UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
811-21235
(Investment Company Act File Number)
Federated Premier Municipal Income Fund
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 11/30/06
Date of Reporting Period: Quarter ended 8/31/06
ITEM 1. SCHEDULE OF INVESTMENTS
FEDERATED PREMIER MUNICIPAL INCOME FUND
PORTFOLIO OF INVESTMENTS
August 31, 2006 (unaudited)
PRINCIPAL VALUE
AMOUNT
MUNICIPAL BONDS--99.8%
ALABAMA--0.4%
$ 550,000 Courtland, AL IDB, PCR Refunding Bonds (Series 2005A), 5.00% (International Paper Co.), 6/1/2025 $ 558,530
ARIZONA--1.5%
500,000 Arizona Tourism & Sports Authority, Multipurpose Stadium Facilities Tax Revenue Bonds (Series 524,125
A), 5.00% (MBIA Insurance Corp. INS), 7/1/2024
750,000 Tempe, AZ IDA, Senior Living Revenue Bonds (Series A), 6.75% (Friendship Village of Tempe), 807,990
12/1/2030
750,000 Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.50%, 7/15/2027 805,680
TOTAL 2,137,795
ARKANSAS--0.8%
1,000,000 Arkansas Development Finance Authority, Hospital Revenue Bonds (Series 2000), 7.375% (Washington 1,113,490
Regional Medical Center)/(United States Treasury PRF 2/1/2010@100)/
(Original Issue Yield: 7.50%), 2/1/2029
CALIFORNIA--5.9%
1,000,000 California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds 1,101,080
(Series A), 5.375% (United States Treasury PRF 5/1/2012@101)/(Original Issue Yield: 5.48%),
5/1/2022
1,000,000 California State, Refunding UT GO Bonds, 5.25%, 2/1/2020 1,072,430
1,000,000 California State, UT GO Bonds, 5.25%, 10/1/2020 1,066,870
250,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds 282,023
(Series 2003A-1), 6.75% (Original Issue Yield: 7.00%), 6/1/2039
750,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Revenue Bonds (Series 2003A- 909,840
2), 7.90%, 6/1/2042
500,000 La Verne, CA, Revenue Certificates of Participation (Series 2003B), 6.625% (Brethren Hillcrest 550,300
Homes)/(Original Issue Yield: 6.70%), 2/15/2025
1,000,000 San Jose, CA Redevelopment Agency, Tax Allocation Bonds (Series 2003), 4.90% (FGIC INS), 1,021,960
8/1/2033
1,000,000 Stockton, CA Public Financing Authority, Redevelopment Projects Revenue Bonds (Series 2006A), 1,060,690
5.25% (Radian Asset Assurance INS), 9/1/2031
1,500,000 Upland, CA Public Financing Authority, Water System Improvement Lease Revenue Bonds (Issue of 1,567,200
2003), 5.00% (AMBAC INS), 10/1/2027
TOTAL 8,632,393
COLORADO--4.1%
725,000 Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00%, 12/1/2023 797,261
1,000,000 Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 1,010,580
500,000 Colorado Educational & Cultural Facilities Authority, Refunding Revenue Bonds (Series A), 7.00% 557,655
(Denver Academy)/(Original Issue Yield: 7.25%), 11/1/2023
1,000,000 Colorado Health Facilities Authority, Revenue Bonds (Series 2002A), 6.125% (Covenant Retirement 1,084,930
Communities, Inc.)/(Original Issue Yield: 6.40%), 12/1/2033
250,000 Conservatory Metropolitan District, CO, LT GO Bonds, 6.75%, 12/1/2034 267,157
500,000 Conservatory Metropolitan District, CO, LT GO Bonds, 7.55%, 12/1/2032 559,310
1,000,000 Denver, CO Health & Hospital Authority, Revenue Bonds, 6.25% (Original Issue Yield: 6.28%), 1,108,510
12/1/2033
500,000 Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.00% (Original Issue 550,890
Yield: 7.05%), 12/1/2024
TOTAL 5,936,293
CONNECTICUT--1.5%
1,250,000 Connecticut State Development Authority, First Mortgage Gross Revenue Health Care Project Bonds 1,329,612
(Series 2003), 5.85% (Elim Park Baptist Home, Inc.)/(Original Issue Yield: 5.98%), 12/1/2033
825,000 Connecticut State HEFA, Revenue Bonds (Series 2006B), 5.00% (Canterbury School)/ 851,474
(Radian Asset Assurance INS), 7/1/2036
TOTAL 2,181,086
DISTRICT OF COLUMBIA--2.0%
2,500,000 District of Columbia Tobacco Settlement Financing Corp., Asset Backed Revenue Bonds, 6.50% 2,900,000
(Original Issue Yield: 6.67%), 5/15/2033
FLORIDA--7.5%
600,000 Broward County, FL Educational Facilities Authority, Educational Facilities Revenue Bonds 631,194
(Series 2004B), 5.60% (Nova Southeastern University)/(Original Issue Yield: 5.625%), 4/1/2029
400,000 1 Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida 493,224
Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102), 10/1/2033
1,490,000 Citrus County, FL Hospital Board, Refunding Revenue Bonds, 6.375% (Citrus Memorial 1,627,348
Hospital)/(Original Issue Yield: 6.50%), 8/15/2032
1,290,000 Harbor Bay, FL Community Development District, Special Assessment Revenue Bonds, 6.75%, 5/1/2034 1,410,473
2,000,000 Jacksonville, FL Sales Tax, Revenue Bonds (Series 2003), 5.00% (MBIA Insurance Corp. INS), 2,102,460
10/1/2024
400,000 Midtown Miami, FL Community Development District, Special Assessment Bonds (Series 2004A), 433,388
6.00%, 5/1/2024
400,000 Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.25%, 428,940
5/1/2034
1,000,000 South Lake County, FL Hospital District, Revenue Bonds, 6.625% (South Lake Hospital, Inc.), 1,126,330
10/1/2023
500,000 Tuscany Reserve Community Development District, FL, Capital Improvement Revenue Bonds (Series 507,810
2005A), 5.55%, 5/1/2036
1,060,000 Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series 1,148,499
2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033
500,000 Village Center Community Development District, FL, Recreational Revenue Bonds (Series 2003A), 521,165
5.00% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.032%), 11/1/2032
500,000 Winter Garden Village at Fowler Groves Community Development District, FL, Special Assessment 512,685
Bonds (Series 2006), 5.65%, 5/1/2037
TOTAL 10,943,516
HAWAII--1.1%
1,400,000 Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 8.00% 1,618,680
(Kahala Nui)/(Original Issue Yield: 8.175%), 11/15/2033
ILLINOIS--4.7%
1,000,000 Antioch Village, IL Special Service Area No. 1, Special Tax Revenue Bonds, 6.625% (Deercrest 1,060,250
Project), 3/1/2033
2,500,000 Chicago, IL Sales Tax, Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 5.385%), 1/1/2028 2,603,775
1,000,000 Chicago, IL Special Assessment, Improvement Revenue Bonds, 6.75% (Lakeshore East 1,079,940
Project)/(Original Issue Yield: 6.769%), 12/1/2032
420,000 DuPage County, IL, Special Tax Bonds (Series 2006), 5.625% (Naperville Campus LLC), 3/1/2036 425,023
1,000,000 Illinois Educational Facilities Authority, Refunding Revenue Bonds (Series A), 5.70% (Augustana 1,042,030
College)/(Original Issue Yield: 5.90%), 10/1/2032
625,000 Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth 647,631
Place)/(Original Issue Yield: 6.04%), 5/15/2037
TOTAL 6,858,649
INDIANA--1.3%
1,930,000 Indiana Health & Educational Facility Financing Authority, Revenue Bonds (Series 2005), 5.25% 1,963,679
(Baptist Homes of Indiana), 11/15/2035
KENTUCKY--1.1%
1,500,000 Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue 1,631,010
Yield: 6.97%), 10/1/2028
MASSACHUSETTS--2.2%
1,000,000 Massachusetts HEFA, Revenue Bonds (Series 2003E), 6.75% (Jordan Hospital )/(Original Issue 1,096,390
Yield: 7.00%), 10/1/2033
2,000,000 Massachusetts State Development Finance Agency, Revenue Bonds, 5.75% (Massachusetts College of 2,125,380
Pharmacy & Allied Health Sciences), 7/1/2033
TOTAL 3,221,770
MICHIGAN--2.3%
2,000,000 Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco 2,224,200
Corp.)/(United States Treasury PRF 5/1/2012@100), 5/1/2018
1,000,000 Detroit, MI Sewage Disposal System, Refunding Senior Lien Revenue Bonds (Series 2003A), 5.00% 1,050,750
(FSA INS), 7/1/2024
TOTAL 3,274,950
MINNESOTA--0.7%
900,000 St. Paul, MN Port Authority, Hotel Facility Revenue Bonds (Series 2), 7.375% (Radisson Kellogg 986,670
Project)/(United States Treasury PRF 8/1/2008@103)/(Original Issue Yield: 7.50%), 8/1/2029
MISSISSIPPI--3.1%
2,000,000 Lowndes County, MS Solid Waste Disposal, Refunding PCR Bonds (Series 1992B), 6.70% (Weyerhaeuser 2,378,140
Co.), 4/1/2022
2,000,000 Mississippi Development Bank, Special Obligation Bonds (Series 2006A), 5.00% (Municipal Energy 2,065,680
Agency of Mississippi)/(XL Capital Assurance Inc. INS), 3/1/2041
TOTAL 4,443,820
MISSOURI--0.4%
500,000 Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds (Series 2003A), 520,035
5.50% (Branson, MO)/(Original Issue Yield: 5.56%), 12/1/2032
NEVADA--3.3%
650,000 1 Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series 658,632
2004A), 7.00% (Las Ventanas Retirement Community)/(Original Issue Yield: 7.125%), 11/15/2034
2,000,000 Nevada State, Certificates of Participation (Series 2004: Capitol Complex Building 1), 5.00% 2,064,880
(FGIC INS), 4/1/2032
2,000,000 Truckee Meadows, NV Water Authority, Water Revenue Bonds (Series 2001A), 5.00% (FSA 2,087,900
INS)/(Original Issue Yield: 5.36%), 7/1/2025
TOTAL 4,811,412
NEW HAMPSHIRE--2.3%
3,000,000 Manchester, NH School Facilities, Revenue Bonds, 5.50% (United States Treasury PRF 3,301,500
6/1/2013@100), 6/1/2028
NEW JERSEY--1.8%
500,000 New Jersey EDA, Revenue Bonds, (Series 2004), 5.75% (NJ Dedicated Cigarette Excise 535,590
Tax)/(Original Issue Yield: 5.89%), 6/15/2029
300,000 New Jersey EDA, Refunding Revenue Bonds (Series A), 5.80% (Winchester Gardens at Ward 322,650
Homestead)/(Original Issue Yield: 5.82%), 11/1/2031
600,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley 620,622
Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023
1,000,000 New Jersey State Educational Facilities Authority, Revenue Bonds, Project C, 6.50% (Georgian 1,113,350
Court College), 7/1/2033
TOTAL 2,592,212
NEW MEXICO--0.5%
750,000 1,2 Jicarilla, NM Apache Nation, Revenue Bonds, 5.50%, 9/1/2023 795,788
NEW YORK--7.5%
750,000 Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.50% (St. Francis 819,735
Hospital and Health Centers), 3/1/2029
750,000 Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.25%), 776,265
7/1/2022
3,000,000 Metropolitan Transportation Authority, NY, MTA State Service Contract Refunding Revenue Bonds, 3,161,400
(Series A), 5.00% (New York State)/(FGIC INS)/(Original Issue Yield: 5.14%), 7/1/2022
2,000,000 Metropolitan Transportation Authority, NY, Revenue Bonds (Series 2006A), 5.00% (MTA 2,092,660
Transportation Revenue), 11/15/2031
800,000 1 New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC), 854,768
3/1/2035
1,050,000 New York City, NY IDA, PILOT Revenue Bonds (Series 2006), 4.75% (Yankee Stadium LLC)/(MBIA 1,064,616
Insurance Corp. INS), 3/1/2046
2,000,000 New York State Dormitory Authority, Revenue Bonds (Series 2003A), 5.50% (Brooklyn Law 2,160,940
School)/(Radian Asset Assurance INS), 7/1/2019
TOTAL 10,930,384
NORTH CAROLINA--2.0%
1,000,000 Haywood County, NC Industrial Faculties & Pollution Control Financing Authority, Refunding 1,021,220
Revenue Bonds, 6.00% (Champion International Corp.), 3/1/2020
1,000,000 North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series 1,061,260
2003C), 5.375% (Original Issue Yield: 5.57%), 1/1/2017
800,000 North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% 849,224
(Arc of North Carolina Projects), 10/1/2034
TOTAL 2,931,704
NORTH DAKOTA--2.9%
2,000,000 Fargo, ND, Health System Revenue Bonds (Series 2000A), 5.60% (Meritcare Obligated Group)/(FSA 2,126,220
INS)/(Original Issue Yield: 5.70%), 6/1/2021
2,000,000 Ward County, ND Health Care Facility, Revenue Bonds (Series A), 6.25% (Trinity Obligated Group, 2,067,700
ND)/(Original Issue Yield: 6.375%), 7/1/2026
TOTAL 4,193,920
OHIO--0.7%
1,000,000 Ohio State Air Quality Development Authority, PCR Refunding Bonds (Series 2002A), 6.00% 1,030,300
(Cleveland Electric Illuminating Co.), 12/1/2013
OREGON--0.3%
500,000 1 Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 506,810
10/1/2026
PENNSYLVANIA--4.5%
1,165,000 Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny 1,379,744
Health System)/(Original Issue Yield: 9.70%), 11/15/2030
360,000 Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 392,962
7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(Original Issue Yield: 7.50%), 1/1/2035
935,000 Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 1,120,607
7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF
1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035
2,000,000 Montgomery County, PA Higher Education & Health Authority Hospital, Revenue Bonds (Series 2,098,360
2006FF1), 5.00% (Dickinson College)/(CDC IXIS Financial Guaranty NA INS), 5/1/2031
500,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, (Series A), 6.00% (UPMC 544,555
Health System)/(Original Issue Yield: 6.16%), 1/15/2031
1,000,000 Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Bonds (Series 2003A), 5.25% 1,077,930
(MBIA Insurance Corp. INS), 12/1/2023
TOTAL 6,614,158
RHODE ISLAND--1.4%
1,875,000 Rhode Island Economic Development Corp., Special Facility Revenue Bonds, 5.00% (Rhode Island 1,973,081
Airport Corp.)/(CDC IXIS Financial Guaranty NA INS), 7/1/2025
SOUTH CAROLINA--5.4%
1,000,000 Clemson University, SC, University Revenue Bonds, 5.00% (XL Capital Assurance Inc. INS), 1,049,910
5/1/2023
2,000,000 Kershaw County. SC Public Schools Foundation, Installment Purchase Revenue Bonds (Series 2006), 2,089,620
5.00% (Kershaw County, SC School District)/(CDC IXIS Financial Guaranty NA INS), 12/1/2029
1,940,000 Myrtle Beach, SC, Hospitality Fee Revenue Bonds (Series2004A), 5.375% (FGIC INS), 6/1/2023 2,108,043
2,500,000 South Carolina Jobs-EDA, Health System Revenue Bonds (Series A), 5.625% (Bon Secours Health 2,652,025
System)/(Original Issue Yield: 5.84%), 11/15/2030
TOTAL 7,899,598
SOUTH DAKOTA--1.3%
1,750,000 South Dakota State Health & Educational Authority, Revenue Bonds, 5.65% (Westhills Village 1,861,738
Retirement Community)/(Original Issue Yield: 5.75%), 9/1/2023
TENNESSEE--3.9%
2,000,000 Johnson City, TN Health & Education Facilities Board, Hospital Refunding Revenue Bonds (Series 2,344,720
A), 7.50% (Mountain States Health Alliance), 7/1/2025
1,535,000 Knox County, TN Health Education & Housing Facilities Board, Refunding Improvement Revenue Bonds 1,627,238
(Series 2003B), 5.75% (East Tennessee Children's Hospital)/(Original Issue Yield: 5.90%),
7/1/2033
1,500,000 Knox County, TN Health Education & Housing Facilities Board, Revenue Bonds, 6.375% (Baptist 1,635,885
Health System of East Tennessee)/(Original Issue Yield: 6.50%), 4/15/2022
TOTAL 5,607,843
TEXAS--9.4%
600,000 Abilene, TX Health Facilities Development Corp., Retirement Facilities Revenue Bonds (Series 656,718
2003A), 7.00% (Sears Methodist Retirement )/(Original Issue Yield: 7.25%), 11/15/2033
700,000 Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.125% (Wise Regional 765,016
Health System), 9/1/2034
2,500,000 Houston, TX Combined Utility System, First Lien Refunding Revenue Bonds (Series 2004A), 5.25% 2,695,000
(FGIC INS), 5/15/2023
200,000 Matagorda County, TX Navigation District No. 1, Collateralized Refunding Revenue Bonds, 5.60% 210,234
(Centerpoint Energy Houston Electric), 3/1/2027
4,000,000 North Central Texas HFDC, Hospital Refunding Revenue Bonds (Series 2002), 5.25% (Children's 4,236,120
Medical Center of Dallas)/(AMBAC INS)/(Original Issue Yield: 5.35%), 8/15/2022
1,350,000 North Central Texas HFDC, Retirement Facility Revenue Bonds (Series 1999), 7.50% (Northwest 1,524,110
Senior Housing Corp. Edgemere Project)/(United States Treasury PRF 11/15/2009@102)/(Original
Issue Yield: 7.75%), 11/15/2029
500,000 Sabine River Authority, TX, PCR Refunding Bonds (Series 2001C), 5.20% (TXU Energy Co. LLC), 513,165
5/1/2028
1,050,000 Sabine River Authority, TX, PCR Refunding Bonds (Series 2003B), 6.15% (TXU Energy Co. LLC), 1,137,465
8/1/2022
335,000 Sabine River Authority, TX, Refunding PCR Bonds (Series 2003A), 5.80% (TXU Energy Co. LLC), 359,552
7/1/2022
500,000 Tarrant County, TX Cultural Education Facilities Finance Corp., Revenue Bonds, (Series 2006A), 523,975
6.00% (Northwest Senior Housing Corp. Edgemere Project), 11/15/2036
1,000,000 Tyler, TX Health Facilities Development Corp., Hospital Revenue Bonds, 5.75% (Mother Frances 1,060,090
Hospital )/(Original Issue Yield: 5.84%), 7/1/2027
TOTAL 13,681,445
VIRGINIA--3.6%
1,000,000 Broad Street Community Development Authority, VA, Revenue Bonds, 7.50% (Original Issue Yield: 1,107,900
7.625%), 6/1/2033
1,280,000 Hampton, VA Convention Center, Revenue Bonds, 5.125% (AMBAC INS), 1/15/2028 1,339,917
1,400,000 Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% 1,711,780
(Virginia Baptist Homes Obligated Group)/(United States Treasury PRF 12/1/2013@100)/(Original
Issue Yield: 7.625%), 12/1/2032
1,000,000 Virginia Peninsula Port Authority, Coal Terminal Refunding Revenue Bonds (Series 2003), 6.00% 1,080,790
(Brinks Co. (The)), 4/1/2033
TOTAL 5,240,387
WASHINGTON--4.3%
1,910,000 King County, WA Public Hospital District No. 1, Refunding LT GO Bonds, 5.00% (FSA INS)/(Original 2,004,316
Issue Yield: 5.17%), 12/1/2021
2,000,000 Washington State, UT GO Bonds (Series 2002B), 5.00% (FSA INS)/(Original Issue Yield: 5.05%), 2,099,020
1/1/2021
2,000,000 Washington State, Various Purpose UT GO Bonds (Series 2002A), 5.00% (FSA INS)/ 2,085,220
(Original Issue Yield: 5.09%), 7/1/2022
TOTAL 6,188,556
WISCONSIN--4.1%
3,000,000 Wisconsin State HEFA, Health Facilities Revenue Bonds (Series A), 5.25% (Ministry Health 3,151,680
Care)/(MBIA Insurance Corp. INS)/(Original Issue Yield: 5.38%), 2/15/2032
160,000 Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.75% (Blood Center of Wisconsin, 172,691
Inc.)/(Original Issue Yield: 5.82%), 6/1/2034
500,000 Wisconsin State HEFA, Revenue Bonds, 6.50% (Tomah Memorial Hospital, Inc.)/(Original Issue 525,790
Yield: 6.75%), 7/1/2023
500,000 Wisconsin State HEFA, Revenue Bonds, 6.625% (Tomah Memorial Hospital, Inc.)/(Original Issue 525,105
Yield: 6.875%), 7/1/2028
1,000,000 Wisconsin State HEFA, Revenue Bonds, 7.25% (Community Memorial Hospital)/(Original Issue Yield: 1,064,780
7.45%), 1/15/2033
500,000 Wisconsin State HEFA, Revenue Bonds, (Series 2006A), 5.375% (Marshfield Clinic, WI), 2/15/2034 525,865
TOTAL 5,965,911
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $136,064,230) 145,049,113
SHORT-TERM MUNICIPALS--0.2%3
PUERTO RICO--0.2%
300,000 Puerto Rico Government Development Bank (GDB) Weekly VRDNs (MBIA Insurance Corp. INS)/(Credit 300,000
Suisse, Zurich LIQ), 3.290%, 9/6/2006
(AT COST)
TOTAL MUNICIPAL INVESTMENTS - 100% 145,349,113
(IDENTIFIED COST $136,364,230)4
OTHER ASSETS AND LIABILITIES - NET 1,533,688
LIQUIDATION VALUE OF AUCTION PREFERRED SHARES (53,675,000)
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS $ 93,207,801
At August 31, 2006, the Fund holds no securities that are subject to the federal alternative minimum tax (AMT).
1 Denotes a restricted security that either (a) cannot be offered for public sale without first being registered, or being able to
take advantage of an exemption from registration, under the Securities Act of 1933, or (b) is subject to a contractual
restriction on public sales. At August 31, 2006, these restricted securities amounted to $3,309,222 which represented 2.3% of
total market value.
2 Denotes a restricted security that may be resold without restriction to "qualified institutional buyers" as defined in Rule 144A
under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of
Trustees ("the Trustees"). At August 31, 2006, this liquid restricted security amounted to $795,788 which represented 0.5% of
total market value.
3 Current rate and next reset date shown for Variable Rate Demand Notes.
4 The cost of investments for federal tax purposes was $136,363,687. The net unrealized appreciation of investments for federal
tax purposes was $8,985,426. This consists of net unrealized appreciation from investments for those securities having an excess
of value over cost of $8,985,426 and net unrealized depreciation from investments for those securities having an excess of cost
over value of $0.
Note: The categories of investments are shown as a percentage of total market
value at August 31, 2006.
INVESTMENT VALUATION
Municipal bonds are valued by an independent pricing service, taking into
consideration yield, liquidity, risk, credit quality, coupon, maturity, type of
issue, and any other factors or market data the pricing service deems relevant.
The Fund generally values short-term securities according to prices furnished by
an independent pricing service, except that short-term securities with remaining
maturities of less than 60 days at the time of purchase may be valued at
amortized cost, which approximates fair market value. Prices furnished by an
independent pricing service for municipal bonds are intended to be indicative of
the bid prices currently offered to institutional investors for the securities.
Securities for which no quotations are readily available are valued at fair
value as determined in accordance with procedures established by and under
general supervision of the Trustees.
RESTRICTED SECURITIES
Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the
Trustees, held at August 31, 2006, is as follows:
SECURITY ACQUISITION ACQUISITION
DATE COST
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and 5/9/2003 $400,000
Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102), 10/1/2033
Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 10/1/2026 6/9/2006 $500,000
Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series 2004A), 7.00% 12/23/2004 $639,925
(Las Ventanas Retirement Community)/(Original Issue Yield: 7.125%), 11/15/2034
New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC), 3/1/2035 3/15/2005 $800,000
The following acronyms are used throughout this portfolio:
AMBAC --American Municipal Bond Assurance Corporation
EDA --Economic Development Authority
EDFA --Economic Development Finance Authority
FGIC --Financial Guaranty Insurance Company
FSA --Financial Security Assurance
GO --General Obligation
HDA --Hospital Development Authority
HEFA --Health and Education Facilities Authority
HFDC --Health Facility Development Corporation
IDA --Industrial Development Authority
IDB --Industrial Development Bond
INS --Insured
LIQ --Liquidity Agreement
LT --Limited Tax
PCR --Pollution Control Revenue
PRF --Prerefunded
UT --Unlimited Tax
VRDNs --Variable Rate Demand Notes
ITEM 2. CONTROLS AND PROCEDURES
(a) The registrant's Principal Executive Officer and Principal Financial Officer
have concluded that the registrant's disclosure controls and procedures (as
defined in rule 30a-3(c) under the Act) are effective in design and
operation and are sufficient to form the basis of the certifications required by
Rule 30a-(2) under the Act, based on their evaluation of these disclosure
controls and procedures within 90 days of the filing date of this report on Form
N-Q.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal
quarter that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS
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 FEDERATED PREMIER MUNICIPAL INCOME FUND
BY /S/ RICHARD A. NOVAK
RICHARD A. NOVAK, PRINCIPAL FINANCIAL OFFICER
(INSERT NAME AND TITLE)
DATE October 20, 2006
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934 AND THE
INVESTMENT COMPANY ACT OF 1940, THIS REPORT HAS BEEN SIGNED BELOW BY THE
FOLLOWING PERSONS ON BEHALF OF THE REGISTRANT AND IN THE CAPACITIES AND ON THE
DATES INDICATED.
BY /S/ J. CHRISTOPHER DONAHUE
J. CHRISTOPHER DONAHUE, PRINCIPAL EXECUTIVE OFFICER
DATE October 17, 2006
BY /S/ RICHARD A. NOVAK
RICHARD A. NOVAK, PRINCIPAL FINANCIAL OFFICER
DATE October 20, 2006