Edgar Filing: DUFF & PHELPS UTILITY & CORPORATE BOND TRUST INC

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07358

Exact name of registrant as specified in charter: Duff & Phelps Utility and
Corporate Bond Trust Inc.

Address of principal executive offices: 55 East Monroe St
Suite 3600
Chicago, IL 60603

Name and address of agent for service: Alan M. Meder, Principal
Financial Officer
55 East Monroe St.
Suite 3600
Chicago, IL 60603

Registrant's telephone number, including area code: 312-541-5555

Date of fiscal year end: 12/31/05

Date of reporting period: 6/30/05

Item 1 - Reports to Stockholders -

DEAR FELLOW SHAREHOLDERS:

YOUR FUND'S PERFORMANCE

During the first half of the year, the performance of leveraged bond funds,
including Duff & Phelps Utility and Corporate Bond Trust Inc. (the "DUC Fund" or
the "Fund"), was generally positive. The highly anticipated rise in long-term
interest rates failed to materialize and the earlier disruption in the corporate
credit markets, in part caused by problems in the auto industry, subsided
considerably. As a result, the DUC Fund and the broad fixed income markets
posted solid returns.

DUC FUND
(PER SHARE
DOW JONES PERFORMANCE WITH DUC FUND LEHMAN
INDUSTRIAL INDEX S&P 500 INDEX DIVIDENDS REINVESTED (NAV-BASED AGGREGATE
(DIVIDENDS REINVESTED) (DIVIDENDS REINVESTED) IN FUND PLAN) PERFORMANCE) BOND INDEX
---------------------- ---------------------- -------------------- ------------ -----------

January - June 2005....... (3.65)% (0.81)% 3.06% 1.61% 2.51%

---------------
Performance returns for both the Dow Jones Industrial Index and the S&P 500
Index were obtained from Bloomberg LLP. DUC Fund per share-based returns were
obtained from the Administrator of the DUC Fund. DUC Fund NAV-based returns were
obtained from Lipper Inc. Lehman Aggregate Index performance returns were
obtained from Lehman Brothers.

Based on the mid-year closing price of $14.58 and actual dividends of $1.02
for the past year, the DUC Fund common stock had an annual dividend yield of
6.99%.

MARKET OVERVIEW

During the first half of 2005, investors were confronted with a number of
uncertainties that negatively influenced equity market returns. After a
multi-year period of strong economic growth, the U.S. economic growth rate
slowed marginally. Among the uncertainties facing investors were the extent to
which higher energy prices would dampen consumer willingness to spend and the
ability of institutions that employ financial leverage to operate in an
environment of sharply rising short-term interest rates. Concerns about the
long-term profitability of the auto industry forced investors to analyze whether
problems were industry-specific or if they carried broader implications that
might spread to other areas of the economy. In addition to the ongoing turmoil
in Iraq and the war against terrorism, investors had to consider the potential
negative affects of expanding deficits, the threat of rising inflation and the
re-emergence of M&A (mergers and acquisitions) activity. Offsetting some of
these concerns was a robust U.S. housing market and a sound employment
situation. In general, the momentum enjoyed by the U.S. economy was not enough
to allow equity investors to look beyond the uncertainties, resulting in the
traditional equity markets posting negative returns.

Over the same time period, the Federal Reserve remained on the path of
removing the stimulative monetary policy that had been in place for the past few
years. Following a pattern that began at mid-year 2004, the Federal Funds target
has been increased by 25 basis points at each meeting of the Federal Reserve
Board. The most recent move, which took place on August 9, 2005, was the tenth
25 basis point increase, bringing the Federal Funds target to 3.50%. Returns for
the first half of 2005 were generally positive in the broad fixed income
markets. Due to a re-shaping of the U.S. Treasury yield curve, specific returns
were highly dependent on the term to maturity of a given investment.
Expectations of the Federal Reserve's continued reversal of an overly
accommodative monetary policy, along with increased faith in the Federal
Reserve's ability to contain inflation, allowed for an environment in which
short-term and long-term interest rates moved in opposite directions. Over the
first half of the year, the U.S. Treasury yield curve flattened dramatically, as
yields increased by 57 basis points on two-year maturities, while yields
decreased by 30 basis points on ten-year maturities and by 63 basis points on
thirty-year maturities.

ECONOMIC OUTLOOK

Looking forward to the second half of 2005, barring an unforeseen
escalation of geopolitical tension or a further significant increase in energy
prices, the U.S. economy is expected to grow at a moderate pace. Recognizing
that monetary policy remains accommodative and inflationary pressures have the
potential to accelerate, the Federal Reserve is expected to maintain a measured
pace of tightening to a more neutral monetary policy. The consumer, slowed by
the effects of rising short-term interest rates and the resultant higher cost of
short-term consumer debt, is expected to give way to business as the main driver
behind the economic expansion. Corporate fundamentals in the U.S. remain solid,
as healthy balance sheets and solid profitability enable business investment, in
the form of expanding payrolls and capital expenditures, to continue. An
environment of sustained U.S. economic growth and increasing inflation
expectations could set the stage for upward pressure on the general level of
interest rates. In addition, tighter Federal Reserve policy could potentially
lead to a continued flattening of the U.S. Treasury yield curve, as short-term
rates increase at a faster pace than long-term rates. Under this scenario, we
believe that the returns of leveraged bond funds may be restrained by the impact
of rising interest rates, while the outlook for corporate bonds should remain
positive as it is supported by steady economic growth and healthy expectations
for corporate profitability.

DIVIDEND REINVESTMENT, CASH PURCHASE PLAN AND DIRECT DEPOSIT

To those of you receiving dividends in cash, you may want to consider
taking advantage of the dividend reinvestment and cash purchase plan (the
"Plan") available to all registered shareholders of the DUC Fund. Under the
Plan, the DUC Fund absorbs all administrative costs (except brokerage
commissions, if any) so that the total amount of your dividends and other
distributions may be reinvested in additional shares of the DUC Fund. Also, the
cash purchase option permits participants to purchase shares in the open market
through the Plan Agent. Additional information about the Plan is available from
the Plan Agent, The Bank of New York, at 1-800-524-4458, or for more details,
please turn to page 18.

For those shareholders receiving dividend checks, you may want to consider
having your monthly dividends deposited, free of charge, directly into your bank
account through electronic funds transfer. Direct deposit provides the
convenience of automatic and immediate access to your funds, while eliminating
the possibility of mail delays and lost, stolen or destroyed checks. Additional
information about direct deposit is available from The Bank of New York, at
1-800-432-8224.

We appreciate your investment in Duff & Phelps Utility and Corporate Bond
Trust Inc. and look forward to continuing our service to you.

Sincerely,

/s/ Francis E. Jeffries /s/ Nathan I. Partain

Francis E. Jeffries, CFA Nathan I. Partain
Chairman President and Chief Executive Officer

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 2005
(UNAUDITED)

RATINGS
------------------
PRINCIPAL STANDARD MARKET
AMOUNT & VALUE
(000) DESCRIPTION MOODY'S POOR'S (NOTE 1)
--------- ------------------------------------------------------ ------- -------- -------------

LONG-TERM INVESTMENTS--135.7%

U.S. GOVERNMENT AND AGENCY OBLIGATIONS(A)--13.9%

Federal National Mortgage Association,

$ 675 8.00%, 10/01/30..................................... Aaa AAA $ 725,991

1,848 7.00%, 12/01/31..................................... Aaa AAA 1,949,543

Government National Mortgage Association
Pass-Through Certificates,

65 7.00%, 3/15/26...................................... Aaa AAA 69,416

253 7.50%, 5/15/26...................................... Aaa AAA 272,303

177 8.00%, 11/15/30..................................... Aaa AAA 191,900

140 8.00%, 2/15/31...................................... Aaa AAA 151,802

U.S. Treasury Bonds,

40,000 10.375%, 11/15/12................................... Aaa AAA 46,020,320
-------------

TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(cost $49,943,788)........................................................ 49,381,275
-------------

CORPORATE BONDS--117.2%

AUTO & TRUCK--5.0%

10,000 DaimlerChrysler NA Holdings,
7.20%, 9/01/09...................................... A3 BBB 10,895,020

7,250 Ford Motor Company,
9.215%, 9/15/21..................................... Baa3 BB+ 6,843,050
-------------

17,738,070
-------------

BROADCASTING & PUBLISHING--1.9%

6,550 Continental Cablevision, Inc.,
9.50%, 8/01/13...................................... Baa2 BBB+ 6,887,626
-------------

FINANCIAL--26.6%

7,000 Countrywide Capital I,
8.00%, 12/15/26..................................... Baa1 BBB+ 7,261,219

John Deere Capital Corp.,

5,000 3.125%, 12/15/05.................................... A3 A- 4,985,480

5,000 5.125%, 10/19/06.................................... A3 A- 5,073,205

5,000 General Electric Capital Corporation,
8.625%, 6/15/08..................................... Aaa AAA 5,587,185

The accompanying notes are an integral part of the financial statements.
3

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 2005
(UNAUDITED)

FINANCIAL (CONTINUED)
$10,000 Great Western Financial Trust II,
8.206%, 2/01/27..................................... Baa1 BBB $ 10,866,900

16,000 Household Finance Corp.,
8.00%, 7/15/10...................................... A1 A 18,481,232

10,000 KeyCorp Institution Capital B,
8.25%, 12/15/26..................................... A3 BBB 10,887,920

Merrill Lynch & Co.,

5,000 6.50%, 7/15/18...................................... Aa3 A+ 5,780,330

5,000 6.875%, 11/15/18.................................... Aa3 A+ 5,915,200

10,000 NationsBank Capital Trust IV,
8.25%, 4/15/27...................................... Aa3 A 10,939,950

7,500 Verizon Global Funding Corp.,
7.375%, 9/01/12..................................... A2 A+ 8,776,155
-------------

94,554,776
-------------

INDUSTRIAL--25.8%

5,000 Archer-Daniels-Midland Company,
8.125%, 6/01/12..................................... A2 A+ 6,054,665

5,000 International Paper Co.,
3.80%, 4/01/08...................................... Baa2 BBB 4,915,670

5,000 Occidental Petroleum Corporation,
9.25%, 8/01/19...................................... A3 A- 7,021,900

5,000 Sun Company, Inc.,
9.00%, 11/01/24..................................... Baa2 BBB 6,920,335

Tele-Communications, Inc.,

5,275 10.125%, 4/15/22.................................... Baa2 BBB+ 7,755,411

3,200 9.875%, 6/15/22..................................... Baa2 WR 4,632,413

5,000 Time Warner Entertainment Company, L.P.,
8.875%, 10/01/12.................................... Baa1 BBB+ 6,181,145

5,000 Time Warner Inc.,
9.15%, 2/01/23...................................... Baa1 BBB+ 6,881,995

10,000 Trans-Canada Pipelines Limited,
9.875%, 1/01/21..................................... A2 A- 15,078,620

The accompanying notes are an integral part of the financial statements.
4

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 2005
(UNAUDITED)

INDUSTRIAL (CONTINUED)
$10,000 USX Corporation,
9.125%, 1/15/13..................................... Baa1 BBB+ $ 12,733,880

12,500 Weyerhaeuser Co.,
6.75%, 3/15/12...................................... Baa2 BBB 13,771,675
-------------

91,947,709
-------------

RETAIL--1.6%

5,000 Wal-Mart Stores, Inc.,
6.875%, 8/10/09..................................... Aa2 AA 5,515,145
-------------

TELEPHONE--15.7%

10,000 Bell Canada Inc.,
9.50%, 10/15/10..................................... A3 A 12,247,610

10,000 British Telecom PLC,
7.875%, 12/15/05.................................... Baa1 A- 10,175,580

12,000 Deutsche Telekom International Finance,
8.50%, 6/15/10...................................... A3 A- 13,921,632

5,000 New York Telephone Co.,
8.625%, 11/15/10.................................... Baa2 A+ 5,830,285

10,125 Sprint Corp.,
9.25%, 4/15/22...................................... Baa3 BBB- 13,845,188
-------------

56,020,295
-------------

UTILITIES--ELECTRIC--40.6%

2,750 Alabama Power Co.,
7.125%, 10/01/07.................................... A2 A 2,926,385

10,000 CalEnergy Company, Inc.,
8.48%, 9/15/28...................................... Baa3 BBB- 13,480,910

17,438 ComEd Financing II,
8.50%, 1/15/27...................................... Baa2 BBB 19,100,504

10,000 Dominion Resources, Inc.,
8.125%, 6/15/10..................................... Baa1 BBB+ 11,533,810

5,000 DTE Energy Co.,
6.45%, 6/01/06...................................... Baa2 BBB- 5,103,295

10,000 Duke Energy Corporation,
7.375%, 3/01/10..................................... Baa1 BBB 11,195,340

10,000 Hydro-Quebec,
7.50%, 4/01/16...................................... A1 A+ 12,425,710

The accompanying notes are an integral part of the financial statements.
5

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 2005
(UNAUDITED)

UTILITIES--ELECTRIC (CONTINUED)
$ 8,485 Illinois Power Co.,
7.50%, 6/15/09...................................... Baa1 A- $ 9,476,795

10,088 KeySpan Gas East Corporation,
7.875%, 2/01/10..................................... A2 A+ 11,561,635

5,000 PSE&G Power LLC,
7.75%, 4/15/11...................................... Baa1 BBB 5,771,415

10,000 Sempra Energy,
7.95%, 3/01/10...................................... Baa1 BBB+ 11,366,870

5,512 Southern California Edison Company,
7.625%, 1/15/10..................................... Baa1 BBB 6,218,683

6,000 South Carolina Electric & Gas Co.,
6.125%, 3/01/09..................................... A1 A- 6,387,600

6,000 Wisconsin Energy Corp.,
6.50%, 4/01/11...................................... A3 BBB+ 6,601,182

10,131 Xcel Energy, Inc.,
7.00%, 12/01/10..................................... Baa1 BBB- 11,283,422
-------------

144,433,556
-------------
TOTAL CORPORATE BONDS (cost $392,797,144)................................. 417,097,177
-------------

ASSET-BACKED SECURITIES--4.6%

5,000 California Infrastructure SCE 1997-1 A7
6.420%, 12/26/09.................................... Aaa AAA 5,226,096

5,000 Detroit Edison Securitization Funding LLC 2001-1 A6
6.620%, 3/01/16..................................... Aaa AAA 5,792,242

5,000 PSE&G Transition Funding 2001-1 A5
6.450%, 3/15/13..................................... Aaa AAA 5,507,429
-------------

TOTAL ASSET-BACKED (cost $17,012,500)..................................... 16,525,767
-------------

TOTAL LONG-TERM INVESTMENTS (cost $459,753,432)........................... 483,004,219
-------------

The accompanying notes are an integral part of the financial statements.
6

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 2005
(UNAUDITED)

SHORT-TERM INVESTMENTS(A)--0.7%
U.S. Treasury Bills,(a)
$ 2,300 2.695%, 7/28/05..................................... Aaa AAA $ 2,295,023
-------------
TOTAL SHORT-TERM INVESTMENTS (cost $2,295,351)............................ 2,295,023
-------------
TOTAL INVESTMENTS--136.4%
(cost $462,048,783)....................................................... 485,299,242
LIABILITIES, LESS CASH AND OTHER ASSETS--(36.4%).......................... (129,473,493)
-------------
NET ASSETS--100%.......................................................... $ 355,825,749
=============

------------------------------------
(a) AAA ratings on U.S. government and agency obligations are assumed because
they are not rated.

SECTOR ALLOCATION AS A PERCENTAGE OF MARKET VALUE
AS OF 6/30/05 (UNAUDITED)

[FUND PIE CHART]

Corporates 87%

U.S. Gov't/Agency 10%

Asset-Backed 3%

Short-Term 0%

100.00%

The accompanying notes are an integral part of the financial statements.
7

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2005
(UNAUDITED)

ASSETS
Investments, at value (cost $462,048,783)................... $485,299,242
Cash........................................................ 4,720,362
Interest receivable......................................... 8,243,128
Receivable for common stock reinvestments................... 215,341
Prepaid expenses and other assets (Note 8).................. 610,154
------------
Total assets........................................... 499,088,227
------------
LIABILITIES
Commercial paper (Note 5)................................... 142,227,442
Deferred compensation payable (Note 8)...................... 556,684
Investment advisory fee payable (Note 2).................... 231,524
Administrative fee payable (Note 2)......................... 49,582
Accrued expenses............................................ 197,246
------------
Total liabilities...................................... 143,262,478
------------
NET ASSETS.................................................. $355,825,749
============
CAPITAL
Common stock, $.01 par value, 600,000,000 shares authorized,
26,930,461 shares issued and outstanding (Note 7)......... $ 269,304
Additional paid-in capital.................................. 367,785,504
Distributions in excess of net investment income............ (13,057,898)
Accumulated net realized loss on investment transactions.... (22,421,620)
Net unrealized appreciation on investments.................. 23,250,459
------------
NET ASSETS.................................................. $355,825,749
============
Net asset value per share of common stock:
($355,825,749 / 26,930,461 shares of common stock issued
and outstanding).......................................... $ 13.21
============

The accompanying notes are an integral part of the financial statements.
8

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2005
(UNAUDITED)

INVESTMENT INCOME
Interest income........................................... $14,383,900
-----------
EXPENSES
Investment advisory fees (Note 2)......................... 1,237,046
Administrative fees (Note 2).............................. 265,236
Directors' fees and expenses.............................. 168,580
Commercial paper fees..................................... 132,974
Commitment fees (Note 5).................................. 75,543
Commissions expense -- commercial paper................... 71,899
Transfer agent fees and expenses.......................... 68,170
Professional fees......................................... 55,803
Custodian fees and expenses............................... 25,349
Reports to shareholders................................... 20,302
Registration fees......................................... 11,849
Other..................................................... 19,477
-----------
Total operating expenses.................................. 2,152,228
Interest expense -- commercial paper (Note 5)............. 1,956,961
-----------
Total expenses......................................... 4,109,189
-----------
Net investment income.................................. 10,274,711
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investment transactions.............. (1,177,388)
Net change in unrealized appreciation/depreciation on
investments............................................ (3,462,971)
-----------
Net realized and unrealized loss on investments........ (4,640,359)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $ 5,634,352
===========

The accompanying notes are an integral part of the financial statements.
9

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
STATEMENTS OF CHANGES IN NET ASSETS

FOR THE
SIX MONTHS
ENDED FOR THE YEAR
JUNE 30, 2005 ENDED
(UNAUDITED) DECEMBER 31, 2004
------------- -----------------

OPERATIONS
Net investment income............................... $ 10,274,711 $ 23,066,266
Net realized loss on investment transactions........ (1,177,388) (760,530)
Net change in unrealized appreciation/depreciation
on investments................................... (3,462,971) (4,087,463)
------------ ------------
Net increase in net assets resulting from
operations....................................... 5,634,352 18,218,273
------------ ------------
DIVIDENDS TO SHAREHOLDERS
From net investment income.......................... (13,706,059) (27,284,046)
------------ ------------
CAPITAL STOCK TRANSACTIONS
Reinvestment of dividends resulting in the issuance
of 96,017 shares and 146,840 shares of Common
Stock, respectively.............................. 1,297,040 2,042,369
------------ ------------
Total increase (decrease) in net assets............. (6,774,667) (7,023,404)
NET ASSETS
Beginning of year................................... 362,600,416 369,623,820
------------ ------------
End of year(a)...................................... $355,825,749 $362,600,416
============ ============
(a) includes distributions in excess of net
investment income................................ $(13,057,898) $ (9,626,550)
============ ============

The accompanying notes are an integral part of the financial statements.
10

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2005
(UNAUDITED)

INCREASE (DECREASE) IN CASH
Cash flows provided from (used for) operating activities:
Interest received...................................... $ 17,134,591
Expenses paid.......................................... (2,087,980)
Interest expense paid.................................. (1,863,502)
Purchase of long-term portfolio investments............ (52,186,015)
Proceeds from sale of long-term portfolio
investments.......................................... 48,000,272
Net proceeds from sales in excess of purchases of
short-term portfolio investments..................... 2,352,044
------------
Net cash provided from operating activities............ 11,349,410
------------
Cash flows provided from (used for) financing activities:
Net cash used for commercial paper..................... (164,633)
Cash dividends paid to shareholders(a)................. (12,404,826)
------------
Net cash used for financing activities................. (12,569,459)
------------
Net decrease in cash........................................ (1,220,049)
Cash at beginning of period......................... 5,940,411
------------
Cash at end of period............................... $ 4,720,362
============
RECONCILIATION OF NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS TO NET CASH PROVIDED FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations........ $ 5,634,352
------------
Increase in investments................................ 540,891
Net realized loss on investments transactions.......... 1,177,388
Net change in unrealized appreciation/depreciation on
investments.......................................... 3,462,971
Decrease in interest receivable........................ 376,101
Increase in prepaid expenses........................... 6,376
Increase in interest payable........................... 93,459
Increase in accrued expenses and other liabilities..... 57,872
------------
Total adjustments................................... 5,715,058
------------
Net cash provided from operating activities................. $ 11,349,410
============

------------------------------------
(a) Non cash financing activities not included herein consist of reinvestment of
dividends of $1,297,040.

The accompanying notes are an integral part of the financial statements.
11

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
FINANCIAL HIGHLIGHTS

FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED DECEMBER 31,
JUNE 30, 2005 ----------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001(2) 2000
------------- -------- -------- -------- -------- --------

PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period..... $ 13.51 $ 13.85 $ 13.03 $ 13.23 $ 12.64 $ 12.54
-------- -------- -------- -------- -------- --------
Net investment income(1)............... 0.38 0.86 0.93 0.99 0.96 0.98
Net realized and unrealized gain (loss)
on investments transactions.......... (0.17) (0.18) 0.91 (0.17) 0.65 0.17
-------- -------- -------- -------- -------- --------
Net increase (decrease) from investment
operations........................... 0.21 0.68 1.84 0.82 1.61 1.15
-------- -------- -------- -------- -------- --------
Dividends from net investment income..... (0.51) (1.02) (1.02) (1.02) (1.02) (1.05)
-------- -------- -------- -------- -------- --------
Net asset value, end of period(3)........ $ 13.21 $ 13.51 $ 13.85 $ 13.03 $ 13.23 $ 12.64
======== ======== ======== ======== ======== ========
Per share market value, end of
period(3).............................. $ 14.58 $ 14.69 $ 14.99 $ 13.16 $ 13.21 $ 12.75
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(4)............... 3.06% 5.55% 22.64% 7.91% 11.90% 20.41%
RATIOS TO AVERAGE NET ASSETS(5)
Operating expenses....................... 2.32%(6) 1.78% 1.79% 2.16% 3.07% 4.02%
Operating expenses (excluding all
commercial paper expenses)............. 1.06%(6) 1.06% 1.08% 1.04% 1.02% 1.04%
Net investment income.................... 5.81%(6) 6.34% 6.81% 7.84% 7.35% 7.98%
SUPPLEMENTAL DATA
Portfolio turnover....................... 10% 17% 10% 27% 10% 15%
Net assets, end of period (000).......... $355,826 $362,600 $369,624 $345,131 $347,114 $329,178
COMMERCIAL PAPER INFORMATION
Aggregate amount outstanding at end of
period (000)........................... $143,000 $143,000 $143,000 $140,500 $143,000 $143,000
Average daily amortized cost of
commercial paper outstanding (000)..... $142,355 $142,557 $142,115 $141,657 $141,686 $141,152
Asset coverage per $1,000 at end of
period................................. $ 3,490 $ 3,537 $ 3,585 $ 3,455 $ 3,440 $ 3,294

------------------------------------
(1) Based on average shares outstanding.

(2) As required, effective January 1, 2001, the Fund adopted the provisions of
the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premium on debt securities. The effect of this change for the
period ended December 31, 2001 was to decrease net investment income per
share by $0.08, increase net realized and unrealized gains and losses per
share by $0.08, and decrease the ratio of net investment income to average
net assets from 7.99% to 7.35%. Per share, ratios and supplemental data for
periods prior to January 1, 2001 have not been restated to reflect this
change in presentation.

(3) Net asset value and market value are published in The Wall Street Journal
each Monday.

(4) Total investment return is calculated assuming a purchase of common stock on
the opening of the first day and a sale on the closing of the last day of
each year reported. Dividends and distributions are assumed, for purposes of
this calculation, to be reinvested at prices obtained under the Fund's
dividend reinvestment plan. Brokerage commissions are not reflected.

(5) As a percentage of average weekly net assets which includes any liabilities
or senior securities constituting indebtedness in connection with financial
leverage.

(6) Annualized.
The accompanying notes are an integral part of the financial statements.
12

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005 (UNAUDITED)

Duff & Phelps Utility and Corporate Bond Trust Inc. (the "Fund") was
organized in Maryland on November 23, 1992 as a diversified, closed-end
management investment company with operations commencing on January 29, 1993.

The Fund's investment objective is to seek high current income consistent
with investing in securities of investment-grade quality. The Fund seeks to
achieve its investment objective by investing substantially all of its assets in
a diversified portfolio of Utility Income Securities, Corporate Income
Securities, Mortgage-Backed Securities and Asset-Backed Securities. The ability
of the issuers of the securities held by the Fund to meet their obligations may
be affected by economic developments in a specific state, industry or region.

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.

SECURITY VALUATION: The Fund values its fixed-income securities by using
market quotations, prices provided by market makers or estimates of market
values obtained from yield data relating to instruments with similar
characteristics in accordance with procedures established by the Board of
Directors of the Fund (the "Board"). Any securities or other assets for which
such current market quotations are not readily available are valued at fair
value as determined in good faith under procedures established by and under the
general supervision and responsibility of the Fund's Board.

Debt securities that mature in 60 days or less are valued at amortized cost
unless this method does not represent fair value.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Interest income, including amortization
of premium and discounts, is recorded on the accrual basis.

FEDERAL INCOME TAXES: It is the Fund's intention to meet the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute sufficient net income and capital gains, if any, to shareholders to
qualify as a regulated investment company. For this reason, no Federal income
tax provision is required.

DIVIDENDS AND DISTRIBUTIONS: The Fund declares and pays dividends to
shareholders on a monthly basis. The dividends are recorded by the Fund on the
ex-dividend date.

REPURCHASE AGREEMENTS: Repurchase agreements are fully collateralized by
U.S. Treasury or Government Agency securities. All collateral is held through
the Fund's custodian and is monitored daily so that its market value exceeds the
carrying value of the repurchase agreement.

USE OF ESTIMATES: The preparation of financial statements, in conformity
with U.S. generally accepted accounting principles, requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts for income and expenses during
the reporting period. Actual results could differ from those estimates.

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 2. AGREEMENTS

The Fund has an Advisory Agreement with Duff & Phelps Investment Management
Co. (the "Adviser"), a subsidiary of Phoenix Investment Partners, Ltd., and an
Administration Agreement with Princeton Administrators, L.P. (the
"Administrator").

The investment advisory fee paid to the Adviser is computed weekly and
payable monthly at an annual rate of .50% of the Fund's average weekly managed
assets, which is defined as the average weekly value of the total assets of the
Fund minus the sum of all accrued liabilities of the Fund (other than the
aggregate amount of any outstanding borrowings or other indebtedness
constituting financial leverage).

The administrative fee paid to the Administrator is also computed weekly
and payable monthly at an annual rate of .15% of the Fund's average weekly net
assets, which is defined as the average weekly value of the total assets of the
Fund minus the sum of all accrued liabilities of the Fund (including any
liabilities or senior securities in connection with financial leverage) subject
to a monthly minimum of $12,500.

Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of any directors and officers
of the Fund who are full-time employees of the Adviser. The Administrator pays
certain occupancy, clerical and accounting costs of the Fund. The Fund bears all
other costs and expenses.

NOTE 3. PORTFOLIO SECURITIES

For the six months ended June 30, 2005, the Fund had purchases of
$52,186,015 and sales of $47,983,002 of investment securities, other than U.S.
Government securities and short-term investments

The cost of investments of the Fund for federal income tax purposes was
$477,131,751. The net unrealized appreciation aggregated $8,167,491, of which
$19,554,488 related to appreciated securities and $11,386,997 related to
depreciated securities.

NOTE 4. SECURITY LENDING

The Fund may lend its portfolio securities to qualified institutions. The
loans are secured by collateral at least equal, at all times, to the market
value of the securities loaned. The Fund may bear the risk of delay in recovery
of, or even loss of rights in, the securities loaned should the borrower of the
securities fail financially. The Fund receives compensation for lending its
securities in the form of fee income. The Fund also continues to receive
interest on the securities loaned, and any gain or loss in the market price of
the securities loaned that may occur during the term of the loan will be for the
account of the Fund. During the six months ended June 30, 2005, there were no
securities loaned.

NOTE 5. COMMERCIAL PAPER

As of June 30, 2005, $143,000,000 of commercial paper was outstanding with
an amortized cost of $142,227,442. The average discount rate of commercial paper
outstanding at June 30, 2005 was 3.34%. The average daily balance of commercial
paper outstanding for the six months ended June 30, 2005 was $142,354,579 at a
weighted average discount rate of 2.85%. The maximum amount of commercial paper

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

outstanding at any time during the year was $143,000,000. In conjunction with
the issuance of the commercial paper, the Fund entered into a line of credit
arrangement with a bank for $75,000,000. Interest on borrowings is based on
market rates in effect at the time of borrowing. The commitment fee is computed
at the rate of 0.20% per annum on the unused balance. During the six months
ended June 30, 2005, there were no borrowings under this agreement.

NOTE 6. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions to be paid for the year ending December
31, 2005 will be determined at the end of the current fiscal year. The tax
character of distributions paid during the fiscal years ended December 31, 2004
and December 31, 2003 was as follows:

12/31/2004 12/31/2003
----------- -----------

Distributions paid from:
Ordinary income........................................... $27,284,046 $27,109,463
----------- -----------
Total taxable distributions................................. $27,284,046 $27,109,463
----------- -----------

As of December 31, 2004, the components of accumulated earnings on a tax
basis were as follows:

Undistributed ordinary income -- net........................ $ 4,732,173
Undistributed long-term capital gains -- net................ $ 0
------------
Total undistributed earnings................................ $ 4,732,173
Capital loss carryforward................................... (21,244,232)*
Unrealized gains / (losses) -- net.......................... 12,354,707**
------------
Total accumulated earnings / (losses)....................... $ (4,157,352)
============

---------------
* On December 31, 2004, the Fund had a net capital loss carryforward of
$21,244,232 of which $17,513,106 expires in 2011 and $3,731,126 expires in
2012. This amount will be available to offset like amounts of any future
taxable gains.

** The difference between book-basis and tax-basis unrealized gains / (losses)
is attributable primarily to the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, the tax
treatments of deferred expenses and other temporary differences.

NOTE 7. CAPITAL

Of the 26,930,461 shares of common stock outstanding at June 30, 2005,
Phoenix Investment Partners Ltd. owned 22,128 shares.

NOTE 8. DEFERRED COMPENSATION PROGRAM

Effective on January 1, 2000, the Fund established a deferred compensation
program for its independent directors. Any director who is not an "interested
person" of the Fund and who elects to participate in the program (a
"participating director") is eligible to defer receipt of all or a portion of
his or her compensation from the Fund. Any amounts deferred by a participating
director are credited to a deferred compensation ledger account (a "deferral
account") established for such director. From January 1, 2000 through December
31,

DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

2004, the deferred compensation program was administered by the Fund's transfer
agent on behalf of the Fund, and all amounts credited to each participating
director's deferral account were deemed to be invested in common stock of the
Fund. Contributions to the deferral account and increases in value of the
measuring shares cause the account balance to increase accordingly, while
withdrawals from the deferral account and decreases in value of the measuring
shares cause the account balance to decrease accordingly. When a participating
director retires, the director may elect to receive payments under the plan in a
lump sum or in equal installments over a period of up to ten years. If a
participating director dies, any amount payable under the plan will be paid to
the director's beneficiaries. Effective on January 1, 2005, administration of
new contributions under the deferred compensation program was transferred to
Fidelity Investments, which administers similar programs for other investment
companies advised by affiliates of Phoenix. Participating directors now have the
ability to allocate amounts in their deferral accounts among various investment
options, one of which is common stock of the Fund. The obligation to make
payouts to directors with respect to compensation deferred since January 1, 2005
is a general obligation of Phoenix. However, the obligation to make payouts to
directors with respect to compensation deferred between January 1, 2000 and
December 31, 2004 remains a general obligation of the Fund. For this reason, the
Fund's Statement of Assets and Liabilities at June 30, 2005 includes "Deferred
compensation payable" in the amount of $556,684, and the $556,684 in deferred
compensation investments that support that obligation are included in "Prepaid
expenses and other assets." Although the Fund has purchased shares of its common
stock in the open market for use in meeting its future payout obligations under
the program, participating directors do not have an ownership interest in those
shares.

NOTE 9. INDEMNIFICATIONS

In the ordinary course of business, the Fund enters into contracts that
contain a variety of indemnifications. The Fund's maximum exposure under these
arrangements is unknown. The Fund does not anticipate recognizing any loss
related to these arrangements.

NOTE 10. SUBSEQUENT DIVIDENDS

Subsequent to June 30, 2005, the Board of Directors of the Fund declared a
dividend of $.085 per share payable on July 29, 2005 to shareholders of record
on July 15, 2005.

PROXY RESULTS (UNAUDITED)

The Annual Meeting of Shareholders of Duff & Phelps Utility and Corporate
Bond Trust Inc. was held on May 18, 2005. The description of the proposals and
number of shares voted are as follows:

SHARES VOTED SHARES VOTED
FOR AGAINST
------------ ------------

1. To elect three directors to serve until the Annual Meeting
in the year indicated below or until their successors are
duly elected and qualified:
Nancy Lampton (2008).................................. 22,735,911 487,075
Philip R. McLoughlin (2008)........................... 22,752,546 470,440
Geraldine M. McNamara (2008).......................... 22,778,602 444,384
Directors whose term of office continued beyond this meeting
are as follows:
E. Virgil Conway, Harry Dalzell-Payne, Francis E. Jeffries,
Eileen A. Moran
and Everett L. Morris. Richard A. Pavia retired at the
conclusion of the Annual Meeting and David J. Vitale was
appointed by the Board of Directors to fill his vacant
position.

DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (UNAUDITED)

Common shareholders are automatically enrolled in the Fund's Dividend
Reinvestment and Cash Purchase Plan (the "Plan"). Under the Plan, all
distributions to common shareholders of dividends and capital gains will
automatically be reinvested by The Bank of New York (the "Plan Agent") in
additional shares of common stock of the Fund unless an election is made to
receive distributions in cash. Shareholders who elect not to participate in the
Plan will receive all distributions in cash paid by check in U.S. dollars mailed
directly to the shareholder of record (or if the shares are held in street or
other nominee name, then to the nominee) by the Plan Agent.

The Plan Agent serves as agent for the common shareholders in administering
the Plan. After the Fund declares a dividend or determines to make a capital
gains distribution, if (1) the market price of shares on the valuation date
equals or exceeds the net asset value of these shares, the Fund will issue new
shares at net asset value, provided that the Fund will not issue new shares at a
discount of more than 5% from the then current market price; or if (2) the
market price is lower than the net asset value, or if dividends or capital gains
distributions are declared and payable only in cash, then the Plan Agent will,
as agent for the participants, receive the cash payment and use it to buy shares
of common stock in the open market, on the New York Stock Exchange or elsewhere,
for the participants' accounts. If, before the Plan Agent has completed its
purchases, the market price exceeds the net asset value per share of the common
stock, the average per share purchase price paid by the Plan Agent may exceed
the net asset value of the Fund's common stock, resulting in the acquisition of
fewer shares of common stock than if the dividend or distribution had been paid
in common stock issued by the Fund. As described below, the Plan was amended,
effective December 1, 1999, whereby the Fund will issue new shares in
circumstances in which it will be beneficial to plan participants.

The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Fund. However, each participant will pay a pro
rata share of brokerage commissions (or equivalent purchase costs) incurred with
respect to the Plan Agent's open market purchases in connection with the
reinvestment of dividends and distributions and with voluntary additional share
investments. There are no other charges to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions (or equivalent purchase costs) as described above.

The Plan also permits Plan participants to periodically purchase additional
shares of common stock through the Plan by delivering to the Plan Agent a check
for at least $100, but not more than $5,000 in any month. The Plan Agent will
use the funds to purchase shares in the open market or in private transactions.
The Fund will not issue any new shares in connection with voluntary additional
share investments. Purchases made pursuant to the Plan will be made commencing
at the time of the first dividend or distribution payment following the second
business day after receipt of the funds for additional purchases, and may be
aggregated with purchases of shares for reinvestment of the dividends and
distributions. Shares will be allocated to the accounts of participants
purchasing additional shares at the average price per share, plus a service
charge imposed by the Plan Agent and brokerage commissions (or equivalent
purchase costs) paid by the Plan Agent for all shares purchased by it, including
for reinvestment of dividends and distributions. Checks drawn on a foreign bank
are subject to collection and collection fees, and will be invested at the time
of the next distribution after funds are collected by the Plan Agent.

The Plan Agent will make every effort to invest funds promptly, and in no
event more than 30 days after the Plan Agent receives a dividend or
distribution, except where postponement is deemed necessary to comply with
applicable provisions of the federal securities laws.

Funds sent to the Plan Agent for voluntary additional share investment may
be recalled by the participant by written notice received by the Plan Agent not
later than two business days before the next distribution payment date. If for
any reason a regular monthly distribution is not paid by the Fund, funds for
voluntary additional share investment will be returned to the participant,
unless the participant specifically directs that they continue to be held by the
Plan Agent for subsequent investment.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent. When a participant withdraws from the Plan or upon termination
of the Plan as provided below, certificates for whole shares credited to his or
her account under the Plan will be issued and a cash payment will be made for
any fraction of a share credited to such account. An election to withdraw from
the Plan will, until such election is changed, be deemed to be an election by a
common shareholder to take all subsequent dividends and distributions in cash.
Elections will only be effective for dividends and distributions declared after,
and with a record date of at least ten days after, such elections are received
by the Plan Agent. There is no penalty for non-participation in or withdrawal
from the Plan, and shareholders who have withdrawn from the Plan may rejoin it
at any time. The Plan Agent imposes charges on participants for selling
participants shares on termination of participation (currently a base fee of
$5.00 plus $.10 per share). The Fund reserves the right to amend the Plan to
institute a service charge to participants.

The Plan Agent maintains each shareholder's account in the Plan and
furnishes monthly written confirmations of all transactions in the accounts,
including information needed by shareholders for personal and tax records.
Shares in the account of each Plan participant will be held by the Plan Agent in
non-certificated form in the name of the participant, and each shareholder's
proxy will include those shares purchased pursuant to the Plan.

Common shareholders whose common stock is held in the name of a broker or
nominee should contact such broker or nominee to determine whether or how they
may participate in the Plan.

In the case of shareholders, such as banks, brokers or nominees, that hold
shares for others who are the beneficial owners, the Plan Agent will administer
the Plan on the basis of the number of shares certified from time to time by the
record shareholder as representing the total amount registered in the record
shareholder's name and held for the account of beneficial owners who are
participants in the Plan.

The automatic reinvestment of dividends and distributions will not relieve
participants of any federal income tax that may be payable or required to be
withheld on such dividends or distributions.

The Fund reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all participants in the Plan at least 90 days before the record date for
the dividend or distribution. The Plan may also be amended or terminated by the
Plan Agent by at least 90 days' written notice to all participants in the Plan.
All questions concerning the Plan should be directed to the Plan Agent by
calling 1-800-524-4458.

ADDITIONAL INFORMATION (UNAUDITED)

There have been no changes in the Fund's charter or by-laws that would
delay or prevent a change in control of the Fund which has not been approved by
the shareholders. There have been no changes in the principal risk factors
associated with investment in the Fund. There have been no changes in the
persons who are primarily responsible for the day-to-day management of the
Fund's portfolio.

The Board of Directors has adopted a stock compensation program utilizing
shares of the Fund.

Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may from time to time purchase its shares of
common stock in the open market.

PROXY VOTING POLICY AND PROCEDURES (UNAUDITED)

The Fund does not typically hold voting securities and the Fund's Board of
Directors has adopted proxy voting procedures whereby the Fund's investment
adviser (the "Adviser") would review any proxy solicitation materials on a
case-by-case basis and would vote any such securities in accordance with the
Investment Adviser's good faith belief as to the best interests of the Fund and
its shareholders. A description of the policies and procedures that the Fund
uses to determine how to vote proxies relating to portfolio securities, and
information regarding how the Fund voted proxies during the 12 months ended June
30, 2005, is available without charge, upon request, by calling the Adviser
collect at 312-541-5555 and on the Commission's website at http://www.sec.gov.

AVAILABILITY OF QUARTERLY SCHEDULE OF INVESTMENTS (UNAUDITED)

The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's
Web site at http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. Information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.

PRIVACY PRINCIPLES OF THE FUND (UNAUDITED)

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

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

The Fund restricts access to non-public personal information about its
shareholders to employees of the Fund's investment adviser, administrator and
their respective affiliates with a legitimate business need for the information.
The Fund maintains physical, electronic and procedural safeguards designed to
protect the non-public personal information of its shareholders.

RENEWAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)

Under Section 15(c) of the Investment Company Act of 1940 (the "1940 Act"),
the terms of the Fund's investment advisory agreement must be reviewed and
approved at least annually by the Board of Directors of the Fund (the "Board"),
including a majority of the Directors who are not "interested persons" of the
Fund, as defined in the 1940 Act (the "Independent Directors"). Section 15(c) of
the 1940 Act also requires the Fund's

Directors to request and evaluate, and the Fund's investment adviser to a fund
to furnish, such information as may reasonably be necessary to evaluate the
terms of the investment advisory agreement. During the month of November 2004,
assisted by the advice of independent legal counsel, the Board conducted its
annual review of the terms of the Fund's investment advisory agreement with Duff
& Phelps Investment Management Co., the Fund's investment adviser (the
"Adviser"). In the course of that review, the Directors considered all of the
information they deemed appropriate, including informational materials furnished
by the Adviser in response to a request made on behalf of the Independent
Directors by legal counsel to the Independent Directors. Based on that review,
at a meeting held on November 17, 2004, the Board, including the Independent
Directors, approved the continuation of the investment advisory agreement for an
additional one-year term ending November 30, 2005. In making its determination
that such continuation was in the best interests of the Fund and its
shareholders, the Board took into account all factors that it deemed relevant,
without identifying any single factor or group of factors as all-important or
controlling. Among the factors considered by the Board, and the conclusions
reached with respect to each, were the following:

Nature, extent, and quality of services. The Board considered the nature,
extent and quality of the services provided to the Fund by the Adviser. Among
other materials, the Adviser furnished the Board with a copy of its most recent
investment adviser registration form ("Form ADV") and a description of its
investment process. In evaluating the quality of the Adviser's services, the
Board considered the investment experience and length of service of the
individual portfolio managers who provide services to the Fund. The Board noted
the various complexities involved in the operations of the Fund, such as the use
of leverage in the form of the Fund's commercial paper. The Board also evaluated
the Adviser's compliance program, code of ethics, conflict of interest policies
and the correspondence relating to the most recent examination of the Fund
conducted by the SEC. In light of the foregoing, the Board concluded that it was
generally satisfied with the nature, extent and quality of the services provided
to the Fund by the Adviser.

Investment performance of the Fund and the Adviser. The Adviser provided
the Board with performance information for the Fund for various periods,
measured against two benchmarks: the Lipper General Bond Funds Average, the
Lipper Corporate Debt Funds BBB-Rated Average and the Lehman Brothers U.S.
Aggregated Bond Index. The Board noted that the Fund's performance generally
compared favorably with the benchmarks. The Adviser also provided information
about the Fund's ratings from Morningstar, Inc.

Costs of services and profits realized. The Board considered the
reasonableness of the compensation paid to the Adviser, in both absolute and
comparative terms, and also the profits realized by the Adviser and its
affiliates from their relationship with the Fund. To facilitate the Board's
analysis, the Adviser furnished the Board with information from Lipper
Analytical Services Inc., an independent provider of investment company data,
comparing the Fund's advisory and other expenses to the similar expenses of
other leveraged municipal debt funds. The comparative data indicated that the
Fund's advisory fees did not differ significantly from the median of similar
fees incurred by other leveraged debt funds.

Included in the Adviser's Form ADV furnished to the Board was comparative
information from the Adviser with respect to the fees it charges to investment
advisory clients other than the Fund. However, the Board concluded that the
services rendered to other institutional investor clients were not sufficiently
comparable to the services rendered to the Fund for a direct comparison of
advisory fees to be meaningful.

The Adviser also furnished the Board with copies of its financial
statements. In reviewing those financial statements, the Board examined the
profitability of the investment advisory agreement to the Adviser and determined
that the profitability of that contract was within the range that courts had
found reasonable. The Board considered that the Adviser must be able to
compensate its employees at competitive levels in order to attract and retain
high-quality personnel to provide high-quality services to the Fund. The Board
concluded that

the investment advisory fee was the product of arm's length bargaining and that
it was fair and reasonable to the Fund.

Economies of scale. The Board concluded that currently the Fund is not
sufficiently large to realize benefits from economies of scale, but should seek
opportunities for economies of scale that might arise in the future.

Indirect benefits. The Board considered possible sources of indirect
benefits to the Adviser from its relationship to the Fund. As a fixed-income
fund, the Fund does not generate soft dollars. Nevertheless, the Adviser
furnished the Board with a report on its use of soft dollars in connection with
other investment advisory clients. The Board also noted that the Fund does not
utilize affiliates of the Adviser for brokerage purposes.

DIRECTORS

Francis E. Jeffries, Chairman
E. Virgil Conway
Harry Dalzell-Payne
Nancy Lampton
Philip R. McLoughlin
Geraldine M. McNamara
Eileen A. Moran
Everett L. Morris
David J. Vitale

OFFICERS

Nathan I. Partain
President & Chief Executive Officer

Daniel J. Petrisko
Vice President & Chief Investment Officer

Alan M. Meder
Treasurer

Joyce B. Riegel
Chief Compliance Officer

T. Brooks Beittel
Secretary

INVESTMENT ADVISER

Duff & Phelps Investment Management Co.
55 East Monroe Street
Chicago, IL 60603
(312) 541-5555

ADMINISTRATOR

Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 543-6217

CUSTODIAN AND TRANSFER AGENT

The Bank of New York
P.O. Box 11258
Church Street Station
New York, NY 10286
(800) 524-4458

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Ernst & Young LLP
233 South Wacker Drive
Chicago, IL 60606

LEGAL COUNSEL

Mayer, Brown, Rowe & Maw LLP
71 South Wacker Drive
Chicago, IL 60606

This report is for shareholder information.
This is not a prospectus intended for use in the
purchase or sale of Fund shares. Information contained
in this report is dated and subject to change. Past
performance is no guarantee of future results.

Duff & Phelps Utility and Corporate Bond Trust Inc.
55 East Monroe Street
Chicago, IL 60603
DUFF & PHELPS
UTILITY AND
CORPORATE
BOND TRUST INC.

(DUFF & PHELPS LOGO)
SEMI-ANNUAL REPORT
JUNE 30, 2005

Item 2 - Code of Ethics - Not required as this is not an annual filing.

Item 3 - Audit Committee Financial Expert - Not required as this is not an
annual filing.

Item 4 - Principal Accountant Fees and Services - Not required as this is not
an annual filing.

Item 5 - Audit Committee of Listed Registrants - Not required as this is not
an annual filing.

Item 6 - Schedule of Investments - This schedule is included as part of the
report to stockholders filed under Item 1 of this Form.

Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not required as this is not an annual
filing.

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

Not applicable to semi-annual reports for the period ended June 30,
2005.

Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - None.

Item 10 - Submission of Matters to a Vote of Security Holders - None.

Item 11 - Controls and Procedures

(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940 (the "1940 Act")) are effective, based on an evaluation
of those controls and procedures made as of a date within 90 days of
the filing date of this report as required by Rule 30a-3(b) under
the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of
1934.

(b) There has been no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the second fiscal quarter of the fiscal
half-year covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.

Item 12 - Exhibits

(a)(1) Code of Ethics - Not applicable to semi-annual filing.

(a)(2) Exhibit 99.CERT- Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act - Attached hereto

(b) Exhibit 99.906CERT- Certifications pursuant to Section 906 of
the Sarbanes-Oxley Act - Attached hereto

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.

Duff & Phelps Utility and Corporate Bond Trust Inc.

By: /s/ Alan M. Meder
------------------------------
Alan M. Meder,
Principal Financial Officer of
Duff & Phelps Utility and Corporate Bond Trust Inc.

Date: August 31, 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/ Nathan I. Partain
------------------------------
Nathan I. Partain
Principal Executive Officer of
Duff & Phelps Utility and Corporate Bond Trust Inc.

Date: August 31, 2005

By: /s/ Alan M. Meder
------------------------------
Alan M. Meder,
Principal Financial Officer of
Duff & Phelps Utility and Corporate Bond Trust Inc.

Date: August 31, 2005