Note 1. Significant Accounting Policies
BlackRock Broad Investment Grade 2009 Term Trust Inc. (“Broad Investment Grade”), BlackRock Core Bond Trust
(“Core Bond”), BlackRock High Yield Trust (“High Yield”), BlackRock Income Opportunity Trust (“Income
Opportunity”), BlackRock Income Trust Inc. (“Income Trust”), BlackRock Limited Duration Income Trust (“Limited
Duration”) and BlackRock Strategic Bond Trust (“Strategic Bond”) are registered as diversified, closed-end
management investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”).
BlackRock Preferred and Equity Advantage Trust (“Preferred and Equity”) is registered as a non-diversified, closed-end
management investment company under the 1940 Act. Broad Investment Grade, Income Opportunity and Income
Trust are organized as Maryland corporations. Core Bond, High Yield, Limited Duration and Strategic Bond are
organized as Delaware statutory trusts. Broad Investment Grade, Core Bond, High Yield, Income Opportunity, Income
Trust, Limited Duration, Preferred and Equity and Strategic Bond are individually referred to as a “Trust” and
collectively as the “Trusts”. The Trusts’ financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America, which may require the use of management accruals and
estimates. Actual results may differ from these estimates. The Trusts determine and make available for publication
the net asset value of its Common Shares on a daily basis.
On December 3, 1999, Broad Investment Grade transferred a substantial portion of its total assets to a 100% owned
registered 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.
On November 29, 2007, Broad Investment Grade’s Boar