Federated Premier Municipal Income Fund
                                  United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form N-CSR
   Certified Shareholder Report 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: 11/30/05


               Date of Reporting Period: Six months ended 5/31/05







Item 1.           Reports to Stockholders

Federated
World-Class Investment Manager

Federated Premier Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund


3RD SEMI-ANNUAL SHAREHOLDER REPORT

May 31, 2005

Federated Investors'
Closed-End Municipal Funds

Established 2002

FINANCIAL HIGHLIGHTS
PORTFOLIO OF INVESTMENTS SUMMARY TABLES
FINANCIAL STATEMENTS
BOARD REVIEW OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Federated Premier Municipal Income Fund (FMN)

(For a Common Share Outstanding Throughout Each Period)



Six Months
Ended
(unaudited)
5/31/2005



Year Ended
11/30/2004



Period Ended
11/30/2003

1
Net Asset Value, Beginning of Period
$14.66 $14.56 $14.33
Income From Investment Operations:
Net investment income
0.56 2 1.13 2 0.98 2
Net realized and unrealized gain on investments, swap contracts and futures contracts
0.64 0.07 0.32
Distributions to preferred shareholders from net investment income

(0.09
) 3

(0.10
) 3

(0.08
) 3
   TOTAL FROM INVESTMENT OPERATIONS

1.11


1.10


1.22

Less Distributions to Common Shareholders:
From net investment income

(0.50
)

(1.00
)

(0.84
)
Capital Charges With Respect to Issuance of:
Common shares
-- -- (0.03 )
Preferred shares

--


--


(0.12
)
   TOTAL CAPITAL CHARGES

--


--


(0.15
)
Net Asset Value, End of Period

$15.27


$14.66


$14.56

Market Price, End of Period

$14.92


$14.31


$14.25

Total Return at Net Asset Value 4

7.71
%

8.05
%

7.70
%
Total Return at Market Price 5

7.88
%

7.76
%

0.70
%
Ratios to Average Net Assets:









Expenses 6

0.85
% 7

0.85
%

0.77
% 7
Net investment income 8

6.37
% 7

7.13
%

6.68
% 7
Expense waiver/reimbursement 9

0.13
% 7

0.17
%

0.12
% 7
Supplemental Data:









Net assets, end of period (000 omitted)

$93,362


$89,590


$88,951

Portfolio turnover

1
%

12
%

54
%

Asset Coverage Requirements for Investment Company Act of 1940 - Preferred Shares


   
Total Amount
Outstanding

   
Asset
Coverage
per Share

   
Minimum Required
Asset Coverage
per Share

   
Involuntary
Liquidating
Preference
per Share

   
Average Market
Value per Share

5/31/2005

$53,675,000

$68,485

$50,018

$25,009

$25,000
11/30/2004

$53,675,000

$66,728

$50,010

$ 25,005

$25,000
11/30/2003 10

$53,675,000

$66,430

$50,004

$25,002

$25,000

1 Reflects operations for the period from December 20, 2002 (date of initial public investment) to November 30, 2003.

2 Based on average shares outstanding.

3 The amounts shown are based on Common Share equivalents.

4 Total Return at Net Asset Value is the combination of changes in the Common Share net asset value, reinvested dividend income and reinvested capital gains distributions at net asset value, if any, and does not reflect the sales charge, if applicable. Total returns for periods of less than one year are not annualized. Total returns for the periods ended November 30, 2004 and 2003 were calculated utilizing the average price paid per share at the time of reinvestment. If net asset value had been utilized, the total returns would have been 7.89% and 7.67%.

5 Total Return at Market Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of the reinvestment. Total returns for periods of less than one year are not annualized.

6 Ratios do not reflect the effect of dividend payments to preferred shareholders and any associated commission costs.

7 Computed on an annualized basis.

8 Ratios reflect reductions for dividend payments to preferred shareholders.

9 This expense decrease is reflected in both the expense and the net investment income ratios shown above.

10 On February 13, 2003, the Fund began offering Auction Market Preferred Shares.

See Notes which are an integral part of the Financial Statements

Financial Highlights -Federated Premier Intermediate Municipal Income Fund (FPT)

(For a Common Share Outstanding Throughout Each Period)


   
Six Months
Ended
(unaudited)
5/31/2005

   
   
Year Ended
11/30/2004



Period Ended
11/30/2003

1
Net Asset Value, Beginning of Period
$14.53 $14.65 $14.33
Income From Investment Operations:
Net investment income
0.46 0.90 2 0.79 2
Net realized and unrealized gain (loss) on investments, swap contracts and futures contracts
0.12 (0.14 ) 0.40
Distributions to preferred shareholders from net investment income

(0.09
) 3

(0.10
) 3

(0.08
) 3
   TOTAL FROM INVESTMENT OPERATIONS

0.49


0.66


1.11

Less Distributions to Common Shareholders:
From net investment income

(0.39
)

(0.78
)

(0.64
)
Capital Charges With Respect to Issuance of:
Common shares
-- -- (0.03 )
Preferred shares

--


--


(0.12
)
   TOTAL CAPITAL CHARGES

--


--


(0.15
)
Net Asset Value, End of Period

$14.63


$14.53


$14.65

Market Price, End of Period

$13.34


$13.50


$13.47

Total Return at Net Asset Value 4

3.42
%

5.03
%

7.05
%
Total Return at Market Price 5

1.75
%

6.14
%

(5.97
)%
Ratios to Average Net Assets:









Expenses 6

0.89
% 7

0.89
%

0.80
% 7
Net investment income 8

5.10
% 7

5.51
%

5.20
% 7
Expense waiver/reimbursement 9

0.06
% 7

0.07
%

0.04
% 7
Supplemental Data:









Net assets, end of period (000 omitted)

$101,609


$100,908


$101,782

Portfolio turnover

7
%

11
%

41
%

Asset Coverage Requirements for Investment Company Act of 1940 - Preferred Shares


   
Total Amount
Outstanding

   
Asset
Coverage
per Share

   
Minimum Required
Asset Coverage
per Share

   
Involuntary
Liquidating
Preference
per Share

   
Average Market
Value per Share

5/31/2005

$61,025,000

$66,626

$50,026

$25,013

$25,000
11/30/2004

$61,025,000

$66,339

$50,016

$25,008

$25,000
11/30/2003 10

$61,025,000

$66,697

$50,008

$25,004

$25,000

1 Reflects operations for the period from December 20, 2002 (date of initial public investment) to November 30, 2003.

2 Based on average shares outstanding.

3 The amounts shown are based on Common Share equivalents.

4 Total Return at Net Asset Value is the combination of changes in the Common Share net asset value, reinvested dividend income and reinvested capital gains distributions at net asset value, if any, and does not reflect the sales charge, if applicable. Total returns for periods of less than one year are not annualized. Total returns for the periods ended November 30, 2004 and 2003 were calculated utilizing the average price paid per share at the time of reinvestment. If net asset value had been utilized, the total returns would have been 4.63% and 6.83%.

5 Total Return at Market Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of the reinvestment. Total returns for periods of less than one year are not annualized.

6 Ratios do not reflect the effect of dividend payments to preferred shareholders and any associated commission costs.

7 Computed on an annualized basis.

8 Ratios reflect reductions for dividend payments to preferred shareholders.

9 This expense decrease is reflected in both the expense and the net investment income ratios shown above.

10 On February 13, 2003, the Fund began offering Auction Market Preferred Shares.

See Notes which are an integral part of the Financial Statements

Federated Premier Municipal Income Fund - Portfolio of Investments Summary Tables

At May 31, 2005, the Fund's credit-quality ratings composition 1 was as follows:

S&P Long-Term Ratings as
Percentage of Total Investments 2

    Moody's Long-Term Ratings as
Percentage of Total Investments 2

AAA
   
38.9%
Aaa
   
42.3%
AA

1.5%
Aa

0.0%
A

5.8%
A

4.9%
BBB

20.0%
Baa

23.4%
BB

1.1%
Ba

0.0%
B

1.4%
B

1.0%
Not Rated by S&P

31.3%
Not Rated by Moody's

28.4%
   TOTAL

100.0%
   TOTAL

100.0%

At May 31, 2005, the Fund's top six sector exposures 3 were as follows:

Sector Composition
   
Percentage of
Total Investments

2
Insured

38.6
%
Hospital

17.6
%
Lifecare

9.0
%
Special Tax

8.1
%
Prerefunded

6.9
%
Education

4.4
%

1 These tables depict the long-term, credit-quality ratings assigned to the Fund's portfolio holdings by Standard & Poor's (S&P) and Moody's Investors Service (Moody's), each of which is a nationally recognized statistical rating organization (NRSRO). These credit-quality ratings are shown without regard to gradations within a given rating category. For example, securities rated "A-" have been included in the "A" rated category. Holdings that are rated only by a different NRSRO than the one identified have been included in the "Not rated by..." category. Rated securities that have been prerefunded, but not rated again by the NRSRO, also have been included in the "Not rated by..." category. Rated securities include a security with an obligor and/or credit enhancer that has received a rating from an NRSRO with respect to a class of debt obligations that is comparable in priority and security with the security held by the Fund. Credit-quality ratings are an assessment of the risk that a security will default in payment and do not address other risks presented by the security.

These tables depict the long-term, credit-quality ratings as assigned only by the NRSRO identified in each table. Of the portfolio's total investments, 20.1% do not have long-term ratings by either of these NRSROs.

2 Percentages are based on total investments, which may differ from the Fund's total net assets used in computing the percentages in the Portfolio of Investments which follows.

3 Sector classifications and the assignment of holdings to such sectors, are based upon the economic sector and/or revenue source of the underlying borrower, as determined by the Fund's adviser. For securities that have been enhanced by a third-party, such as a guarantor, sector classifications are based upon the economic sector and/or revenue source of the third party, as determined by the Fund's adviser. Securities that are insured by a bond insurer are assigned to the "Insured" sector. Prerefunded securities are those whose debt is paid from escrowed funds, usually U.S. government securities.

Portfolio of Investments - Federated Premier Municipal Income Fund

May 31, 2005 (unaudited)

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--99.9%   
Alabama--1.5%
$ 2,000,000 Jefferson County, AL Sewer System, Capital Improvement Warrants (Series 2002D), 5.25% (U.S. Treasury PRF 8/1/2012 @100), 2/1/2026

AAA/Aaa/AAA

$
2,241,860

Arizona--2.2%
500,000 Arizona Tourism & Sports Authority, Multipurpose Stadium Facilities Tax Revenue Bonds (Series A), 5.00% (MBIA Insurance Corp. INS), 7/1/2024
NR/Aaa/AAA 537,840
1,000,000 Arizona Tourism & Sports Authority, Multipurpose Stadium Facility Tax Revenue Bonds (Series A), 5.375% (MBIA Insurance Corp. INS), 7/1/2022
NR/Aaa/AAA 1,112,380
750,000 Tempe, AZ IDA, Senior Living Revenue Bonds (Series A), 6.75% (Friendship Village of Tempe), 12/1/2030
NR 771,457
750,000 Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.50%, 7/15/2027

NR


831,420

   TOTAL




3,253,097

Arkansas--0.8%
1,000,000 Arkansas Development Finance Authority, Hospital Revenue Bonds (Series 2000), 7.375% (Washington Regional Medical Center)/(Original Issue Yield: 7.50%), 2/1/2029

BBB/Baa2/BBB


1,138,420

California--5.3%
1,000,000 California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds (Series A), 5.375% (Original Issue Yield: 5.48%), 5/1/2022
BBB+/A2/A 1,093,420
2,000,000 California State, Refunding UT GO Bonds, 5.25%, 2/1/2020
A/A3/A- 2,201,960
1,000,000 California State, UT GO Bonds, 5.25%, 10/1/2020
A/A3/A- 1,103,090
250,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.75% (Original Issue Yield: 7.00%), 6/1/2039
BBB/Baa3/BBB 273,132
750,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Revenue Bonds (Series 2003A-2), 7.90%, 6/1/2042
BBB/Baa3/BBB 883,042
Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
California--continued
$ 500,000 La Verne, CA, Revenue Certificates of Participation (Series 2003B), 6.625% (Brethren Hillcrest Homes)/(Original Issue Yield: 6.70%), 2/15/2025
BBB-/NR/NR $ 554,970
1,500,000 Upland, CA Public Financing Authority, Water System Improvement Lease Revenue Bonds (Issue of 2003), 5.00% (AMBAC INS), 10/1/2027

AAA/Aaa/AAA


1,592,775

   TOTAL




7,702,389

Colorado--4.0%
725,000 Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00%, 12/1/2023
NR 733,395
1,000,000 Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023
NR 1,011,150
500,000 Colorado Educational & Cultural Facilities Authority, Revenue Refunding Bonds (Series A), 7.00% (Denver Academy)/(Original Issue Yield: 7.25%), 11/1/2023
BB+/NR/NR 539,305
1,000,000 Colorado Health Facilities Authority, Revenue Bonds (Series 2002A), 6.125% (Covenant Retirement Communities, Inc.)/(Original Issue Yield: 6.40%), 12/1/2033
BBB+/NR/BBB+ 1,095,260
250,000 Conservatory Metropolitan District, CO, LT GO Bonds, 6.75%, 12/1/2034
NR 256,905
500,000 Conservatory Metropolitan District, CO, LT GO Bonds, 7.55%, 12/1/2032
NR 543,620
1,000,000 Denver, CO Health & Hospital Authority, Revenue Bonds, 6.25% (Original Issue Yield: 6.28%), 12/1/2033
BBB/ Baa3/NR 1,105,970
500,000 Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.00% (Original Issue Yield: 7.05%), 12/1/2024

NR


552,390

   TOTAL




5,837,995

Connecticut--2.4%
1,250,000 Connecticut State Development Authority, First Mortgage Gross Revenue Health Care Project Bonds (Series 2003), 5.85% (Elim Park Baptist Home, Inc.)/(Original Issue Yield: 5.98%), 12/1/2033
BBB+/NR/NR 1,337,400
2,000,000 Connecticut State Transportation Infrastructure Authority, Transportation Infrastructure Special Tax Revenue Bonds (Series 2002B), 5.00% (AMBAC INS), 12/1/2022

AAA/Aaa/AAA


2,136,500

   TOTAL




3,473,900

District of Columbia--1.9%
2,500,000 District of Columbia Tobacco Settlement Financing Corp., Asset Backed Revenue Bonds, 6.50% (Original Issue Yield: 6.67%), 5/15/2033

BBB/Baa3/BBB


2,772,225

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Florida--7.2%
$ 600,000 Broward County, FL Educational Facilities Authority, Educational Facilities Revenue Bonds (Series 2004B), 5.60% (Nova Southeastern University)/(Original Issue Yield: 5.625%), 4/1/2029
BBB/Baa2/BBB+ $ 635,160
1,000,000 2 Capital Trust Agency, FL, Revenue Bonds (Series 2001), 10.00% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033
NR 1,112,190
400,000 2 Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033
NR 442,904
1,490,000 Citrus County, FL Hospital Board, Revenue Refunding Bonds, 6.375% (Citrus Memorial Hospital)/(Original Issue Yield: 6.50%), 8/15/2032
NR/Baa3/BBB 1,645,899
1,305,000 Harbor Bay, FL Community Development District, Special Assessment Revenue Bonds, 6.75%, 5/1/2034
NR 1,410,431
2,000,000 Jacksonville, FL Sales Tax, Revenue Bonds (Series 2003), 5.00% (MBIA Insurance Corp. INS), 10/1/2024
AAA/Aaa/AAA 2,152,640
400,000 Midtown Miami, FL Community Development District, Special Assessment Bonds (Series 2004A), 6.00%, 5/1/2024
NR 417,792
400,000 Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.25%, 5/1/2034
NR 423,456
1,000,000 South Lake County, FL Hospital District, Revenue Bonds, 6.625% (South Lake Hospital, Inc.), 10/1/2023
NR/Baa3/BBB- 1,117,860
1,075,000 Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series 2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033

NR


1,136,382

   TOTAL




10,494,714

Hawaii--1.1%
1,400,000 Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 8.00% (Kahala Nui)/(Original Issue Yield: 8.175%), 11/15/2033

NR


1,610,602

Illinois--4.0%
1,000,000 Antioch Village, IL Special Service Area No. 1, Special Tax Revenue Bonds, 6.625% (Deercrest Project), 3/1/2033
NR 1,026,210
2,500,000 Chicago, IL Sales Tax, Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 5.385%), 1/1/2028
AAA/Aaa/AAA 2,660,450
1,000,000 Chicago, IL Special Assessment, Improvement Revenue Bonds, 6.75% (Lakeshore East Project)/(Original Issue Yield: 6.769%), 12/1/2032
NR 1,043,780
1,000,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Series A), 5.70% (Augustana College)/(Original Issue Yield: 5.90%), 10/1/2032

NR/Baa1/NR


1,051,290

   TOTAL




5,781,730

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Kansas--2.2%
$ 3,000,000 Wichita, KS Water & Sewer Utility, Revenue Bonds (Series 2003), 5.00% (FGIC INS), 10/1/2021

AAA/Aaa/AAA

$
3,256,260

Kentucky--1.1%
1,500,000 Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.97%), 10/1/2028

NR/NR/BBB+


1,661,745

Massachusetts--3.0%
950,000 Commonwealth of Massachusetts, General Obligation Ltd, 5.25% (U.S. Treasury PRF 1/1/2013 @100), 1/1/2022
AAA/Aaa/AAA 1,058,860
2,000,000 Massachusetts Development Finance Agency, Revenue Bonds, 5.75% (Massachusetts College of Pharmacy & Allied Health Sciences), 7/1/2033
BBB/Baa1/NR 2,138,460
1,000,000 Massachusetts HEFA, Revenue Bonds (Series 2003E), 6.75% (Jordan Hospital)/(Original Issue Yield: 7.00%), 10/1/2033

BBB-/NR/NR


1,109,000

   TOTAL




4,306,320

Michigan--4.7%
2,000,000 Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco Corp.) (U.S. Treasury PRF 5/1/2012 @100), 5/1/2018
AAA/Baa2/NR 2,315,840
1,000,000 Detroit, MI Sewage Disposal System, Refunding Senior Lien Revenue Bonds (Series 2003A), 5.00% (FSA INS), 7/1/2024
AAA/Aaa/AAA 1,075,680
2,375,000 Melvindale-Northern Allen Park, MI School District, Building & Site LT GO Bonds, 5.00% (FSA INS), 5/1/2023
AAA/Aaa/AAA 2,532,320
900,000 West Bloomfield, MI School District, School Building & Site UT GO Bonds, 5.125% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.35%), 5/1/2021

AAA/Aaa/AAA


965,088

   TOTAL




6,888,928

Minnesota--0.7%
900,000 St. Paul, MN Port Authority, Hotel Facility Revenue Bonds (Series 2), 7.375% (Radisson Kellogg Project)/ (Original Issue Yield: 7.50%), 8/1/2029

NR


946,359

Mississippi--1.7%
2,000,000 Lowndes County, MS Solid Waste Disposal, Refunding PCR Bonds (Series 1992B), 6.70% (Weyerhaeuser Co.), 4/1/2022

BBB/Baa2/NR


2,440,980

Missouri--0.4%
500,000 Missouri Development Finance Board, Infrastructure Facilities Bonds (Series 2003A), 5.50% (Branson, MO)/(Original Issue Yield: 5.56%), 12/1/2032

BBB+/Baa1/NR


530,060

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Nevada--2.4%
$ 650,000 2 Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series 2004A), 7.00% (Las Ventanas Retirement Community)/(Original Issue Yield: 7.125%), 11/15/2034
NR $ 679,666
645,000 North Las Vegas, NV Special Improvement District No. 60, Local Improvement Special Assessment Bonds (Series 2002), 6.40% (Aliante), 12/1/2022
NR 665,801
2,000,000 Truckee Meadows, NV Water Authority, Water Revenue Bonds (Series 2001A), 5.00% (FSA INS)/(Original Issue Yield: 5.36%), 7/1/2025

AAA/Aaa/AAA


2,113,620

   TOTAL




3,459,087

New Hampshire--2.3%
3,000,000 Manchester, NH School Facilities, Revenue Bonds, 5.50% (U.S. Treasury PRF 6/1/2013 @ 100), 6/1/2028

AAA/Aaa/AAA


3,407,010

New Jersey--1.8%
500,000 New Jersey EDA, Revenue Bonds, (Series 2004), 5.75% (NJ Dedicated Cigarette Excise Tax)/(Original Issue Yield: 5.89%), 6/15/2029
BBB/Baa2/BBB 540,775
300,000 New Jersey EDA, Revenue Refunding Bonds (Series A), 5.80% (Winchester Gardens at Ward Homestead)/(Original Issue Yield: 5.82%), 11/1/2031
NR/NR/BBB- 316,935
600,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023
B+/NR/BB 600,738
1,000,000 New Jersey State Educational Facilities Authority, Revenue Bonds, Project C, 6.50% (Georgian Court College), 7/1/2033

BBB+/Baa1/NR


1,142,600

   TOTAL




2,601,048

New Mexico--0.6%
750,000 2 Jicarilla, NM Apache Nation, Revenue Bonds, 5.50%, 9/1/2023

NR/NR/AAA


811,478

New York--5.4%
750,000 Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.50% (St. Francis Hospital and Health Centers), 3/1/2029
NR 786,593
750,000 Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.25%), 7/1/2022
NR/Baa1/NR 788,378
3,000,000 Metropolitan Transportation Authority, NY, Service Contract Revenue Refunding Bonds, (Series A), 5.00% (FGIC INS)/(Original Issue Yield: 5.14%), 7/1/2022
AAA/Aaa/AAA 3,194,790
Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
New York--continued
$ 800,000 2 New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC), 3/1/2035
NR $ 823,496
2,000,000 New York State Dormitory Authority, Revenue Bonds (Series 2003A), 5.50% (Brooklyn Law School)/ (Radian Asset Assurance INS), 7/1/2019

AA/NR/NR


2,217,780

   TOTAL




7,811,037

North Carolina--3.5%
1,000,000 Appalachian State University, NC, Revenue Bonds, (Series 2003A), 5.125% (FGIC INS), 5/1/2021
NR/Aaa/AAA 1,093,400
1,000,000 Haywood County, NC Industrial Facilities & Pollution Control Financing Authority, Refunding Revenue Bonds, 6.00% (Champion International Corp.), 3/1/2020
NR/Baa2/NR 1,038,120
1,000,000 North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series 2003C), 5.375% (Original Issue Yield: 5.57%), 1/1/2017
BBB/Baa2/BBB+ 1,071,240
800,000 North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% (Arc of North Carolina Projects), 10/1/2034
NR/Baa1/NR 815,376
1,000,000 North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 2003A), 5.25% (MBIA Insurance Corp. INS), 1/1/2019

AAA/Aaa/AAA


1,094,040

   TOTAL




5,112,176

North Dakota--3.0%
2,000,000 Fargo, ND, Health System Revenue Bonds (Series 2000A), 5.60% (Meritcare Obligated Group)/(FSA INS)/ (Original Issue Yield: 5.70%), 6/1/2021
AAA/Aaa/NR 2,191,160
2,000,000 Ward County, ND Health Care Facility, Revenue Bonds (Series A), 6.25% (Trinity Obligated Group, ND)/(Original Issue Yield: 6.375%), 7/1/2026

BBB+/NR/NR


2,107,900

   TOTAL




4,299,060

Ohio--0.7%
1,000,000 Ohio State Air Quality Development Authority, PCR Refunding Bonds (Series 2002A), 6.00% (Cleveland Electric Illuminating Co.), 12/1/2013

BB+/Baa3/BBB-


1,045,980

Pennsylvania--3.2%
1,165,000 Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny Health System)/(Original Issue Yield: 9.70%), 11/15/2030
B/B1/B+ 1,406,598
200,000 Allegheny County, PA HDA, Revenue Bonds, (Series A), 8.75% (Covenant at South Hills)/(Original Issue Yield: 8.80%), 2/1/2031
NR 130,612
Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Pennsylvania--continued
$ 1,295,000 Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(Original Issue Yield: 7.50%), 1/1/2035
NR $ 1,406,253
500,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, (Series A), 6.00% (UPMC Health System)/(Original Issue Yield: 6.16%), 1/15/2031
A+/NR/A 555,880
1,000,000 Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Bonds (Series 2003A), 5.25% (MBIA Insurance Corp. INS), 12/1/2023

AAA/Aaa/AAA


1,108,320

   TOTAL




4,607,663

South Carolina--5.5%
1,000,000 Clemson University, SC, University Revenue Bonds, 5.00% (XL Capital Assurance Inc. INS), 5/1/2023
AAA/Aaa/AAA 1,067,000
1,940,000 Myrtle Beach, SC, Hospitality Fee Revenue Bonds (Series2004A), 5.375% (FGIC INS), 6/1/2023
AAA/Aaa/NR 2,150,005
2,500,000 South Carolina Jobs-EDA, Health System Revenue Bonds (Series A), 5.625% (Bon Secours Health System)/(Original Issue Yield: 5.84%), 11/15/2030
A-/A3/A- 2,661,100
2,000,000 South Carolina State Public Service Authority, Refunding Revenue Bonds (Series 2002D), 5.00% (Santee Cooper)/(FSA INS), 1/1/2020

AAA/Aaa/AAA


2,163,620

   TOTAL




8,041,725

South Dakota--1.3%
1,750,000 South Dakota State Health & Educational Authority, Revenue Bonds, 5.65% (Westhills Village Retirement Community)/(Original Issue Yield: 5.75%), 9/1/2023

A-/NR/NR


1,861,125

Tennessee--3.9%
2,000,000 Johnson City, TN Health & Education Facilities Board, Hospital Revenue Refunding Bonds (Series A), 7.50% (Mountain States Health Alliance), 7/1/2025
BBB+/ Baa2/BBB- 2,410,960
1,535,000 Knox County, TN Health Education & Housing Facilities Board, Refunding Improvement Revenue Bonds (Series 2003B), 5.75% (East Tennessee Children's Hospital)/(Original Issue Yield: 5.90%), 7/1/2033
BBB+/Baa1/NR 1,646,027
1,500,000 Knox County, TN Health Education & Housing Facilities Board, Revenue Bonds, 6.375% (Baptist Health System of East Tennessee)/(Original Issue Yield: 6.50%), 4/15/2022

NR/Baa3/NR


1,590,195

   TOTAL




5,647,182

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Texas--9.7%
$ 600,000 Abilene, TX Health Facilities Development Corp., Retirement Facilities Revenue Bonds (Series 2003A), 7.00% (Sears Methodist Retirement)/(Original Issue Yield: 7.25%), 11/15/2033
NR $ 645,432
700,000 Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.125% (Wise Regional Health System), 9/1/2034
NR 760,578
2,500,000 Houston, TX Combined Utility System, First Lien Revenue Refunding Bonds (Series 2004A), 5.25% (FGIC INS), 5/15/2023
AAA/Aaa/AAA 2,728,325
200,000 Matagorda County, TX Navigation District Number One, Collateralized Refunding Revenue Bonds, 5.60% (Centerpoint Energy Houston Electric), 3/1/2027
BBB/Baa2/BBB 209,658
4,000,000 North Central Texas HFDC, Hospital Revenue Refunding Bonds (Series 2002), 5.25% (Children's Medical Center of Dallas)/(AMBAC INS)/(Original Issue Yield: 5.35%), 8/15/2022
AAA/Aaa/AAA 4,324,480
1,350,000 North Central Texas HFDC, Retirement Facility Revenue Bonds (Series 1999), 7.50% (Northwest Senior Housing Corp. Edgemere Project)/ (Original Issue Yield: 7.75%), 11/15/2029
NR 1,463,738
1,050,000 Sabine River Authority, TX, PCR Refunding Bonds (Series 2003B), 6.15% (TXU Energy), 8/1/2022
BBB/Baa2/BBB 1,158,024
335,000 Sabine River Authority, TX, Refunding PCR Bonds (Series 2003A), 5.80% (TXU Energy), 7/1/2022
BBB/Baa2/NR 361,013
1,300,000 Texas State University System, Refunding Revenue Bonds, 5.00% (FSA INS), 3/15/2020
AAA/Aaa/AAA 1,382,901
1,000,000 Tyler, TX Health Facilities Development Corp., Hospital Revenue Bonds, 5.75% (Mother Frances Hospital)/(Original Issue Yield: 5.84%), 7/1/2027

NR/Baa1/BBB+


1,066,090

   TOTAL




14,100,239

Virginia--3.5%
1,000,000 Broad Street Community Development Authority, VA, Revenue Bonds, 7.50% (Original Issue Yield: 7.625%), 6/1/2033
NR 1,052,050
1,280,000 Hampton, VA Convention Center, Revenue Bonds, 5.125% (AMBAC INS), 1/15/2028
AAA/Aaa/AAA 1,359,834
1,400,000 Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% (Virginia Baptist Homes Obligated Group)/ (Original Issue Yield: 7.625%), 12/1/2032
NR 1,538,838
1,000,000 Virginia Peninsula Port Authority, Coal Terminal Revenue Refunding Bonds (Series 2003), 6.00% (Brinks Co. (The)), 4/1/2033

BBB/Baa3/NR


1,086,250

   TOTAL




5,036,972

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Washington--5.1%
$ 1,000,000 Everett, WA, LT GO Refunding Bonds, 5.00% (MBIA Insurance Corp. INS), 12/1/2020
NR/Aaa/AAA $ 1,069,590
1,910,000 King County, WA Public Hospital District No. 1, Refunding LT GO Bonds, 5.00% (FSA INS)/ (Original Issue Yield: 5.17%), 12/1/2021
AAA/Aaa/AAA 2,037,512
2,000,000 Washington State, UT GO Bonds (Series 2002B), 5.00% (FSA INS)/(Original Issue Yield: 5.05%), 1/1/2021
AAA/Aaa/AAA 2,119,440
2,000,000 Washington State, Various Purpose UT GO Bonds (Series 2002A), 5.00% (FSA INS)/(Original Issue Yield: 5.09%), 7/1/2022

AAA/Aaa/AAA


2,125,840

   TOTAL




7,352,382

Wisconsin--3.8%
3,000,000 Wisconsin State HEFA, Health Facilities Revenue Bonds (Series A), 5.25% (Ministry Health Care)/ (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.38%), 2/15/2032
AAA/Aaa/AAA 3,201,060
160,000 Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.75% (Blood Center of Southeastern Wisconsin, Inc.)/(Original Issue Yield: 5.82%), 6/1/2034
BBB+/NR/NR 171,632
500,000 Wisconsin State HEFA, Revenue Bonds, 6.50% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.75%), 7/1/2023
NR 521,320
500,000 Wisconsin State HEFA, Revenue Bonds, 6.625% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.875%), 7/1/2028
NR 518,295
1,000,000 Wisconsin State HEFA, Revenue Bonds, 7.25% (Community Memorial Hospital)/(Original Issue Yield: 7.45%), 1/15/2033

NR


1,054,070

   TOTAL




5,466,377

   TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $134,992,390)





144,998,125

Principal
Amount

   


   
Credit
Rating


1


Value

SHORT-TERM MUNICIPALS--0.1%
Tennessee--0.1%
$ 200,000 Sevier County, TN Public Building Authority, (Series IV-E-3) Daily VRDNs (Union City, TN)/(AMBAC INS)/(J.P. Morgan Chase Bank, N.A. LIQ) (AT AMORTIZED COST)

NR/VMIG1/NR

$
200,000

   TOTAL INVESTMENTS--100%
(IDENTIFIED COST $135,192,390) 3





145,198,125

   OTHER ASSETS AND LIABILITIES--NET




1,839,361

   LIQUIDATION VALUE OF AUCTION PREFERRED SHARES




(53,675,000
)
   TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS



$
93,362,486

At May 31, 2005, the Fund holds no securities that are subject to the federal alternative minimum tax (AMT).

1 Current credit ratings provided by Standard & Poor's, Moody's Investors Service, and Fitch Ratings, respectively.

2 Denotes a restricted security, including securities purchased under Rule 144A of the Securities Act of 1933. These securities, all of which have been deemed liquid by criteria approved by the Fund's Board of Trustees, unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. At May 31, 2005, these securities amounted to $3,869,734 which represents 2.7% of total market value.

3 The cost of investments for federal tax purposes amounts to $135,192,079.

Note: The categories of investments are shown as a percentage of total market value at May 31, 2005.

The following acronyms are used throughout this portfolio:

AMBAC --American Municipal Bond Assurance Corporation
EDA --Economic Development Authority
EDFA --Economic Development Financing Authority
FGIC --Financial Guaranty Insurance Company
FSA --Financial Securities Assurance
GO --General Obligation
HDA --Hospital Development Authority
HEFA --Health and Education Facilities Authority
HFDC --Health Facility Development Corporation
IDA --Industrial Development Authority
INS --Insured
LIQ --Liquidity Agreement
LT --Limited Tax
PCR --Pollution Control Revenue
PRF --Prerefunded
UT --Unlimited Tax
VRDNs --Variable Rate Demand Notes

See Notes which are an integral part of the Financial Statements

Federated Premier Intermediate Municipal Income Fund - Portfolio of Investments Summary Tables

At May 31, 2005, the Fund's credit-quality ratings composition 1 was as follows:

S&P Long-Term Ratings as
Percentage of Total Investments 2

    Moody's Long-Term Ratings as
Percentage of Total Investments 2

AAA
   
38.1%
Aaa
   
41.0%
AA

3.1%
Aa

1.4%
A

7.4%
A

8.9%
BBB

16.3%
Baa

18.0%
BB

2.8%
Ba

1.4%
B

1.6%
B

1.1%
Not Rated by S&P

30.7%
Not Rated by Moody's

28.2%
   TOTAL

100.0%
   TOTAL

100.0%

At May 31, 2005, the Fund's top six sector exposures 3 were as follows:

Sector Composition
   
Percentage of
Total Investments

2
Insured

42.1
%
Hospital

14.1
%
Special Tax

8.3
%
Lifecare

8.0
%
Electric and Gas

6.5
%
General Obligation

5.1
%

1 These tables depict the long-term, credit-quality ratings assigned to the Fund's portfolio holdings by Standard & Poor's (S&P) and Moody's Investors Service (Moody's), each of which is a nationally recognized statistical rating organization (NRSRO). These credit-quality ratings are shown without regard to gradations within a given rating category. For example, securities rated "A-" have been included in the "A" rated category. Holdings that are rated only by a different NRSRO than the one identified have been included in the "Not rated by..." category. Rated securities that have been prerefunded, but not rated again by the NRSRO, also have been included in the "Not rated by..." category. Rated securities include a security with an obligor and/or credit enhancer that has received a rating from an NRSRO with respect to a class of debt obligations that is comparable in priority and security with the security held by the Fund. Credit-quality ratings are an assessment of the risk that a security will default in payment and do not address other risks presented by the security.

These tables depict the long-term, credit-quality ratings as assigned only by the NRSRO identified in each table. Of the portfolio's total investments, 19.7% do not have long-term ratings by either of these NRSROs.

2 Percentages are based on total investments, which may differ from the Fund's total net assets used in computing the percentages in the Portfolio of Investments which follows.

3 Sector classifications and the assignment of holdings to such sectors, are based upon the economic sector and/or revenue source of the underlying borrower, as determined by the Fund's adviser. For securities that have been enhanced by a third-party, such as a guarantor, sector classifications are based upon the economic sector and/or revenue source of the third party, as determined by the Fund's adviser. Securities that are insured by a bond insurer are assigned to the "Insured" sector.

Portfolio of Investments - Federated Premier Intermediate Municipal Income Fund

May 31, 2005 (unaudited)

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--99.3%   
Alabama--0.9%
$ 1,290,000 Fairfield, AL IDA, Environmental Improvement Revenue Bonds (Series 1995), 5.40% TOBs (Marathon Oil Corp.), Mandatory Tender 11/1/2011, maturity 11/1/2016

BBB+/Baa1/NR

$
1,409,351

Alaska--2.6%
3,815,000 Alaska State Housing Finance Corp., State Capitalization Project Revenue Bonds, (Series A), 5.00% (MBIA Insurance Corp. INS), 7/1/2011

AAA/Aaa/AAA


4,162,012

Arizona--1.7%
1,000,000 Arizona Tourism & Sports Authority, Multipurpose Stadium Facility Tax Revenue Bonds (Series A), 5.00% (MBIA Insurance Corp. INS), 7/1/2010
NR/Aaa/AAA 1,088,450
1,500,000 Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.15%, 7/15/2017

NR


1,657,185

   TOTAL




2,745,635

Arkansas--1.3%
1,000,000 Arkansas Development Finance Authority, Revenue Bonds, 7.25% (Washington Regional Medical Center)/(Original Issue Yield: 7.40%), 2/1/2020
BBB/Baa2/BBB 1,125,930
1,000,000 Independence County, AR, PCR Refunding Bonds (Series 2005), 5.00% (Entergy Arkansas, Inc.), 1/1/2021

A-/Baa1/BBB+


1,019,500

   TOTAL




2,145,430

California--8.9%
1,250,000 California Educational Facilities Authority, Revenue Bonds (Series 2000A), 6.75% (Fresno Pacific University), 3/1/2019
NR/Baa3/NR 1,382,475
570,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds (Series 2004I), 4.95% TOBs (Catholic Healthcare West), Mandatory Tender 7/1/2014, maturity 7/1/2026
A-/Baa1/A- 604,861
4,000,000 California State, Refunding UT GO Bonds, 5.25%, 2/1/2014
A/A3/A- 4,436,280
2,000,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.25% (Original Issue Yield: 6.55%), 6/1/2033
BBB/Baa3/BBB 2,120,580
2,000,000 Oakland, CA Redevelopment Agency, Tax Allocation Bonds, 5.00% (FGIC INS), 9/1/2010
AAA/Aaa/AAA 2,182,820
Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
California--continued
$ 1,855,000 San Francisco, CA City & County Airport Commission, Revenue Refunding Bonds (Second Series-Issue 29B), 5.00% (FGIC INS), 5/1/2012
AAA/Aaa/AAA $ 2,045,175
1,500,000 San Francisco, CA City & County Airport Commission, Revenue Refunding Bonds (Second Series-Issue 29B), 5.25% (FGIC INS), 5/1/2013

AAA/Aaa/AAA


1,685,055

   TOTAL




14,457,246

Colorado--4.1%
725,000 Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00%, 12/1/2023
NR 733,395
200,000 Beacon Point, CO Metropolitan District, Revenue Bonds (Series 2005B), 4.375% (Compass Bank, Birmingham LOC)/(Original Issue Yield: 4.50%), 12/1/2015
A-/NR/NR 201,088
500,000 Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023
NR 505,575
500,000 Colorado Educational & Cultural Facilities Authority, Revenue Refunding Bonds (Series A), 6.25% (Denver Academy)/(Original Issue Yield: 6.50%), 11/1/2013
BB+/NR/ NR 536,625
865,000 Conservatory Metropolitan District, CO, LT GO Bonds, 7.40%, 12/1/2016
NR 956,102
1,855,000 Denver, CO City & County Airport Authority, Airport Revenue Bonds, (Series E), 6.00% (MBIA Insurance Corp. INS), 11/15/2011
AAA/Aaa/AAA 2,126,980
700,000 High Plains, CO Metropolitan District, Revenue Bonds, (Series 2005A), 6.125% (Original Issue Yield: 6.25%), 12/1/2025
NR 706,475
300,000 High Plains, CO Metropolitan District, Revenue Bonds (Series 2005B), 4.375% (Compass Bank, Birmingham LOC)/(Original Issue Yield: 4.50%), 12/1/2015
A-/NR/NR 301,632
500,000 Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.00% (Original Issue Yield: 7.05%), 12/1/2024

NR


552,390

   TOTAL




6,620,262

Connecticut--0.5%
750,000 Connecticut State Development Authority, First Mortgage Gross Revenue Health Care Project Bonds (Series 2003), 5.75% (Elim Park Baptist Home, Inc.)/(Original Issue Yield: 5.90%), 12/1/2023

BBB+/NR/NR


802,222

District of Columbia--1.3%
2,000,000 District of Columbia, Refunding UT GO (Series 2002C), 5.25% (XL Capital Assurance Inc. INS), 6/1/2010

AAA/Aaa/AAA


2,182,260

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Florida--4.9%
$ 1,000,000 2 Capital Trust Agency, FL, Revenue Bonds (Series 2001), 10.00% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033
NR $ 1,112,190
600,000 2 Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033
NR 664,356
800,000 Fishhawk Community Development District II, Special Assessment Revenue Bonds (Series 2004B), 5.125% (Original Issue Yield: 5.20%), 11/1/2009
NR 813,672
715,000 Gateway Services, FL Community Development District, Special Assessment Bonds (Series 2003B), 5.50% (Original Issue Yield: 5.65%), 5/1/2010
NR 729,629
870,000 Heritage Harbour South Community Development District, FL, Capital Improvement Revenue Bonds (Series 2002B), 5.40% (Original Issue Yield: 5.50%), 11/1/2008
NR 882,893
750,000 Miami Beach, FL Health Facilities Authority, Hospital Revenue Bonds (Series 2001A), 6.70% (Mt. Sinai Medical Center, FL)/(Original Issue Yield: 6.80%), 11/15/2019
BB+/Ba2/BB+ 823,823
485,000 Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.00%, 5/1/2020
NR 500,884
1,960,000 Palm Beach County, FL Health Facilities Authority, Revenue Bonds, 5.625% (Adult Communities Total Services, Inc.)/(Original Issue Yield: 5.889%), 11/15/2020
BBB+/NR/BBB+ 2,027,287
380,000 Plantation, FL, Refunding & Improvement Projects Revenue Bonds, 5.00% (FSA INS), 8/15/2020

NR/Aaa/AAA


413,261

   TOTAL




7,967,995

Georgia--1.9%
750,000 Fulton County, GA Residential Care Facilities, Revenue Bonds (Series 2004A), 6.00% (Canterbury Court), 2/15/2022
NR 760,087
2,115,000 Municipal Electric Authority of Georgia, Revenue Bonds (Series 2002A), 5.25% (MBIA Insurance Corp. INS), 11/1/2015

AAA/Aaa/AAA


2,349,765

   TOTAL




3,109,852

Hawaii--1.0%
1,550,000 Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 7.00% (Kahala Nui)/(Original Issue Yield: 7.00%), 11/15/2012

NR


1,695,638

Illinois--3.2%
1,000,000 Chicago, IL Board of Education, UT GO Bonds (Series 2003A), 5.25% (MBIA Insurance Corp. INS), 12/1/2012
AAA/Aaa/AAA 1,118,200
1,790,000 Chicago, IL O'Hare International Airport, Second Lien Passenger Facilities Revenue Bonds (Series B), 5.50% (AMBAC INS), 1/1/2015
AAA/Aaa/AAA 1,974,764
Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Illinois--continued
$ 1,000,000 Chicago, IL Special Assessment, Improvement Bonds (Series 2002), 6.626% (Lakeshore East Project)/(Original Issue Yield: 6.637%), 12/1/2022
NR $ 1,045,500
1,000,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Series A), 5.00% (Augustana College)/(Original Issue Yield: 5.05%), 10/1/2014

NR/Baa1/NR


1,053,540

   TOTAL




5,192,004

Indiana--0.7%
1,000,000 Indiana Health Facility Financing Authority, Revenue Bonds (Series 2005), 5.50% (Ascension Health Credit Group), 11/15/2009

AA/Aa2/AA


1,087,640

Iowa--0.3%
500,000 Scott County, IA, Revenue Refunding Bonds (Series 2004), 5.625% (Ridgecrest Village), 11/15/2018

NR/NR/BBB


524,690

Kansas--1.4%
2,000,000 Wichita, KS Water & Sewer Utility, Revenue Bonds (Series 2003), 5.00% (FGIC INS), 10/1/2011

AAA/Aaa/AAA


2,202,400

Kentucky--1.4%
2,000,000 Kentucky EDFA, Revenue Bonds (Series A), 6.25% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.45%), 10/1/2012

NR/NR/BBB+


2,200,620

Louisiana--3.1%
1,535,000 Louisiana Local Government Environmental Facilities Community Development Authority, Revenue Bonds, 5.375% (BRCC Facilities Corp.)/(MBIA Insurance Corp. INS), 12/1/2014
AAA/Aaa/AAA 1,726,645
1,630,000 Louisiana Local Government Environmental Facilities Community Development Authority, Revenue Bonds, 5.375% (BRCC Facilities Corp.)/(MBIA Insurance Corp. INS), 12/1/2015
AAA/Aaa/AAA 1,823,807
1,500,000 West Feliciana Parish, LA, PCR Bonds, 7.00% (Entergy Gulf States, Inc.), 11/1/2015

BBB-/Ba1/NR


1,528,575

   TOTAL




5,079,027

Massachusetts--3.1%
2,500,000 Commonwealth of Massachusetts, LT GO Bonds (Series C), 5.50% (FSA INS), 11/1/2010
AAA/Aaa/AAA 2,785,775
2,105,000 Massachusetts Municipal Wholesale Electric Co., Power Supply System Revenue Bonds (Nuclear Project 3-A), 5.00% (MBIA Insurance Corp. INS), 7/1/2011

AAA/Aaa/AAA


2,300,112

   TOTAL




5,085,887

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Michigan--4.6%
$ 2,000,000 Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco Corp.)/ (United States Treasury PRF 5/1/2012 @100), 5/1/2018
AAA/Baa2/NR $ 2,315,840
500,000 Gaylord, MI Hospital Finance Authority, Hospital Revenue Refunding Bonds (Series 2004), 6.20% (Otsego Memorial Hospital Obligated Group)/ (Original Issue Yield: 6.45%), 1/1/2025
NR 507,615
1,000,000 Grand Rapids & Kent County, MI Joint Building Authority, Revenue Bonds, 5.25%, 12/1/2011
AAA/Aaa/NR 1,112,810
250,000 Kent Hospital Finance Authority, MI, Revenue Bonds (Series 2005A), 5.50% (Metropolitan Hospital), 7/1/2020
BBB/NR/NR 267,667
2,000,000 Michigan Municipal Bond Authority, Revenue Bonds (Series 2005B), 5.00% (Detroit, MI City School District)/(FSA INS), 6/1/2010
AAA/NR/AAA 2,169,940
1,000,000 Michigan State Hospital Finance Authority, Hospital Refunding Revenue Bonds (Series 2003A), 5.625% (Henry Ford Health System, MI), 3/1/2017

A-/A1/NR


1,090,950

   TOTAL




7,464,822

Mississippi--1.8%
1,500,000 Lowndes County, MS Solid Waste Disposal, Refunding PCR Bonds (Series 1992B), 6.70% (Weyerhaeuser Co.), 4/1/2022
BBB/Baa2/NR 1,830,735
1,000,000 Mississippi Hospital Equipment & Facilities Authority, Refunding & Improvement Revenue Bonds, 5.75% (Southwest Mississippi Regional Medical Center)/(Original Issue Yield: 5.85%), 4/1/2023

BBB+/NR/NR


1,067,300

   TOTAL




2,898,035

Missouri--2.3%
1,450,000 St. Louis, MO, Airport Revenue Bonds (Series A), 5.25% (MBIA Insurance Corp. INS), 7/1/2009
AAA/Aaa/AAA 1,560,302
1,060,000 St. Louis, MO, Airport Revenue Bonds (Series A), 5.25% (MBIA Insurance Corp. INS), 7/1/2010
AAA/Aaa/AAA 1,154,679
910,000 St. Louis, MO, Airport Revenue Bonds (Series A), 5.25% (MBIA Insurance Corp. INS), 7/1/2011

AAA/Aaa/AAA


1,000,472

   TOTAL




3,715,453

Nevada--3.1%
2,000,000 Clark County, NV, IDRBs (Series 2003C), 5.45% TOBs (Southwest Gas Corp.), Mandatory Tender 3/1/2013, maturity 3/1/2038
BBB-/Baa2/NR 2,134,460
800,000 2 Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series 2004B), 6.75% (Las Ventanas Retirement Community)/(Original Issue Yield: 6.875%), 11/15/2023
NR 841,608
Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Nevada--continued
$ 1,000,000 Las Vegas, NV Special Improvement District No. 607, Local Improvement Special Assessment Bonds (Series 2004), 5.50%, 6/1/2013
NR $ 1,035,220
990,000 North Las Vegas, NV Special Improvement District No. 60, Local Improvement Special Assessment Bonds (Series 2002), 6.40% (Aliante), 12/1/2022

NR


1,021,928

   TOTAL




5,033,216

New Jersey--1.7%
600,000 New Jersey EDA, Revenue Refunding Bonds (Series A), 5.75% (Winchester Gardens at Ward Homestead)/(Original Issue Yield: 5.75%), 11/1/2024
NR/NR/BBB- 640,644
1,000,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.00% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.25%), 7/1/2013
B+/NR/BB 957,380
1,000,000 Passaic Valley, NJ Sewer Authority, Sewer System Revenue Bonds (Series F), 5.00% (FGIC INS), 12/1/2011

NR/Aaa/AAA


1,103,210

   TOTAL




2,701,234

New Mexico--0.8%
1,300,000 Farmington, NM, Refunding Revenue Bonds (Series 2002A), 6.375% TOBs (El Paso Electric Co.), Mandatory Tender 8/1/2005, maturity 6/1/2032

BBB/Baa3/NR


1,306,890

New York--10.8%
380,000 Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.25% (St. Francis Hospital and Health Centers), 3/1/2019
NR 397,108
2,000,000 Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.15%), 7/1/2020
NR/Baa1/NR 2,103,740
4,000,000 Metropolitan Transportation Authority, NY, Refunding Transportation Revenue Bonds (Series 2002F), 5.00% (MBIA Insurance Corp. INS), 11/15/2011
AAA/Aaa/AAA 4,409,040
800,000 2 New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.25% (7 World Trade Center LLC), 3/1/2015
NR 823,560
500,000 New York City, NY, UT GO Bonds, (Series 2001F), 5.25%, 8/1/2011
A+/A1/A+ 549,295
2,000,000 New York City, NY, UT GO Bonds, (Series D), 5.00% (Original Issue Yield: 5.21%), 6/1/2017
A+/A1/A+ 2,121,680
2,360,000 New York State Dormitory Authority, Insured Revenue Bonds (Series 2001A), 5.00% (NYSARC, Inc.)/ (FSA INS), 7/1/2010
AAA/Aaa/AAA 2,569,898
1,490,000 New York State Dormitory Authority, Revenue Bonds (Series 2003A), 5.25% (Brooklyn Law School)/ (Radian Asset Assurance INS), 7/1/2009
AA/NR/NR 1,609,275
Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
New York--continued
$ 1,595,000 New York State Urban Development Corp., Correctional & Youth Facilities Service Contract Bonds (Series 2002C), 4.00% (New York State)/(XL Capital Assurance, Inc. INS), 1/1/2010
AAA/Aaa/AAA $ 1,650,681
1,225,000 Unadilla, NY Central School District No. 2, UT GO Bonds, 4.50% (FGIC INS), 6/15/2011

AAA/Aaa/AAA


1,309,525

   TOTAL




17,543,802

North Carolina--3.7%
1,000,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds (Series D), 5.50%, 1/1/2014
BBB/Baa2/BBB+ 1,105,360
500,000 North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Refunding Bonds (Series 2004A), 5.00% (Deerfield Episcopal Retirement Community), 11/1/2023
NR/NR/A 518,030
965,000 North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.50% (Arc of North Carolina Projects), 10/1/2024
NR/Baa1/NR 979,359
3,000,000 North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 2003A), 5.50%, 1/1/2014

BBB+/A3/A


3,327,960

   TOTAL




5,930,709

Ohio--2.1%
3,000,000 Ohio State Air Quality Development Authority, PCR Refunding Bonds (Series 2002A), 6.00% (Cleveland Electric Illuminating Co.), 12/1/2013
BB+/Baa3/BBB 3,137,940
250,000 2 Port of Greater Cincinnati, OH Development Authority, Special Assessment Revenue Bonds, 6.30% (Cincinnati Mills), 2/15/2024

NR


269,248

   TOTAL




3,407,188

Oregon--0.6%
1,000,000 Yamhill County, OR Hospital Authority, Revenue Bonds, 6.50% (Friendsview Retirement Community), 12/1/2018

NR


1,031,430

Pennsylvania--8.2%
1,400,000 Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny Health System)/(Original Issue Yield: 9.30%), 11/15/2015
B/B1/B+ 1,699,446
400,000 Crawford County, PA Hospital Authority, Senior Living Facilities Revenue Bonds (Series 1999), 6.125% (Wesbury United Methodist Community Obligated Group)/ (Original Issue Yield: 6.32%), 8/15/2019
NR/NR /BB 414,108
281,000 Crawford County, PA Hospital Authority, Senior Living Facilities Revenue Bonds, 5.90% (Wesbury United Methodist Community Obligated Group), 8/15/2009
NR/NR/BB 285,277
Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Pennsylvania--continued
$ 750,000 Cumberland County, PA Municipal Authority, Revenue Bonds (Series 2002A), 6.00% (Wesley Affiliated Services, Inc. Obligated Group), 1/1/2013
NR $ 767,198
1,500,000 Pennsylvania State Higher Education Facilities Authority, Health System Revenue Bonds (Series A), 6.25% (UPMC Health System), 1/15/2018
A+/NR/A 1,696,125
3,975,000 Pennsylvania State IDA, EDRBs, 5.25% (AMBAC INS), 7/1/2011
AAA/Aaa/AAA 4,402,432
1,300,000 Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Bonds (Series 2003A), 5.00% (MBIA Insurance Corp. INS), 12/1/2010
AAA/Aaa/AAA 1,421,953
1,000,000 Philadelphia, PA Water & Wastewater System, Refunding Revenue Bonds, 5.25% (AMBAC INS), 12/15/2011
AAA/Aaa/AAA 1,113,770
1,460,000 State Public School Building Authority, PA, Revenue Bonds, 5.25% (MBIA Insurance Corp. INS), 9/1/2008

AAA/Aaa/AAA


1,517,261

   TOTAL




13,317,570

South Carolina--0.7%
1,000,000 Georgetown County, SC Environmental Improvements, Refunding Revenue Bonds (Series 2000A), 5.95% (International Paper Co.), 3/15/2014

BBB/Baa2/NR


1,130,960

Texas--5.2%
1,000,000 Abilene, TX HFDC, Retirement Facilities Revenue Bonds (Series 2003A), 6.50% (Sears Methodist Retirement), 11/15/2020
NR 1,025,050
1,000,000 Brazos River Authority, TX, PCR Refunding Bonds (Series 2003D), 5.40% TOBs (TXU Energy), Mandatory Tender 10/1/2014, maturity 10/1/2029
BBB/Baa2/BBB 1,072,640
1,000,000 Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 6.50% (Wise Regional Health System), 9/1/2014
NR 1,082,190
1,500,000 Houston, TX Airport System, Subordinated Lien Revenue Bonds, 5.25% (FSA INS), 7/1/2012
AAA/Aaa/AAA 1,667,850
500,000 Houston, TX HFDC, Retirement Facilities Revenue Bonds (Series 2004A), 6.25% (Buckingham Senior Living Community), 2/15/2020
NR 508,850
1,475,000 Houston, TX Hotel Occupancy Tax, Convention & Entertainment Special Revenue Bonds (Series 2001B), 5.375% (AMBAC INS), 9/1/2013
AAA/Aaa/AAA 1,638,755
250,000 Sabine River Authority, TX, Refunding PCR Bonds (Series 2003A), 5.80% (TXU Energy), 7/1/2022
BBB/Baa2/NR 269,413
1,000,000 Tyler, TX Health Facilities Development Corp., Hospital Revenue Bonds, 5.25% (Mother Frances Hospital), 7/1/2012

NR/Baa1/BBB+


1,080,250

   TOTAL




8,344,998

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Virginia--3.6%
$ 839,000 Bell Creek CDA, VA, Special Assessment Revenue Bonds (Series 2003), 6.75%, 3/1/2022
NR $ 861,158
1,000,000 Broad Street Community Development Authority, VA, Revenue Bonds, 7.10% (Original Issue Yield: 7.15%), 6/1/2016
NR 1,034,190
2,600,000 Chesapeake, VA Hospital Authority, Refunding Revenue Bonds (Series 2004A), 5.25% (Chesapeake General Hospital), 7/1/2011
NR/A3/NR 2,810,288
1,000,000 Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% (Virginia Baptist Homes Obligated Group)/(Original Issue Yield: 7.50%), 12/1/2023

NR


1,114,530

   TOTAL




5,820,166

Washington--5.4%
500,000 Skagit County, WA Public Hospital District No. 1, Refunding Revenue Bonds, 6.00% (Skagit Valley Hospital), 12/1/2018
NR/Baa3/NR 547,540
1,005,000 Snohomish County, WA Public Utility District No. 001, Refunding Generation System Revenue Bonds (Series 2002B), 5.25% (FSA INS), 12/1/2012
AAA/Aaa/AAA 1,123,791
1,000,000 Spokane, WA, Refunding LT GO Bonds, 5.00% (FGIC INS), 6/1/2011
AAA/Aaa/AAA 1,093,160
1,420,000 Tobacco Settlement Authority, WA, Tobacco Settlement Asset Backed Revenue Bonds, 6.50% (Original Issue Yield: 6.65%), 6/1/2026
BBB/Baa3/NR 1,508,551
1,000,000 Washington State Public Power Supply System, Nuclear Project No, 2 Revenue Refunding Bonds (Series 1992A), 6.30% (Energy Northwest, WA)/(Original Issue Yield: 6.40%), 7/1/2012
AA-/Aaa/AA 1,175,790
1,435,000 Yakima County, WA, LT GO Bonds (2002), 5.00% (AMBAC INS), 12/1/2010
NR/Aaa/AAA 1,564,322
1,495,000 Yakima County, WA, LT GO Bonds (2002), 5.25% (AMBAC INS), 12/1/2011

NR/Aaa/AAA


1,661,797

   TOTAL




8,674,951

Principal
Amount

   


   
Credit
Rating


1


Value

MUNICIPAL BONDS--continued   
Wisconsin--2.4%
$ 200,000 Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.50% (Blood Center of Southeastern Wisconsin, Inc.)/(Original Issue Yield: 5.583%), 6/1/2024
BBB+/NR/NR $ 212,310
500,000 Wisconsin State HEFA, Revenue Bonds (Series 2004A), 6.125% (Southwest Health Center)/(Original Issue Yield: 6.15%), 4/1/2024
NR 505,895
2,000,000 Wisconsin State HEFA, Revenue Bonds, 5.75% (SynergyHealth, Inc.), 11/15/2015
BBB+/NR/A 2,177,560
970,000 Wisconsin State HEFA, Revenue Bonds, 7.125% (Community Memorial Hospital)/(Original Issue Yield: 7.25%), 1/15/2022

NR


1,026,085

   TOTAL




3,921,850

   TOTAL MUNICIPAL BONDS (IDENTIFIED COST $154,789,431)




160,913,445

SHORT-TERM MUNICIPALS--0.7%
Alaska--0.7%
1,100,000 Valdez, AK Marine Terminal, (Series 2003B) Daily VRDNs (BP Pipelines (Alaska) Inc.)/(BP PLC GTD) (AT AMORTIZED COST)

A-1+/VMIG1/NR


1,100,000

   TOTAL MUNICIPAL INVESTMENTS--100%
(IDENTIFIED COST $155,889,431) 3





162,013,445

   OTHER ASSETS AND LIABILITIES--NET




621,043

   LIQUIDATION VALUE OF AUCTION
PREFERRED SHARES





(61,025,000
)
   TOTAL NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS




$
101,609,488

At May 31, 2005, the Fund holds no securities that are subject to the federal alternative minimum tax (AMT).

1 Current credit ratings provided by Standard & Poor's, Moody's Investors Service, and Fitch Ratings, respectively.

2 Denotes a restricted security, including securities purchased under Rule 144A of Securities Act of 1933. These securities, all of which have been deemed liquid by criteria approved by the Fund's Board of Trustees, unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. At May 31, 2005, these securities amounted to $3,710,962 which represents 2.3% of total market value.

3 The cost of investments for federal tax purposes amounts to $155,889,020.

Note: The categories of investments are shown as a percentage of total market value at May 31, 2005.

The following acronyms are used throughout this portfolio:

AMBAC --American Municipal Bond Assurance Corporation
CDA --Community Development Administration
EDA --Economic Development Authority
EDFA --Economic Development Finance Authority
EDRBs --Economic Development Revenue Bonds
FGIC --Financial Guaranty Insurance Company
FSA --Financial Security Assurance
GO --General Obligation
GTD --Guaranteed
HDA --Hospital Development Authority
HEFA --Health and Education Facilities Authority
HFDC --Health Facility Development Corporation
IDA --Industrial Development Authority
IDRBs -- Industrial Development Revenue Bonds
INS --Insured
LOC --Letter of Credit
LT --Limited Tax
PCR --Pollution Control Revenue
PRF --Prerefunded
TOBs --Tender Option Bonds
UT --Unlimited Tax
VRDNs --Variable Rate Demand Notes

See Notes which are an integral part of the Financial Statements

Statements of Assets and Liabilities

May 31, 2005 (unaudited)


   
Federated
Premier
Municipal
Income Fund


   
Federated
Premier
Intermediate
Municipal
Income Fund


Assets:
      
Investments in securities, at value
$ 145,198,125 $ 162,013,445
Cash
28,102 20,084
Income receivable
2,386,293 2,554,932
Receivable for investments sold


15,150



40,300

   TOTAL ASSETS


147,627,670



164,628,761

Liabilities:
Income distribution payable--Common Shares
511,949 451,554
Income distribution payable--Preferred Shares
18,387 32,172
Payable for daily variation margin
31,719 63,438
Payable for investments purchased
-- 1,419,000
Accrued expenses


28,129



28,109

   TOTAL LIABILITIES


590,184



1,994,273

Auction Market Preferred Shares (2,147 and 2,441 shares, respectively, authorized and issued at $25,000 per share)

$
53,675,000


$
61,025,000

Net Assets Applicable to Common Shares Consist of:
Paid-in capital
$ 86,627,147 $ 98,478,870
Net unrealized appreciation of investments and futures contracts
9,651,211 5,283,206
Accumulated net realized loss on investments, swap contracts and futures contracts
(3,338,506 ) (2,620,378 )
Undistributed net investment income


422,634



467,790

   TOTAL NET ASSETS APPLICABLE TO COMMON SHARES

$
93,362,486


$
101,609,488

Common Shares Outstanding ($0.01 par value, unlimited shares authorized):


6,112,815



6,946,981

Net asset value per share

$
15.27


$
14.63

Investments, at identified cost

$
135,192,390


$
155,889,431

See Notes which are an integral part of the Financial Statements

Statements of Operations

Six Months Ended May 31, 2005 (unaudited)


   
Federated
Premier
Municipal
Income Fund


   
Federated
Premier
Intermediate
Municipal
Income Fund


Investment Income:
      
Interest

$
3,894,958


$
3,727,986

Expenses:
Investment adviser fee (Note 5)
398,259 445,321
Administrative personnel and services fee (Note 5)
74,795 74,795
Custodian fees
1,493 2,164
Transfer and dividend disbursing agent fees and expenses
16,920 16,672
Directors'/Trustees' fees
5,530 5,564
Auditing fees
18,200 18,200
Legal fees
1,807 1,812
Portfolio accounting fees
36,370 36,359
Printing and postage
8,638 13,556
Insurance premiums
7,504 4,427
Auction agent fees
3,241 2,965
Trailer commission fees (Note 2)
67,839 77,129
Miscellaneous


22,235



23,667

   TOTAL EXPENSES


662,831



722,631

Waivers (Note 5):
Waiver of investment adviser fee
(144,438 ) (161,551 )
Waiver of administrative personnel and services fee


(60,319
)


(31,681
)
   TOTAL WAIVERS


(204,757
)


(193,232
)
Net expenses


458,074



529,399

Net investment income


3,436,884



3,198,587

Realized and Unrealized Gain (Loss) on Investments, Swap Contracts and Futures Contracts:
Net realized loss on investments and swap contracts
(944,001 ) (979,796 )
Net realized gain on futures contracts
124,824 10,324
Net change in unrealized appreciation of investments
4,570,913 2,084,443
Net change in unrealized depreciation of futures contracts
(354,524 ) (835,974)
Net change in unrealized depreciation on swap contracts


537,446



555,176

Net realized and unrealized gain on investments, swap contracts and futures contracts


3,934,658



834,173

Income distributions declared to Preferred Shareholders


(527,776
)


(622,186
)
Change in net assets resulting from operations applicable to Common Shares

$
6,843,766


$
3,410,574

See Notes which are an integral part of the Financial Statements

Statements of Changes in Net Assets

   
Federated Premier
Municipal Income Fund

   
Federated Premier Intermediate
Municipal Income Fund




Six Months
Ended
(unaudited)
5/31/2005



Year Ended
11/30/2004




Six Months
Ended
(unaudited)
5/31/2005




Year Ended
11/30/2004


Increase (Decrease) in Net Assets
Operations:
Net investment income
$ 3,436,884 $ 6,934,820 $ 3,198,587 $ 6,271,800
Net realized loss on investments, swap contracts and futures contracts
(819,177 ) (2,312,475 ) (969,472 ) (1,593,334 )
Net change in unrealized appreciation/depreciation of investment, swap contracts and futures contracts
4,753,835 2,715,004 1,803,645 559,419
Distributions from net investment income--Preferred Shares


(527,776
)


(601,562
)


(622,186
)


(693,390
)
   CHANGE IN NET ASSETS RESULTING FROM OPERATIONS APPLICABLE TO COMMON SHARES


6,843,766



6,735,787



3,410,574



4,544,495

Distributions to Common Shareholders:
Distributions from net investment income--Common Shares


(3,071,688
)


(6,142,154
)


(2,709,323
)


(5,418,645
)
Share Transactions Applicable to Common Shares:
Net asset value of shares issued to shareholders in payment of distributions declared


--



46,016



--



--

   CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS


--



46,016



--



--

Change in net assets


3,772,078



639,649



701,251



(874,150
)
Net Assets Applicable to Common Shares:
Beginning of period


89,590,408



88,950,759



100,908,237



101,782,387

End of period

$
93,362,486


$
89,590,408



101,609,488



100,908,237

Undistributed net investment income included at end of period

$
422,634


$
585,214


$
467,790


$
600,713

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

May 31, 2005 (unaudited)

1. ORGANIZATION

Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund (individually referred to as the "Fund", or collectively as the "Funds") are registered under the Investment Company Act of 1940, as amended (the "Act"), as diversified, closed-end management investment companies.

Prior to commencing operations on December 20, 2002, Federated Premier Municipal Income Fund had no operations other than matters relating to its organization and registration and the sale and issuance of 6,981 common shares of beneficial interest (common shares) to Federated Investment Management Company (the "Investment Adviser"). The Fund issued 5,850,000 shares of common stock in its initial public offering on December 20, 2002. These shares were issued at $15.00 per share before underwriting discount of $0.68 per share. Offering costs of $175,500 (representing $0.03 per share) were offset against proceeds of the offering and have been charged to paid-in capital. The Investment Adviser paid all offering costs (other than underwriting discount) and organizational expenses regarding the common share offering which exceeded $0.03 per share of the Fund. An additional 250,000 common shares were issued on February 3, 2003 at $15.00 per share. On February 13, 2003, the Fund issued 2,147 preferred shares at $25,000 per share before underwriting discount of $0.69 per share. Offering costs of $726,739 (representing $0.12 per share) were offset against proceeds of the offering and have been charged to paid-in capital.

Prior to commencing operations on December 20, 2002, Federated Premier Intermediate Municipal Income Fund had no operations other than matters relating to its organization and registration and the sale and issuance of 6,981 common shares to the Investment Adviser. The Fund issued 6,400,000 shares of common stock in its initial public offering on December 20, 2002. These shares were issued at $15.00 per share before underwriting discount of $0.68 per share. Offering costs of $192,000 (representing $0.03 per share) were offset against proceeds of the offering and have been charged to paid-in capital. The Investment Adviser paid all offering costs (other than underwriting discount) and organizational expenses regarding the common share offering which exceeded $0.03 per share of the Fund. An additional 540,000 common shares were issued on February 3, 2003 at $15.00 per share. On February 13, 2003, the Fund issued 2,441 preferred shares at $25,000 per share before underwriting discount of $0.70 per share. Offering costs of $793,521 (representing $0.12 per share) were offset against proceeds of the offering and have been charged to paid-in capital.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

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. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. 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 Board of Trustees (the "Trustees").

Investment Income, Expenses, and Distributions

Interest income and expenses are accrued daily. Non-cash dividends included in dividend income, if any, are recorded at fair value. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and paid weekly at a rate set through auction procedures. The dividend rate to preferred shareholders for Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund at May 31, 2005 was 2.50% and 2.67%, respectively.

Each auction requires the participation of one or more Broker-Dealers. The auction agent, currently Deutsche Bank Trust Company Americas, will enter into agreements with one or more Broker-Dealers selected by the Funds, which provide for the participation of those Broker-Dealers in auctions for preferred shares. The auction agent will pay each Broker-Dealer after each auction, from funds provided by the Funds. The trailer commissions for Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund for the six months ended May 31, 2005 were $67,839 and $77,129, respectively.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Funds' policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code"), applicable to regulated investment companies and to distribute to shareholders each year substantially all of their income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The Funds will not incur any registration costs upon such resales. The Funds' restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in accordance with procedures established by and under general supervision of the Trustees.

Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the Trustees, held at May 31, 2005, is as follows:

Federated Premier Municipal Income Fund:

Security
   
Acquisition
Date

   
Acquisition
Cost

Capital Trust Agency, FL, Revenue Bonds (Series 2001), 10.00% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033

12/23/2002

$1,027,250
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033

5/9/2003

$400,000
Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series 2004A), 7.00% (Las Ventanas Retirement Community)/(Original Issue Yield: 7.125%), 11/15/2034

12/20/2002

$2,475,000
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

Federated Premier Intermediate Municipal Income Fund:

Security
   
Acquisition
Date

   
Acquisition
Cost

Capital Trust Agency, FL, Revenue Bonds (Series 2001), 10.00% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033

12/23/2002

$1,027,250
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033

5/9/2003

$600,000
Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series 2004B), 6.75% (Las Ventanas Retirement Community)/(Original Issue Yield: 6.875%), 11/15/2023

12/9/2004

$789,424
New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.25% (7 World Trade Center LLC), 3/1/2015

3/15/2005

$800,000
Port of Greater Cincinnati, OH Development Authority, Special Assessment Revenue Bonds, 6.30% (Cincinnati Mills), 2/15/2024

2/11/2004

$250,000

Futures Contracts

The Funds periodically may sell bond interest rate futures contracts to manage duration and to potentially reduce transaction costs. Upon entering into bond interest rate futures contracts with brokers, the Funds are required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. Daily, the Funds receive from or pay to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, each Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. For the six months ended May 31, 2005, the Funds had realized gains on futures contracts as follows:

Federated Premier Municipal Income Fund
   
$
124,824
Federated Premier Intermediate Municipal Income Fund
   
$
10,324

At May 31, 2005, the Funds had the following open futures contracts:

Fund
   
Expiration Date
   
Contracts to Receive
   
Position
   
Unrealized
Depreciation

Federated Premier Municipal Income Fund

June 2005

145 U.S. Treasury Note 10-Year Futures

Short

$(354,524)
Federated Premier Intermediate Municipal Income Fund

June 2005

290 U.S. Treasury Note 10-Year Futures

Short

$(840,808)

Swap Contracts

The Funds may enter into swap contracts. A swap is an exchange of cash payments between the Fund and another party, which is based on a specific financial index. The value of the swap is adjusted daily and the change in value is recorded as unrealized appreciation or depreciation. When a swap contract is closed, the Fund recognizes a realized gain or loss. The swap contracts entered into by the Funds are on a forward settling basis. For the six months ended May 31, 2005, the Funds had realized losses on swap contracts as follows:

Federated Premier Municipal Income Fund
   
$
(1,074,618)
Federated Premier Intermediate Municipal Income Fund
   
$
(981,882)

Risks may arise upon entering into these agreements from the potential inability of the counterparties to meet the terms of their contract and from unanticipated changes in the value of the financial index on which the swap agreement is based. The Funds use swaps for hedging purposes to reduce their exposure to interest rate fluctuations.

At May 31, 2005, the Federated Premier Municipal Income Fund and the Federated Premier Intermediate Municipal Income Fund had no open swap contracts.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. COMMON SHARES

The following tables summarize share activity:

Federated Premier Municipal Income Fund
   
Six Months
Ended
5/31/2005

   
Year Ended
11/30/2004

Shares issued
-- --
Shares issued to shareholders in payment of distributions declared

--

3,144
   NET CHANGE RESULTING FROM SHARE TRANSACTIONS

--

3,144
Federated Premier Intermediate Municipal Income Fund
   
Six Months
Ended
5/31/2005

   
Year Ended
11/30/2004

Shares issued

--

--
   NET CHANGE RESULTING FROM SHARE TRANSACTIONS

--

--

4. FEDERAL TAX INFORMATION

At May 31, 2005, the following amounts apply for federal income tax purposes:





   
Cost of
Investments



   
Unrealized
Appreciation



   
Unrealized
Depreciation



   
Net Unrealized
Appreciation

1
Federated Premier Municipal Income Fund

$135,192,079

$10,089,415

$(83,369)

$10,006,046

Federated Premier Intermediate Municipal Income Fund

$155,889,020

$ 6,171,869

$ (47,444)

$ 6,124,425

1 Excluding any unrealized depreciation on futures contracts.

At November 30, 2004, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund had capital loss carryforwards of $2,519,574 and $1,656,055, respectively, which will reduce the Funds' taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:

Capital loss carryforward to expire in:
   
2011
   
2012
   
Total
Capital Loss
Carryforward

Fund:






Federated Premier Municipal Income Fund

$207,100

$2,312,474

$2,519,574
Federated Premier Intermediate Municipal Income Fund

$ 57,890

$1,598,165

$1,656,055

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Each Fund has entered into an Investment Management Agreement (the "Agreement") with Federated Investment Management Company (the "Adviser") to serve as investment manager to the Fund. Pursuant to the Agreement, each Fund pays the Adviser an annual management fee, payable daily, at the annual rate of 0.55% of the Fund's managed assets.

In order to reduce fund expenses, the Adviser has contractually agreed to waive a portion of its investment adviser fee at the annual rate of 0.20% of the average daily value of each Fund's managed assets, inclusive of any assets attributable to any preferred shares that may be issued, from the commencement of operations through December 31, 2007, and at a declining rate thereafter through December 31, 2010.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement, provides each Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of all Federated funds as specified below:

Maximum
Administrative Fee



   
Average Aggregate Daily Net Assets
of the Federated Funds

0.150%

on the first $5 billion
0.125%

on the next $5 billion
0.100%

on the next $10 billion
0.075%

on assets in excess of $20 billion

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion.

Organizational Expenses

Each Fund paid its organizational and offering expenses of up to $0.03 per common share. The Adviser paid organizational expenses and offering costs of each Fund that exceeded $0.03 per Common Share.

Interfund Transactions

During the six months ended May 31, 2005, the Funds engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees, and /or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and were as follows:





   
Purchases


   
Sales
Federated Premier Municipal Income Fund

$3,525,000

$4,550,630
Federated Premier Intermediate Municipal Income Fund

$5,600,000

$4,700,000

General

Certain of the Officers and Trustees of the Funds are Officers and Directors or Trustees of the above companies.

6. PREFERRED SHARES

On February 13, 2003, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund offered and currently have outstanding 2,147 and 2,441 Auction Market Preferred Shares (AMPS), respectively. The AMPS are redeemable at the option of the Funds at the redemption price of $25,000 per share plus an amount equal to accumulated, but unpaid dividends thereon through the redemption date.

Whenever AMPS are outstanding, common shareholders will not be entitled to receive any distributions from the Funds unless all accrued dividends on preferred shares have been paid, the Funds satisfy the 200% asset coverage requirement, and certain other requirements imposed by any Nationally Recognized Statistical Ratings Organizations (NRSROs) rating the preferred shares have been met. Should these requirements not be met, or should dividends accrued on the AMPS not be paid, the Funds may be restricted in their ability to declare dividends to common shareholders or may be required to redeem certain of the AMPS. At May 31, 2005, there were no such restrictions on the Funds.

7. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations (and in-kind contributions), for the six months ended May 31, 2005, were as follows:


   
Purchases
   
Sales
Federated Premier Municipal Income Fund

$ 1,689,925

$ 2,882,193
Federated Premier Intermediate Municipal Income Fund

$11,999,450

$13,245,658

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated (Funds) were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland seeking damages of unspecified amounts. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees, and seeking damages of unspecified amounts. The Board of the Funds has retained the law firm of Dickstein Shapiro Morin & Oshinsky LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and will respond appropriately. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these recent lawsuits and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. SUBSEQUENT DIVIDEND DECLARATIONS--COMMON SHARES

On June 13, 2005, the Funds declared common share dividend distributions from their respective tax-exempt net investment income which were payable on July 1, 2005, to shareholders of record on June 23, 2005, as follows:






   
Federated Premier
Municipal Income Fund





   
Federated Premier
Intermediate
Municipal Income Fund

Dividend per share

$0.08375

$0.06500

Board Review of Advisory Contract

As required by the 1940 Act, the Funds' Board has reviewed each Fund's investment advisory contract. The Board's decision to approve these contracts reflects the exercise of its business judgment on whether to continue the existing arrangements. During its review of these contracts, the Board considers many factors, among the most material of which are: the Fund's investment objectives; the Adviser's management philosophy, personnel, processes, and investment and operating strategies; long-term performance; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry; the range of comparable fees for similar funds in the mutual fund industry; the range and quality of services provided to the Fund and its shareholders by the Federated organization in addition to investment advisory services; and the Fund's relationship to the Federated family of funds.

In its decision to appoint or renew an Adviser, the Board is mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognizes that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and in the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's "selection" or approval of the Adviser must reflect the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board also considers the compensation and benefits received by the Adviser. This includes fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute fund trades, as well as advisory fees. In this regard, the Board is aware that various courts have interpreted provisions of the 1940 Act and have indicated in their decisions that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts bearing on the Adviser's service and fee. The Funds' Board is aware of these factors and is guided by them in its review of each Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considers and weighs these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and is assisted in its deliberations by the advice of independent legal counsel. In this regard, the Board requests and receives substantial and detailed information about the Fund and the Federated organization. Federated provides much of this information at each regular meeting of the Board, and furnishes additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurs. In between regularly scheduled meetings, the Board may receive information on particular matters as the need arises. Thus, the Board's evaluation of an advisory contract is informed by reports covering such matters as: the Adviser's investment philosophy, personnel, and processes; operating strategies; the Fund's short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities; the nature and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The evaluation process is evolutionary, reflecting continually developing considerations. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's performance and expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focuses on comparisons with other similar mutual funds (rather than non-mutual fund products or services) because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle already chosen by the Fund's investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund competes. The Fund's ability to deliver competitive performance when compared to its peer group may be a useful indicator of how the Adviser is executing on the Fund's investment program, which would in turn assist the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services are such as to warrant continuation of the advisory contract.

The Board also receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the Federated funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses. Although the Board considers the profitability of the Federated organization as a whole, it does not evaluate, on a fund-by-fund basis, Federated's "profitability" and/or "costs" (which would include an assessment as to whether "economies of scale" would be realized if the fund were to grow to some sufficient size). In the Board's view, the cost of performing advisory services on a fund-specific basis is both difficult to estimate satisfactorily and a relatively minor consideration in its overall evaluation. Analyzing isolated funds would require constructed allocations of the costs of shared resources and operations based on artificial assumptions that are inconsistent with the existing relationships within a large and diversified family of funds that receive advisory and other services from the same organization. Although the Board is always eager to discover any genuine "economies of scale," its experience has been that such "economies" are likely to arise only when a fund grows dramatically, and becomes and remains very large in size. Even in these instances, purchase and redemption activity, as well as the presence of expense limitations (if any), may offset any perceived economies. As suggested above, the Board considers the information it receives about the Fund's performance and expenses as compared to an appropriate set of similar competing funds to be more relevant.

The Board bases its decision to approve an advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above are relevant to every Federated fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provide a satisfactory basis to support the decision to continue the existing arrangements.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-245-0242 x7538. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select "Closed-End Funds," select the name of the Fund, select "Shareholder and Regulatory Reports," then select "sec.gov" opposite "SEC filings" to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

QUARTERLY PORTFOLIO SCHEDULE

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Closed-End Funds," selecting the name of the Fund, selecting "Shareholder and Regulatory Reports," and then selecting "sec.gov" opposite "SEC filings" to access the link to Form N-Q.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This Overview and Report is for shareholder information. This is not a Prospectus intended for use in the sale of Fund Shares. Statements and other information contained in this Overview and Report are as dated and subject to change.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-245-0242 ext. 7538 or e-mail CEinfo@federatedinv.com.

Federated
World-Class Investment Manager

Federated Premier Municipal Income Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
Contact us at FederatedInvestors.com
or call 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31423P108
Cusip 31423P207
Cusip 31423M105
Cusip 31423M204

28583 (7/05)

Federated is a registered mark of Federated Investors, Inc. 2005 (c)Federated Investors, Inc.

Item 2.           Code of Ethics

                  Not Applicable

Item 3.           Audit Committee Financial Expert

                  Not Applicable

Item 4.           Principal Accountant Fees and Services

                  Not Applicable

Item 5.           Audit Committee of Listed Registrants

                  Not Applicable

Item 6.           Schedule of Investments

                  Not Applicable

Item 7.           Disclosure of Proxy Voting Policies and Procedures for 
                  Closed-End Management Investment Companies

                  Not Applicable

Item 8.           Portfolio Managers of Closed-End Management Investment 
                  Companies

                  Not Applicable

Item 9.           Purchases of Equity Securities by Closed-End Management 
                  Investment Company and Affiliated Purchasers



---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
                                         (a) (b) (c) (d)
             Period                Total number of     Average price    Total number of common    Maximum number (or approximate
                                    common shares     paid per common      shares (or units)      dollar value) of common shares
                                      (or units)      share (or unit)    purchased as part of       (or units) that may yet be
                                      purchased                           publicly announced       purchased under the plans or
                                                                           plans or programs                 programs
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #1                                 -0-                NA                    -0-                          None
(December 1, 2004 -
December 31, 2004)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #2                                 -0-                NA                    -0-                          None
(January 1, 2005-
January 31, 2005)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #3                                 -0-                NA                    -0-                          None
(February 1, 2005-February 28,
2005)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #4                                 -0-                NA                    -0-                          None
(March 1, 2005-
March 31, 2005)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #5                                 -0-                NA                    -0-                          None
(April 1, 2005-
April 30, 2005
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #6                                 -0-                NA                    -0-                          None
(May 1, 2005-
May 31, 2005
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
TOTAL                                    -0-                NA                    -0-                           NA


---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #1                                 -0-                NA                    -0-                          None
(December 1, 2004 -
December 31, 2004)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #2                                 -0-                NA                    -0-                          None
(January 1, 2005-
January 31, 2005)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #3                                 -0-                NA                    -0-                          None
(February 1, 2005-February 28,
2005)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #4                                 -0-                NA                    -0-                          None
(March 1, 2005-
March 31, 2005)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #5                                 -0-                NA                    -0-                          None
(April 1, 2005-
April 30, 2005)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
Month #6                                 -0-                NA                    -0-                          None
(May 1, 2005-
May 31, 2005)
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------
TOTAL                                    -0-                NA                    -0-                           NA

---------------------------------- ----------------- ------------------ ------------------------ ----------------------------------


Item 10.          Submission of Matters to a Vote of Security Holders

                  No changes to report.

Item 11.          Controls and Procedures

(a) The registrant's President and Treasurer 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-CSR.

(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 12.          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 J. Thomas
                  Richard J. Thomas, Principal Financial Officer

Date              July 15, 2005


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              July 15, 2005


By                /S/ Richard J. Thomas
                     Richard J. Thomas, Principal Financial Officer


Date              July 15, 2005