRock Strategic Bond Trust (BHD)

Trust Information


Symbol on New York Stock Exchange:	BHD

Initial Offering Date:	February 26, 2002

Closing Market Price as of 4/30/04:	$14.70

Net Asset Value as of 4/30/04:	$15.16

Yield on Closing Market Price as of 4/30/04 ($14.70):¹	10.61	%

Current Monthly Distribution per Share:²	$0.13

Current Annualized Distribution per Share:²	$1.56

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

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


	4/30/04	10/31/03	Change		High	Low

Market Price	$14.70	$15.27	(3.73	)%	$16.68	$14.28

NAV	$15.16	$15.07	0.60	%	$15.60	$15.00

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

Corporate Sector Breakdown


Composition	April 30, 2004		October 31, 2003

Energy	16	%	16	%

Finance & Banking	14		12

Media	10		10

Automotive	10		11

Telecommunication	7		7

Health Care	6		5

Conglomerates	4		4

Aero & Defense	4		3

Chemical	3		4

Ecological Services & Equipment	3		3

Transportation	3		2

Hotels & Casinos	3		2

Building & Development	2		4

Forest Products	2		2

Container & Glass	2		2

Real Estate	2		2

Basic Material	2		2

Industrial Equipment	2		3

Consumer Products	2		3

Technology	2		2

Other	1		1

Corporate Credit Breakdown³


Credit Rating	April 30, 2004		October 31, 2003

AAA/Aaa	1	%	1	%

AA/Aa	5		5

A	9		9

BBB/Baa	10		10

BB/Ba	23		23

B	46		47

CCC/Caa	6		4

Not Rated	—		1

³Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 123.7% and 134.4% of net assets on April 30, 2004, and October 31, 2003, respectively.

CONSOLIDATED PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2004

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

	Principal
	Amount
Rating¹	(000)		Description	Value

			LONG-TERM INVESTMENTS—137.6%
			Mortgage Pass-Throughs—1.6%
			Federal National Mortgage Assoc.,
	$	678	5.50%, 1/01/17 - 2/01/17	$	696,821
		30	6.50%, 7/01/29		31,627

			Total Mortgage Pass-Throughs		728,448

			Agency Multiple Class Mortgage Pass-Throughs—15.4%
			Federal Home Loan Mortgage Corp.,
		2,168	Ser. 1510, Class G, 7.05%, 5/15/13		2,362,534
		142	Ser. 1512, Class H, 6.50%, 2/15/08		145,035
		400	Ser. 1534, Class IG, 5.00%, 2/15/10		411,581
		2,000	Ser. 1598, Class J, 6.50%, 10/15/08		2,146,940
			Federal National Mortgage Assoc.,
		159	Ser. 10, Class V, 7.00%, 7/25/13		159,771
		157	Ser. 13, Class SJ, 8.75%, 2/25/09		161,039
		100	Ser. 22, Class GN, 6.50%, 8/25/31		104,601
		88	Ser. 43, Class E, 7.50%, 4/25/22		91,871
		1,000	Ser. 49, Class H, 7.00%, 4/25/13		1,080,700
		59	Ser. 60, Class JZ, 6.00%, 3/25/31		60,007
		429	Ser. 214, Class SK, 10.00%, 12/25/08		456,918

			Total Agency Multiple Class Mortgage Pass-Throughs		7,180,997

			Inverse Floating Rate Mortgages—7.1%
AAA		350	Citicorp Mortgage Securities, Inc., Ser. 14, Class A-4, 24.575%, 11/25/23		372,531
			Federal Home Loan Mortgage Corp.,
		336	Ser. 1425, Class SB, 22.593%, 12/15/07		425,346
		101	Ser. 1506, Class S, 16.825%, 5/15/08		115,208
		106	Ser. 1515, Class S, 17.255%, 5/15/08		127,450
		91	Ser. 1618, Class SA, 8.25%, 11/15/08		92,926
		160	Ser. 1621, Class SH, 12.14%, 11/15/22		165,261
		121	Ser. 1661, Class SB, 17.092%, 1/15/09		128,236
		350	Ser. 1688, Class S, 10.971%, 12/15/13		371,845
			Federal National Mortgage Assoc.,
		384	Ser. 187, Class SB, 20.079%, 10/25/07		446,193
		197	Ser. 190, Class S, 22.593%, 11/25/07		234,291
		241	Ser. 191, Class SD, 13.458%, 10/25/08		261,179
		309	Ser. 214, Class SH, 15.461%, 12/25/08		336,214
			Residential Funding Mortgage Securities I, Inc.,
AAA		119	Ser. S23, Class A-12, 14.43%, 6/25/08		120,182
AAA		123	Ser. S23, Class A-16, 16.033%, 6/25/08		126,101

			Total Inverse Floating Rate Mortgages		3,322,963

			Interest Only Mortgage-Backed Securities—12.0%
			Federal Home Loan Mortgage Corp.,
		200	Ser. 65, Class I, 8/15/20		24,621
		68	Ser. 141, Class H, 5/15/21		825
		188	Ser. 1114, Class J, 7/15/06		31,884
		130	Ser. 1285, Class M, 5/15/07		2,196
		891	Ser. 1645, Class IB, 9/15/08		64,607
		920	Ser. 2462, Class NI, 8/15/21		71,456
		1,190	Ser. 2513, Class BI, 12/15/15		52,566
		1,970	Ser. 2523, Class EH, 4/15/20		286,916
		507	Ser. 2542, Class IY, 5/15/16		297
		2,580	Ser. 2543, Class IJ, 10/15/12		174,133
		2,821	Ser. 2543, Class IM, 9/15/12		130,682
		5,419	Ser. 2572, Class IT, 5/15/19		468,054
		3,981	Ser. 2633, Class PI, 3/15/12		224,540
		4,577	Ser. 2672, Class TP, 9/15/16		305,037
		5,605	Ser. 2739, Class PI, 3/15/22		760,682

See Notes to Financial Statements.

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

	Principal
	Amount
Rating¹	(000)			Description	Value

				Interest Only Mortgage-Backed Securities—(cont’d)
				Federal National Mortgage Assoc.,
	$	458		Ser. 8, Class HA, 1/25/08	$	72,584
		3,000		Ser. 13, Class IG, 10/25/22		347,970
		447		Ser. 20, Class SL, 9/25/08		84,834
		73		Ser. 39, Class PE, 1/25/23		1,766
		104		Ser. 42, Class SO, 3/25/23		1,365
		1,312		Ser. 49, Class L, 4/25/13		98,986
		1,135		Ser. 51, Class K, 4/25/07		130,477
		12,992		Ser. 70, Class ID, 4/25/22		1,832,002
		119		Ser. 72, Class H, 7/25/06		12,504
		711		Ser. 80, Class PI, 9/25/23		6,955
		2,000		Ser. 82, Class IR, 9/25/12		124,040
		844		Ser. 90, Class M, 1/25/28		124,825
		7		Ser. 174, Class S, 9/25/22		22,699
		293		Ser. 194, Class PV, 6/25/08		11,805
		951		Ser. 208, Class S, 2/25/23		33,784
		267		Ser. 223, Class PT, 10/25/23		22,366
		6		Ser. G-21, Class L, 7/25/21		9,568
		49		PNC Mortgage Securities Corp., Ser. 8, Class 4-X, 10/25/13		2,184
		4,359		Structured Asset Securities Corp., Ser. ALS1, Class 3AX, 5/25/29		1,630
		26,403		Vendee Mortgage Trust, Ser. 1, Class IO, 10/15/31		32,476

				Total Interest Only Mortgage-Backed Securities		5,573,316

				Principal Only Mortgage-Backed Securities—0.1%
Aaa		47		Salomon Brothers Mortgage Securities Inc. VI, Ser. 3, Class A, 10/23/17		43,563

				Commercial Mortgage-Backed Securities—1.7%
AAA		750	²	New York City Mortgage Loan Trust, Multi-Family, Class A2, 6.75%, 6/25/11		812,766

				Asset-Backed Securities—0.1%
NR		238	^2,3,4	Global Rated Eligible Asset Trust, Ser. A, Class 1, 7.33%, 9/15/07		5,960
				Structured Mortgage Asset Residential Trust,
NR		576	^3,4	Ser. 2, 8.24%, 3/15/06		7,925
NR		639	^3,4	Ser. 3, 8.724%, 4/15/06		8,784

				Total Asset-Backed Securities		22,669

				Corporate Bonds—9.9%
				Chemical—2.6%
A+		1,000		Dow Capital BV, 9.20%, 6/01/10		1,198,500

				Consumer Products—1.1%
BBB+		500		General Mills, 8.75%, 9/15/04		512,965

				Energy—1.2%
BBB+		500	²	Israel Electric Corp., Ltd., 7.25%, 12/15/06 (Israel)		542,755

				Finance & Banking—3.7%

AA-		1,000	⁵	Morgan Stanley Group, Inc., 10.00%, 6/15/08		1,218,500
AA+		500		UBS PaineWebber Group, Inc., 8.875%, 3/15/05		526,785

						1,745,285

				Telecommunication—1.1%
A		500		ALLTEL Corp., 7.50%, 3/01/06		542,390

				Transportation—0.2%
CCC		100		American Airlines, Inc., 10.44%, 3/04/07		84,000

				Total Corporate Bonds		4,625,895

				U.S. Government and Agency Securities—82.3%
		214		Small Business Investment Companies, Ser. P10A, Class 1, 6.12%, 2/01/08		226,325
		27,000	⁵	U.S. Treasury Bond, zero coupon, 11/15/09		21,662,937
				U.S. Treasury Notes,
		3,200		3.50%, 11/15/06		3,267,002
		7,000	⁵	4.375%, 8/15/12		7,014,209
		1,700		5.75%, 11/15/05		1,795,360
		3,550		6.00%, 8/15/09		3,937,727
		385		6.625%, 5/15/07		426,493

				Total U.S. Government and Agency Securities		38,330,053

See Notes to Financial Statements.

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

	Principal
	Amount
Rating¹	(000)		Description	Value

			Taxable Municipal Bonds—7.4%
AAA	$	500	Fresno California Pension Oblig., 7.80%, 6/01/14	$	609,260
AAA		500	Kern County California Pension Oblig., 6.98%, 8/15/09		573,805
			Los Angeles County California Pension Oblig.,
AAA		1,000	Ser. A, 8.62%, 6/30/06		1,131,050
AAA		500	Ser. D, 6.97%, 6/30/08		568,560
AAA		500	Orleans Parish Louisiana School Board, Ser. A, 6.60%, 2/01/08		549,245

			Total Taxable Municipal Bonds		3,431,920

			Total Long-Term Investments (cost 63,243,903)		64,072,590

			SHORT-TERM INVESTMENT—10.3%
			U.S. Government Agency Security—10.3%
		4,800	Federal Home Loan Bank, zero coupon, 5/03/04 (cost $4,799,773)		4,799,773

			Total investments—147.9% (cost $68,043,676)		68,872,363
			Liabilities in excess of other assets—(47.9)%		(22,312,296)

			Net Assets—100%	$	46,560,067

¹ Using the higher of S&P’s, Moody’s or Fitch’s rating.
² Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2004, the Trust held 2.9% of its net assets, with a current market value of $1,361,481, in securities restricted as to resale.
³ Security is fair valued.
⁴ Illiquid securities representing 0.05% of net assets.
⁵ Entire or partial principal amount pledged as collateral for reverse repurchase agreements or financial futures contracts.

Details of open reverse repurchase agreements are disclosed in Note 4 in the Notes to Financial Statements.

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2004

BlackRock Core Bond Trust (BHK)

	Principal
	Amount
Rating¹	(000)			Description	Value


				LONG-TERM INVESTMENTS—154.8%
				Mortgage Pass-Throughs—25.4%
				Federal Home Loan Mortgage Corp.,
	$	1,875		3.50%, 4/01/08	$	1,855,761
		3,355	²	3.875%, 11/10/08		3,358,295
		1,125		4.50%, 12/16/10		1,112,344
		2,795		4.75%, 12/08/10		2,805,509
		7,804		5.50%, 11/01/18 - 9/01/33		7,812,446
		1,885		5.75%, 4/15/08		2,033,331
		7,002		6.00%, 9/01/10 - 12/01/18		7,319,473
		3,175		6.625%, 9/15/09		3,548,634
		735		6.875%, 9/15/10		835,239
		931		7.00%, 3/15/10 - 9/01/31		1,052,966
		100		5.00%, TBA		96,938
		3,000		5.50%, TBA		3,077,814
				Federal National Mortgage Assoc.,
		870		1.75%, 6/16/06		852,313
		1,280		4.75%, 2/21/13		1,248,269
		1,569		5.00%, 1/01/34 - 2/01/34		1,521,475
		3,725	²	5.25%, 4/15/07		3,946,489
		1,336		5.50%, 1/01/18 - 1/01/34		1,358,578
		1,740		5.75%, 2/15/08		1,874,711
		7,079		6.00%, 5/15/08 - 11/01/33		7,487,166
		3,300		6.625%, 10/15/07 - 9/15/09		3,665,571
		1,056		7.00%, 1/01/31 - 7/01/32		1,116,638
		6,290	²	7.125%, 3/15/07 - 6/15/10		7,159,911
		3,410		7.25%, 1/15/10		3,925,592
	15,000			5.00%, TBA		15,084,375
	10,800			5.50%, TBA		10,773,000
		620		Government National Mortgage Assoc., 5.50%, 5/15/33 - 9/15/33		620,370
	22,600			Residential Accredit Loans, Inc., Ser. QS10, Class A16, 6.45%, 5/25/33		2,236,936
		2,542		Small Business Admin., Ser. P10B, Class 1, 5.136%, 8/10/13		2,538,787

				Total Mortgage Pass-Throughs		100,318,931

				Interest Only Asset-Backed Securities—1.0%
	45,000			Sterling Coofs Trust, 4/15/29		4,021,875

				Interest Only Mortgage-Backed Securities—2.5%
				Federal Home Loan Mortgage Corp.,
		4,785		Ser. 2579, Class HI, 8/15/17		546,052
		9,518		Ser. 2611, Class QI, 9/15/32		2,171,593
				Federal National Mortgage Assoc.,
		8,895		Ser. 16, Class IW, 11/25/12		665,082
	14,316			Ser. 64, Class QI, 1/25/33		3,217,591
	24,146			Ser. 92, Class IC, 4/25/13		2,974,573
		247		Residential Funding Mortgage Securities I, Inc., Ser. S6, Class A7, 4/25/17		247,353

				Total Interest Only Mortgage-Backed Securities		9,822,244

				Commercial Mortgage-Backed Securities—2.0%
Aaa		1,677		Heller Financial Commercial Mortgage Asset Co., Ser. PH1, Class A2, 6.847%, 5/15/31		1,851,073
AAA		1,470		Morgan Stanley Capital I, Inc., Ser. HF2, Class A2, 6.48%, 11/15/30		1,607,514
AAA		105		Residential Funding Mortgage Securities I, Inc., Ser. S6, Class A7, 6.00%, 4/25/17		105,590
AAA		3,500		Salomon Brothers Mortgage Securities VII, Ser. C1, Class A2, 7.52%, 12/18/09		4,000,837
AAA		254		Washington Mutual Mortgage Securitization Corp., Ser. 12, Class A, 6.50%, 5/25/32		257,638

				Total Commercial Mortgage-Backed Securities		7,822,652

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				U.S. Government and Agency Securities—55.9%
	$	1,050		Resolution Funding Corp., zero coupon, 7/15/18 - 10/15/18	$	472,894
				U.S. Treasury Bonds,
		20,790	²	5.375%, 2/15/31		21,056,320
		4,945	²	6.00%, 2/15/26		5,347,553
		4,505	²	6.25%, 8/15/23		5,006,181
		6,345	²	6.75%, 8/15/26		7,485,368
		3,375	²	8.00%, 11/15/21		4,446,036
		19,350	²	8.125%, 8/15/19		25,516,303
		5,310	²	10.375%, 11/15/12		6,582,950
				U.S. Treasury Notes,
		25,220		1.50%, 3/31/06		24,854,486
		24,980	²	2.25%, 4/30/06 - 2/15/07		24,850,828
		2,545		2.625%, 3/15/09		2,436,049
		28,940	²	3.125%, 4/15/09		28,302,452
		67,370		4.00%, 11/15/12 - 2/15/14		64,574,903

				Total U.S. Government and Agency Securities		220,932,323

				Corporate Bonds—61.1%
				Aero & Defense—2.3%
B-		3,000		BE Aerospace, Inc., Ser. B, 8.00%, 3/01/08		2,925,000
				Lockheed Martin Corp.,
BBB+		380		7.20%, 5/01/36		434,090
BBB+		1,175		8.50%, 12/01/29		1,486,199
				Northrop Grumman Corp.,
BBB		380		7.125%, 2/15/11		429,411
BBB		960		7.875%, 3/01/26		1,127,684
BB+		1,750		Raytheon, 7.00%, 5/15/06		1,852,515
BBB-		800		Raytheon Co., 4.85%, 1/15/11		790,872

						9,045,771

				Automotive—1.7%
A3		660		Chrysler Corp., 7.45%, 3/01/27		682,778
				DaimlerChrysler NA Holding Corp.,
A3		250		4.05%, 6/04/08		245,250
A3		940		4.75%, 1/15/08		952,493
B3		1,500		Delco Remy Intl., Inc., 11.00%, 5/01/09		1,586,250
B+		2,100		Sonic Automotive, Inc., Ser. B, 8.625%, 8/15/13		2,262,750
BB-		892		TRW Automotive, Inc., 9.375%, 2/15/13		1,021,340

						6,750,861

				Basic Material—0.1%
A-		400		Alcan Inc., 6.125%, 12/15/33 (Canada)		394,084

				Building & Development—0.9%
BB+		3,000		Hovnanian Enterprises, Inc., 10.50%, 10/01/07		3,450,000

				Chemical—2.2%
CCC		3,000		Avecia Group PLC, 11.00%, 7/01/09 (United Kingdom)		2,385,000
				Dow Chemical Co.,
A-		1,650		5.97%, 1/15/09		1,765,550
A-		280		7.375%, 11/01/29		310,139
B+		4,000		Lyondell Chemical Co., Ser. B, 9.875%, 5/01/07		4,200,000

						8,660,689

				Conglomerates—1.2%
AAA		2,745		General Electric Co., 5.00%, 2/01/13		2,733,416
BBB-		2,055		Tyco Intl. Group SA, 6.375%, 6/15/05 (Luxembourg)		2,134,446

						4,867,862

				Consumer Products—2.9%
BB+		3,000		American Greetings Corp., 11.75%, 7/15/08		3,525,000
A		1,025		Avery Dennison Corp., 4.875%, 1/15/13		1,012,484
A+		1,680		Diageo Capital PLC, 3.50%, 11/19/07 (United Kingdom)		1,679,782
BBB+		1,010		General Mills, Inc., 5.125%, 2/15/07		1,055,925

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Consumer Products—(cont’d)
				Kraft Foods, Inc.,
A3	$	400		5.25%, 6/01/07	$	418,672
A3		1,880		5.625%, 11/01/11		1,946,796
BBB		650		Kroger Co., 6.80%, 4/01/11		716,330
B-		1,000	³	Pantry, Inc., The, 7.75%, 2/15/14		1,005,000

						11,359,989

				Containers & Glass—0.7%
B		1,000		Crown European Holdings SA, 10.875%, 3/01/13 (France)		1,160,000
BB-		1,500		Owens-Brockway Glass Container, 8.75%, 11/15/12		1,627,500

						2,787,500

				Ecological Services & Equipment—1.3%
B+		5,000		Allied Waste NA, Inc., Ser. B, 10.00%, 8/01/09		5,350,000

				Electronics—1.0%
CCC		2,500		Knowles Electronics Holdings, Inc., 13.125%, 10/15/09		2,637,500
B+		1,000		Stoneridge, Inc., 11.50%, 5/01/12		1,200,000

						3,837,500

				Energy—7.8%
BBB+		1,115		Anadarko Finance Co., Ser. B, 7.50%, 5/01/31 (Canada)		1,270,922
BBB+		765	²	Anadarko Petroleum Corp., 5.375%, 3/01/07		806,272
B+		1,000		Calpine Canada Energy Finance ULC, 8.50%, 5/01/08 (Canada)		702,500
BB-		1,250		Chesapeake Energy Corp., 9.00%, 8/15/12		1,428,125
BB		1,000		Compagnie Generale de Geophysique SA, 10.625%, 11/15/07 (France)		1,077,500
A-		1,800		Conoco Funding Co., 6.35%, 10/15/11 (Canada)		1,982,412
BBB		1,915		Devon Energy Corp., 7.95%, 4/15/32		2,225,134
BBB		230		Devon Financing Corp. ULC, 7.875%, 9/30/31		262,586
Baa2		895		Dominion Resources Capital Trust III, 8.40%, 1/15/31		1,028,713
B		3,000		Dresser, Inc., 9.375%, 4/15/11		3,240,000
B		2,500	³	Dynegy Holdings Inc., 10.125%, 7/15/13		2,750,000
				El Paso Natural Gas Co.,
B1		850		7.625%, 8/01/10		871,250
B1		265		8.375%, 6/15/32		263,675
B-		2,250		El Paso Production Holding Co., 7.75%, 6/01/13		2,137,500
A-		1,810		EnCana Corp., 4.75%, 10/15/13 (Canada)		1,738,125
BBB+		305		Exelon Corp., 6.75%, 5/01/11		336,171
BBB-		1,220		FirstEnergy Corp., Ser. C, 7.375%, 11/15/31		1,281,332
BB-		2,000		Leviathan Gas Pipeline Partners, 10.375%, 6/01/09		2,090,000
BBB+		360		Occidental Petroleum Corp., 7.20%, 4/01/28		403,089
AA		835		Ontario Electricity Financial Corp., 6.10%, 1/30/08 (Canada)		905,340
Baa1		1,650		Petroleos Mexicanos, 9.375%, 12/02/08 (Mexico)		1,918,125
AA+		790	³	SP PowerAssets Ltd., 5.00%, 10/22/13 (Singapore)		768,559
A-		445		Suncor Energy Inc., 5.95%, 12/01/34 (Canada)		433,253
A3		725		Virginia Electric & Power Co., Ser. A, 5.75%, 3/31/06		765,760

						30,686,343

				Finance & Banking—18.8%
AA+		1,000	^2,3	American General Instl. Capital A, 7.57%, 12/01/45		1,165,367
				Bank of America Corp.,
Aa2		1,000		3.875%, 1/15/08		1,008,540
Aa2		105		4.375%, 12/01/10		103,182
Aa2		925		5.25%, 2/01/07		973,960
Aa3		850		7.40%, 1/15/11		980,475
Aa2		325		Bank One NA, 3.70%, 1/15/08		325,826
Aa3		565	³	Barclays Bank PLC, 8.55%, 9/29/49 (United Kingdom)		683,004
				Citigroup, Inc.,
AA+		780		5.125%, 5/05/14		773,622
AA		375		5.875%, 2/22/33		358,958
AA		4,490		6.00%, 10/31/33		4,378,244
AA+		185		6.875%, 6/01/25		201,588
AA		200		7.25%, 10/01/10		227,504

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Finance & Banking—(cont’d)
AA-	$	275		Credit Suisse First Boston USA, Inc., 6.125%, 11/15/11	$	293,865
BB		1,000		Crum & Forster Holdings Corp., 10.375%, 6/15/13		1,105,000
				General Electric Capital Corp.,
AAA		2,870		Ser. A, 5.875%, 2/15/12		3,047,165
AAA		860		Ser. A, 6.00%, 6/15/12		916,760
				General Motors Acceptance Corp.,
A3		1,160		zero coupon, 12/01/12		664,783
A3		2,029		6.875%, 9/15/11		2,121,035
A3		640		8.00%, 11/01/31		670,528
				Goldman Sachs Group, Inc.,
AA-		300		5.15%, 1/15/14		292,182
AA-		750		6.125%, 2/15/33		726,345
AA-		190		6.60%, 1/15/12		208,451
AA-		135		7.35%, 10/01/09		153,864
AA+		1,175	³	HBOS PLC, 3.125%, 1/12/07 (United Kingdom)		1,177,013
				Household Finance Corp.,
A1		1,760		6.375%, 8/01/10 - 11/27/12		1,904,315
A1		2,325		6.75%, 5/15/11		2,579,657
A+		2,205		HSBC Bank USA Inc., 4.625%, 4/01/14		2,084,334
				JP Morgan Chase & Co.,
A+		540		3.625%, 5/01/08		535,847
A+		1,600		5.25%, 5/30/07		1,684,896
A+		600		5.35%, 3/01/07		635,226
A		325		6.625%, 3/15/12		358,755
A		1,155		6.75%, 2/01/11		1,284,718
A+		165		Lehman Brothers Holdings, Inc., 6.25%, 5/15/06		176,456
				Morgan Stanley,
AA-		1,635		3.875%, 1/15/09		1,611,489
AA-		3,395		5.30%, 3/01/13		3,392,118
AA-		375		5.80%, 4/01/07		400,249
AA-		160		6.75%, 4/15/11		177,590
A3		20,300	³	Morgan Stanley Tracers, 5.838%, 3/01/07		21,531,195
BBB+		790		Peco Energy Cap. Trust IV, Trust Preferred Secs., 5.75%, 6/15/33		696,922
AA		1,500		Protective Life Secured Trust, 3.70%, 11/24/08		1,481,523
A+		1,000	³	Prudential Funding LLC, 6.60%, 5/15/08		1,092,300
AA		400	³	Rabobank Capital Fund II, 5.26%, 12/29/49		412,760
				SLM Corp.,
A+		1,350		5.00%, 10/01/13		1,316,412
A+		2,055		5.375%, 1/15/13 - 5/15/14		2,048,836
A+		90		5.625%, 4/10/07		95,736
Aa3		375		U.S. Bancorp, Ser. N, 3.95%, 8/23/07		380,625
Aa2		2,025		US Bank National Assoc., 2.87%, 2/01/07		1,999,303
Aa3		1,285		Wachovia Corp., 3.625%, 2/17/09		1,260,585
Aa1		200		Wells Fargo Bank NA, 7.80%, 6/15/10		211,639
AA		460	³	Western & Southern Financial Group Inc., 5.75%, 7/15/33		424,382
B2		1,500	³	WMC Finance Co., 11.75%, 12/15/08		1,845,000

						74,180,129

				Forest Products—1.1%
B		3,425		Caraustar Industries, Inc., 9.875%, 4/01/11		3,493,500
BBB		1,060		Weyerhaeuser Co., 6.95%, 10/01/27		1,092,977

						4,586,477

				Health Care—1.5%
AA-		1,545		Bristol Myers Squibb Co., 5.75%, 10/01/11		1,628,677
NR		2,000		HealthSouth Corp., 7.625%, 6/01/12		2,010,000
B		2,000		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		2,270,000

						5,908,677

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Hotels & Casinos—0.5%
B+	$	1,000		Circus & Eldorado Joint Venture, 10.125%, 3/01/12	$	1,015,000
B		1,000		Resorts Intl. Hotel & Casino, Inc., 11.50%, 3/15/09		1,110,000

						2,125,000

				Industrial Equipment—0.6%
B		2,000		Terex Corp., 9.25%, 7/15/11		2,230,000

				Leisure—0.8%
BB+		3,000		Royal Caribbean Cruises Ltd., 8.125%, 7/28/04 (Liberia)		3,030,000

				Media—6.6%
B1		4,000		Alliance Atlantis Communications, Inc., 13.00%, 12/15/09 (Canada)		4,460,000
				AOL Time Warner, Inc.,
BBB+		80		6.125%, 4/15/06		84,814
BBB+		625		7.625%, 4/15/31		682,156
CCC-		4,000		Charter Communications Holdings LLC, 10.75%, 10/01/09		3,550,000
BBB		1,050		Comcast Cable Communications, Inc., 6.875%, 6/15/09		1,155,929
BBB		3,550		Comcast Corp., 5.50%, 3/15/11		3,639,531
Baa1		355	³	COX Enterprises, Inc., 4.375%, 5/01/08		356,033
BB-		4,000		EchoStar DBS Corp., 10.375%, 10/01/07		4,320,000
BBB-		825		News America Holdings, 7.70%, 10/30/25		935,014
BBB-		985		News America Inc., 7.625%, 11/30/28		1,123,393
BBB		730		TCI Communications Inc., 7.875%, 2/15/26		829,441
BBB		10		Tele-Communications-TCI Group, 7.875%, 8/01/13		11,584
				Time Warner, Inc.,
BBB+		90		6.625%, 5/15/29		88,921
BBB+		4,380		7.57%, 2/01/24		4,690,936

						25,927,752

				Pharmaceuticals—0.7%
B-		1,000	³	Curative Hlth. Svcs. Inc., 10.75%, 5/01/11		1,003,750
AA		835		GlaxoSmithKline Cap. Inc., 4.375%, 4/15/14		790,745
A		875		Wyeth, 6.50%, 2/01/34		874,274

						2,668,769

				Real Estate—1.3%
				AvalonBay Communities, Inc.,
BBB+		350		6.625%, 9/15/11		379,505
BBB+		775		8.25%, 7/15/08		894,296
BBB+		1,220		EOP Operating LP, 4.75%, 3/15/14		1,141,383
				ERP Operating LP,
A-		1,950		5.20%, 4/01/13		1,933,581
A-		825		6.95%, 3/02/11		919,545

						5,268,310

				Telecommunication—5.5%
A		1,015		British Telecommunications PLC, 8.875%, 12/15/30 (United Kingdom)		1,271,672
				Deutsche Telekom Intl. Finance BV (Netherlands)
BBB+		1,060		8.50%, 6/15/10		1,252,390
BBB+		2,120		8.75%, 6/15/30		2,620,256
AA-		1,750		New England Telephone & Telegraph Co., 7.875%, 11/15/29		2,027,323
				Nextel Communications, Inc.,
BB		2,000		9.375%, 11/15/09		2,162,500
BB		3,000		9.50%, 2/01/11		3,412,500
B3		1,750	³	Qwest Communications Intl., 7.50%, 2/15/14		1,610,000
A+		1,500		SBC Communications, Inc., 5.875%, 8/15/12		1,562,235
AA		230		Verizon New Jersey, Inc., 7.85%, 11/15/29		267,329
AA		750		Verizon New Jersey, Inc., Ser. A, 5.875%, 1/17/12		784,178
				Vodafone Group PLC (United Kingdom)
A		450		5.00%, 12/16/13		441,230
A		350		6.25%, 11/30/32		347,011
A		3,439		7.75%, 2/15/10		3,986,695

						21,745,319

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Transportation—1.6%
Aa3	$	1,470		Burlington Northern Santa Fe Railway, Ser. 1, 8.251%, 1/15/21	$	1,799,722
BBB+		1,410	²	Canadian National Railway Co., 6.90%, 7/15/28 (Canada)		1,535,589
BBB		1,450		Canadian Pacific Railway Ltd., 6.25%, 10/15/11 (Canada)		1,569,031
B		1,635		Sea Containers Ltd., 10.50%, 5/15/12 (Bermuda)		1,618,650

						6,522,992

				Total Corporate Bonds		241,384,024

				Taxable Municipal Bonds—0.3%
A3		650		California Dept. of Wtr. Res. Pwr. Sply., 3.975%, 5/01/05		662,058
AA		350		Ohana Military Cmntys. LLC, 6.193%, 4/01/49		350,669

				Total Taxable Municipal Bonds		1,012,727

				Foreign Government Bonds—6.6%
AAA		3,925		Germany Federal Republic, 4.25%, 1/04/14		4,734,365
Aaa		1,075		Kingdom of Spain, 5.15%, 7/30/09		1,390,163
				Kingdom of Sweden,
AAA		21,325		5.00%, 1/28/09		2,926,605
AAA		17,515		8.00%, 8/15/07		2,614,324
				Quebec Province Canada,
AA-		250		7.00%, 1/30/07		275,278
AA-		550		7.38%, 4/09/26		646,773
AAA		3,850		United Kingdom Treasury Bond, 5.00%, 3/07/08		6,871,143
				United Mexican States,
Baa2		350		4.625%, 10/08/08		348,250
Baa2		4,000		6.625%, 3/03/15		4,040,000
Baa2		2,255		8.00%, 9/24/22		2,385,790

				Total Foreign Government Bonds		26,232,691

				Total Long-Term Investments (cost $607,301,070)		611,547,467

				SHORT-TERM INVESTMENTS—9.0%
				U.S. Government and Agency Securities—9.0%
				Federal Home Loan Bank,
		15,100		zero coupon, 5/03/04		15,099,286
		15,925		zero coupon, 5/19/04		15,917,436
		4,233		Federal Home Loan Mortgage Corp., zero coupon, 5/06/04		4,233,081
		462		U.S. Treasury Bonds, zero coupon, 5/04/04		462,063

				Total Short-Term Investments (cost $35,711,866)		35,711,866

				Total investments before outstanding options written (cost $643,012,936)		647,259,333


	Notional
	Amount
	(000)


				Outstanding Options Written—(0.3%)
		3,200		Federal National Mortgage Assoc., zero coupon, 5/06/04		0
		52,700		Interest Rate Swap, 3.60% over 3-month LIBOR, expires 11/01/04		(160,053)
		39,000		Interest Rate Swap, 5.75% over 3-month LIBOR, expires 9/23/05		(643,890)
		11,100		Interest Rate Swap, 6.00% over 3-month LIBOR, expires 10/25/04		(229,104)
		52		U.S. Treasury Bond Futures, expires 5/22/04		(95,875)
		6		U.S. Treasury Bond Futures, expires 8/27/04		(24,562)

				Total Outstanding Options Written (premium received $1,904,227)		(1,153,484)

				Total investments, net of outstanding options written—163.5%		646,105,849
				Liabilities in excess of other assets—(63.5)%		(251,005,182)

				Net Assets—100%	$	395,100,667

¹ Using the higher of S&P’s, Moody’s or Fitch’s rating.
² Entire or partial principal amount pledged as collateral for reverse repurchase agreements or financial futures contracts.
³ Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2004, the Trust held 9.1% of its net assets, with a current market value of $35,824,366, in securities restricted as to resale.

Details of open reverse repurchase agreements are disclosed in Note 4 in the Notes to Financial Statements.

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2004

BlackRock High Yield Trust (BHY)

	Principal
	Amount
Rating¹	(000)			Description	Value


				LONG-TERM INVESTMENTS—119.1%
				Corporate Bonds—115.3%
				Aero & Defense—2.2%
B-	$	1,000		BE Aerospace, Inc., 9.50%, 11/01/08	$	1,005,000
NR		1,500	^2,3	Condor Systems, Inc., Ser. B, 11.875%, 5/01/09		105,000

						1,110,000

				Automotive—3.2%
B2		500		Collins & Aikman Products Co., 10.75%, 12/31/11		517,500
B3		1,000		Delco Remy Intl., Inc., 11.00%, 5/01/09		1,057,500

						1,575,000

				Building & Development—2.1%
BBB-		1,000		D.R. Horton, Inc., 10.50%, 4/01/05		1,060,000

				Chemical—9.0%
CCC		250		Avecia Group PLC, 11.00%, 7/01/09 (United Kingdom)		198,750
Ba2		1,000		Hercules, Inc., 11.125%, 11/15/07		1,200,000
B		1,000		Huntsman LLC, 11.625%, 10/15/10		1,100,000
B-		1,000		Lyondell Chemical Co., 10.875%, 5/01/09		1,042,500
D		1,000	³	Solutia, Inc., 11.25%, 7/15/09		950,000

						4,491,250

				Conglomerates—1.9%
NR		1,200	^2,3,4	Nebco Evans Holding Co., 12.375%, 7/15/07		0
B-		1,000		Penhall Intl., Inc., 12.00%, 8/01/06		950,000

						950,000

				Consumer Products—12.6%
BB+		1,000		American Greetings Corp., 11.75%, 7/15/08		1,175,000
B-		250	⁵	Amscan Holdings, Inc., 8.75%, 5/01/14		253,750
B3		438		National Vision, Inc., 12.00%, 3/30/09		251,543
B-		500	⁵	Pantry, Inc., The, 7.75%, 2/15/14		502,500
				Revlon Consumer Products Corp.,
CCC		2,000		8.625%, 2/01/08		1,870,000
B2		1,000		12.00%, 12/01/05		1,130,000
B-		1,000		St. John Knits Intl., Inc., 12.50%, 7/01/09		1,080,000

						6,262,793

				Containers & Glass—5.5%
B		500		Crown Cork & Seal, Inc., 8.00%, 4/15/23		467,500
CCC+		1,000		Radnor Holdings Corp., 11.00%, 3/15/10		870,000
CCC+		1,500		U.S. Can Co., Ser. B, 12.375%, 10/01/10		1,380,000

						2,717,500

				Ecological Services & Equipment—2.2%
B+		1,000		Allied Waste NA, Inc., Ser. B, 10.00%, 8/01/09		1,070,000

				Electronics—6.7%
CCC		2,500		Knowles Electronics Holdings, Inc., 13.125%, 10/15/09		2,637,500
B		536		On Semiconductor Corp., 12.00%, 3/15/10		661,960

						3,299,460

				Energy—10.9%
B-		1,000		AES Corp., 8.375%, 8/15/07		1,007,500
				Calpine Corp.,
BB-		230	⁵	8.75%, 7/15/13		203,550
B-		1,000		10.50%, 5/15/06		905,000
B-		750		El Paso Production Holding Co., 7.75%, 6/01/13		712,500
B		250	⁵	Exco Resources, Inc., 7.25%, 1/15/11		252,500
CCC		1,000		Mission Energy Holding Co., 13.50%, 7/15/08		1,090,000
B2		1,000		Orion Power Holdings, Inc., 12.00%, 5/01/10		1,230,000

						5,401,050

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Farming & Agriculture—0.5%
B2	$	250	⁵	Gold Kist, Inc., 10.25%, 3/15/14	$	262,500

				Finance & Banking—15.3%
CCC		500	⁵	Alamosa Delaware, Inc., 8.50%, 1/31/12		483,750
NR		500	^2,3,5	Ameriserve Finance Capital Corp., 12.00%, 9/15/06		25,000
Ba2		1,000	⁵	Capital Guardian High Yield, CBO, Ltd., Ser. 1A, 11.45%, 5/24/13 (Cayman Island)		907,800
BB		1,200		Crum & Forster Holdings Corp., 10.375%, 6/15/13		1,326,000
BB		960		Fairfax Financial Holdings Ltd., 6.875%, 4/15/08 (Canada)		988,800
Ba3		2,500	⁵	First Dominion Funding II, Ser. 1A, 11.614%, 4/25/14 (Cayman Island)		1,941,500
CCC+		1,000		Madison River Capital Corp., 13.25%, 3/01/10		1,087,500
B2		500	⁵	WMC Finance Co., 11.75%, 12/15/08		615,000
C		2,314	⁵	Zais Investment Grade Ltd., Class C, Pay-in-kind, 9.95%, 9/23/14 (Cayman Island)		231,360

						7,606,710

				Forest Products—1.0%
BB-		500		Tembec Inds Inc., 8.625%, 6/30/09 (Canada)		507,500

				Health Care—2.3%
B-		1,000		MedQuest Inc., Ser. B, 11.875%, 8/15/12		1,130,000

				Home Furnishing—3.6%
CCC		1,760		O’Sullivan Industries, Inc., 13.375%, 10/15/09		897,600
CCC+		1,000		Salton, Inc., 12.25%, 4/15/08		895,000

						1,792,600

				Industrial Equipment—6.5%
CCC		375		Blount, Inc., 13.00%, 8/01/09		401,250
B-		1,000		Concentra Operating Corp., Ser. B, 13.00%, 8/15/09		1,097,500
B		250	⁵	Mail Well I Corp., 7.875%, 12/01/13		235,625
B2		500		MSX Intl., 11.00%, 10/15/07		485,000
B-		500		Von Hoffmann Corp., 10.375%, 5/15/07		501,250
B-		500		Williams Scotsman, Inc., 9.875%, 6/01/07		497,500

						3,218,125

				Marketing—1.1%
B-		500	⁵	Affinity Group, Inc., 9.00%, 2/15/12		532,500

				Media—14.5%
B1		2,000		Alliance Atlantis Communications, Inc., 13.00%, 12/15/09 (Canada)		2,230,000
				Charter Communications Holdings LLC,
CCC-		1,000		10.75%, 10/01/09		887,500
CCC-		1,000		11.125%, 1/15/11		887,500
B3		500	⁵	Granite Broadcasting Corp., 9.75%, 12/01/10		485,000
CCC+		1,000		WRC Media Inc., 12.75%, 11/15/09		1,000,000
CCC+		980		XM Satellite Radio Inc., 14.00%, 3/15/10		1,087,800
CC		689		Ziff Davis Media, Inc., Ser. B, Pay-in-Kind, 12.00%, 8/12/09		644,430

						7,222,230

				Non-Ferrous Metals & Minerals—0.5%
NR		376	^2,3,4	Republic Engineered Products LLC, 10.00%, 8/16/09		263,530
NR		2,000	^2,3	Republic Technologies International LLC, 13.75%, 7/15/09		0

						263,530

				Pharmaceuticals—1.0%
B-		500	⁵	Curative Hlth. Svcs. Inc., 10.75%, 5/01/11		501,875

				Telecommunication—7.4%
B-		500		ACC Escrow Corp., Ser. B, 10.00%, 8/01/11		482,500
NR		2,000	^2,3	Asia Global Crossing Ltd., 13.375%, 10/15/10 (United Kingdom)		220,000
B3		250	⁵	IPCS, Inc., 11.50%, 5/01/12		255,000
B3		1,500	⁵	Qwest Communications Intl., 7.50%, 2/15/14		1,380,000
B3		1,000		Time Warner Telecom LLC, 9.75%, 7/15/08		855,000
CCC		500	^2,4	UbiquiTel Operating Co., 9.875%, 3/01/11		501,250
NR		600	^2,3	Velocita Corp., 13.75%, 5/15/10		60

						3,693,810

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

	Principal
	Amount
Rating¹	(000)				Value

				Transportation—5.3%
BB+	$	500		Overseas Shipholding Group, 7.50%, 2/15/24	$	493,120
B		1,000		Sea Containers Ltd., Ser. B, 10.75%, 10/15/06(Bermuda)		1,051,250
B+		1,000		TFM SA de CV, 12.50%, 6/15/12(Mexico)		1,080,000

						2,624,370

				Total Corporate Bonds		57,292,803

				Bank Loans—1.0%
				BCP Luxemburg Holdings,
		375		9.10%, 2/19/05		374,062
		125		10.10%, 2/19/05		124,688

				Total Bank Loans		498,750


		Shares


				Common Stock—2.8%
		8		Mattress Discounters Corp		0
		54	²	Neon Communications Inc		134,055
		134		NES Rentals Holdings, Inc		1,273,380

				Total Common Stock		1,407,435

				Preferred Securities—0.0%
		1,098	³	Adelphia Business Solutions, Inc., Ser. B, 12.875%		0


		Units


				Warrants—0.0%
		14	^2,5	Mattress Discounters Corp., Expires 7/15/07		0
		54	²	Neon Communications, Inc., Expires 12/02/12		1
		14	^2,5	PF. Net Communications, Inc., Expires 5/15/10		0
		24	^2,5	Republic Technologies International LLC, Expires 7/15/09		20

				Total Warrants		21

				Total Long-Term Investments (cost $66,656,401)		59,199,009


		Principal
		Amount
		(000)


				SHORT-TERM INVESTMENT—16.7%
				U.S. Government Agency Security—16.7%
		8,300		Federal Home Loan Bank, zero coupon, 5/03/04 (cost $8,299,608)		8,299,608

				Total investments—135.8% (cost $74,956,009)		67,498,617
				Liabilities in excess of other assets—(35.8)%		(17,776,577	)

				Net Assets—100%	$	49,722,040

¹ Using the higher of S&P’s, Moody’s or Fitch’s rating.
² Illiquid securities representing 2.5% of net assets.
³ Issuer is technically in default and/or bankruptcy.
⁴ Security is fair valued.
⁵ Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2004, the Trust held 19.2% of its net assets, with a current market value of $9,570,481, in securities restricted as to resale.

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2004

BlackRock Income Opportunity Trust (BNA)

	Principal
	Amount
Rating¹	(000)			Description	Value


				LONG-TERM INVESTMENTS—125.7%
				Mortgage Pass-Throughs—29.3%
				Federal Home Loan Mortgage Corp.,
	$	16,626	²	6.50%, 1/01/26 - 11/01/32	$	17,317,838
		4,000	²	6.875%, 9/15/10		4,545,520
				Federal National Mortgage Assoc.,
		18,009		5.50%, TBA		18,508,483
		54,446	²	5.50%, 12/01/13 - 2/01/33		54,409,347
		11,776		6.00%, 3/01/27 - 11/01/32		12,057,087
		12,413		6.00%, TBA		12,961,557
		477		7.00%, 2/01/24 - 1/01/29		505,112
		163		Government National Assoc., 8.00%, 4/15/24 - 11/15/25		178,491

				Total Mortgage Pass-Throughs		120,483,435

				Federal Housing Administration—1.5%
				GMAC Projects,
		740		Ser. 37, 7.43%, 5/01/22		776,589
		428		Ser. 44, 7.43%, 8/01/22		448,541
				Merrill Projects,
		198		Ser. 29, 7.43%, 10/01/20		207,748
		432		Ser. 42, 7.43%, 9/01/22		452,686
		1,958		Reilly Project, Series B-11, 7.40%, 4/01/21		2,052,620
		1,985		Westmore Project 8240, 7.25%, 4/01/21		2,071,326

				Total Federal Housing Administration		6,009,510

				Non-Agency Multiple Class Mortgage Pass-Throughs—0.0%
AAA		77	³	Summit Mortgage Trust, Ser. 1, Class B1, 6.079%, 12/28/12		72,948

				Adjustable Rate Mortgage Securities—0.0%
		47		Federal National Mortgage Assoc., Ser. 256, Class F, 2.625%, 11/25/23		41,349

				Inverse Floating Rate Mortgages—0.8%
		1,000		Federal Home Loan Mortgage Corp., Ser. 1611, Class JC, 10.00%, 8/15/23		1,095,380
				Federal National Mortgage Assoc.,
		1,808		Ser. 23, Class PS, 9.925%, 4/25/23		1,998,337
		22		Ser. 46, Class S, 22.614%, 5/25/21		6,556
		25		Ser. 49, Class S, 9.178%, 12/25/21		2,761
		128		Ser. 87, Class S, 23.701%, 8/25/21		158,160
		39		Ser. 145, Class S, 32.113%, 10/25/06		46,144

				Total Inverse Floating Rate Mortgages		3,307,338

				Interest Only Asset-Backed Securities—1.0%
		45,000		Sterling Coofs Trust, 4/15/29		4,021,875

				Interest Only Mortgage-Backed Securities—5.4%
				Federal Home Loan Mortgage Corp.,
		21		Ser. 19, Class R, 3/15/20		2,725
		0		Ser. 75, Class R, 1/15/21		6
		0		Ser. 75, Class R, 1/15/21		6
		0		Ser. 173, Class R, 11/15/21		31
		0		Ser. 173, Class R, 11/15/21		32
		6		Ser. 176, Class M, 7/15/21		79
		1		Ser. 192, Class U, 2/15/22		8
		36		Ser. 200, Class R, 12/15/22		698
		19		Ser. 1043, Class H, 2/15/21		19,922
		3		Ser. 1054, Class I, 3/15/21		534
		20		Ser. 1056, Class K, 3/15/21		2,599
		25		Ser. 1057, Class J, 3/15/21		5,363
		65		Ser. 1148, Class E, 10/15/21		1,387
		19		Ser. 1178, Class O, 11/15/21		320
		19		Ser. 1221 Class H, 3/15/07		476
		683		Ser. 1223, Class H, 3/15/22		137,625
		467		Ser. 1254, Class Z, 4/15/22		35,126

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Interest Only Mortgage-Backed Securities—(cont’d)
	$	1,695		Ser. 1809, Class SC, 12/15/23	$	67,040
		976		Ser. 1831, Class PG, 3/15/11		110,589
		9,518		Ser. 2611, Class QI, 9/15/32		2,171,593
				Federal National Mortgage Assoc.,
		199		Ser. 5, Class H, 1/25/22		28,525
		14		Ser. 7, Class 2, 4/1/17		3,047
		869		Ser. 7, Class PH, 4/25/11		92,433
		43		Ser. 7, Class S, 3/25/21		6,154
		129		Ser. 10, Class S, 5/25/21		16,242
		99		Ser. 12, Class S, 5/25/21		22,421
		9,445		Ser. 16, Class IW, 11/25/12		706,221
		63		Ser. 17, Class S, 6/25/21		8,504
		1		Ser. 20, Class H, 3/25/06		58
		88		Ser. 33, Class PV, 10/25/21		19,646
		9		Ser. 38, Class N, 4/25/21		1,055
		923		Ser. 50, Class SI, 4/25/23		22,209
		4		Ser. 54, Class H, 5/25/05		190
		16,224		Ser. 64, Class QI, 1/25/33		3,646,603
		4,856		Ser. 70, Class IN, 5/25/15		381,747
		10		Ser. 84, Class H, 8/25/06		793
		27		Ser. 89, Class 2, 10/1/18		5,586
		25,750		Ser. 92, Class IC, 4/25/13		3,172,143
		7		Ser. 94, Class 2, 8/1/21		1,461
		34		Ser. 99, Class L, 8/25/21		4,777
		6		Ser. 123, Class M, 10/25/20		856
		44		Ser. 136, Class S, 11/25/20		48,726
		54		Ser. 139, Class PT, 10/25/21		5,538
		30		Ser. 141, Class SA, 8/25/07		7,006
		998		Ser. G46, Class H, 12/25/09		185,416
		10,532	³	Goldman Sachs Mortgage Securities Corp., Ser. 5, 6/19/27		210,633
		349		Government National Assoc., Ser. 3, Class E, 6/16/25		63,771
		6,193	³	Hanover Grantor Trust, Ser. A, Class 1, 8/28/27		44,557
		2,986	³	Morgan Stanley Capital 1, Inc., Ser. HF1, Class X, 7/15/29		96,142
				Residential Asset Securitization Trust,
		8,183		Ser. A3, Class X, 5/25/29		66,208
		2,697		Ser. A5, Class A2, 9/25/30		55,622
		9,563	²	Residential Funding Securities Corp., Ser. RM2, Class AI5, 5/25/33		10,536,916
		9,350		Salomon Brothers Mortgage Securities VII Inc., Ser. 1, Class IO, 3/25/22		67,599
		21,304		Vendee Mortgage Trust, Ser. 1, Class IO, 2/15/27		169,364

				Total Interest Only Mortgage-Backed Securities		22,254,328

				Principal Only Mortgage-Backed Securities—0.5%
		290	²	Federal Home Loan Mortgage Corp., Ser. 1739, Class B, 2/15/24		268,748
				Federal National Mortgage Assoc.,
		72		Ser. 51, Class E, 2/25/23		49,660
		33		Ser. 70, Class A, 5/25/23		28,784
		34		Ser. 167, Class D, 10/25/17		31,882
		57		Ser. 203, Class 1, 2/1/23		49,045
		44		Ser. 228, Class 1, 6/1/23		38,081
		162		Ser. 279, Class 1, 7/1/26		139,881
		6,055		Resolution Funding Corp., Ser. B, 4/15/30		1,321,443

				Total Principal Only Mortgage-Backed Securities		1,927,524

				U.S. Government and Agency Securities—20.2%
		18,289		Overseas Private Investment Corp., zero coupon—7.35%, 5/29/12		18,863,466
		1,956		Small Business Administration, Ser. 20K-1, 6.95%, 11/01/16		2,109,901
		11,500	²	U.S. Treasury Bonds, 5.375%, 2/15/31		11,647,315

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				U.S. Government and Agency Securities—(cont’d)
				U.S. Treasury Notes,
	$	9,300	²	2.00%, 5/15/06	$	9,237,513
		20,600	²	4.00%, 11/15/12		19,819,796
		21,185	²	4.25%, 8/15/13		20,794,135
		700		4.875%, 2/15/12		727,726

				Total U.S. Government and Agency Securities		83,199,852

				Collateralized Mortgage Obligation Residuals—0.0%
				Collateralized Mortgage Obligation Trust,
		4		Ser. 40, Class R, 58.05%, 4/01/18		385
		64		Ser. 42, Class R, 6.00%, 10/01/14		932
				Morgan Stanley Mortgage Trust,
		70		Ser. 38, Class 2, 16.109%, 11/20/21		11,770
		75		Ser. 39, Class 2, 16.906%, 12/20/21		12,752

				Total Collateralized Mortgage Obligation Residuals		25,839

				Corporate Bonds—66.2%
				Aero & Defense—2.2%
B-		1,235		BE Aerospace, Inc., 9.50%, 11/01/08		1,241,175
BB-		1,500		L-3 Communications Corp., 7.625%, 6/15/12		1,616,250
BBB+		1,250		Lockheed Martin Corp., 8.50%, 12/01/29		1,581,063
BBB		1,000		Northrop Grumman Corp., 7.125%, 2/15/11		1,130,030
BB+		2,000		Raytheon, 7.00%, 5/15/06		2,117,160
BBB-		1,200		Raytheon Co., 6.15%, 11/01/08		1,295,832

						8,981,510

				Automotive—1.6%
Ba2		1,500		Autonation, Inc., 9.00%, 8/01/08		1,702,500
BB+		2,000		Briggs & Stratton Corp., 8.875%, 3/15/11		2,380,000
B+		2,340		Dura Operating Corp., Ser. B, 8.625%, 4/15/12		2,445,300

						6,527,800

				Basic Material—0.8%
A2		2,000		Alcoa, Inc., 7.375%, 8/01/10		2,300,960
B		1,000		Oregon Steel Mills, Inc., 10.00%, 7/15/09		1,030,000

						3,330,960

				Building & Development—0.6%
BBB-		2,500		D.R. Horton, Inc., 10.50%, 4/01/05		2,650,000

				Chemical—2.0%
CCC		500		Avecia Group PLC, 11.00%, 7/01/09 (United Kingdom)		397,500
				Dow Chemical Co.,
A-		750		5.75%, 12/15/08		797,760
A-		1,400		6.00%, 10/01/12		1,476,454
B+		3,000		Lyondell Chemical Co., 11.125%, 7/15/12		3,337,500
B		1,750		Noveon, Inc., Ser. B, 11.00%, 2/28/11		2,056,250

						8,065,464

				Conglomerates—1.2%
AAA		3,650		General Electric Co., 5.00%, 2/01/13		3,634,597
A+		1,300		Honeywell, Inc., 6.125%, 11/01/11		1,400,581

						5,035,178

				Consumer Products—7.9%
B		1,875		American Seafoods Group LLC, 10.125%, 4/15/10		2,250,000
A		2,000		Avery Dennison Corp., 4.875%, 1/15/13		1,975,580
B3		2,000		Buffets Inc., 11.25%, 7/15/10		2,195,000
				General Mills, Inc.,
BBB+		550	²	5.125%, 2/15/07		575,009
BBB+		1,700		6.00%, 2/15/12		1,791,579
				Kellogg Co.,
BBB+		700	²	Ser. B, 6.00%, 4/01/06		742,308
BBB+		2,000		Ser. B, 6.60%, 4/01/11		2,220,620
A3		2,000		Kraft Foods, Inc., 5.625%, 11/01/11		2,071,060

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Consumer Products—(cont’d)
BBB	$	1,000		Kroger Co., 5.50%, 2/01/13	$	1,010,330
AA-		3,000		Procter & Gamble Co., 6.875%, 9/15/09		3,393,540
B		2,000		Roundys, Inc., Ser. B, 8.875%, 6/15/12		2,170,000
BBB		2,495		Safeway, Inc., 6.50%, 3/01/11		2,685,715
A+		2,000		Unilever Capital Corp., 7.125%, 11/01/10		2,298,240
AA		3,000		Wal-Mart Stores, Inc., 6.875%, 8/10/09		3,375,030
BBB-		3,000		Yum! Brands, Inc., 8.875%, 4/15/11		3,657,120

						32,411,131

				Containers & Glass—1.9%
B+		1,500		Crown European Holdings SA, 9.50%, 3/01/11 (France)		1,680,000
BB-		2,250		Owens-Brockway Glass Container, Inc., 8.875%, 2/15/09		2,435,625
B+		2,275		Plastipak Holdings, Inc., 10.75%, 9/01/11		2,457,000
B		1,240		Stone Container Corp., 9.25%, 2/01/08		1,364,000

						7,936,625

				Ecological Services & Equipment—1.4%
B+		3,000		Allied Waste NA, Inc., Ser. B, 10.00%, 8/01/09		3,210,000
B		2,250		Casella Waste Systems Inc., 9.75%, 2/01/13		2,497,500

						5,707,500

				Electronics—0.4%
B-		1,750		Chippac Int. Ltd., Ser. B, 12.75%, 8/01/09		1,890,000

				Energy—7.1%
BBB+		600	²	Anadarko Petroleum Corp., 5.375%, 3/01/07		632,370
BB		2,500		Chesapeake Energy Corp., 9.00%, 8/15/12		2,856,250
A-		3,000		Conoco Funding Co., 6.35%, 10/15/11		3,304,020
BBB+		2,000		Dominion Resources, Inc., 5.70%, 9/17/12		2,067,120
B		2,500		Dresser, Inc., 9.375%, 4/15/11		2,700,000
BBB		1,500	²	DTE Energy Co., 7.05%, 6/01/11		1,652,220
B-		2,000	³	Dynegy Holdings Inc., 10.125%, 7/15/13		2,200,000
B1		1,000		El Paso Natural Gas Co., 7.625%, 8/01/10		1,025,000
B-		1,500		El Paso Production Holding Co., 7.75%, 6/01/13		1,425,000
BBB+		640		Exelon Corp., 6.75%, 5/01/11		705,407
				FirstEnergy Corp.,
BBB-		480		Ser. B, 6.45%, 11/15/11		504,797
BBB-		1,500		Ser. C, 7.375%, 11/15/31		1,575,408
BBB+		1,250		Kinder Morgan Energy Partners LP, 7.30%, 8/15/33		1,356,663
BBB		1,000		Kinder Morgan, Inc., 6.50%, 9/01/12		1,076,390
BBB+		1,800		Occidental Petroleum Corp., 6.75%, 1/15/12		2,001,510
				Progress Energy, Inc.,
Baa2		1,800	²	6.75%, 3/01/06		1,922,778
Baa2		2,000		7.10%, 3/01/11		2,221,860

						29,226,793

				Finance & Banking—15.1%
Aa3		2,450		Bank of America Corp., 7.80%, 2/15/10		2,847,684
Aa3		1,400	²	Bank One Corp., 6.50%, 2/01/06		1,498,000
Aa3		2,000	³	Barclays Bank PLC, 6.86%, 9/29/49 (United Kingdom)		2,099,764
A1		500		Bear Stearns Co., Inc., 6.50%, 5/01/06		536,575
AA		6,000		Citigroup, Inc., 5.625%, 8/27/12		6,256,500
				Credit Suisse First Boston USA, Inc.,
AA-		700	²	6.125%, 11/15/11		748,020
AA-		1,000		7.125%, 7/15/32		1,114,540
BBB+		1,000		Crum & Forster Holdings Corp., 10.375%, 6/15/13		1,105,000
AAA		4,000	²	Federal National Mortgage Assoc., 4.375%, 9/15/12		3,878,640
A3		3,000	²	Ford Motor Credit Co., 6.875%, 2/01/06		3,179,730
AAA		3,000		General Electric Capital Corp., Ser. A, 6.75%, 3/15/32		3,223,770
				General Motors Acceptance Corp.,
A3		700		6.75%, 1/15/06		741,489
A3		4,000		6.875%, 8/28/12		4,157,280
AA-		1,000		Goldman Sachs Group, Inc., 6.60%, 1/15/12		1,097,110
A1		3,650		Household Finance Corp., 6.375%, 10/15/11 - 11/27/12		3,940,109

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Finance & Banking—(cont’d)
				JP Morgan Chase & Co.,
A+	$	2,100		5.25%, 5/30/07	$	2,211,426
A		1,000		6.75%, 2/01/11		1,112,310
AAA		3,000		KFW Intl. Finance, Inc., 5.25%, 6/28/06		3,166,950
Ba2		1,000		Labranche & Co., Inc., 12.00%, 3/02/07		1,175,000
				Lehman Brothers Holdings, Inc.,
A+		850		6.25%, 5/15/06		909,016
A+		1,500		6.625%, 1/18/12		1,659,240
BB-		2,500		10.375%, 6/01/09		2,612,500
A		2,000		MetLife, Inc., 5.375%, 12/15/12		2,043,540
				Morgan Stanley,
AA-		600		5.80%, 4/01/07		640,398
AA-		1,600		6.75%, 4/15/11		1,775,904
AA		2,000		Northern Trust Co., 6.30%, 3/07/11		2,185,240
AA		2,000		UBS Preferred Funding Trust I, 8.622%, 10/29/49		2,417,842
Aa1		2,000		Wells Fargo Bank, 7.55%, 6/21/10		2,319,980
B2		1,000	³	WMC Finance Co., 11.75%, 12/15/08		1,230,000

						61,883,557

				Forest Products—1.8%
B		2,000		Caraustar Industries, Inc., 9.875%, 4/01/11		2,040,000
BB-		2,500		Tembec Industries, Inc., 8.50%, 2/01/11 (Canada)		2,537,500
				Weyerhaeuser Co.,
BBB		1,550		5.95%, 11/01/08		1,652,068
BBB		1,000		6.75%, 3/15/12		1,096,250

						7,325,818

				Health Care—1.4%
AA-		1,000		Bristol Myers Squibb Co., 5.75%, 10/01/11		1,054,160
NR		3,000		HealthSouth Corp., 7.00%, 6/15/08		2,970,000
BB+		1,500		Omnicare, Inc., Ser. B, 8.125%, 3/15/11		1,646,250

						5,670,410

				Hotels & Casinos—3.6%
B+		2,000		Boyd Gaming Corp., 8.75%, 4/15/12		2,207,500
B		2,000		Extended Stay America, Inc., 9.875%, 6/15/11		2,380,000
B		1,700		Hammons John Q. Hotels LP, Ser. B, 8.875%, 5/15/12		1,874,250
B		1,500		Herbst Gaming, Inc., Ser. B, 10.75%, 9/01/08		1,691,250
Ba2		1,000		MGM Mirage, 9.75%, 6/01/07		1,130,000
Ba2		2,000		Park Place Entertainment Corp., 8.875%, 9/15/08		2,230,000
BB+		3,000		Starwood Hotels & Resorts World, 7.875%, 5/01/12		3,318,750

						14,831,750

				Industrial Equipment—0.9%
B-		1,200		Concentra Operating Corp., Ser. B, 13.00%, 8/15/09		1,317,000
B		2,010		Manitowoc, Inc., 10.50%, 8/01/12		2,291,400

						3,608,400

				Media—4.7%
B1		2,000		Alliance Atlantis Communications, Inc., 13.00%, 12/15/09 (Canada)		2,230,000
				AOL Time Warner, Inc.,
BBB+		2,000		7.70%, 5/01/32		2,203,940
BBB+		3,000		9.125%, 1/15/13		3,684,930
Ca		3,000		Charter Communications Holdings LLC, 10.75%, 10/01/09		2,662,500
BBB		1,000		Comcast Cable Communications, Inc., 6.75%, 1/30/11		1,094,210
BB-		3,000		EchoStar DBS Corp., 10.375%, 10/01/07		3,240,000
B		1,000		Quebecor Media, Inc., 11.125%, 7/15/11 (Canada)		1,150,000
CCC+		3,000		WRC Media, Inc., 12.75%, 11/15/09		3,000,000

						19,265,580

				Other—4.6%
A3		17,040	³	Targeted Return Index Securities Trust, Inc., Ser. 10-2002, 6.962%, 1/15/12		18,921,216

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Real Estate—0.7%
BBB+	$	1,000		AvalonBay Communities, Inc., 6.625%, 9/15/11	$	1,084,300
BBB+		800		EOP Operating LP, 7.00%, 7/15/11		887,496
Ba3		802		HMH Properties, Inc., Ser. B, 7.875%, 8/01/08		832,075

						2,803,871

				Technology—0.5%
BB+		2,000		Seagate Technology Holdings, 8.00%, 5/15/09		2,160,000

				Telecommunication—3.8%
BBB		2,460		AT&T Broadband Corp., 8.375%, 3/15/13		2,931,631
BBB+		2,000		Deutsche Telekom Intl. Finance BV, 8.50%, 6/15/10 (Netherlands)		2,363,000
Ba3		3,000		PanAmSat Corp., 8.50%, 2/01/12		3,390,000
				SBC Communications, Inc.,
A+		450		5.875%, 8/15/12		468,671
A+		1,000		6.25%, 3/15/11		1,073,020
A+		1,000		Verizon Global Funding Corp., 7.75%, 6/15/32		1,141,190
AA		3,000		Verizon Pennsylvania, Inc., Ser. A, 5.65%, 11/15/11		3,105,960
A		1,000		Vodafone Group PLC, 7.75%, 2/15/10 (United Kingdom)		1,159,260

						15,632,732

				Transportation—2.0%
BBB+		1,000		Burlington Northern Santa Fe Corp., 5.90%, 7/01/12		1,052,810
BBB+		1,000		Canadian National Railway Co., 6.375%, 10/15/11 (Canada)		1,089,550
BBB		1,475		Canadian Pacific Railway Ltd., 6.25%, 10/15/11 (Canada)		1,596,083
B		2,000		Railamerica Transportation Corp., 12.875%, 8/15/10		2,320,000
BBB+		2,000		Union Pacific Corp., 6.125%, 1/15/12		2,135,600

						8,194,043

				Total Corporate Bonds		272,060,338

				Foreign Government Bonds—0.8%
Baa2		3,000		United Mexican States, 8.00%, 9/24/22		3,174,000

				Total Long-Term Investments (cost $501,821,204)		516,578,336

				SHORT-TERM INVESTMENT—7.9%
				U.S. Government and Agency Security—7.9%
		32,629		U.S. Treasury Notes, zero coupon, 5/03/04 (cost $32,628,750)		32,628,750

				Total investments before investment sold short and outstanding options written (cost $534,449,954)		549,207,086

				INVESTMENT SOLD SHORT—(7.8%)
	(33,000		)	U.S. Treasury Notes, 2.625%, 5/15/08 (proceeds $32,271,393)		(32,141,472	)

				Outstanding Options Written—(0.5%)
		56,300		Interest Rate Swap, 3.60% over 3-month LIBOR, expires 11/01/04		(170,986	)
		55,000		Interest Rate Swap, 5.75% over 3-month LIBOR, expires 9/23/05		(908,050	)
		11,900		Interest Rate Swap, 6.00% over 3-month LIBOR, expires 10/25/04		(245,616	)
		55		U.S. Treasury Bond Futures, expires 5/22/04		(101,406	)
		156		U.S.Treasury Bond Futures, expires 8/27/04		(638,625	)

				Total Outstanding Options Written (premium received $2,658,335)		(2,064,683	)

				Total investments, net of investments sold short and outstanding options written—125.3%		515,000,931
				Liabilities in excess of other assets—(25.3)%		(104,119,186	)

				Net Assets—100%	$	410,881,745

¹ Using the higher of S&P’s, Moody’s or Fitch’s rating.
² Entire or partial principal amount pledged as collateral for reverse repurchase agreements or financial futures contracts.
³ Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2004, the Trust held 5.8% of its net assets, with a current market value of $23,645,260, in securities restricted as to resale.

Details of open reverse repurchase agreements are disclosed in Note 4 in the Notes to Financial Statements.

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2004

BlackRock Income Trust Inc. (BKT)

	Principal
	Amount
Rating¹	(000)			Description	Value


				LONG-TERM INVESTMENTS—147.3%
				Mortgage Pass-Throughs—33.7%
				Federal Home Loan Mortgage Corp.,
	$	19,204		5.50%, 10/01/16 - 5/01/17	$	19,719,488
		96		6.50%, 5/01/29 - 5/01/30		99,707
		24		7.50%, 2/01/23		25,985
		165		8.00%, 11/01/15		173,469
		120		8.50%, 10/01/06 - 3/01/08		127,199
		331		9.00%, 9/01/20		369,814
				Federal National Mortgage Assoc.,
		18,650		5.00%, 6/01/33		18,082,629
		50,279	²	5.50%, 12/01/13 - 9/01/17		51,603,677
		15,125	²	6.00%, 11/01/31 - 10/01/32		15,470,884
		8,334		6.50%, 2/01/26 - 5/01/31		8,677,108
		13,201		7.00%, 6/01/26 - 2/01/32		13,952,934
		5,249		7.50%, 11/01/14 - 9/01/23		5,765,638
		714		8.00%, 5/01/08 - 5/01/22		758,371
		13		9.50%, 1/01/19 - 9/01/19		14,171
		8,000		5.00%, 5/13/04, TBA		7,750,000
		5,000		5.50%, 5/13/04, TBA		4,987,500
				Government National Mortgage Assoc.,
		154		7.00%, 10/15/17		164,480
		1,065		7.50%, 8/15/21 - 12/15/23		1,151,583
		724		8.00%, 10/15/22 - 2/15/29		792,118
		62		9.00%, 6/15/18 - 9/15/21		70,334

				Total Mortgage Pass-Throughs		149,757,089

				Federal Housing Administration—3.3%
				GMAC Projects,
		745		Ser. 46, 7.43%, 1/01/22		781,030
		657		Ser. 51, 7.43%, 2/01/23		689,013
		1,728		Ser. 56, 7.43%, 11/01/22		1,812,447
		55		Merrill Project, Ser. 54, 7.43%, 5/15/23		57,722
		891		Reilly Project, Ser. 41, 8.28%, 3/01/20		908,964
				USGI Projects,
		243		Ser. 87, 7.43%, 12/01/22		254,638
		1,207		Ser. 99, 7.43%, 10/01/23		1,265,413
		2,418		Ser. 6302, 7.43%, 12/01/21		2,481,687
		6,152		Yorkville, Ser. 6094, 7.43%, 6/01/21		6,454,066

				Total Federal Housing Administration		14,704,980

				Agency Multiple Class Mortgage Pass-Throughs—10.4%
				Federal Home Loan Mortgage Corp.,
		480		Ser. 19, Class F, 8.50%, 3/15/20		479,839
		7,729		Ser. T-11, Class A-9, 2.705%, 1/25/28		6,924,609
				Federal National Mortgage Assoc.,
		571		Ser. 43, Class E, 7.50%, 4/25/22		598,079
		6,317		Ser. 72, Class ZG, 8/25/18		6,317,398
		12,264		Ser. 135, Class PB, 6.00%, 1/25/34		12,735,398
		12,947		Ser. 2758, Class KV, 5/15/23		12,903,027
				Government National Mortgage Assoc.,
		2,785		Ser. 5, Class Z, 7.00%, 5/16/26		2,962,596
		2,500		Ser. 33, Class PB, 6.50%, 7/20/31		2,555,086
		4,334		Ser. 58, Class IT, 5.50%, 7/20/33		736,205

				Total Agency Multiple Class Mortgage Pass-Throughs		46,212,237

				Non-Agency Multiple Class Mortgage Pass-Throughs—0.0%
AAA		218	³	Summit Mortgage Trust, Ser. 1, Class B1, 6.079%, 12/28/12		218,843

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Adjustable Rate Mortgage Securities—0.1%
				Federal National Mortgage Assoc.,
	$	251		Ser. 38, Class F, 8.325%, 4/25/21	$	279,291
		106		Ser. 256, Class F, 2.625%, 11/25/23		93,032

				Total Adjustable Rate Mortgage Securities		372,323

				Inverse Floating Rate Mortgages—3.5%
				Federal Home Loan Mortgage Corp.,
		82		Ser. 1160, Class F, 35.381%, 10/15/21		95,030
		953	²	Ser. 1616, Class SB, 8.50%, 11/15/08		984,897
		3,148		Ser. 1688, Class S, 10.971%, 12/15/13		3,346,609
				Federal National Mortgage Assoc.,
		255		Ser. 38, Class SA, 10.186%, 4/25/21		271,174
		46		Ser. 46, Class S, 22.614%, 5/25/21		14,077
		53		Ser. 49, Class S, 9.178%, 12/25/21		5,928
		1,685		Ser. 72, Class S, 8.75%, 5/25/08		1,739,870
		281		Ser. 87, Class S, 23.701%, 8/25/21		345,581
		726		Ser. 93, Class S, 8.50%, 5/25/08		746,289
		80		Ser. 145, Class S, 32.113%, 10/25/06		93,916
		488		Ser. 170, Class SC, 9.00%, 9/25/08		504,172
		2,759		Ser. 196, Class SC, 9.413%, 10/25/08		2,893,401
		214		Ser. 214, Class S, 14.336%, 12/25/08		213,725
		927		Ser. 214, Class SH, 15.461%, 12/25/08		1,008,642
		2,411		Ser. 247, Class SN, 10.00%, 12/25/23		2,471,079
Aaa		670		Kidder Peabody Acceptance Corp., Ser. 1, Class A6, 14.578%, 8/25/23		651,224
AAA		198		Residential Funding Mortgage Securities Inc., Ser. S36, Class A13, 13.898%, 10/25/08		199,514

				Total Inverse Floating Rate Mortgages		15,585,128

				Interest Only Asset-Backed Securities—1.1%
		56,000		Sterling Coofs Trust, 4/15/29		5,005,000

				Interest Only Mortgage-Backed Securities—19.9%
		21,665		ABN Amro Mortgage Corp., Ser. IV, Class A2, 3/25/33		888,247
				American Housing Trust,
		368		Ser. III, Class 4, 3/25/19		4,999
		86		Ser. VII, Class 2, 11/25/20		180,000
	103,177			Commercial Mortgage Acceptance Corp., Ser. ML1, 12/15/30		1,870,085
		32,692	³	CS First Boston Mortgage Securities Corp., Ser. C1, Class AX, 6/20/29		1,536,940
				Federal Home Loan Mortgage Corp.,
		46		Ser. 19, Class R, 3/15/20		5,853
		0		Ser. 75, Class R, 1/15/21		26
		0		Ser. 173, Class R, 11/15/21		127
		13		Ser. 176, Class M, 7/15/21		169
		1		Ser. 192, Class U, 2/15/22		17
		78		Ser. 200, Class R, 12/15/22		1,499
		4,835		Ser. 204, 5/1/29		1,060,619
		41		Ser. 1043, Class H, 2/15/21		42,771
		6		Ser. 1054, Class I, 3/15/21		1,147
		43		Ser. 1056, Class K, 3/15/21		5,579
		53		Ser. 1057, Class J, 3/15/21		11,514
		140		Ser. 1148, Class E, 10/15/21		2,979
		41		Ser. 1178, Class O, 11/15/21		686
		42		Ser. 1221, Class H, 3/15/07		1,021
		3,000		Ser. 1598, Class J, 10/15/08		3,220,410
		94		Ser. 1610, Class PM, 4/15/22		96,045
		1,282		Ser. 1706, Class IA, 10/15/23		95,952
		409		Ser. 1720, Class PK, 1/15/24		45,234
		4,491		Ser. 1809, Class SC, 12/15/23		177,659
		10,583		Ser. 1914, Class PC, 12/15/11		130,383
		1,494		Ser. 1961, Class H, 5/15/12		1,554,372
		14,711		Ser. 2002, Class HJ, 10/15/08		450,034
		144		Ser. 2063, Class PI, 4/15/12		1,171
		703		Ser. 2099, Class JB, 9/15/22		40,444
		7,066		Ser. 2218, Class Z, 3/15/30		8,001,776

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

	Principal
	Amount
Rating¹	(000)		Description	Value

			Interest Only Mortgage-Backed Securities—(cont’d)
	$	2,320	Ser. 2296, Class SA, 3/15/16	$	157,866
		2,225	Ser. 2345, Class PQ, 8/15/16		2,359,479
		2,062	Ser. 2444, Class ST, 9/15/29		191,519
		1,876	Ser. 2513, Class BI, 12/15/15		82,895
		3,102	Ser. 2542, Class MX, 5/15/22		354,870
		3,546	Ser. 2543, Class IM, 9/15/12		164,260
		6,929	Ser. 2545, Class NI, 3/15/22		714,587
		110,062	Ser. 2559, Class IO, 8/15/30		464,325
		10,698	Ser. 2561, Class EW, 9/15/16		1,178,249
		17,371	Ser. 2611, Class QI, 9/15/32		3,963,454
		29,000	Ser. 2633, Class PI, 3/15/12		1,635,890
		11,963	Ser. 2658, Class PI, 6/15/13		1,263,110
		5,662	Ser. 2672, Class TQ, 3/15/23		755,412
		3,633	Ser. 2687, Class IL, 9/15/18		635,835
		26,076	Ser. 2687, Class IQ, 9/15/22		2,763,579
		6,533	Ser. 2693, Class IB, 6/15/13		861,616
		5,264	Ser. 2694, Class LI, 7/15/19		625,074
		22,898	Ser. 2786, Class PI, 10/15/10		1,760,267
		23,268	Ser. G-60, Class HS, 4/25/24		1,139,845
			Federal National Mortgage Assoc.,
		511	Ser. 5, Class H, 1/25/22		73,350
		30	Ser. 7, Class 2, 4/1/17		6,541
		93	Ser. 7, Class S, 3/25/21		13,214
		277	Ser. 10, Class S, 5/25/21		34,872
		10,531	Ser. 11, Class PI, 1/25/19		294,351
		213	Ser. 12, Class S, 5/25/21		48,136
		12,037	Ser. 13, Class IG, 10/25/22		1,396,157
		26,424	Ser. 16, Class PI, 11/25/12		1,800,295
		134	Ser. 17, Class S, 6/25/21		18,259
		2	Ser. 20, Class H, 3/25/06		124
		35,902	Ser. 23, Class ES, 10/25/22		3,141,450
		189	Ser. 33, Class PV, 10/25/21		42,175
		6,279	Ser. 33, Class SG, 3/25/09		460,520
		4,898	Ser. 37, Class SE, 10/25/22		29,646
		43,860	Ser. 38, Class MI, 9/25/20		5,015,882
		19	Ser. 38, Class N, 4/25/21		2,266
		14,112	Ser. 39, Class IA, 10/25/22		1,628,711
		1,846	Ser. 50, Class SI, 4/25/23		44,419
		7,372	Ser. 51, Class IE, 4/25/26		1,344,155
		8	Ser. 54, Class H, 5/25/05		408
		6,044	Ser. 55, Class GI, 7/25/19		1,151,559
		2,399	Ser. 62, Class IC, 7/25/15		135,772
		3,421	Ser. 62, Class IL, 3/25/24		221,708
		24,619	Ser. 64, Class QI, 1/25/33		5,533,262
		9,058	Ser. 66, Class CI, 7/25/33		2,176,759
		7,526	Ser. 68, Class SC, 1/25/24		736,794
		23,582	Ser. 70, Class HI, 7/25/23		4,576,306
		7,139	Ser. 71, Class EI, 8/25/33		1,585,144
		7,989	Ser. 82, Class IR, 9/25/12		495,451
		22	Ser. 84, Class H, 8/25/06		1,703
		31,703	Ser. 88, Class TI, 11/25/13		2,332,040
		58	Ser. 89, Class 2, 6/1/18		11,992
		28,688	Ser. 90, Class M, 1/25/28		4,244,061
		15	Ser. 94, Class 2, 8/1/21		3,137
		74	Ser. 99, Class L, 8/25/21		10,257
		6,639	Ser. 122, Class IA, 9/25/09		358,423
		3,741	Ser. 122, Class IC, 9/25/18		793,129
		12	Ser. 123, Class M, 10/25/20		1,839
		94	Ser. 136, Class S, 11/25/20		104,615
		116	Ser. 139, Class PT, 10/25/21		11,890
		64	Ser. 141, Class SA, 8/25/07		15,042

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Interest Only Mortgage-Backed Securities—(cont’d)
	$	5,568		Ser. 199, Class SB, 10/25/23	$	439,669
		5,068		Ser. 302, Class 2, 6/1/29		1,135,580
		3,825		Ser. 339, Class 8, 7/1/33		688,537
		9,395		Ser. 602, Class BI, 10/25/22		1,453,412
		156		Ser. G-50, Class G, 12/25/21		22,455
		134		Ser. G92-12, Class C, 2/25/22		22,759
		1,543		Ser. G92-60, Class SB, 10/25/22		42,160
		1,627		Ser. W4, 12/25/28		288,599
		186		First Boston Mortgage Securities Corp., Ser. C, Class I, 4/25/17		32,167
		32,970		GMAC Commercial Mortgage Securities, Inc., Ser. C1, Class X, 7/15/27		1,705,639
		20,936	³	Goldman Sachs Mortgage Securities Corp., Ser. 5, 2/19/25		418,723
		11,790	³	Hanover Grantor Trust, Ser. A, Class 1, 8/1/27		88,423
		166		Kidder Peabody Acceptance Corp., Ser. B, Class A2, 4/22/18		34,468
		5,345		Merrill Lynch Mortgage Investors, Inc., Ser. C2, 6/15/21		111,035
		9,925	³	Morgan Stanley Capital 1, Inc., Ser. HF1, Class X, 6/15/17		319,545
		39		Prudential Securities Inc., Ser. 15, Class 1G, 5/20/21		15,816
		3,453		Residential Accredit Loans, Inc., Ser. QS7, Class A1, 4/25/33		719,658
		23,726		Small Business Administration, Ser. 1, 4/1/15		177,945
		199,701		Vendee Mortgage Trust, Ser. 2, Class 1, 5/15/29		293,560

				Total Interest Only Mortgage-Backed Securities		88,405,854

				Principal Only Mortgage-Backed Securities—12.4%
AAA		162		Collateralized Mortgage Obligation Trust, Ser. 29, Class A, 5/23/17		146,198
				Countrywide Home Loans Inc.,
AAA		8,959		Ser. 26, 8/25/33		6,117,969
AAA		1,678		Ser. J4, 6/25/33		1,346,865
AAA		2,291		Ser. J5, 7/25/33		1,564,892
AAA		1,594		Ser. J8, 9/25/23		1,073,148
				Drexel Burnham Lambert, Inc.,
AAA		67		Ser. K, Class 1, 9/23/17		59,149
AAA		685		Ser. V, Class 1, 9/1/18		630,606
				Federal Home Loan Mortgage Corp.,
		415		Ser. 1418, Class M, 11/15/22		381,343
		1,112		Ser. 1571, Class G, 8/15/23		967,842
		5,411		Ser. 1691, Class B, 3/15/24		4,670,727
		649		Ser. 1739, Class B, 2/15/24		602,257
		562		Ser. T-8, Class A-10, 11/15/28		477,617
				Federal National Mortgage Assoc.,
		106		Ser. 7, Class J, 2/25/21		94,338
		2,540		Ser. 13, Class PR, 3/25/32		2,133,207
		154		Ser. 51, Class E, 2/25/23		106,619
		71		Ser. 70, Class A, 5/25/23		61,799
		72		Ser. 167, Class D, 10/25/17		68,449
		123		Ser. 203, Class 1, 2/1/23		105,299
		95		Ser. 228, Class 1, 5/1/23		81,759
		4,052		Ser. 249, Class B, 11/25/23		3,335,397
		683		Ser. 273, Class 1, 7/1/26		580,961
		419		Ser. 279, Class 1, 7/1/26		360,731
		12,084		Ser. 328, Class 1, 11/1/32		9,478,417
		10,130		Ser. 329, Class 1, 12/1/32		7,503,664
		4,038		Ser. 333, Class 1, 3/1/33		2,959,209
		7,242		Ser. 338, Class 1, 6/1/33		5,291,512
		822		Ser. G93-2, Class KB, 1/25/23		740,148
		800		Ser. W4, 2/25/29		587,955
AAA		118		First Union Residential Securitization Trust, Ser. A, Class 1APO, 3/25/15		110,440
AAA		700		MASTR Asset Securitization Trust, Ser. 3, Class 4A15, 3/25/34		381,500
AAA		55		Structured Mortgage Asset Residential Trust, Ser. 3C, Class CX, 4/25/24		50,462
NR		13,000	²	Resolution Funding Corp., Ser. B, 4/15/30		2,837,120

				Total Principal Only Mortgage-Backed Securities		54,907,599

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Commercial Mortgage-Backed Securities—2.8%
AAA	$	10,250	³	New York City Mortgage Loan Trust, Multi-Family, Class A2, 6.75%, 6/25/11	$	11,107,798
Aaa		1,420		Banc of America Alternative Loan Trust, Ser. 11, Class 5A1, 5.50%, 1/25/19		1,427,989

				Total Commercial Mortgage-Backed Securities		12,535,787

				Collateralized Mortgage Obligation Residuals—8.5%
				Collateralized Mortgage Obligation Trust,
		8		Ser. 40, Class R, 4/01/18		827
		138		Ser. 42, Class R, 10/01/14		2,000
		45		FBC Mortgage Securities Trust 16, CMO, Ser. A-1, 7/01/17		283,265
				GSR Mortgage Loan Trust,
		6,766		Ser. 10, Class 2A1, 10/25/33		6,638,921
		6,588		Ser. 13, Class 1A1, 10/25/33		6,527,012
		3,218		MASTR Alternative Loan Trust, Ser. 7, Class 4A3, 11/25/18		3,556,435
		154,786		MLCC Mortgage Investors Inc., Ser. A, Class XA, 3/25/28		4,933,794
				Morgan Stanley Mortgage Trust,
		150		Ser. 38, Class 2, 11/20/21		25,270
		162		Ser. 39, Class 2, 12/20/21		27,380
		14,344		Residential Funding Securities Corp., Ser. RM2, Class AI5, 5/25/33		15,805,373

				Total Collateralized Mortgage Obligation Residuals		37,800,277

				U.S. Government and Agency Securities—51.6%
		16,628		Overseas Private Investment Corp., zero coupon—7.35%, 5/29/12		17,148,576
				Small Business Administration,
		1,380		Ser. 20C-1, 7.15%, 3/01/17		1,497,757
		2,097		Ser. 20E-1, 7.60%, 5/01/16		2,288,612
		2,784		Ser. 20F, 7.55%, 6/01/16		3,037,569
		1,698		Ser. 20G, 7.70%, 7/01/16		1,859,194
		2,236		Ser. 20H-1, 7.25%, 8/01/16		2,427,131
		3,703		Ser. 20K-1, 6.95%, 11/01/16		3,994,944
		1,881		Small Business Investment Companies, Ser. P10A, Class 1, 6.12%, 2/01/08		1,988,046
		64,500		U.S. Treasury Notes, 1.50%, 3/31/06		63,565,200
		129,000	²	U.S. Treasury Bonds, zero coupon, 11/15/24		40,519,674
				U.S. Treasury Notes,
		32,330	²	3.25%, 8/15/08		32,130,459
		3,000	²	3.875%, 2/15/13		2,885,391
		36,750	²	4.00%, 2/15/14		35,308,665
		17,950	²	4.25%, 11/15/13		17,613,438
		3,250	²	4.375%, 8/15/12		3,256,598

				Total U.S. Government and Agency Securities		229,521,254

				Total Long-Term Investments (cost $671,621,710)		655,026,371

				SHORT-TERM INVESTMENTS—23.4%
				U.S. Government and Agency Securities—23.4%
		8,000		Federal Home Loan Bank, zero coupon, 5/03/04		7,999,622
				U.S. Treasury Notes,
		36,429		3.625%, 5/03/04		36,428,750
		24,996		2.625%, 5/03/04		24,995,600
		30,000		1.50%, 5/03/04		30,000,000
		4,522		2.25%, 5/06/04		4,521,563

				Total Short-Term Investments (cost $103,945,535)		103,945,535

				Total investments before investments sold short and outstanding options written (cost $775,567,245)		758,971,906

				INVESTMENTS SOLD SHORT—(21.6%)
		(1,500	)	Federal National Mortgage Assoc., 5.50%, 5/18/04		(1,538,907	)
		(97,580	)	U.S. Treasury Notes, 1.50%-3.625%, 2/15/07-5/15/13		(94,656,821	)

				Total Investments Sold Short (proceeds $96,272,921)		(96,195,728	)

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

Notional
Amount
(000)		Description	Value

		Outstanding Options Written—(0.8%)
$	19,000	Interest Rate Swap, zero coupon over 3 month LIBOR, expires 12/05/05	$	(752,400	)
	9,000	Interest Rate Swap, 4.90% over 3-month LIBOR, expires 12/05/05		(181,260	)
	60,500	Interest Rate Swap, 3.60% over 3-month LIBOR, expires 11/01/04		(183,742	)
	77,000	Interest Rate Swap, 5.75% over 3-month LIBOR, expires 9/23/05		(1,271,270	)
	12,800	Interest Rate Swap, 6.00% over 3-month LIBOR, expires 10/25/04		(264,192	)
	95	U.S. Treasury Bond Futures, expires 5/22/04		(175,156	)
	162	U.S. Treasury Bond Futures, expires 8/27/04		(663,187	)

		Total Outstanding Options Written (premium received $4,413,022)		(3,491,207	)

		Total investments, net of investments sold short and outstanding options written—148.3%		659,284,971
		Liabilities in excess of other assets—(48.3)%		(214,765,666	)

		Net Assets—100%	$	444,519,305

¹ Using the higher of S&P’s, Moody’s or Fitch’s rating.
² Entire or partial principal amount pledged as collateral for reverse repurchase agreements or financial futures contracts.
³ Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2004, the Trust held 3.0% of its net assets, with a current market value of $13,306,017, in securities restricted as to resale.

Details of open reverse repurchase agreements are disclosed in Note 4 in the Notes to Financial Statements.

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2004

BlackRock Limited Duration Income Trust (BLW)

	Principal
	Amount
Rating¹	(000)			Description	Value


				LONG-TERM INVESTMENTS—149.8%
				Corporate Bonds—63.7%
				Aero & Defense—2.2%
BB+	$	4,000		Raytheon, 7.00%, 5/15/06	$	4,234,320
BB-		5,000		Sequa Corp., Ser. B, 8.875%, 4/01/08		5,525,000
B-		5,885		Transdigm, Inc., 8.375%, 7/15/11		6,223,387

						15,982,707

				Automotive—4.7%
B3		5,000		Advanced Accesory Systems LLC, Ser. B, 10.75%, 6/15/11		5,250,000
B2		2,750		Collins & Aikman Products Co., 10.75%, 12/31/11		2,846,250
A3		7,500	²	DaimlerChrysler NA Holding Corp., 4.05%, 6/04/08		7,357,500
				Dura Operating Corp.,
B+		3,000		Ser. B, 8.625%, 4/15/12		3,135,000
B		1,000		Ser. D, 9.00%, 5/01/09		995,000
B+		5,000		Group 1 Automotive, Inc., 8.25%, 8/15/13		5,450,000
B+		3,500		Sonic Automotive, Inc., Ser. B, 8.625%, 8/15/13		3,771,250
B+		4,640		TRW Automotive, Inc., 9.375%, 2/15/13		5,312,800

						34,117,800

				Basic Material—0.5%
BB-		3,250		U.S. Steel Corp., 10.75%, 8/01/08		3,802,500

				Building & Development—0.4%
B		250		Collins & Aikman Floorcovering, Ser. B, 9.75%, 2/15/10		263,750
BB+		3,000		DR Horton Inc., 5.875%, 7/01/13		2,947,500

						3,211,250

				Chemical—3.1%
A-		5,590	²	Dow Chemical Co., 5.97%, 1/15/09		5,981,468
B		2,500	³	Huntsman Advanced Materials LLC, 11.00%, 7/15/10		2,800,000
B		3,000		Huntsman LLC, 11.625%, 10/15/10		3,300,000
B+		5,000		Lyondell Chemical Co., 11.125%, 7/15/12		5,562,500
B-		5,000		Rockwood Specialties Group Inc., 10.625%, 5/15/11		5,325,000

						22,968,968

				Conglomerates—0.5%
B		3,000		Trimas Corp., 9.875%, 6/15/12		3,285,000

				Consumer Products—1.5%
BB+		5,000		JC Penney Co. Inc., 8.00%, 3/01/10		5,675,000
B+		5,000		Rite Aid Corp., 8.125%, 5/01/10		5,400,000

						11,075,000

				Containers & Glass—1.3%
B-		5,000		Graphic Packaging Intl., Inc., 9.50%, 8/15/13		5,600,000
B+		4,000		Silgan Holdings Inc., 6.75%, 11/15/13		4,020,000

						9,620,000

				Ecological Services & Equipment—2.3%
B+		7,000	²	Allied Waste NA, Inc., Ser. B, 10.00%, 8/01/09		7,490,000
B		2,000		Casella Waste Systems Inc., 9.75%, 2/01/13		2,220,000
B		6,250		National Waterworks Inc., Ser. B, 10.50%, 12/01/12		7,062,500

						16,772,500

				Electronics—1.6%
B1		5,243		Amkor Technology Inc., 7.75%, 5/15/13		5,111,925
B-		2,500		Chippac Int. Ltd., Ser. B, 12.75%, 8/01/09		2,700,000
Ba2		3,972		Flextronics Intl. Ltd., 6.50%, 5/15/13 (Singapore)		3,991,860

						11,803,785

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Energy—9.0%
B+	$	5,500	³	AES Corp., The, 8.75%, 5/15/13	$	5,995,000
BB-		5,290		Chesapeake Energy Corp., 7.50%, 9/15/13		5,686,750
BB		2,000		Compagnie Generale de Geophysique SA, 10.625%, 11/15/07 (France)		2,155,000
B		5,000		Dresser, Inc., 9.375%, 4/15/11		5,400,000
B-		6,000	³	Dynegy Holdings Inc., 10.125%, 7/15/13		6,600,000
B-		4,000		El Paso Production Holding Co., 7.75%, 6/01/13		3,800,000
BB-		2,160	³	Gazprom, 9.625%, 3/01/13 (Russia)		2,219,400
B+		2,950		Hanover Equipment Trust, Ser. B, 8.75%, 9/01/11		3,156,500
B		5,000	²	Hilcorp Energy I LP, 10.50%, 9/01/10		5,512,500
B+		2,000		Massey Energy Corp., 6.95%, 3/01/07		2,045,000
B		5,000		Midwest Generation LLC, Ser. A, 8.30%, 7/02/09		5,150,000
B		5,000		Swift Energy Co., 9.375%, 5/01/12		5,500,000
Ba3		5,000		Westport Resources Corp., 8.25%, 11/01/11		5,612,500
				Williams Cos, Inc.,
B+		1,000		zero coupon, 3/15/12		1,085,000
B+		5,000		8.625%, 6/01/10		5,500,000

						65,417,650

				Farming & Agriculture—0.3%
B2		2,000	³	Gold Kist, Inc., 10.25%, 3/15/14		2,100,000

				Finance & Banking—9.4%
BBB+		3,000		Crum & Forster Holdings Corp., 10.375%, 6/15/13		3,315,000
A3		7,500	²	Ford Motor Credit Co., 7.375%, 2/01/11		8,019,945
CCC+		3,000	³	Gemstone Investor Ltd., 7.71%, 10/31/04		3,022,500
A3		7,500	²	General Motors Acceptance Corp., 6.875%, 8/28/12		7,794,900
				JP Morgan HYDIB,
Ba3		10,000	^2,3	6.40%, 6/20/08		10,087,500
B3		9,815	^2,3	9.00%, 6/20/08		10,317,824
Baa2		5,000	³	Kazkommerts Intl. BV, 10.125%, 5/08/07 (Netherlands)		5,350,000
Ba2		1,974		Labranche & Co., Inc., 12.00%, 3/02/07		2,319,450
B1		4,500	³	Sheridan Acquisition Corp., 10.25%, 8/15/11		4,820,625
B+		5,000		Southern Star Central Corp., 8.50%, 8/01/10		5,500,000
BB-		4,215	²	Western Financial Bank, 9.625%, 5/15/12		4,773,488
B2		2,670	³	WMC Finance Co., 11.75%, 12/15/08		3,284,100

						68,605,332

				Forest Products—2.5%
B		4,000		Caraustar Industries, Inc., 9.875%, 4/01/11		4,080,000
BB+		5,685		Georgia Pacific Corp., 8.875%, 2/01/10		6,566,175
BBB		7,500	²	Weyerhaeuser Co., 5.25%, 12/15/09		7,719,060

						18,365,235

				Health Care—4.3%
B		4,000		Alaris Med Systems Inc., 7.25%, 7/01/11		4,140,000
BB		5,000		Amerisourcebergen Corp., 8.125%, 9/01/08		5,525,000
BB-		1,000		Bio Rad Laboratories Inc., 7.50%, 8/15/13		1,096,250
B-		5,000	²	Concentra Operating Corp., 9.50%, 8/15/10		5,550,000
B-		3,500		Iasis Healthcare Corp., 8.50%, 10/15/09		3,718,750
B-		3,000		Insight Health Services Corp., Ser. B, 9.875%, 11/01/11		3,030,000
B-		3,000		Norcross Safety Products LLC, 9.875%, 8/15/11		3,210,000
B		4,500		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		5,107,500

						31,377,500

				Hotels & Casinos—2.5%
B		3,500		Ameristar Casinos Inc., 10.75%, 2/15/09		4,060,000
B+		4,125		Boyd Gaming Corp., 7.75%, 12/15/12		4,351,875
B		2,000		Hammons John Q. Hotels LP, Ser. B, 8.875%, 5/15/12		2,205,000
B		1,000		Herbst Gaming, Inc., Ser. B, 10.75%, 9/01/08		1,127,500
Ba2		5,425		MGM Mirage, Inc., 9.75%, 6/01/07		6,130,250

						17,874,625

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Industrial Equipment—0.4%
B-	$	3,000		Williams Scotsman, Inc., 9.875%, 6/01/07	$	2,985,000

				Industrials—3.4%
B-		4,000	³	Fasten Tech Inc., 11.50%, 5/01/11		4,440,000
B		5,025		Hexcel Corp., 9.875%, 10/01/08		5,590,312
BB-		5,000		Mail-Well I Corp., 9.625%, 3/15/12		5,500,000
BBB-		7,500		Tyco Intl. Group SA, 6.125%, 11/01/08 (Luxembourg)		7,912,425
B		1,000		Von Hoffman Corp., 10.25%, 3/15/09		1,040,000

						24,482,737

				Leisure—0.5%
BB+		3,500		Royal Caribbean Cruises Ltd., 8.00%, 5/15/10 (Liberia)		3,867,500

				Media—5.9%
B1		2,500		Alliance Atlantis Communications, Inc., 13.00%, 12/15/09 (Canada)		2,787,500
BBB		6,685	²	Comcast Cable Communications, Inc., 6.875%, 6/15/09		7,359,416
BB-		6,000	²	CSC Holdings Inc., 7.875%, 12/15/07		6,405,000
B		2,000		Dex Media East LLC, Ser. B, 12.125%, 11/15/12		2,320,000
				Echostar DBS Corp.,
BB-		4,500	³	4.36%, 7/01/04		4,680,000
BB-		2,000	³	5.75%, 10/01/08		2,005,000
B		5,000		Houghton Mifflin Company, 9.875%, 2/01/13		4,925,000
B-		3,250		Nextmedia Operating, Inc., 10.75%, 7/01/11		3,664,375
B+		2,500	³	Paxson Communications Corp., 3.89%, 4/15/04		2,525,000
B-		4,650		Salem Communications Corp., 7.75%, 12/15/10		4,882,500
CCC+		1,375		WRC Media, Inc., 12.75%, 11/15/09		1,375,000

						42,928,791

				Pharmaceuticals—0.2%
B-		1,750	³	Curative Hlth. Svcs. Inc., 10.75%, 5/01/11		1,756,563

				Publishing—0.5%
B-		3,500		CBD Media Inc., 8.625%, 6/01/11		3,736,250

				Real Estate—0.4%
Ba3		2,671		HMH Properties, Inc., Ser. B, 7.875%, 8/01/08		2,771,162

				Steel—0.8%
BB		5,000		Ipsco, Inc., 8.75%, 6/01/13		5,625,000

				Technology—0.5%
BB+		3,500		Unisys Corp., 6.875%, 3/15/10		3,710,000

				Telecommunication—3.7%
B-		6,000		ACC Escrow Corp., Ser. B, 10.00%, 8/01/11		5,790,000
BBB+		5,000	²	Deutsche Telekom Intl. Finance BV, 8.50%, 6/15/10 (Netherlands)		5,907,500
BB		5,000	²	Nextel Communications, Inc., 7.375%, 8/01/15		5,225,000
B3		4,000	³	Qwest Communications Intl., Inc., 4.63%, 2/15/09		3,720,000
Ba3		6,000	^2,3	Qwest Corp., 9.125%, 3/15/04		6,480,000

						27,122,500

				Transportation—1.3%
BB+		1,650		Overseas Shipholding Group Inc., 8.75%, 12/01/13		1,860,375
B		3,720		Railamerica Transportation Corp., 12.875%, 8/15/10		4,315,200
B		3,015		Sea Containers Ltd., 10.50%, 5/15/12 (Bermuda)		2,984,850

						9,160,425

				Total Corporate Bonds		464,525,780

				Mortgage Pass-Throughs—24.1%
				Federal National Mortgage Assoc.,
		9,597	²	4.347%, 12/01/33		9,659,944
		6,956	²	4.44%, 1/01/34		7,076,116
		121,700		5.00%, 12/01/99		122,384,562
		16,993	²	5.50%, 12/01/27 - 11/01/33		16,969,146
		17,000	²	7.25%, 1/15/10		19,570,400

				Total Mortgage Pass-Throughs		175,660,168

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Interest Only Asset-Backed Securities—1.0%
	$	78,000		Sterling Coofs Trust, 4/15/29	$	6,971,250

				Interest Only Mortgage-Backed Securities—0.6%
		18,133		Federal National Mortgage Assoc., Ser. 64, Class QI, 1/25/33		4,075,615

				Asset-Backed Securities—1.9%
		6,900	²	DaimlerChrysler Auto Trust, Ser. 2003B, Class A3, 2.25%, 8/08/07		6,897,573
AAA		7,125		Honda Auto Receivables, Asset Bkd Note Class A3, 2.30%, 10/18/07		7,117,658

				Total Asset-Backed Securities		14,015,231

				Collateralized Mortgage Obligation Residuals—2.6%
				GSR Mortgage Loan Trust,
		9,666	²	Ser. 10, Class 2A1, 4.502%, 10/25/33		9,484,174
		9,618	²	Ser. 13, Class 1A1, 4.528%, 10/25/33		9,528,485

				Total Collateralized Mortgage Obligation Residuals		19,012,659

				Bank Loans—41.9%
				Advertising—0.1%
		500		Adams Outdoor Advertising, LP, Term Loan, LIBOR + 3.40%, 10/01/11		506,250

				Aero & Defense—0.2%
		1,488		Transdigm, Inc., Term Loan, LIBOR + 3.34%, 4/12/11		1,500,516

				Automotive—2.2%
		500		CSK Auto, Inc., Term Loan B, LIBOR + 3.39%, 6/18/09		505,312
		2,866		EaglePicher Industries, Term Loan B, LIBOR + 4.11%, 5/28/04 - 6/10/04		2,882,185
				Exide Technologies,
		1,375		Euro A/R Term Loan, LIBOR + 4.83%, 5/30/05		1,375,000
		4,000		Term Loan, LIBOR + 4.83%, 5/30/05		4,000,000
		1,318		Metaldyne Co. LLC, Term Loan D, LIBOR + 5.375, 12/31/09		1,317,868
				Tenneco Automotive, Inc.,
		447		Term Loan B, LIBOR + 4.36%, 11/30/10		455,167
		1,002		Term Loan B1, LIBOR + 4.346%, 11/30/10		1,019,672
		2,783		TRW Automotive Acquisitions Corp., Term Loan D1, LIBOR + 3.4375%, 2/28/11		2,821,368
				Williams Scotsman, Inc., Term Loan,
		1,038		LIBOR + 4.1875%, 5/03/04		1,039,954
		446		LIBOR + 4.1875%, 6/07/04		446,998
		401		LIBOR + 4.125%, 5/05/04		401,386
		8		LIBOR + 5.75%, 6/30/04		8,188

						16,273,098

				Basic Material—0.1%
				Metakote Corp., Term Loan,
		56		LIBOR + 6.86%, 6/30/04		56,111
		444		LIBOR + 6.92%, 8/19/04		448,889

						505,000

				Building & Development—0.7%
				Associated Materials, Inc., Term Loan,
		53		LIBOR + 3.86%, 6/14/04		53,070
		947		LIBOR + 3.99%, 6/10/04		955,263
		474		LIBOR + 4.03%, 6/08/04		477,631
				Builders Firstsource, Inc., Term Loan,
		3		LIBOR + 4.38%, 6/30/04		2,525
		3		LIBOR + 4.53%, 9/30/04		2,525
		995		LIBOR + 4.59%, 10/29/04		1,004,950
		850		Goodman Global Holdings, Inc., Term Loan B, LIBOR + 3.25%, 11/30/09		861,688
		1,000		Landsource Communities Development, LLC, Term Loan B, LIBOR + 3.6875%, 3/31/10		1,015,000
				Ply Gem Industries,
		75		CND Term Loan, LIBOR + 3.61%, 3/15/10		75,094
		425		Term Loan, LIBOR + 3.61%, 10/01/11		425,531

						4,873,277

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

	Principal
	Amount
Rating¹	(000)		Description	Value

			Business Equipment & Services—0.8%
			Alderwoods Group, Inc., Term Loan B,
	$	682	LIBOR + 3.86%, 6/28/04	$	690,767
		704	LIBOR + 3.87%, 5/27/04		712,978
		727	LIBOR + 4.10%, 10/28/04		736,818
		54	LIBOR + 5.75%, 6/30/04		54,710
		2,244	Buhrmann U.S., Inc., Term Loan B1, LIBOR + 3.86%, 11/01/07 - 12/30/10		2,275,235
			Worldspan, LP, Term Loan,
		456	LIBOR + 4.875%, 5/07/04		456,570
		276	LIBOR + 4.875%, 5/10/04		276,345
		300	LIBOR + 4.875%, 5/13/04		300,375

					5,503,798

			Chemical—1.1%
			Huntsman Intl. LLC,
			Term Loan B,
		679	LIBOR + 5.1875%, 5/24/04 - 6/08/04		688,828
		571	LIBOR + 5.25%, 6/30/04		578,360
			Term Loan C,
		1,250	LIBOR + 5.4375%, 5/19/04 - 5/24/04		1,244,010
			INEOS Group Holdings PLC, Term Loan C, (United Kingdom)
		5	LIBOR + 4.6113%, 6/30/04		5,450
		931	LIBOR + 4.6613%, 9/30/04		940,512
		997	Kraton Polymers, Term Loan, LIBOR + 3.75%, 12/15/10		1,011,350
			Nalco Chemical Co., Term Loan,
		95	LIBOR + 3.60%, 5/28/04		95,338
		2,794	LIBOR + 3.63%, 6/30/04		2,815,382
		993	USI Holdings Corp., Term Loan B, LIBOR + 3.67%, 7/30/08		1,003,666

					8,382,896

			Clothing & Textiles—0.5%
		4,000	Invista, Term Loan B, LIBOR + 4.10%, 4/30/11		4,028,332

			Conglomerates—2.4%
			Colfax Corp.,
		3,775	Term Loan B, LIBOR + 4.875%, 6/30/09		3,815,109
		1,250	Term Loan C, LIBOR + 7.375%, 6/30/10		1,262,500
			Invesys Intl. Holdings Ltd.,
		4,250	Term Loan, LIBOR + 5.86%, 11/30/09		4,281,875
		2,000	Term Loan B1, LIBOR + 4.61%, 8/30/09		2,005,000
			Precise Technology, Inc., Term Loan,
		750	LIBOR + 4.125%, 3/31/11		756,563
		1,000	LIBOR + 7.125%, 3/31/11		1,000,000
		2,488	Quintiles Transnational Corp., Term Loan, LIBOR + 5.36%, 9/25/09		2,527,922
		1,990	Trimas Corp., Term Loan B, LIBOR + 4.60%, 12/31/09		1,997,176

					17,646,145

			Consumer Products—4.3%
		500	Buffets, Inc., Synth LC, LIBOR + 4.61%, 6/28/09		500,000
		860	Dean Foods Co., Term Loan B, LIBOR + 3.11%, 8/15/08		871,215
			Dole Food Co., Inc., Term Loan C,
		970	LIBOR + 3.6875%, 5/28/04 - 7/02/04		983,576
		546	LIBOR + 5.50%, 6/30/04		553,613
			Dr. Pepper Bottling Company of Texas, Term Loan B,
		57	LIBOR + 3.61%, 6/24/04 - 6/30/04		57,652
		3,339	LIBOR + 3.65%, 9/22/04 - 9/30/04		3,395,004
		1,489	DS Waters Enterprises LP, Term Loan, LIBOR + 3.9375%, 11/30/09		1,485,494
		1,990	Jarden Corp., Term Loan B, LIBOR + 3.86%, 4/30/08		2,004,095
		2,843	Jostens, Inc., Term Loan B, LIBOR + 3.72%, 7/08/10		2,865,363
			Meow Mix Company, Term Loan,
		270	LIBOR + 4.61%, 6/28/04		267,412
		1,705	LIBOR + 4.73%, 6/28/04		1,685,369
			Olympus Cable Holdings, LLC,
		2,000	Term Loan A, LIBOR + 5.25%, 6/30/10		1,937,142
		3,500	Term Loan B, PRIME + 6.00%, 9/30/10		3,410,001

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

	Principal
	Amount
Rating¹	(000)		Description	Value

			Consumer Products—(cont’d)
	$	2,888	Oriental Trading Co., Inc., Term Loan B, LIBOR + 3.875%, 6/01/04 - 6/30/04	$	2,898,431
		2,000	Pantry, Inc., The, Term Loan, LIBOR + 3.85%, 2/18/11		2,025,000
			Prestige Brands Holdings, Inc., Term Loan B,
		1,492	LIBOR + 4.075%, 10/26/04		1,502,736
		8	LIBOR + 5.75%, 6/30/04		8,514
		1,499	Scotts Co., The, Term Loan, LIBOR + 3.125%, 5/21/04 - 7/21/04		1,518,402
		3,226	Tempur Pedic, Term Loan B, LIBOR + 4.61%, 8/13/09		3,245,785

					31,214,804

			Containers & Glass—3.5%
		5,700	Crown Cork & Seal Co., Inc., Term Loan B1, LIBOR + 4.10%, 9/30/08		5,792,625
		3,980	Graphic Packaging Intl., Inc., Term Loan B, LIBOR + 3.86%, 6/30/04 - 7/01/04		4,035,553
			Owens-Brockway Glass Container, Inc., Term Loan A,
		8,500	LIBOR + 3.92%, 6/30/07		8,523,018
		2,000	LIBOR + 4.10%, 3/15/08		2,002,500
		2,970	Silgan Holdings, Inc., Term Loan B, LIBOR + 3.39%, 11/30/08		3,010,761
		500	Sola International, Inc., Term Loan, LIBOR + 3.65%, 11/30/09		506,875
			Solo Cup, Inc., Term Loan,
		5	LIBOR + 3.60%, 5/27/04		5,079
		1,995	LIBOR + 3.61%, 6/30/04		2,026,671

					25,903,082

			Ecological Services & Equipment—0.8%
			Allied Waste NA, Inc.,
		1,000	Term Loan A, LIBOR + 3.86%, 1/15/10		1,014,063
		4,000	Term Loan C, LIBOR + 3.86%, 6/15/04 - 6/22/04		4,060,000
		1,000	Envirosolutions, Term Loan, LIBOR + 5.12%, 2/28/09		998,750

					6,072,813

			Electronics—0.5%
		3,307	Knowles Electronics, Inc., Term Loan B2, LIBOR + 6.1875, 6/29/07		3,309,784
		500	SGL Carbon LLC, Term Loan, LIBOR + 4.22%, 6/30/09		498,750

					3,808,534

			Energy—2.9%
		429	AES Corp., The, Term Loan, LIBOR + 5.32%, 4/30/08		433,862
		1,985	Calpine Corp., Term Loan, LIBOR + 6.89%, 7/15/07		1,866,893
		6,962	Centerpoint Energy, Inc., Term Loan, LIBOR + 4.72%, 10/30/06		7,103,585
		5,500	Mission Energy Holdings Co., Term Loan, LIBOR + 7.00%, 9/01/04 - 9/10/04		5,536,096
		579	NRG Energy, Inc., Term Loan, LIBOR + 5.50%, 5/08/10		595,321
			Reliant Resources, Inc., Term Loan,
		972	LIBOR + 5.2275%, 7/07/04		953,813
		4,813	LIBOR + 5.35%, 10/07/04		4,721,649

					21,211,219

			Entertainment—0.5%
		4,000	MGM, Inc., Term Loan, LIBOR + 3.60%, 4/30/11		4,010,000

			Equipment Leasing—0.3%
			United Rentals NA, Inc., Term Loan B,
		672	LIBOR + 3.38%, 5/18/04		679,617
		672	LIBOR + 3.44%, 8/19/04		679,617
		489	LIBOR + 3.35%, 5/28/04		494,266

					1,853,500

			Finance & Banking—1.2%
			BCP Luxemburg Holdings,
		3,375	Term Loan B, LIBOR + 9.125%, 4/19/04		3,366,562
		1,125	Term Loan C, LIBOR + 11.125%, 2/19/05		1,122,188
		2,000	Global Cash Access, LLC, Term Loan, LIBOR + 3.85%, 3/15/10		2,027,500
		2,000	SBA Senior Finance, Inc., Term Loan, LIBOR + 4.65%, 10/31/08		2,011,250

					8,527,500

			Food Products—0.4%
			Michael Foods, Inc., Term Loan,
		242	LIBOR + 3.60%, 5/26/04		245,833
		23	LIBOR + 3.62%, 5/21/04		23,124
		212	LIBOR + 3.73%, 5/20/04		215,104
		2,515	LIBOR + 3.96375%, 11/22/04		2,550,523

					3,034,584

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

	Principal
	Amount
Rating¹	(000)		Description	Value

			Forest Products—1.7%
			MDCP Acquisitions
	$	4,000	Tranche C3, LIBOR + 4.39%, 7/08/04	$	4,020,000
		4,000	Tranche B3, LIBOR + 3.89%, 7/08/04		4,027,000
		1,496	RLC Industries Co., Term Loan, LIBOR +3.13%, 1/26/10		1,511,212
			SP Newsprint Co.,
		883	Term Loan, LIBOR + 4.10%, 1/08/10		892,569
		1,611	Term Loan B, LIBOR + 1.10%, 1/09/10		1,629,236

					12,080,017

			Health Care—3.2%
		229	Ameripath, Inc., Term Loan C, LIBOR + 4.10%, 3/20/10		229,209
			Atrium Companies, Inc., Term Loan,
		11	LIBOR + 3.86%, 6/30/04		10,764
		738	LIBOR + 3.89%, 7/15/04		747,180
			Colgate Medical, Ltd., Term Loan B,
		682	LIBOR + 3.85%, 5/28/04		689,489
		781	LIBOR + 3.86%, 6/30/04		789,464
		3,970	Community Health Systems, Inc., Term Loan B, LIBOR + 3.62%, 6/16/11		4,019,395
			Concentra Operating Corp., Term Loan,
		963	LIBOR + 4.88%, 5/10/04		975,409
		2,015	LIBOR + 4.97%, 8/09/04		2,041,790
			Connecticare, Inc., Term Loan,
		1,350	LIBOR + 4.86%, 6/30/04		1,363,500
		375	LIBOR + 4.88%, 6/30/04		378,750
		1,050	LIBOR + 5.24875%, 10/29/04		1,060,500
			Davita, Inc., Term Loan B,
		8	LIBOR + 3.11%, 6/30/04		8,161
		389	LIBOR + 3.12%, 5/21/04		392,751
		389	LIBOR + 3.14%, 7/15/04		392,751
		1,306	LIBOR + 3.16%, 6/30/04 - 9/30/04		1,319,407
		230	LIBOR + 3.17%, 7/30/04		232,741
		653	LIBOR + 3.2125%, 6/30/04		659,704
		494	DJ Orthopedics LLC, Term Loan, LIBOR + 3.875%, 4/30/09		499,922
		2,078	Empi Corp., Term Loan, LIBOR + 4.24%, 11/30/09		2,095,010
		1,109	Fisher Scientific Intl., Inc., Term Loan C, LIBOR + 3.11%, 2/28/10		1,115,874
		2,672	Kinetic Concepts, Inc., Term Loan B1, LIBOR + 3.36%, 8/05/10		2,699,225
		1,900	Per-Se Technologies, Inc., Term Loan B, LIBOR + 5.36%, 8/30/08		1,914,250

					23,635,246

			Home Furnishing—0.1%
		1,000	Sealy Mattress Co., Term Loan, LIBOR + 3.86%, zero coupon, 3/31/12		1,012,500

			Hotels & Casinos—1.1%
			Greektown Casino, LLC, Term Loan D,
		829	LIBOR + 4.59%, 5/04/04		828,213
		2,141	LIBOR + 4.63125%, 5/04/04		2,166,933
		499	Green Valley Ranch Gaming, LLC, Term Loan B, LIBOR + 3.86%, 12/01/10		506,231
			Marina District Finance Co., Inc., Term Loan A,
		128	LIBOR + 4.10%, 5/17/04		129,692
		235	LIBOR + 4.16%, 9/30/04		237,189
		1,510	LIBOR + 4.17%, 7/30/04 - 8/31/04		1,525,421
		486	LIBOR + 4.22%, 6/30/04		491,169
		459	LIBOR + 4.24%, 5/28/04		463,185
		1,376	Wyndham Intl., Inc., Term Loan, LIBOR + 6.875%, 6/30/04		1,347,897

					7,695,930

			Industrial Equipment—0.3%
			Enersys, Inc., Term Loan,
		395	LIBOR + 3.59%, 8/05/04		400,165
		395	LIBOR + 3.60%, 5/24/04		400,164
		658	LIBOR + 3.61%, 7/06/04		666,941
		395	LIBOR + 3.62%, 8/05/04		400,164
		658	LIBOR + 3.66%, 10/05/04		666,941

					2,534,375

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

	Principal
	Amount
Rating¹	(000)		Description	Value

			Industrials—1.2%
	$	1,000	Arinc, Inc., Term Loan B, LIBOR + 3.36%, 2/15/11	$	1,012,500
		1,000	Ionics, Inc., Term Loan, LIBOR + 3.87%, 2/12/11		1,011,250
			New Flyer, Inc.,
		476	Term Loan, LIBOR + 3.84%, 2/27/10		483,333
		1,524	Term Loan B, LIBOR + 3.85%, 2/27/10		1,542,857
			Roper Industries, Inc., Term Loan,
		2,125	LIBOR + 3.11%, 6/30/04		2,151,067
		838	LIBOR + 3.17%, 7/28/04		848,464
			Sensus Metering Systems, Inc.,
			Term Loan B1,
		3	LIBOR + 4.13%, 6/30/04		3,280
		652	LIBOR + 4.17%, 7/20/04		655,978
		645	LIBOR + 4.17%, 8/20/04		649,418
			Term Loan B2,
		1	LIBOR + 4.17%, 6/30/04		492
		98	LIBOR + 4.17%, 7/20/04		98,397
		97	LIBOR + 4.17%, 8/20/04		97,413

					8,554,449

			Leisure—0.3%
		1,995	Fitness Holdings Worldwide, Inc., Term Loan B, LIBOR + 4.75%, 6/30/04		2,017,444

			Media—5.9%
			Cinram International, Inc.,
		5,932	Term Loan B, LIBOR + 4.84%, 10/30/09		5,977,899
			Term Loan C, LIBOR + 6.84%, 4/30/10		1,481,416
			Dex Media East, LLC, Term Loan A,
		1,907	LIBOR + 3.35%, 5/12/04 - 5/28/04		1,932,020
		480	LIBOR + 3.38%, 5/10/04		485,966
		240	LIBOR + 3.48%, 6/15/04		242,983
			Dex Media West, LLC,
			Term Loan A,
		734	LIBOR + 3.60%, 5/06/04 - 5/28/04		743,390
		651	LIBOR + 3.61%, 6/11/04		660,045
		310	LIBOR + 3.63%, 5/12/04		314,563
		282	LIBOR + 3.64%, 5/06/04		285,526
		127	LIBOR + 3.74%, 6/11/04		129,051
			Term Loan B,
		1,803	LIBOR + 3.85%, 5/06/04 - 5/28/04		1,830,933
		1,447	LIBOR + 3.86%, 6/11/04		1,468,976
		708	LIBOR + 3.88%, 5/12/04		719,211
		375	LIBOR + 3.89%, 5/06/04		380,759
		257	LIBOR + 3.99%, 6/11/04		260,891
			DirecTV Holdings, LLC, Term Loan B2,
		1,880	LIBOR + 3.35%, 5/17/04		1,908,566
		1,837	LIBOR + 3.45%, 5/09/04		1,864,745
			Insight Midwest Holdings LLC, Term Loan,
		15	LIBOR + 3.875%, 6/04/04		15,100
		5,970	LIBOR + 3.9375%, 6/04/04		6,009,551
		2,000	Lions Gate Entertainment, Inc., Term Loan, LIBOR + 4.36%, 12/31/08		2,010,000
		2,935	Loews Cineplex Entertainment Corp., LIBOR + 4.625%, 2/29/08		2,937,224
		4,000	MCC Iowa LLC, Term Loan B, LIBOR + 3.62%, 9/30/10		4,050,000
		1,995	MediaNews Group, Inc., Term B, LIBOR + 3.10%, 12/30/10		2,015,782
		2,985	Rainbow Media Group, Term Loan C, LIBOR + 3.38%, 3/30/09		3,005,884
			Warner Music Group, Term Loan B,
		500	LIBOR + 4.025%, 10/22/04		506,500
		1,500	LIBOR + 3.85%, 5/24/04		1,519,500

					42,756,481

			Oil & Gas Services—0.4%
		2,000	Gulfterra Energy Partners, LP, Term Loan, LIBOR + 3.36%, 11/30/08		2,015,000
		776	Veritas DGC, Inc., Term Loan B, LIBOR + 6.130%, 2/14/07		782,066

					2,797,066

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Publishing—0.3%
				Readers Digest Assoc., Inc., Term Loan B,
	$	244		LIBOR + 4.1875%, 6/22/04 - 8/20/04	$	246,159
		197		LIBOR + 4.25%, 5/20/04		198,080
		1,708		Relizon Company The, Term Loan, LIBOR + 4.12%, 2/15/11		1,713,903

						2,158,142

				Real Estate—0.3%
				Crescent Real Estate Equities LP, Term Loan,
		364		LIBOR + 3.34%, 5/04/04		367,273
		1,636		LIBOR + 3.35%, 5/14/04 - 5/18/04		1,652,727

						2,020,000

				Restaurants—0.3%
		2,000		Caribbean Resturants, Term Loan, LIBOR + 4.10%, 4/07/09		2,018,750

				Retailers—0.7%
		1,069		Alimentation Couche-Tard, Inc., Term Loan, LIBOR + 3.375%, 6/15/04 - 6/30/04		1,080,774
				R.H. Donnelley, Inc., Term Loan B2,
		1,649		LIBOR + 3.36%, 6/15/04 - 6/30/04		1,671,540
		1,564		LIBOR + 3.37%, 6/08/04		1,585,438
		626		LIBOR + 3.39%, 7/09/04		634,063

						4,971,815

				Telecommunication—3.3%
		1,000		Atlantic Broadband Finance LLC, Term Loan B, LIBOR + 4.37%, 1/30/11		1,011,250
				Centennial Cellular Operating Co., Term Loan B,
		83		LIBOR + 3.85%, 5/28/04		83,363
		917		LIBOR + 3.91%, 9/30/04		916,994
		3,500		Charter Communications Operating LLC, Term Loan, LIBOR + 4.42%, 7/29/04		3,486,389
		1,500		Consolidated Communications, Inc., Term Loan B1, LIBOR + 3.85%, 4/07/12		1,513,125
		4,478		Crown Castle Operating Co., Term Loan B, LIBOR + 4.61%, 4/30/10		4,545,222
		3,990		Nextel Finance Co., Term Loan E, LIBOR + 3.375%, 12/15/10		4,030,969
		836		PanAmSat Corp., Term Loan B1, LIBOR + 3.60%, 10/29/10		836,662
		5,000		Qwest Corp., Term Loan A, LIBOR + 6.50%, 6/30/07		5,196,430
				Valor Telecommunication Enterprises II, LLC, Term Loan A,
		1,193		LIBOR + 3.63%, 5/10/04		1,193,781
		581		LIBOR + 3.60%, 5/28/04		581,549
				Western Wireless Corp., Term Loan A,
		161		LIBOR + 3.13%, 6/14/04		159,734
		484		LIBOR + 3.13%, 5/28/04		481,954
		321		LIBOR + 3.19%, 7/30/04		319,469

						24,356,891

				Transportation—0.3%
		1,953		Sirva Worldwide, Inc., Term Loan, LIBOR + 3.59%, 11/30/10		1,963,926

				Total Bank Loans		305,428,380

				Foreign Government Bonds—2.5%
BB		5,000		Columbia Republic, 9.75%, 4/23/09		5,425,000
BB-		5,000	²	Peru Republic, 9.125%, 2/21/12		5,250,000
B2		1,905		Republic of Venezuela, 2.125%, 6/18/04		1,780,895
B+		5,000		Turkey Republic, 11.375%, 11/27/06		5,675,000

				Total Foreign Government Bonds		18,130,895

				U.S. Government Securities—11.5%
				U.S. Treasury Notes,
		30,000	²	1.625%, 10/31/05		29,845,200
		46,000	²	3.375%, 12/15/08		45,690,880
		8,660	²	4.25%, 11/15/13		8,497,625

				Total U.S. Government Securities		84,033,705

				Total Long-Term Investments (cost $1,068,063,037)	1,091,853,683

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal
Amount
(000)		Description	Value

		SHORT-TERM INVESTMENT—0.0%
		U.S. Government and Agency Security—0.0%
$	200	U.S. Treasury Bills, zero coupon, 5/13/04 (cost $199,943)	$	199,943

		Total investments—149.8% (cost $1,068,262,980)	1,092,053,626
		Liabilities in excess of other assets—(49.8)%		(362,972,928	)

		Net Assets—100%	$	729,080,698

¹ Using the higher of S&P’s, Moody’s or Fitch’s rating.
² Entire or partial principal amount pledged as collateral for reverse repurchase agreements or financial futures contracts.
³ Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2004, the Trust held 11.3% of its net assets, with a current market value of $82,203,512, in securities restricted as to resale.

Details of open reverse repurchase agreements are disclosed in Note 4 in the Notes to Financial Statements.

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited)
APRIL 30, 2004

BlackRock Strategic Bond Trust (BHD)

	Principal
	Amount
Rating¹	(000)			Description	Value


				LONG-TERM INVESTMENTS—126.9%
				Corporate Bonds—123.7%
				Aero & Defense—4.6%
B-	$	2,000		BE Aerospace, Inc., 9.50%, 11/01/08	$	2,010,000
BBB		1,000		Lockheed Martin Corp., 8.20%, 12/01/09		1,183,250
BBB-		650		Raytheon Co., 4.85%, 1/15/11		642,583
A		1,000	²	United Technologies Corp., 6.35%, 3/01/11		1,095,320

						4,931,153

				Automotive—12.5%
BB+		2,000	²	Autonation, Inc., 9.00%, 8/01/08		2,270,000
B2		2,000		Collins & Aikman Products Co., 10.75%, 12/31/11		2,070,000
A3		1,000	²	DaimlerChrysler NA Holding Corp., 7.30%, 1/15/12		1,095,220
BB		2,000		Dana Corp., 10.125%, 3/15/10		2,290,000
B3		1,000		Delco Remy Intl., Inc., 11.00%, 5/01/09		1,057,500
B		2,000		Dura Operating Corp., Ser. D, 9.00%, 5/01/09		1,990,000
B+		1,400		Sonic Automotive, Inc., Ser. B, 8.625%, 8/15/13		1,508,500
B+		892		TRW Automotive, Inc., 9.375%, 2/15/13		1,021,340

						13,302,560

				Basic Material—2.1%
BB-		2,000		Century Aluminum Co., 11.75%, 4/15/08		2,240,000

				Building & Development—3.1%
BB		1,000		Beazer Homes USA, Inc., 8.625%, 5/15/11		1,080,000
BB+		2,000		Schuler Homes, Inc., 9.375%, 7/15/09		2,210,000

						3,290,000

				Chemical—3.9%
B+		2,000		Lyondell Chemical Co., Ser. B, 9.875%, 5/01/07		2,100,000
B		1,796		Noveon, Inc., Ser. B, 11.00%, 2/28/11		2,110,300

						4,210,300

				Conglomerates—4.8%
A		325		Honeywell Intl., Inc., 7.50%, 3/01/10		374,433
B		1,500		MDP Acquisitions PLC, 9.625%, 10/01/12		1,672,500
B-		2,000		Penhall Intl., Inc., 12.00%, 8/01/06		1,900,000
BBB-		1,132	²	Tyco Intl. Group SA, 6.375%, 2/15/06 (Luxembourg)		1,192,607

						5,139,540

				Consumer Products—2.0%
BBB+		1,000	²	General Mills, Inc., 5.125%, 2/15/07		1,045,470
BBB		575	²	Kellogg Co., Ser. B, 6.00%, 4/01/06		609,753
B-		500	³	Pantry, Inc., The, 7.75%, 2/15/14		502,500

						2,157,723

				Containers & Glass—2.9%
B		1,000		Crown European Holdings SA, 10.875%, 3/01/13 (France)		1,160,000
B+		1,800		Plastipak Holdings, Inc., 10.75%, 9/01/11		1,944,000

						3,104,000

				Ecological Services & Equipment—3.6%
B+		2,000		Allied Waste NA, Inc., Ser. B, 10.00%, 8/01/09		2,140,000
B		1,500		Casella Waste Systems Inc., 9.75%, 2/01/13		1,665,000

						3,805,000

				Energy—20.1%
BBB+		1,000	²	Anadarko Petroleum Corp., 5.375%, 3/01/07		1,053,950
CCC+		1,500		Calpine Corp., 10.50%, 5/15/06		1,357,500
BB		2,000		Compagnie Generale de Geophysique SA, 10.625%, 11/15/07 (France)		2,155,000
A-		1,000	²	ConocoPhillips Holding Co., 6.95%, 4/15/29		1,100,720
B		2,000	²	Dresser, Inc., 9.375%, 4/15/11		2,160,000
BBB		250	²	DTE Energy Co., 7.05%, 6/01/11		275,370
B-		1,500	³	Dynegy Holdings Inc., 10.125%, 7/15/13		1,650,000

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Energy—(cont’d)
				El Paso Corp.,
CCC+	$	165		7.75%, 1/15/32	$	129,937
CCC+		85		7.80%, 8/01/31		66,938
BB-		670		El Paso Natural Gas Co., Ser. B, 8.50%, 6/01/11		748,725
B-		1,750		El Paso Production Holding Co., 7.75%, 6/01/13		1,662,500
BBB+		105		Exelon Corp., 6.75%, 5/01/11		115,731
Baa3		325	²	FirstEnergy Corp., Ser. C, 7.375%, 11/15/31		341,338
B+		2,000		Hanover Equipment Test, Ser. A, 8.50%, 9/01/08		2,110,000
B1	1,000			Midwest Generation LLC, 8.75%, 5/01/34		1,000,000
BBB+		250		Occidental Petroleum Corp., 6.75%, 1/15/12		277,988
Baa2		1,000	²	Progress Energy, Inc., 6.75%, 3/01/06		1,068,210
B	2,000			Swift Energy Co., 10.25%, 8/01/09		2,120,000
BB-		2,000		Western Gas Resources, Inc., 10.00%, 6/15/09		2,115,000

						21,508,907

				Farming & Agriculture—0.3%
B2		300	³	Gold Kist, Inc., 10.25%, 3/15/14		315,000

				Finance & Banking—16.8%
A+		500	²	Allstate Corp., 7.875%, 5/01/05		529,250
Aa3		1,000	²	Bank One Corp., 6.50%, 2/01/06		1,070,000
Aa3		650	^2,3	Barclays Bank PLC, 8.55%, 9/29/49 (United Kingdom)		785,757
A1		325	²	Bear Stearns Co., Inc., 6.50%, 5/01/06		348,774
B1		2,000		Bluewater Finance Ltd., 10.25%, 2/15/12 (United Kingdom)		2,090,000
Aa1		3,000	²	Citigroup, Inc., 5.75%, 5/10/06		3,182,130
BBB+		500	³	Crum & Forster Holdings Corp., 10.375%, 6/15/13		552,500
				Ford Motor Credit Co.,
A3		750	²	5.80%, 1/12/09		763,305
A3		2,000	²	6.875%, 2/01/06		2,119,820
				General Motors Acceptance Corp.,
A3		250	²	6.75%, 1/15/06		264,817
A3		900	²	6.875%, 9/15/11		940,824
A3		300	²	8.00%, 11/01/31		314,310
AAA		850	²	KFW Intl. Finance, Inc., 5.25%, 6/28/06		897,303
Ba2		410		Labranche & Co., Inc., 12.00%, 3/02/07		481,750
				Lehman Brothers Holdings, Inc.,
A1	1,000		²	6.25%, 5/15/06		1,069,430
BB-		1,000	²	10.375%, 6/01/09		1,045,000
A		325	²	MetLife, Inc., 6.125%, 12/01/11		349,937
B2		885		WMC Finance Co., 11.75%, 12/15/08		1,088,550

						17,893,457

				Forest Products—2.9%
B	2,000			Caraustar Industries, Inc., 9.875%, 4/01/11		2,040,000
BBB	1,000			Weyerhaeuser Co., 6.125%, 3/15/07		1,069,310

						3,109,310

				Health Care—7.4%
NR		2,000		HealthSouth Corp., 6.875%, 6/15/05		2,000,000
B-		2,000		Insight Health Services Corp., Ser. B, 9.875%, 11/01/11		2,020,000
B+		2,000		Matria Healthcare, Inc., Ser. B, 11.00%, 5/01/08		2,220,000
B		1,500		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		1,702,500

						7,942,500

				Hotels & Casinos—3.1%
Ba2		2,000		Park Place Entertainment Corp., 7.875%, 3/15/10		2,187,500
B		1,000		Resorts Intl. Hotel & Casino, Inc., 11.50%, 3/15/09		1,110,000

						3,297,500

				Industrial Equipment—2.1%
BB-		2,000		Mail-Well I Corp., 9.625%, 3/15/12		2,200,000

				Leisure—1.6%
BB+		1,500		Royal Caribbean Cruises Ltd., 8.75%, 2/02/11 (Liberia)		1,717,500

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

	Principal
	Amount
Rating¹	(000)			Description	Value

				Media—12.9%
NR	$	1,000	^2,4	Adelphia Communications Corp., Ser. B, 10.50%, 7/15/04	$	1,100,000
B1		1,500		Alliance Atlantis Communications, Inc., 13.00%, 12/15/09 (Canada)		1,672,500
BBB+		1,000	²	AOL Time Warner, Inc., 7.70%, 5/01/32		1,101,970
Ca		2,000		Charter Communications Holdings LLC, 11.125%, 1/15/11		1,775,000
BBB		1,000		Comcast Cable Communications, Inc., 6.875%, 6/15/09		1,100,885
BB-		2,000		EchoStar DBS Corp., 10.375%, 10/01/07		2,160,000
B-		2,000		Nextmedia Operating, Inc., 10.75%, 7/01/11		2,255,000
A-		1,000	²	Viacom, Inc., 6.625%, 5/15/11		1,105,930
CCC+		1,500		WRC Media, Inc., 12.75%, 11/15/09		1,500,000

						13,771,285

				Pharmaceuticals—0.5%
B-		500	²	Curative Hlth. Svcs. Inc., 10.75%, 5/01/11		501,875

				Real Estate—2.5%
BBB+		500	²	ERP Operating LP, 6.95%, 3/02/11		557,300
				Felcore Lodging LP,
B1		1,000		9.00%, 6/01/04		1,067,500
B1		1,000		10.00%, 3/15/04		1,067,500

						2,692,300

				Technology—2.0%
BB+		2,000		Unisys Corp., 8.125%, 6/01/06		2,155,000

				Telecommunication—8.9%
B-		1,750		ACC Escrow Corp., Ser. B, 10.00%, 8/01/11		1,688,750
BBB		900	²	AT&T Corp., 7.25%, 5/15/04		986,589
B3		1,000		Crown Castle Intl. Corp., 10.75%, 8/01/11		1,132,500
Ba3		2,000		PanAmSat Corp., 8.50%, 2/01/12		2,260,000
Aa3		2,000	²	Verizon New England, Inc., 6.50%, 9/15/11		2,173,840
A		1,000	²	Vodafone Group PLC, 7.75%, 2/15/10 (United Kingdom)		1,159,260
				Worldcom, Inc.,
NR		35	^5,6	5.908%, 5/01/07		34,562
NR		35	^5,6	6.688%, 5/01/09		33,163
NR		30	^5,6	7.735%, 5/01/14		27,825

						9,496,489

				Transportation—3.1%
BBB+		500		Canadian National Railway Co., 6.90%, 7/15/28 (Canada)		544,535
B		2,000		Railamerica Transportation Corp., 12.875%, 8/15/10		2,320,000
B		440		Sea Containers Ltd., 10.50%, 5/15/12 (Bermuda)		435,600

						3,300,135

				Total Corporate Bonds		132,081,534

				U.S. Government Securities—1.3%
		410		U.S. Treasury Bonds, 5.375%, 2/15/31		415,252
		1,000	²	U.S. Treasury Notes, 4.25%, 8/15/13		983,590

				Total U.S. Government Securities		1,398,842

				Foreign Government Bonds—1.0%
Baa2		1,000		United Mexican States, 8.125%, 12/30/19		1,075,000

				Supranational—0.8%
AAA		850	²	European Investment Bank, 4.875%, 9/06/06		892,194

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

Shares
(000)	Description	Value

	Common Stock—0.1%
5	MCI, Inc	$	66,519

	Total Investments—126.9% (cost $128,137,033)		135,514,089
	Liabilities in excess of other assets—(26.9)%		(28,689,256	)

	Net Assets—100%	$	106,824,833

¹ Using the higher of S&P’s, Moody’s or Fitch’s rating.
² Entire or partial principal amount pledged as collateral for reverse repurchase agreements or financial futures contracts.
³ Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2004, the Trust held 0.5% of its net assets, with a current market value of $3,805,757, in securities restricted as to resale.
⁴ Issuer is technically in default and/or bankruptcy.
⁵ Security is fair valued.
⁶ Illiquid securities representing 0.09% of net assets.

Details of open reverse repurchase agreements are disclosed in Note 4 in the Notes to Financial Statements.

See Notes to Financial Statements.

STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
April 30, 2004


	Broad Investment											Income								Limited
	Grade 2009				Core			High				Opportunity				Income				Duration			Strategic
	Term Trust Inc.¹				Bond Trust			Yield Trust				Trust				Trust Inc.				Income Trust			Bond Trust
	(BCT)				(BHK)			(BHY)				(BNA)				(BKT)				(BLW)			(BHD)

Assets
Investments at value²	$	68,872,363			$	647,259,333		$	67,498,617			$	549,207,086			$	758,971,906			$	1,092,053,626		$	135,514,089
Cash		137,436				21,603			91,532				93,955				148,625				314,402			110,454
Foreign currency at value (cost $170,676)			—			171,159				—				—				—				—			—
Receivable from investments sold			—			22,621,707				—			90,597				6,135,118				3,154,424				—
Variation margin receivable		20,875					—			—				—				—				—			—
Receivable for open forward foreign currency contracts			—			30,976,290				—				—				—				—			—
Interest receivable		736,766				8,389,997			1,546,631				7,519,308				6,442,734				15,342,837			3,239,274
Unrealized appreciation on interest rate swaps			—			354,781				—			140,154				1,192,796					—			—
Other assets	13,047				39,304			58,506				99,168				118,578				22,367			7,822

	69,780,487				709,834,174			69,195,286				557,150,268				773,009,757				1,110,887,656			138,871,639

Liabilities
Reverse repurchase agreement		22,997,000				118,008,513				—			110,651,925				129,732,913				239,748,400			31,389,625
Payable for investments purchased			—			164,067,037				—				2,384			95,950,485				141,277,465			428,424
Variation margin payable			—			14,459				—				687			291,594					—			—
Loan payable			—				—		19,250,000					—				—				—			—
Investments sold short at value³			—				—			—			32,141,472				96,195,728					—			—
Outstanding options written at value⁴			—			1,153,484				—			2,064,683				3,491,207					—			—
Interest payable			4,142			233,651			25,368				851,438				1,728,438				79,834			11,184
Interest rate floors at value⁴			—				—			—				—			449,871					—			—
Payable for open forward foreign currency contracts			—			30,922,699				—				—				—				—			—
Investment advisory fee payable		21,379				232,413			41,224				204,785				238,489				493,004			62,926
Administration fee payable			5,831				—		1,835				67,620				98,729					—			—
Deferred Directors’ or Trustees’ fees		12,669				36,379			19,298				96,397				116,101				14,412				6,968
Other accrued expenses	179,399				64,872			135,521				187,132				196,897				193,843			147,679

	23,220,420				314,733,507			19,473,246				146,268,523				328,490,452				381,806,958			32,046,806

Net Assets	$	46,560,067			$	395,100,667		$	49,722,040			$	410,881,745			$	444,519,305			$	729,080,698		$	106,824,833

Composition of Net Assets Applicable to Common Shareholders:
Par value	$	29,571			$	27,019		$	6,396			$	344,497			$	635,695			$	36,727		$		7,044
Paid-in capital in excess of par		39,184,069				386,195,639			93,702,989				406,532,068				555,097,290				700,009,638			100,384,626
Cost of shares held in treasury⁵			—				—			—			(17,377,850		)			—				—			—
Undistributed (distributions in excess of) net investment income		8,389,669				2,376,420				(200	)		4,605,705				6,324,512				1,517,925			1,088,461
Accumulated net realized gain (loss)		(1,670,280		)		1,201,638			(36,529,753		)		2,902,569				(105,579,216		)		3,725,762			(2,032,354		)
Net unrealized appreciation (depreciation)	627,038				5,299,951			(7,457,392			)	13,874,756				(11,958,976			)	23,790,646			7,377,056

Net assets applicable to common shareholders, April 30, 2004	$	46,560,067			$	395,100,667		$	49,722,040			$	410,881,745			$	444,519,305			$	729,080,698		$	106,824,833


Net asset value per common share⁶		$	15.75			$	14.62		$	7.77			$	11.93			$	6.99			$	19.85		$	15.16

¹Consolidated Statement of Assets and Liabilities
²Investments at cost	$	68,043,676			$	643,012,936		$	74,956,009			$	534,449,954			$	775,567,245			$	1,068,262,980		$	128,137,033
³Proceeds received			—				—			—			32,271,393				96,272,921					—			—
⁴Premium received			—			1,904,227				—			2,658,335				4,413,022					—			—
⁵Shares held in treasury			—				—			—			1,757,400					—				—			—
⁶Common shares outstanding		2,957,093				27,018,774			6,395,321				34,449,693				63,569,490				36,727,287			7,044,552

See Notes to Financial Statements.

47 48

STATEMENTS OF OPERATIONS (unaudited)
For the six months ended April 30, 2004


	Broad Investment									Income						Limited
	Grade 2009			Core			High			Opportunity			Income			Duration			Strategic
	Term Trust Inc.¹			Bond Trust			Yield Trust			Trust			Trust Inc.			Income Trust			Bond Trust
	(BCT)			(BHK)			(BHY)			(BNA)			(BKT)			(BLW)			(BHD)

Investment Income
Interest Income	$	1,939,303		$	16,478,391		$	3,867,393		$	15,526,358		$	18,365,235		$	30,415,948		$	5,963,320

Expenses
Investment advisory		130,474			1,538,749			347,945			1,243,812			1,459,591			2,887,080			542,992
Administration		35,583			—			33,138			207,302			336,829			—			—
Transfer agent		5,411			7,462			8,008			17,416			41,860			8,918			7,462
Custodian		30,212			77,806			17,911			82,518			88,031			126,968			29,061
Reports to shareholders		10,590			46,200			15,176			45,245			67,808			62,145			13,126
Trustees		6,579			28,938			6,079			29,724			38,948			39,858			6,916
Registration		801			15,707			11,218			15,707			22,204			21,658			11,218
Independent accountants		17,555			22,725			17,681			45,680			41,646			23,471			18,534
Legal		16,662			24,437			7,051			25,083			32,487			38,334			7,450
Insurance		2,323			18,452			1,326			18,198			17,895			40,705			5,387
Miscellaneous	5,179			22,792			4,934			26,523			37,304			20,237			7,881

Total expenses excluding interest expense and excise tax		261,369			1,803,268			470,467			1,757,208			2,184,603			3,269,374			650,027
Interest expense		115,678			646,318			155,885			489,396			538,455			996,950			244,199
Excise tax	191,369			—			—			—			—			—			—

Total expenses		568,416			2,449,586			626,352			2,246,604			2,723,058			4,266,324			894,226
Less fees waived by Advisor		—			—			—			—			—			—			(144,798	)
Less fees paid indirectly	—			(1,304		)	(985		)	(9,718		)	(2,673		)	(35,925		)	(5,219		)

Net expenses	568,416			2,448,282			625,367			2,236,886			2,720,385			4,230,399			744,209

Net investment income	1,370,887			14,030,109			3,242,026			13,289,472			15,644,850			26,185,549			5,219,111

Realized and Unrealized Gain (Loss)
Investments		(890,020	)		5,856,668			(1,415,255	)		(1,744,744	)		(4,926,077	)		3,335,297			(538,594	)
Foreign currency		—			134,776			—			—			—			—			—
Futures		721,171			(489,761	)		—			3,790,582			(59,561	)		—			—
Interest rate swaps		—			(1,901,650	)		—			2,785,143			(2,038,229	)		—			—
Options written		—			210,646			—			870,289			247,277			—			—
Short sales	—			1,171,507			—			—			(417,329		)	—			—

	(168,849		)	4,982,186			(1,415,255		)	5,701,270			(7,193,919		)	3,335,297			(538,594		)

Net change in unrealized depreciation on:
Investments		(967,094	)		(7,663,083	)		6,544,745			(1,105,481	)		(8,573,099	)		1,915,258			1,804,231
Foreign currency					35,628			—			—			—			—			—
Futures		274,543			(418,797	)		—			(2,566,423	)		2,028,535			—			—
Interest rate floors		—			—			—			—			199,199			—			—
Interest rate swaps		—			245,815			—			(2,513,941	)		261,299			—			—
Options written		—			84,051			—			743,704			1,120,713			—			—
Short sales	—			1,049,416			—			821,251			1,853,618			—			—

	(692,551		)	(6,666,970		)	6,544,745			(4,620,890		)	(3,109,735		)	1,915,258			1,804,231

Net gain (loss)	(861,400		)	(1,684,784		)	5,129,490			1,080,380			(10,303,654		)	5,250,555			1,265,637


Net Increase in Net Assets Resulting from Operations	$	509,487		$	12,345,325		$	8,371,516		$	14,369,852		$	5,341,196		$	31,436,104		$	6,484,748

¹ Consolidated Statement of Operations.

See Notes to Financial Statements.

49 50

STATEMENTS OF CASH FLOWS (unaudited)
For the six months ended April 30, 2004


	Broad Investment									Income						Limited
Reconciliation of Net Increase	Grade 2009			Core			High			Opportunity			Income			Duration			Strategic
in Net Assets Resulting from Operations to	Term Trust Inc.¹			Bond Trust			Yield Trust			Trust			Trust Inc.			Income Trust			Bond Trust
Net Cash Flows Provided by (Used for)	(BCT)			(BHK)			(BHY)			(BNA)			(BKT)			(BLW)			(BHD)
Operating Activities

Net Increase in net assets resulting from operations	$	509,487		$	12,345,325		$	8,371,516		$	14,369,852		$	5,341,196		$	31,436,104		$	6,484,748

Decrease (Increase) in investments		(4,088,061	)		(104,879,399	)		(911,181	)		10,685,339			(59,762,738	)		(21,668,363	)		12,111,583
Net realized loss (gain)		168,849			(4,982,186	)		1,415,255			(5,701,270	)		7,193,919			(3,335,297	)		538,594
Decrease (Increase) in unrealized appreciation (depreciation)		692,551			6,666,970			(6,544,745	)		4,620,890			3,109,735			(1,915,258	)		(1,804,231	)
(Decrease) in investments sold short		—			(1,459,680	)		—			(21,598,875	)		(40,152,923	)		—			—
Increase (Decrease) in outstanding options written		—			(999,968	)		—			(517,947	)		238,088			—			—
(Increase) in interest rate floor		—			—			—			—			(378,074	)		—			—
Decrease (Increase) in interest rate swaps		—			(543,088	)		—			2,513,941			(361,300	)		—			—
Decrease in receivable for investments sold		1,144,618			22,558,159			403,691			2,645,740			407,234			8,480,575			2,159,542
(Increase) in receivable for open forward foreign currency contracts		—			(30,909,103	)		—			—			—			—			—
Decrease in variation margin receivable		35,688			—			—			388,797			159,375			—			—
Decrease (Increase) in interest receivable		41,640			(237,863	)		313,891			363,369			(1,354,286	)		(1,447,707	)		295,076
Decrease (Increase) in other assets		1,311			10,473			(1,019	)		9,260			8,709			18,681			4,183
Increase (Decrease) in payable for investments purchased		—			61,614,641			—			2,384			94,696,678			(105,278,089	)		428,424
Increase in payable for open forward foreign currency contracts		—			30,922,699			—			—			—			—			—
(Decrease) in payable for closed forward foreign currency contracts, net		—			(64,413	)		—			—			—			—			—
Increase (Decrease) in variation margin payable		—			(52,385	)		—			687			291,594			—			—
Increase (Decrease) in interest payable		(9,279	)		52,810			(1,374	)		(143,616	)		(224,741	)		50,679			(13,435	)
Increase (Decrease) in investment advisory fee payable		(1,018	)		20,962			3,195			(4,368	)		(14,504	)		17,625			(8,297	)
Increase (Decrease) in administration fee payable		(277	)		—			304			(728	)		(3,348	)		—			—
Increase in deferred Directors’/Trustees’ fees		1,489			10,167			2,470			12,225			14,584			12,912			1,830
Increase (Decrease) in accrued expenses	(162,197		)	23,116			19,379			50,003			25,119			67,920			14,600

Total adjustments	(2,174,686		)	(22,248,088		)	(5,300,134		)	(6,674,169		)	3,893,121			(124,996,322		)	13,727,869

Net cash provided by (used for) operating activities	$	(1,665,199	)	$	(9,902,763	)	$	3,071,382		$	7,695,683		$	9,234,317		$	(93,560,218	)	$	20,212,617

Increase (Decrease) in Cash and Foreign Currency
Net cash provided by (used for) operating activities	$	(1,665,199	)	$	(9,902,763	)	$	3,071,382		$	7,695,683		$	9,234,317		$	(93,560,218	)	$	20,212,617

Cash provided by (used for) financing activities:
Capital contributions		—			—			137,868			—			1,304,285			429,364			136,991
Increase (decrease) in reverse repurchase agreements		3,044,375			26,340,044			—			7,273,900			7,966,100			120,754,925			(14,481,969	)
Cash dividends paid	(1,330,692		)	(15,784,368		)	(3,225,398		)	(14,468,871		)	(19,436,198		)	(27,532,174		)	(5,841,877		)

Net cash provided by (used for) financing activities	1,713,683			10,555,676			(3,087,530		)	(7,194,971		)	(10,165,813		)	93,652,115			(20,186,855		)

Net increase (decrease) in cash		48,484			652,913			(16,148	)		500,712			(931,496	)		91,897			25,762
Cash and foreign currency at beginning of period	88,952			(460,151		)	107,680			(406,757		)	1,080,121			222,505			84,692

Cash and foreign currency at end of period	$	137,436		$	192,762		$	91,532		$	93,955		$	148,625		$	314,402		$	110,454

¹ Consolidated Statement of Cash Flows.

See Notes to Financial Statements.

51 52

STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended April 30, 2004 (unaudited), and for the year ended October 31, 2003


	Broad Investment Grade
	2009 Term Trust						Core Bond Trust						High Yield Trust						Income Opportunity Trust						Income TrustInc.
	(BCT)						(BHK)						(BHY)						(BNA)						(BKT)

	2004			2003			2004			2003			2004			2003			2004			2003			2004			2003

Increase (Decrease) in Net Assets
Operations:
Net investment income	$	1,370,887		$	3,760,612		$	14,030,109		$	22,380,605		$	3,242,026		$	6,766,264		$	13,289,472		$	28,912,640		$	15,644,850		$	38,641,106
Net realized gain (loss)		(168,849	)		(2,958,847	)		4,982,186			10,108,933			(1,415,255	)		(4,771,417	)		5,701,270			(3,180,087	)		(7,193,919	)		(22,020,705	)
Net change in unrealized appreciation/depreciation	(692,551		)	(1,159,473		)	(6,666,970		)	10,896,869			6,544,745			10,326,575			(4,620,890		)	14,036,271			(3,109,735		)	(10,738,760		)

Net increase (decrease) in net assets resulting
from operations	509,487			(357,708		)	12,345,325			43,386,407			8,371,516			12,321,422			14,369,852			39,768,824			5,341,196			5,881,641

Dividends and Distributions
to Shareholders from:
Net investment income		(1,330,692	)		(3,504,653	)		(10,869,172	)		(27,108,407	)		(3,225,398	)		(7,116,448	)		(14,468,871	)		(27,903,349	)		(19,436,198	)		(63,862,381	)
Net realized gain	—			—			(4,915,196		)	(4,976,352		)	—			—			—			(8,364,454		)	—			—

Total dividends and distributions	(1,330,692		)	(3,504,653		)	(15,784,368		)	(32,084,759		)	(3,225,398		)	(7,116,448		)	(14,468,871		)	(36,267,803		)	(19,436,198		)	(63,862,381		)

Reinvestment of dividends	—			—			—			—			137,868			280,376			—			—			1,304,285			3,905,622

Total increase (decrease)	(821,205		)	(3,862,361		)	(3,439,043		)	11,301,648			5,283,986			5,485,350			(99,019		)	3,501,021			(12,790,717		)	(54,075,118		)

Net Assets:
Beginning of period	47,381,272			51,243,633			398,539,710			387,238,062			44,438,054			38,952,704			410,980,764			407,479,743			457,310,022			511,385,140

End of period	$	46,560,067		$	47,381,272		$	395,100,667		$	398,539,710		$	49,722,040		$	44,438,054		$	410,881,745		$	410,980,764		$	444,519,305		$	457,310,022

End of period undistributed (distribution in excess of)
net investment income	$	8,389,669		$	8,349,474		$	2,376,420		$	—		$	(200	)	$	—		$	4,605,705		$	5,785,104		$	6,324,512		$	10,115,860

¹ Consolidated Statement of Changes in Net Assets.

See Notes to Financial Statements.

53 54

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended April 30, 2004 (unaudited) and for the year ended October 31, 2003



	Limited Duration Income Trust¹						Strategic Bond Trust
	(BLW)						(BHD)

	2004			2003			2004			2003

Increase (Decrease) in Net Assets
Operations:
Net investment income	$	26,185,549		$	12,026,055		$	5,219,111		$	11,147,173
Net realized gain (loss)		3,335,297			390,465			(538,594	)		(1,177,052	)
Net change in unrealized appreciation/depreciation	1,915,258			21,875,388			1,804,231			17,670,059

Net increase in net assets resulting from operations	31,436,104			34,291,908			6,484,748			27,640,180

Dividends from Net Investment Income:	(27,532,174		)	(9,176,505		)	(5,841,877		)	(10,466,535		)

Capital Share Transactions:
Net proceeds from the issuance of common shares		—			653,888,001			—			—
Net proceeds from the underwriters’
over-allotment option exercised		—			45,744,000			—			—
Reinvestment of dividends	429,364			—			136,991			277,020

Net proceeds from capital share transactions	429,364			699,632,001			136,991			277,020

Total increase	4,333,294			724,747,404			779,862			17,450,665

Net Assets:
Beginning of period	724,747,404			—			106,044,971			88,594,306

End of period	$	729,080,698		$	724,747,404		$	106,824,833		$	106,044,971

End of period undistributed net investment income	$	1,517,925		$	2,864,550		$	1,088,461		$	1,711,227

¹ Commencement of investment operations for Limited Duration was July 30, 2003. This information includes the initial investment by BlackRock Funding, Inc. The other Trust’s statement is for a full year.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

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


	Six Months
	Ended			Year Ended October 31,
	April 30, 2004
	(unaudited)			2003			2002			2001			2000			1999

PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period	$	16.02		$	17.33		$	16.05		$	13.64		$	13.64		$	15.01

Investment operations:
Net investment income		0.46			1.28			2.01			1.17			0.91			0.93
Net realized and unrealized gain (loss)	(0.28		)	(1.40		)	0.04			2.01			(0.09		)	(1.45		)

Net increase (decrease) from
investment operations	0.18			(0.12		)	2.05			3.18			0.82			(0.52		)

Dividends from net investment income	(0.45		)	(1.19		)	(0.77		)	(0.77		)	(0.82		)	(0.85		)

Net asset value, end of period	$	15.75		$	16.02		$	17.33		$	16.05		$	13.64		$	13.64

Market price, end of period	$	15.65		$	15.85		$	16.18		$	14.39		$	11.94		$	11.44

TOTAL INVESTMENT RETURN¹	1.53		%	5.32		%	18.34		%	27.66		%	12.11		%	(7.68		)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		2.40	%²		2.43	%		2.50	%		3.52	%		4.36	%		3.49	%
Net expenses		2.40	%²		2.43	%		2.50	%		3.52	%		4.36	%		3.49	%
Net expenses excluding interest expense and
excise tax		1.10	%²		1.18	%		1.16	%		1.16	%		1.31	%		1.03	%
Net investment income		5.78	%²		7.54	%		12.22	%		7.93	%		6.83	%		6.58	%
SUPPLEMENTAL DATA:
Average net assets (000)	$	47,706		$	49,882		$	48,731		$	43,701		$	39,425		$	41,909
Portfolio turnover		14	%		39	%		35	%		19	%		36	%		25	%
Net assets, end of period (000)	$	46,560		$	47,381		$	51,244		$	47,466		$	40,321		$	40,345
Reverse repurchase agreements outstanding,
end of period (000)	$	22,997		$	19,953		$	23,669		$	13,373		$	18,850		$	16,304
Asset coverage, end of period³	$	3,025		$	3,375		$	3,165		$	4,550		$	3,139		$	3,475

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

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

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Core Bond Trust (BHK)

							For the period
	Six Months Ended						November 30, 2001¹
	April 30, 2004			Year Ended			through
	(unaudited)			October 31, 2003			October 31, 2002

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	14.75		$	14.33		$	14.33	²

Investment operations:
Net investment income		0.52			0.83			0.99
Net realized and unrealized gain (loss)	(0.07		)	0.77			0.04

Net increase from investment operations	0.45			1.60			1.03

Dividends and distributions:
Net investment income		(0.40	)		(1.00	)		(1.00	)
Net realized gain	(0.18		)	(0.18		)	—

Total dividends and distributions	(0.58		)	(1.18		)	(1.00		)

Capital charges with respect to issuance of shares	—			—			(0.03		)

Net asset value, end of period	$	14.62		$	14.75		$	14.33

Market price, end of period	$	13.09		$	13.57		$	13.82

TOTAL INVESTMENT RETURN³	0.56		%	6.62		%	(1.02		)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.22	%⁴		1.05	%		1.04	%⁴
Net expenses		1.22	%⁴		1.05	%		1.04	%⁴
Net expenses excluding interest expense		0.90	%⁴		0.87	%		0.93	%⁴
Net investment income		6.97	%⁴		5.58	%		7.67	%⁴
SUPPLEMENTAL DATA:
Average net assets (000)	$	404,739		$	401,049		$	380,277
Portfolio turnover		165	%		161	%		73	%
Net assets, end of period (000)	$	395,101		$	398,540		$	387,238
Reverse repurchase agreements outstanding, end of period (000)	$	118,009		$	91,668		$	165,215
Asset coverage, end of period⁵	$	4,348		$	5,348		$	3,342

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

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock High Yield Trust (BHY)


																For the period
																December 23,
	Six Months															1998¹
	Ended						Year Ended October 31,									through
	April 30, 2004															October 31,
	(unaudited)			2003			2002			2001			2000			1999

PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period	$	6.96		$	6.13		$	7.20		$	10.60		$	13.58		$	15.00

Investment operations:
Net investment income		0.50			1.06			1.20			1.32			1.66			1.29
Net realized and unrealized gain (loss)	0.81			0.89			(0.98		)	(3.13		)	(3.02		)	(1.52		)

Net increase (decrease) from investment
operations	1.31			1.95			0.22			(1.81		)	(1.36		)	(0.23		)

Dividends and distributions:
Net investment income		(0.50	)		(1.07	)		(1.20	)		(1.48	)		(1.62	)		(1.17	)
Tax return of capital	—			(0.05		)	(0.09		)	(0.11		)	—			—

Total dividends and distributions	(0.50		)	(1.12		)	(1.29		)	(1.59		)	(1.62		)	(1.17		)

Capital charges with respect to issuance
of shares	—			—			—			—			—			(0.02		)

Net asset value, end of period	$	7.77		$	6.96		$	6.13		$	7.20		$	10.60		$	13.58

Market price, end of period	$	9.56		$	10.25		$	8.68		$	9.18		$	11.88		$	12.50

TOTAL INVESTMENT RETURN²	(1.96		)%	32.87		%	7.97		%	(11.31		)%	8.23		%	(9.68		)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		2.66	%³		3.07	%		3.45	%		4.90	%		5.29	%		4.16	%³
Net expenses		2.65	%³		3.07	%		3.45	%		4.90	%		5.29	%		4.08	%³
Net expenses excluding interest expense		1.99	%³		2.22	%		2.20	%		2.03	%		1.99	%		1.98	%³
Net investment income		13.76	%³		16.37	%		16.29	%		14.23	%		13.12	%		10.34	%³
SUPPLEMENTAL DATA:
Average net assets (000)	$	47,389		$	41,326		$	46,751		$	58,553		$	79,602		$	92,116
Portfolio turnover		29	%		30	%		147	%		71	%		92	%		121	%
Net assets, end of period (000)	$	49,722		$	44,438		$	38,953		$	45,520		$	66,867		$	85,652
Loan outstanding, end of period (000)	$	19,250		$	19,250		$	19,250		$	23,000		$	33,000		$	41,000
Asset coverage, end of period⁴	$	3,583		$	3,308		$	3,024		$	2,983		$	3,032		$	3,094

¹ Commencement of investment operations. This information includes the initial investment by BlackRock Financial Management, Inc.
² Total investment return is calculated assuming a purchase of a share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
³ Annualized.
⁴ Per $1,000 of loan outstanding.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Income Opportunity Trust (BNA)


	Six Months
	Ended			Year Ended October 31,
	April 30, 2004
	(unaudited)			2003			2002			2001			2000			1999

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	11.93		$	11.83		$	11.47		$	11.03		$	11.45		$	11.88

Investment operations:
Net investment income		0.39			0.84			1.15			0.87			0.70			0.84
Net realized and unrealized gain (loss)	0.03			0.31			(0.05		)	0.34			(0.31		)	(0.46		)

Net increase from investment operations	0.42			1.15			1.10			1.21			0.39			0.38

Dividends and distributions:
Net investment income		(0.42	)		(0.81	)		(0.75	)		(0.23	)		(0.39	)		(0.84	)
Net realized gains		—			(0.24	)		—			—			(0.04	)		—
Tax return of capital	—			—			—			(0.54		)	(0.41		)	—

Total dividends and distributions	(0.42		)	(1.05		)	(0.75		)	(0.77		)	(0.84		)	(0.84		)

Increase resulting from Trust shares
repurchased	—			—			0.01			—			0.03			0.03

Net asset value, end of period	$	11.93		$	11.93		$	11.83		$	11.47		$	11.03		$	11.45

Market price, end of period	$	10.61		$	10.95		$	10.50		$	10.41		$	9.75		$	9.69

TOTAL INVESTMENT RETURN¹	0.58		%	14.71		%	8.44		%	15.09		%	9.82		%	6.70		%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.08	%²		1.29	%		1.40	%		3.62	%		3.76	%		3.18	%
Net expenses		1.08	%²		1.29	%		1.40	%		3.62	%		3.76	%		3.18	%
Net expenses excluding interest expense		0.84	%²		0.89	%		0.93	%		1.01	%		0.88	%		0.85	%
Net investment income		6.41	%²		6.99	%		10.04	%		7.76	%		6.14	%		7.14	%
SUPPLEMENTAL DATA:
Average net assets (000)	$	416,882		$	413,543		$	394,495		$	388,478		$	396,157		$	426,283
Portfolio turnover		16	%		46	%		153	%		83	%		82	%		186	%
Net assets, end of period (000)	$	410,882		$	410,981		$	407,480		$	397,756		$	383,651		$	406,178
Reverse repurchase agreements outstanding,
end of period (000)	$	110,652		$	103,378		$	85,704		$	136,385		$	178,033		$	149,346
Asset coverage, end of period³	$	4,713		$	4,976		$	5,755		$	3,916		$	3,155		$	3,720

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

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Income Trust Inc. (BKT)


	Six Months
	Ended			Year Ended October 31,
	April 30, 2004
	(unaudited)			2003			2002			2001			2000			1999

PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period	$	7.21		$	8.13		$	8.06		$	7.23		$	7.31		$	7.94

Investment operations:
Net investment income		0.25			0.61			0.99			0.56			0.50			0.73
Net realized and unrealized gain (loss)	(0.16		)	(0.52		)	(0.35		)	0.83			(0.02		)	(0.80		)

Net increase (decrease) from investment
operations	0.09			0.09			0.64			1.39			0.48			(0.07		)

Dividends from net investment income	(0.31		)	(1.01		)	(0.57		)	(0.56		)	(0.56		)	(0.56		)

Net asset value, end of period	$	6.99		$	7.21		$	8.13		$	8.06		$	7.23		$	7.31

Market price, end of period	$	6.98		$	7.71		$	8.07		$	7.26		$	6.38		$	6.13

TOTAL INVESTMENT RETURN¹	(5.58		)%	15.41		%	15.35		%	23.23		%	14.01		%	(4.04		)%

RATIOS TO AVERAGE NET ASSETS:
Total expense		1.21	%²		1.36	%		2.05	%		2.54	%		2.78	%		3.03	%
Net expenses		1.21	%²		1.36	%		2.05	%		2.54	%		2.78	%		3.03	%
Net expenses excluding interest expense		0.97	%²		1.02	%		1.03	%		1.03	%		1.05	%		1.01	%
Net investment income		6.97	%²		8.18	%		12.28	%		7.43	%		7.11	%		9.54	%
SUPPLEMENTAL DATA:
Average net assets (000)	$	451,572		$	472,676		$	506,533		$	470,185		$	448,027		$	482,685
Portfolio turnover		99	%		64	%		125	%		32	%		114	%		144	%
Net assets, end of period (000)	$	444,519		$	457,301		$	511,385		$	506,764		$	454,510		$	459,399
Reverse repurchase agreements outstanding,
end of period (000)	$	129,733		$	121,767		$	205,792		$	118,634		$	64,460		$	186,451
Asset coverage, end of period³	$	4,426		$	4,756		$	3,485		$	5,272		$	8,095		$	3,478

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Limited Duration Income Trust (BLW)

	Six Months			For the period
	Ended			July 30, 2003¹
	April 30, 2004			through
	(unaudited)			October 31, 2003

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	19.74		$	19.10	²

Investment operations:
Net investment income		0.71			0.33
Net realized and unrealized gain	0.15			0.60

Net increase from investment operations	0.86			0.93

Dividends from net investment income	(0.75		)	(0.25		)

Capital charges with respect to issuance of shares	—			(0.04		)

Net asset value, end of period	$	19.85		$	19.74

Market price, end of period	$	18.82		$	18.80

TOTAL INVESTMENT RETURN³	4.05		%	(4.77		)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.17	%⁴		0.82	%⁴
Net expenses		1.16	%⁴		0.82	%⁴
Net expenses excluding interest expense		0.88	%⁴		0.79	%⁴
Net investment income		7.16	%⁴		6.87	%⁴
SUPPLEMENTAL DATA:
Average net assets (000)	$	735,079		$	686,655
Portfolio turnover		40	%		127	%
Net assets, end of period (000)	$	729,081		$	724,747
Reverse repurchase agreements outstanding, end of period (000)	$	239,748		$	118,993
Asset coverage, end of period⁵	$	4,041		$	7,091

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

FINANCIAL HIGHLIGHTS

BlackRock Strategic Bond Trust (BHD)

	Six Months						For the period
	Ended						February 28, 2002¹
	April 30, 2004			Year Ended			through
	(unaudited)			October 31, 2003			October 31, 2002

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	15.07		$	12.63		$	14.33		²

Investment operations:
Net investment income		0.74			1.59				0.98
Net realized and unrealized gain (loss)	0.18			2.34				(1.77		)

Net increase (decrease) from investment operations	0.92			3.93				(0.79		)

Dividends from net investment income	(0.83		)	(1.49		)		(0.84		)

Capital charges with respect to issuance of shares	—			—				(0.07		)

Net asset value, end of period	$	15.16		$	15.07			$	12.63

Market price, end of period	$	14.70		$	15.27			$	12.35

TOTAL INVESTMENT RETURN³	1.62		%	37.36		%		(12.34		)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.67	%⁴		2.01	%			2.57	%⁴
Net expenses		1.39	%⁴		1.71	%			2.26	%⁴
Net expenses excluding interest expense		0.94	%⁴		1.01	%			1.25	%⁴
Net investment income		9.77	%⁴		11.32	%			10.68	%⁴
SUPPLEMENTAL DATA:
Average net assets (000)	$	107,406		$	98,498			$	95,675
Portfolio turnover		8	%		32	%			22	%
Net assets, end of period (000)	$	106,825		$	106,045			$	88,594
Reverse repurchase agreements outstanding, end of period (000)	$	31,390		$	45,872			$	44,223
Asset coverage, end of period⁵	$	4,403		$	3,312			$	3,003

See Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS (unaudited)

Note 1. Organization
& Accounting Policies

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

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

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

Securities Valuation: The Trusts value most of their securities on the basis of current market quotations provided by dealers or pricing services selected under the supervision of each Trust’s Board (the “Board”) of Directors/Trustees (“Trustees”). In determining the value of a particular security, pricing services may use certain information with respect to transactions in such securities, quotations from dealers, market transactions in comparable securities, various relationships observed in the market between securities, and calculated yield measures based on valuation technology commonly employed in the market for such securities. Exchange-traded options are valued at their last sales price as of the close of options trading on applicable exchanges. In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close of business. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board.

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

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

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

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

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

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

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

Interest Rate Swaps: In an interest rate swap, one investor pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, an investor may pay a fixed rate and receive a floating rate. Interest rate swaps are efficient as asset/liability management tools. In more complex swaps, the notional principal amount may decline (or amortize) over time.

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

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

Swap Options: Swap options are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap option is granting or buying the right to enter into a previously agreed upon interest rate swap agreement at any time before the expiration of the option. Premiums received or paid from writing or purchasing options are recorded as liabilities or assets and are subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by a Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commission, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the proceeds from the sale or cost of the purchase in determining whether a Trust has realized a gain or loss on investment transactions.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Foreign Currency Translation: Foreign currency amounts are translated into United States dollars on the following basis:

(i)	market value of investment securities, other assets and liabilities—at the London 4:00 PM rates of exchange.
(ii)	purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.

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

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

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

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

Security Lending: The Trusts may lend their portfolio securities to qualified institutions. The loans are secured by collateral at least equal, at all times, to the market value of the securities loaned. The Trusts may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The Trusts receive compensation for lending their securities in the form of interest on the loan. The Trusts also continue to receive interest on the securities loaned, and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the accounts of the Trusts. The Trusts did not enter into any security lending transactions during the period ended April 30, 2004.

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

Federal Income Taxes: It is each Trust’s (excluding Limited Duration) intention to continue, and Limited Duration intends to elect, to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient amounts of their taxable income to shareholders. Therefore, no Federal income tax provisions are required. As part of a tax planning strategy, Broad Investment Grade may retain a portion of its taxable income and pay an excise tax on the undistributed amounts.

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

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.

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

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the revised deferred compensation plan approved by each Trust’s Board, non-interested Trustees may elect to defer receipt of all or a portion of their annual compensation. As of January 1, 2003, the Board elected to require its non-interested members to defer a portion of their annual complex compensation pursuant to the plan. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end funds selected by the Trustees. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.

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

Note 2. Agreements Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the “Advisor”), which is a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to Core Bond, Limited Duration and Strategic Bond. BlackRock, Inc. is an indirect, majority owned subsidiary of The PNC Financial Services Group, Inc.

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

Each Trust’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.55% for Broad Investment Grade, 0.60% for Income Opportunity and 0.65% for Income Trust, of each Trust’s average net assets and 0.55% for Core Bond and Limited Duration, 1.05% for High Yield and 0.75% for Strategic Bond, of each Trust’s average weekly managed assets. “Managed assets” means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fees or other expenses on Strategic Bond as a percentage of its average weekly managed assets as follows: 0.20% for the first 5 years of the Trust’s operations, 0.15% in year 6, 0.10% in year 7 and 0.05% in year 8.

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

Pursuant to the terms of their custody agreements, Core Bond, High Yield, Income Opportunity, Income Trust, Limited Duration and Strategic Bond received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees.

Note 3. Portfolio Securities Purchases and sales of investment securities, other than short-term investments, dollar rolls and U.S. government securities, for the period ended April 30, 2004, aggregated as follows:

Trust	Purchases		Sales		Trust	Purchases			Sales

Broad Investment Grade	$	1,871,440	$	2,722,890	Income Trust	$		291,679,176	$		184,805,384
Core Bond	384,498,863			431,366,943	Limited Duration			435,285,251			364,673,592
High Yield		17,417,267		23,714,875	Strategic Bond			11,186,521			22,963,058
Income Opportunity		52,173,101		62,175,300

Purchases and sales of U.S. government securities for the period ended April 30, 2004, aggregated as follows:

Trust	Purchases		Sales		Trust		Purchases			Sales

Broad Investment Grade	$	6,215,742	$	3,516,882	Income Trust		$	440,194,910		$	370,761,583
Core Bond	758,355,523			622,329,392	Limited Duration			77,101,568			69,967,047
High Yield		—		—	Strategic Bond			423,645			—
Income Opportunity		65,595,070		16,970,781

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

At April 30, 2004, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by each Trust were as follows:

Trust	Cost		Appreciation		Depreciation		Net

Broad Investment Grade	$	68,043,776	$	3,154,801	$	2,326,214	$	828,587
Core Bond		649,011,177		7,278,016		9,029,860		(1,751,844	)
High Yield		74,957,036		5,089,080		12,547,499		(7,458,419	)
Income Opportunity		534,449,954		20,261,986		5,504,854		14,757,132
Income Trust		776,083,205		17,408,834		34,520,133		(17,111,299	)
Limited Duration	1,068,263,202			28,137,737		4,347,313		23,790,424
Strategic Bond		128,137,033		135,514,089		128,137,033		7,377,056

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

	Capital Loss				Capital Loss
Trust	Carryforwards Amount		Expires	Trust	Carryforwards Amount		Expires

Broad Investment Grade	$	85,817	2008	Income Opportunity	$	1,978,381	2011
		131,829	2011
				Income Trust	$	27,373,194	2004
	$	217,646

High Yield	$	3,443,603	2007			1,352,206	2008
		3,270,311	2008			13,940,898	2009
		15,159,280	2009		21,960,613		2011
		8,468,860	2010
		4,771,417	2011		$	97,734,863

	$	35,113,471
				Strategic Bond	$	316,708	2010
						1,177,052	2011

					$	1,493,760

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

Details of open financial futures contracts at April 30, 2004 were as follows:

								Unrealized
	Number of		Expiration	Value at		Value at		Appreciation
	Contracts	Type	Date	Trade Date		April 30, 2004		(Depreciation)

Long Position:
Broad Investment Grade	56	10 Yr. U.S. T-Note	June ’04	$	6,362,248	$	6,188,000	$	(174,248	)
	5	30 Yr. U.S. T-Bond	June ’04		562,868		535,467	(27,401		)

								$	(201,649	)

Core Bond	1,041	30 Yr. U.S. T-Bond	June ’04		116,513,310		111,484,497	$	(5,028,813	)

Income Opportunity	687	10 Yr. U.S. T-Note	June ’04		79,397,905		75,913,436	$	(3,484,469	)

Short Position:
Core Bond	1,825	5 Yr. U.S. T-Note	June ’04		204,393,603		200,635,938		3,757,665
	481	10 Yr. U.S. T-Note	June ’04		54,317,493		53,150,500		1,166,993
	2	30 Yr. U.S. T-Bond	Sept. ’04		221,183		211,437		9,746
	17	Euro Dollar	June ’04		2,269,884		2,272,187	(2,303		)

								$	4,932,101

Income Opportunity	977	5 Yr. U.S. T-Note	June ’04		108,857,462		107,408,937		1,448,525
	59	30 Yr. U.S. T-Bond	Sept. ’04		6,527,247		6,237,406	289,841

								$	1,738,366

Income Trust	255	5 Yr. U.S. T-Note	June ’04		28,878,125		28,034,062		844,063
	255	5 Yr. U.S. T-Note	June ’04		28,421,248		27,308,906		1,112,342
	193	10 Yr. U.S. T-Note	June ’04		21,943,462		21,326,500		616,962
	61	30 Yr. U.S. T-Bond	Sept. ’04		6,748,514		6,448,844		299,670
	30	Euro Dollar	Mar. ’04		7,266,638		7,299,375		(32,737	)
	25	Euro Dollar	Mar. ’04		5,992,406		5,993,125		(719	)
	30	Euro Dollar	June ’04		7,346,138		7,400,250		(54,112	)
	25	Euro Dollar	June ’04		6,036,781		6,054,375		(17,594	)
	30	Euro Dollar	Sept. ’04		7,316,512		7,369,875		(53,363	)
	25	Euro Dollar	Sept. ’04		6,021,156		6,030,312		(9,156	)
	30	Euro Dollar	Dec. ’04		7,289,137		7,335,000		(45,863	)
	25	Euro Dollar	Dec. ’04		6,006,156		6,009,719	(3,563		)

								$	2,655,930

Details of open forward currency contracts in Core Bond at April 30, 2004, were as follows:

		Contract to	Value at					Unrealized
	Settlement	Purchase/	Settlement			Value at		Appreciation
Foreign Currency	Date	Receive	Date			April 30, 2004		(Depreciation)

Bought:
Euro	07/23/04	€ 6,669,000		$	6,756,881	$	6,782,548	$	25,667
Swedish Krona	07/22/04	kr 66,000			8,511		8,623	112

								25,779

Sold:
Euro	07/23/04	€ 10,113,468	$	12,025,015		$	12,100,032	$	(75,017	)
British Pound Sterling	07/21/04	£3,978,528			7,086,953		7,005,636		81,317
Swedish Krona	07/22/04	kr 38,660,864			5,073,151		5,051,639	21,512

								27,812

Income Trust held one interest rate floor. Under the agreement, Income Trust pays the excess, if any, of a fixed rate over a floating rate. Income Trust received a transaction fee for the floor. Transaction fees are amortized through the termination of the agreement. Details of the interest rate floor held at April 30, 2004, were as follows:

Notional									Value at
Amount		Variable		Floating	Termination	Amortized			April 30,			Unrealized
(000)		Rate		Rate	Date	Cost			2004			(Depreciation)

$	16,000	6.00	%	1-month LIBOR	01/25/05	$	(238,500	)	$	(449,871	)	$	(211,371	)

Details of open interest rate swaps at April 30, 2004, were as follows:

	Notional					Unrealized
	Amount		Fixed	Floating	Termination	Appreciation
Trust	(000)		Rate	Rate	Date	(Depreciation)

Core Bond	$	41,600	2.55% (a)	3-month LIBOR	4/23/06	$	(77,237	)
		25,000	2.635% (a)	3-month LIBOR	8/14/06		(118,939	)
		50,000	3.00% (b)	3-month LIBOR	4/16/07		335,342
		5,700	3.52% (a)	3-month LIBOR	9/26/08		(81,657	)
		5,400	4.412% (b)	3-month LIBOR	2/17/14		229,383
		19,000	4.889% (b)	3-month LIBOR	4/22/14		121,244
		4,400	5.82% (b)	3-month LIBOR	10/27/24	(53,355		)

						$	354,781

Income Opportunity	$	50,000	2.635% (a)	3-month LIBOR	8/14/06	$	(237,878	)
		48,000	3.50% (a)	3-month LIBOR	2/2/07		(232,487	)
		50,000	3.00% (b)	3-month LIBOR	4/16/07		335,342
		8,000	3.52% (a)	3-month LIBOR	9/26/08		(114,414	)
		5,700	4.412% (b)	3-month LIBOR	2/14/14		242,127
		7,000	5.23% (b)	3-month LIBOR	11/4/21		205,668
		4,800	5.82% (b)	3-month LIBOR	10/27/24	(58,204		)

						$	140,154

Income Trust	$	62,400	2.55% (a)	3-month LIBOR	4/23/06	$	(115,856	)
		50,000	2.635% (b)	3-month LIBOR	8/14/06		(237,878	)
		24,000	3.55% (a)	3-month LIBOR	10/24/06		336,085
		50,000	3.00% (a)	3-month LIBOR	4/16/07		335,342
		11,200	3.52% (a)	3-month LIBOR	9/26/08		(160,179	)
		19,000	4.889% (b)	3-month LIBOR	4/22/14		121,244
		4,500	5.58% (b)	3-month LIBOR	12/7/15		45,675
		25,000	5.23% (b)	3-month LIBOR	8/15/23		930,203
		5,100	5.82% (b)	3-month LIBOR	10/27/24	(61,840		)

						$	1,192,796

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

Transaction in options written during the period ended April 30, 2004, were as follows:

	Contracts/
	Notional Amount			Premium
Trust	(000)			Received

Core Bond
Options outstanding at October 31, 2003	$	105,708		$	2,069,401
Options written		287,348			2,408,910
Options expired		(44	)		(49,424	)
Options terminated in closing purchase transactions	(286,954		)	(2,524,660		)

Options outstanding at April 30, 2004	$	106,058		$	1,904,227

Income Opportunity
Options outstanding at October 31, 2003	$	123,340		$	2,432,578
Options written		1,101			1,493,653
Options expired		—			—
Options terminated in closing purchase transactions	(1,030		)	(1,267,896		)

Options outstanding at April 30, 2004	$	123,411		$	2,658,335

Income Trust
Options outstanding at October 31, 2003	$	150,485		$	3,054,224
Options written		454,402			5,122,902
Options expired		—			—
Options terminated in closing purchase transactions	(426,330		)	(3,764,104		)

Options outstanding at April 30, 2004	$	178,557		$	4,413,022

Note 4. Borrowings Reverse
Repurchase Agreements: The Trusts may enter into reverse repurchase agreements with qualified third-party broker-dealers as determined by and under the direction of the Trusts’ Board. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time a Trust enters into a reverse repurchase agreement, it will establish and maintain a segregated account with the lender, containing liquid investment grade securities having a value not less than the repurchase price, including accrued interest of the reverse repurchase agreement. Details of open reverse repurchase agreements at April 30, 2004 were as follows (please see Corresponding Underlying Collateral Chart on pages 70-71):

	Underlying				Trade	Maturity	Net Closing
Trust	Collateral	Counter Party	Rate		Date	Date	Amount		Par

Broad Investment Grade	1	Lehman Brothers	0.95	%	4/30/04	5/3/04	$	5,555,440	$	5,555,000
	2	Lehman Brothers	1.03		4/23/04	5/14/04		17,452,480	17,442,000

									22,997,000

Core Bond	3	Lehman Brothers	0.90		4/26/04	5/4/04		21,828,465		21,824,100
	4	Lehman Brothers	0.97		4/26/04	5/4/04		15,689,031		15,685,650
	5	Lehman Brothers	0.50		4/26/04	5/4/04		7,975,624		7,974,738
	6	Lehman Brothers	0.30		4/26/04	5/4/04		24,287,557		24,285,937
	7	Lehman Brothers	1.00		4/26/04	5/6/04		7,661,503		7,659,375
	8	Lehman Brothers	1.02		4/13/04	5/7/04		12,091,216		12,083,000
	9	Lehman Brothers	1.06		4/13/04	5/7/04		4,091,076		4,088,188
	10	Lehman Brothers	1.01		4/22/04	5/11/04		24,420,536	24,407,525

									118,008,513

Income Opportunity	11	Lehman Brothers	0.95		4/30/04	5/3/04		991,328		991,250
	12	Lehman Brothers	0.10		4/26/04	5/4/04		17,968,524		17,968,125
	13	Lehman Brothers	0.88		4/26/04	5/4/04		18,519,775		18,516,175
	14	Lehman Brothers	0.90		4/26/04	5/4/04		7,193,939		7,192,500
	15	Lehman Brothers	1.06		4/13/04	5/7/04		5,627,724		5,623,750
	16	Lehman Brothers	1.17		4/30/04	5/7/04		10,222,325		10,220,000
	17	Lehman Brothers	0.90		4/22/04	5/11/04		13,976,511		13,969,875
	18	Lehman Brothers	0.75		4/22/04	5/11/04		1,793,960		1,793,250
	19	Lehman Brothers	1.08		4/13/04	5/13/04		34,407,939	34,377,000

									110,651,925

Income Trust	20	Lehman Brothers	0.75		4/26/04	5/4/04		32,375,808		32,370,413
	21	Lehman Brothers	0.10		4/26/04	5/4/04		17,968,524		17,968,125
	22	Lehman Brothers	0.875		4/26/04	5/4/04		9,024,254		9,022,500
	23	Lehman Brothers	0.99		4/26/04	5/6/04		1,581,685		1,581,250
	24	Lehman Brothers	1.06		4/8/04	5/11/04		12,790,416		12,778,000
	25	Lehman Brothers	1.06		4/8/04	5/13/04		7,869,101		7,861,000
	26	Lehman Brothers	1.02		4/15/04	5/14/04		3,008,720		3,006,250
	27	Lehman Brothers	0.75		4/15/04	5/14/04		2,930,519		2,928,750
	28	Lehman Brothers	0.95		4/15/04	5/14/04		1,171,020		1,170,125
	29	Lehman Brothers	1.03		4/23/04	5/14/04		31,644,001		31,625,000
	30	Lehman Brothers	0.90		4/23/04	5/14/04		8,013,830		8,009,625
	31	Lehman Brothers	1.03		4/23/04	5/14/04		1,412,723	1,411,875

									129,732,913

Limited Duration	32	Lehman Brothers	1.50		4/29/04	5/3/04		6,562,094		6,561,000
	33	Lehman Brothers	1.50		4/30/04	5/3/04		4,664,581		4,644,000
	34	Lehman Brothers	0.88		4/26/04	5/4/04		76,377,433		76,362,500
	35	Lehman Brothers	0.88		4/26/04	5/4/04		8,683,338		8,681,650
	36	Lehman Brothers	1.15		4/8/04	5/6/04		28,386,367		28,361,000
	37	Lehman Brothers	1.20		4/8/04	5/6/04		12,775,913		12,764,000
	38	Lehman Brothers	1.06		4/8/04	5/11/04		1,850,797		1,849,000
	39	Lehman Brothers	1.03		4/22/04	5/11/04		20,007,120		19,996,250
	40	Lehman Brothers	1.20		4/22/04	5/11/04		31,683,053		31,663,000
	41	Lehman Brothers	1.08		4/13/04	5/13/04		3,242,916		3,240,000
	42	Lehman Brothers	1.08		4/14/04	5/13/04		4,236,683		4,233,000
	43	Lehman Brothers	1.50		4/20/04	5/17/04		35,851,287		35,811,000
	44	Lehman Brothers	1.50		4/23/04	5/17/04		5,587,582	5,582,000

									239,748,400

Strategic Bond	45	Lehman Brothers	0.96		4/28/04	5/3/04		998,883		998,750
	46	Lehman Brothers	1.02		4/20/04	5/17/04		9,753,771		9,745,000
	47	Lehman Brothers	1.20		4/20/04	5/17/04		16,233,597		16,219,000
	48	Lehman Brothers	1.50		4/20/04	5/17/04		3,154,545		3,151,000
	49	Lehman Brothers	1.50		4/23/04	5/17/04		304,304		304,000
	50	Lehman Brothers	1.50		4/30/04	5/17/04		972,563	971,875

									31,389,625

Details of underlying collateral for open reverse repurchase agreements at April 30, 2004 were as follows:

Corresponding Underlying Collateral

	Reverse
	Repurchase				Maturity	Original		Current
Trust	Agreement	Description	Rate		Date	Face		Face		Market Value

Broad Investment
Grade	1	U.S. Treasury Notes	4.38	%	8/12/12	$	5,500,000	$	5,500,000	$	5,511,165
	2	U.S. Treasury Bonds	0.00		11/15/09		21,600,000		21,600,000	17,330,350

										22,841,515

Core Bond	3	U.S. Treasury Bonds	5.375		2/15/31	$	21,240,000	$	21,240,000	$	21,512,084
	4	U.S. Treasury Bonds	10.375		11/15/12		5,310,000		5,310,000		6,582,950
	4	U.S. Treasury Bonds	8.13		8/15/19		6,600,000		6,600,000		8,703,235
	5	U.S. Treasury Notes	2.25		2/15/07		8,035,000		8,035,000		7,927,010
	6	U.S. Treasury Notes	3.125		4/15/09		24,750,000		24,750,000		24,204,758
	7	Federal Home Loan Mortgage Corp.	3.875		11/10/08		7,500,000		7,500,000		7,507,365
	8	U.S. Treasury Bonds	8.00		11/15/21		3,375,000		3,375,000		4,446,036
	8	U.S. Treasury Bonds	6.75		8/15/26		6,145,000		6,145,000		7,249,422
	9	Federal National Mortgage Assoc.	5.25		4/15/07		3,725,000		3,725,000		3,946,489
	10	U.S. Treasury Bonds	8.125		8/15/19		12,750,000		12,750,000		16,813,068
	10	U.S. Treasury Bonds	6.25		8/15/23		4,505,000		4,505,000		5,006,181
	10	U.S. Treasury Bonds	6.00		2/15/26		2,000,000		2,000,000	2,162,812

										116,061,410

Income
Opportunity	11	U.S. Treasury Notes	4.25		8/15/13		1,000,000		1,000,000		983,590
	12	U.S. Treasury Notes	4.00		2/15/14		18,500,000		18,500,000		17,774,430
	13	U.S. Treasury Notes	4.25		11/15/13		18,470,000		18,470,000		18,123,688
	14	U.S. Treasury Notes	5.375		2/15/31		7,000,000		7,000,000		7,089,670
	15	Federal Home Loan Mortgage Corp.	6.875		9/15/10		4,000,000		4,000,000		4,545,520
	15	Federal National Mortgage Assoc.	4.375		9/15/12		1,000,000		1,000,000		969,660
	16	Residential Funding Securities Corp.	8.50		5/25/33		10,000,000		9,562,714		10,536,916
	17	U.S. Treasury Notes	2.00		5/15/06		9,300,000		9,300,000		9,237,513
	17	U.S. Treasury Notes	5.375		2/15/31		4,500,000		4,500,000		4,557,645
	18	U.S. Treasury Notes	4.00		11/15/12		1,800,000		1,800,000		1,753,171
	19	Federal Home Loan Mortgage Corp.	6.50		8/1/32		30,236,206		6,419,666		6,686,206
	19	Federal National Mortgage Assoc.	0.99		1/1/33		19,464,674		13,739,986		13,718,552
	19	Federal National Mortgage Assoc.	5.50		1/1/33		4,922,569		4,450,115		4,443,173
	19	U.S. Treasury Notes	5.50		1/1/33		12,840,919		10,141,983	10,126,162

										110,545,896

Income Trust	20	U.S. Treasury Notes	3.25		8/15/08		32,330,000		32,330,000		32,130,459
	21	U.S. Treasury Notes	4.00		2/15/14		18,500,000		18,500,000		17,774,430
	22	U.S. Treasury Notes	4.25		11/15/13		9,000,000		9,000,000		8,831,250
	23	U.S. Treasury Bonds	0.00		11/15/24		5,000,000		5,000,000		1,570,530
	24	Federal National Mortgage Assoc.	5.50		9/1/17		28,000,000		12,594,365		12,921,063
	25	Federal National Mortgage Assoc.	6.00		8/1/32		24,000,000		7,813,542		7,991,769
	27	U.S. Treasury Notes	3.875		2/15/13		3,000,000		3,000,000		2,885,391
	28	U.S. Treasury Notes	4.375		8/15/12		1,150,000		1,150,000		1,152,335
	29	Resolution Funding Corp.	8.875		4/15/30		13,000,000		13,000,000		2,837,120
	29	U.S. Treasury Bonds	0.00		11/15/24	100,000,000		100,000,000			31,410,600
	30	U.S. Treasury Notes	4.25		11/15/13		7,950,000		7,950,000		7,800,938
	31	U.S. Treasury Bonds	0.00		11/15/24		4,500,000		4,500,000	1,413,477

										128,719,362

Limited
Duration	32	HYDI 100	6.40		6/20/08		7,700,000		7,700,000		7,767,375
	33	HYDI 101	9.00		6/20/08		5,500,000		5,398,148		5,674,803
	34	U.S. Treasury Notes	1.625		10/31/05		30,000,000		30,000,000		29,845,200
	34	U.S. Treasury Notes	3.375		12/15/08		46,000,000		46,000,000		45,690,880
	35	U.S. Treasury Notes	4.25		11/15/13		8,660,000		8,660,000		8,497,625
	36	Federal National Mortgage Assoc.	Variable		12/1/33		10,000,000		9,596,893		9,659,944
	36	GSR Mortgage Loan Trust	Variable		10/25/33		10,000,000		9,825,241		9,640,133
	36	GSR Mortgage Loan Trust	Variable		10/25/33		10,000,000		9,746,300		9,655,757
	37	General Motors Acceptance Corp.	6.875		8/28/12		6,500,000		6,500,000		6,755,580

Corresponding Underlying Collateral (continued)

	Reverse
	Repurchase				Maturity	Original		Current
Trust	Agreement	Description	Rate		Date	Face		Face		Market Value

Limited	37	Honda Auto Receivables	2.30	%	10/18/07	$	7,125,000	$	7,125,000	$	7,117,658
Duration	38	Federal National Mortgage Assoc.	5.50		10/1/33		2,000,000		1,871,620		1,867,521
(continued)	39	Federal National Mortgage Assoc.	7.25		1/15/10		17,000,000		17,000,000		19,570,400
	40	Comcast Cable Communications, Inc.	6.875		6/15/09		6,685,000		6,685,000		7,359,416
	40	DaimlerChrysler Auto Trust	2.25		8/8/07		6,900,000		6,900,000		6,897,573
	40	Dow Chemical Co.	5.97		1/15/09		4,000,000		4,000,000		4,280,120
	40	Ford Motor Credit Co.	7.375		2/1/11		7,500,000		7,500,000		8,019,945
	40	Weyerhaeuser Co.	5.25		12/15/09		7,500,000		7,500,000		7,719,060
	41	Federal National Mortgage Assoc.	Variable		1/1/34		25,000,000		3,302,499		3,359,473
	42	Federal National Mortgage Assoc.	5.50		3/1/32		1,100,000		659,772		661,304
	42	Federal National Mortgage Assoc.	Variable		1/1/34		27,657,926		3,653,611		3,716,642
	43	Concentra Operating Corp.	9.50		8/15/10		4,500,000		4,500,000		4,995,000
	43	CSC Holdings, Inc.	7.875		12/15/07		4,800,000		4,800,000		5,124,000
	43	DaimlerChrysler NA Holding Corp.	4.05		6/4/08		7,500,000		7,500,000		7,357,500
	43	Deutsche Telekom Intl. Finance BV	Variable		6/15/10		4,000,000		4,000,000		4,726,000
	43	Nextel Communications, Inc.	7.375		8/1/15		3,100,000		3,100,000		3,239,500
	43	Peru Republic	9.125		2/21/12		5,000,000		5,000,000		5,250,000
	43	Qwest Corp.	Variable		3/15/12		6,000,000		6,000,000		6,480,000
	43	Western Financial Bank	9.625		5/15/12		2,900,000		2,900,000		3,284,250
	44	Allied Waste NA	10.00		8/1/09		6,000,000		6,000,000	6,420,000

										250,632,659

Strategic
Bond	45	U.S. Treasury Notes	4.250		8/15/13		1,000,000		1,000,000		983,590
	46	Bank One Corp.	6.500		2/1/06		1,000,000		1,000,000		1,070,000
	46	Barclays Bank PLC	Variable		9/29/49		650,000		650,000		785,757
	46	DTE Energy Co.	7.050		6/1/11		250,000		250,000		275,370
	46	ERP Operating LP	6.950		3/2/11		500,000		500,000		557,300
	46	European Investment Bank	4.875		9/6/06		1,000,000		1,000,000		1,049,640
	46	FirstEnergy Corp.	7.375		11/15/31		325,000		325,000		341,338
	46	Ford Motor Credit Co.	5.800		1/12/09		750,000		750,000		763,305
	46	General Motors Acceptance Corp.	6.750		1/15/06		250,000		250,000		264,818
	46	General Motors Acceptance Corp.	6.875		9/15/11		900,000		900,000		940,824
	46	General Motors Acceptance Corp.	8.000		11/1/31		250,000		250,000		261,925
	46	KFW Intl. Finance, Inc.	5.250		6/28/06		850,000		850,000		897,303
	46	Lehman Brothers Holdings, Inc.	6.250		5/15/06		1,000,000		1,000,000		1,069,430
	46	Metlife, Inc.	6.125		12/1/11		325,000		325,000		349,937
	46	Progress Energy, Inc.	6.750		3/1/06		1,000,000		1,000,000		1,068,210
	46	Viacom, Inc.	6.625		5/15/11		1,000,000		1,000,000		1,105,930
	47	Allstate Corp.	7.875		5/1/05		500,000		500,000		529,250
	47	Anadarko Petroleum Corp.	5.375		3/1/07		1,000,000		1,000,000		1,053,950
	47	AOL Time Warner, Inc.	7.700		5/1/32		700,000		700,000		771,379
	47	AT&T Corp.	Variable		11/15/06		900,000		900,000		986,589
	47	Bear Stearns Co., Inc.	6.500		5/1/06		325,000		325,000		348,774
	47	Citigroup, Inc.	5.750		5/10/06		3,000,000		3,000,000		3,182,130
	47	ConocoPhillips Holding Co.	6.950		4/15/29		500,000		500,000		550,360
	47	DaimlerChrysler NA Holding Corp.	7.300		1/15/12		1,000,000		1,000,000		1,095,220
	47	Ford Motor Credit Co.	6.875		2/1/06		2,000,000		2,000,000		2,119,820
	47	General Mills, Inc.	5.125		2/15/07		1,000,000		1,000,000		1,045,470
	47	Kellogg Co.	6.000		4/1/06		575,000		575,000		609,753
	47	Tyco Intl. Group SA	6.375		2/15/06		1,000,000		1,000,000		1,053,540
	47	United Technologies Corp.	6.350		3/1/11		1,000,000		1,000,000		1,095,320
	47	Verizon New England, Inc.	6.500		9/15/11		2,000,000		2,000,000		2,173,840
	47	Vodafone Group PLC	7.750		2/15/10		1,000,000		1,000,000		1,159,260
	48	Adelphia Communications Corp.	1.050		7/15/04		1,000,000		1,000,000		1,100,000
	48	Autonation, Inc.	9.000		8/1/08		400,000		400,000		454,000
	48	Dresser, Inc.	9.375		4/15/11		2,000,000		2,000,000		2,160,000
	49	Curative Hlth. Svcs., Inc.	1.080		5/1/11		350,000		350,000		351,313
	50	Autonation, Inc.	9.000		8/1/08		1,000,000		1,000,000	1,135,000

										34,759,645

The average daily balance and weighted average interest rate of reverse repurchase agreements during the period ended April 30, 2004, were as follows:

	Average Daily		Weighted Average
Trust	Balance		Interest Rate

Broad Investment Grade	$	22,781,747	1.02	%
Core Bond		134,535,529	0.97	%
Income Opportunity		95,749,476	1.03	%
Income Trust		116,301,892	0.93	%
Limited Duration		185,476,593	1.08	%
Strategic Bond		37,812,139	1.30	%

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

Loan Payable: High Yield has a $32 million committed credit facility (the “facility”). Under the terms of the facility, the Trust borrows at the London Interbank Offered Rate (“LIBOR”) plus facility and administrative fees. In addition, the Trust pays a liquidity fee on the unused portion of the facility. The Trust may borrow up to 33¹/₃% of its total assets up to the committed amount. In accordance with the terms of the facility, the Trust has pledged its portfolio assets as collateral for the borrowing.

For the period ended April 30, 2004, High Yield borrowed a daily weighted average balance of $19,250,000 at a weighted average interest rate at 1.64%.

Note 5. Distributions
to Shareholders

The tax character of distributions paid during the period ended April 30, 2004, and the year ended October 31, 2003 were as follows:

	Period ended April 30, 2004

	Ordinary		Long-term		Total
Distributions Paid From:	Income		Capital Gain		Distributions

Broad Investment Grade	$	1,330,692	$	—	$	1,330,692
Core Bond		15,784,368		—		15,784,368
High Yield		3,225,398		—		3,225,398
Income Opportunity		14,468,871		—		14,468,871
Income Trust		19,436,198		—		19,436,198
Limited Duration		27,532,174		—		27,532,174
Strategic Bond		5,841,877		—		5,841,877

	Year ended October 31, 2003

	Ordinary		Long-term		Return		Total
Distributions Paid From:	Income		Capital Gain		of Capital		Distributions

Broad Investment Grade	$	3,504,653	$	—	$	—	$	3,504,653
Core Bond		30,289,664	1,795,095			—		32,084,759
High Yield		6,783,092		—		333,356		7,116,448
Income Opportunity		36,267,803		—		—		36,267,803
Income Trust		63,862,381		—		—		63,862,381
Limited Duration		9,176,505		—		—		9,176,505
Strategic Bond		10,466,535		—		—		10,466,535

As of April 30, 2004, the components of distributable earnings on a tax basis were as follows:

	Undistributed		Undistributed
	Ordinary		Long-term		Unrealized Net
Trust	Income		Gains		Appreciation

Broad Investment Grade	$	4,982,375	$	633,808	$	1,467,232
Core Bond		7,270,101		2,618,360		—
High Yield		19,098		—		—
Income Opportunity		4,702,102		2,902,569		15,620,859
Income Trust		6,440,612		—		—
Limited Duration		1,532,337		3,725,540		23,760,424
Strategic Bond		1,095,429		—		7,377,056

Note 6. Capital

There are 200 million of $0.01 par value common shares authorized for Broad Investment Grade, Income Opportunity and Income Trust. There are an unlimited number of $0.001 par value common shares authorized for Core Bond, High Yield, Limited Duration and Strategic Bond. At April 30, 2004, the common shares outstanding and the shares owned by affiliates of the Advisor of each Trust were:

	Common Shares	Common Shares
Trust	Outstanding	Owned

Broad Investment Grade	2,957,093	7,093
Core Bond	27,018,774	9,425
High Yield	6,395,321	—
Income Opportunity	34,449,693	—
Income Trust	63,569,490	—
Limited Duration	36,727,287	6,021
Strategic Bond	7,044,552	9,425

During the period ended April 30, 2004, High Yield, Income Trust, Limited Duration and Strategic Bond issued additional shares under their dividend reinvestment plans of 13,673, 179,799, 21,266, and 8,931, respectively. Transactions in common shares of beneficial interest for the year ended October 31, 2003, were as follows:

	Shares from

	Intial Public	Underwriters’ Exercising the	Reinvestment	Net Increase in
Trust	Offering	Over-allotment Option	of Dividends	Shares Outstanding

High Yield	—	—	29,680	29,680
Income Trust	—	—	514,874	514,874
Limited Duration	34,306,021	2,400,000	—	36,706,021
Strategic Bond	—	—	19,467	19,467

Offering costs incurred in connection with the Limited Duration offering of common shares have been charged to paid-in capital in excess of par of the common shares in the amount of $1,222,110.

Note 7. Dividends
Subsequent to April 30, 2004, the Board of each of the Trusts declared dividends per common share payable May 28, 2004, to shareholders of record on May 14, 2004. The per share common dividends declared were as follows:

	Common Dividend
Trust	Per Share

Broad Investment Grade	$0.075000
Core Bond	0.087500
High Yield	0.084167
Income Opportunity	0.070000
Income Trust	0.051042
Limited Duration	0.125000
Strategic Bond	0.130000

DIVIDEND REINVESTMENT PLANS

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

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

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

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

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

ADDITIONAL INFORMATION

The Joint Annual Meeting of Shareholders was held on May 26, 2004, to elect a certain number of Directors/Trustees for each of the following Trusts to three year terms expiring in 2007:

Core Bond

Elected the Class I Directors as follows:
Director	Votes for	Votes Withheld

Richard E. Cavanagh	2,399,250	22,018
James Clayburn La Force, Jr.	2,398,950	22,318

Broad Investment Grade

Elected the Class III Trustees as follows:
Trustee	Votes for	Votes Withheld

Andrew F. Brimmer	22,737,026	230,263
Kent Dixon	22,770,207	197,082
Robert S. Kapito	22,784,467	182,822

High Yield

Elected the Class II Trustees as follows:
Trustee	Votes for	Votes Withheld

Frank J. Fabozzi	5,605,743	77,206
Walter F. Mondale	5,576,541	106,408
Ralph L. Schlosstein	5,607,483	75,466

Income Opportunity

Elected the Class III Directors as follows:
Director	Votes for	Votes Withheld

Andrew F. Brimmer	28,101,876	744,186
Kent Dixon	28,132,303	713,759
Robert S. Kapito	28,136,967	709,095

Income Trust

Elected the Class III Directors as follows:
Director	Votes for	Votes Withheld

Andrew F. Brimmer	55,106,787	671,942
Kent Dixon	55,158,072	620,657
Robert S. Kapito	55,183,010	595,719

Limited Duration

Elected the Class I Trustees as follows:
Trustee	Votes for	Votes Withheld

Richard E. Cavanagh	29,016,706	223,904
James Clayburn La Force Jr.	28,994,099	246,511

Strategic Bond

Elected the Class III Trustees as follows:
Trustee	Votes for	Votes Withheld

Andrew F. Brimmer	5,687,467	46,597
Kent Dixon	5,695,967	38,097
Robert S. Kapito	5,694,117	39,947

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

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

BlackRock Closed-End Funds

Trustees	Transfer Agent
Ralph L. Schlosstein, Chairman	EquiServe Trust Company, N.A.
Andrew F. Brimmer	250 Royall Street
Richard E. Cavanagh	Canton, MA 02021
Kent Dixon	(800) 699-1BFM
Frank J. Fabozzi
Robert S. Kapito	Independent Accountants
James Clayburn La Force, Jr.	Deloitte & Touche LLP
Walter F. Mondale	200 Berkeley Street
	Boston, MA 02116
Officers
Robert S. Kapito, President	Legal Counsel
Henry Gabbay, Treasurer	Skadden, Arps, Slate, Meagher & Flom LLP
Anne Ackerley, Vice President	Four Times Square
Jeff Gary, Vice President¹	New York, NY 10036
Richard M. Shea, Vice President/Tax
James Kong, Assistant Treasurer	Legal Counsel – Independent Trustees
Vincent B. Tritto, Secretary	Debevoise & Plimpton LLP
Brian P. Kindelan, Assistant Secretary	919 Third Avenue
	New York, NY 10022
Investment Advisor
BlackRock Advisors, Inc.	This report is for shareholder information. This is not a
100 Bellevue Parkway	prospectus intended for use in the purchase or sale of Trust shares.
Wilmington, DE 19809	Statements and other information contained in this report are as
(800) 227-7BFM	dated and are subject to change.

Sub-Advisor²	BlackRock Closed-End Funds
BlackRock Financial Management, Inc.	c/o BlackRock Advisors, Inc.
40 East 52nd Street	100 Bellevue Parkway
New York, NY 10022	Wilmington, DE 19809
	(800) 227-7BFM
Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110

¹For High Yield
²For Core Bond, Limited Duration and Strategic Bond.

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

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

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

CEF-Semi-3

Item 2.

Code of Ethics.

Not applicable for semi-annual reports.

Item 3.

Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4.

Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5.

Audit Committee of Listed Registrants.

Not applicable for semi-annual reports.

Item 6.

Schedule of Investments.

Not applicable for reports for periods ending on or before July 9, 2004.

Item 7.

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

Not applicable for semi-annual reports.

Item 8.

Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

Not applicable for reports covering periods ending on or before June 15, 2004.

Item 9.

Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 10.

Controls and Procedures.

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

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

Item 11. Exhibits.

(a)(1) Not applicable.

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

(a)(3) Not applicable.

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

SIGNATURES

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

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




By:		/s/ Henry Gabbay ___________________________________________
Name:		Henry Gabbay
Title:		Treasurer
Date:		July 2, 2004

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




By:		/s/ Robert S. Kapito ___________________________________________
Name:		Robert S. Kapito
Title:		Principal Executive Officer
Date:		July 2, 2004




By:		/s/ Henry Gabbay ___________________________________________
Name:		Henry Gabbay
Title:		Principal Financial Officer
Date:		July 2, 2004