UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-06660
Name of Fund: BlackRock MuniYield Quality Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock MuniYield Quality Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 882-0052
Date of fiscal year end: 10/31/07
Date of reporting period: 11/01/06 - 04/30/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES
FIXED INCOME LIQUIDITY REAL ESTATE
Semi-Annual Reports BLACKROCK
(Unaudited)
APRIL 30, 2007
BlackRock MuniYield Fund, Inc.
BlackRock MuniYield Insured Fund, Inc.
BlackRock MuniYield Quality Fund, Inc.
BlackRock MuniYield Quality Fund II, Inc.
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock MuniYield Fund, Inc.
BlackRock MuniYield Insured Fund, Inc.
BlackRock MuniYield Quality Fund, Inc.
BlackRock MuniYield Quality Fund II, Inc.
Quality Profiles as of April 30, 2007
Percent of
BlackRock MuniYield Fund, Inc. by Total
S&P/Moody's Rating Investments
--------------------------------------------------------------------------------
AAA/Aaa ...................................................... 41.5%
AA/Aa ........................................................ 14.3
A/A .......................................................... 9.6
BBB/Baa ...................................................... 9.3
BB/Ba ........................................................ 1.4
B/B .......................................................... 4.2
CCC/Caa ...................................................... 3.6
NR (Not Rated) ............................................... 15.8
Other* ....................................................... 0.3
--------------------------------------------------------------------------------
* Includes portfolio holdings in variable rate demand notes and short-term
investments.
Percent of
BlackRock MuniYield Insured Fund, Inc. by Total
S&P/Moody's Rating Investments
--------------------------------------------------------------------------------
AAA/Aaa ...................................................... 82.2%
AA/Aa ........................................................ 4.6
A/A .......................................................... 6.6
BBB/Baa ...................................................... 1.9
NR (Not Rated) ............................................... 3.5
Other* ....................................................... 1.2
--------------------------------------------------------------------------------
* Includes portfolio holdings in variable rate demand notes.
--------------------------------------------------------------------------------
Percent of
BlackRock MuniYield Quality Fund, Inc. by Total
S&P/Moody's Rating Investments
--------------------------------------------------------------------------------
AAA/Aaa ...................................................... 85.8%
AA/Aa ........................................................ 5.5
A/A .......................................................... 6.3
BBB/Baa ...................................................... 0.3
NR (Not Rated) ............................................... 1.7
Other* ....................................................... 0.4
--------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments.
--------------------------------------------------------------------------------
Percent of
BlackRock MuniYield Quality Fund II, Inc. by Total
S&P/Moody's Rating Investments
--------------------------------------------------------------------------------
AAA/Aaa ...................................................... 85.6%
AA/Aa ........................................................ 5.9
A/A .......................................................... 7.7
BBB/Baa ...................................................... 0.3
Other* ....................................................... 0.5
--------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments.
2 SEMI-ANNUAL REPORTS APRIL 30, 2007
A Letter to Shareholders
Dear Shareholder
In its first four months, 2007 could already be termed an eventful year for
investors. For most financial markets, 2007 opened just as 2006 ended -- on a
positive trajectory. Then, at the end of February and into March, global equity
markets registered their first significant decline since last summer. The market
jitters were triggered by a significant setback in the Chinese market and were
exacerbated by worries of a weakening economy, escalating geopolitical concerns
and rising delinquencies in the subprime mortgage market. Still, underlying
stock market fundamentals appeared quite sound, supported by a generally
favorable global economic backdrop, tame inflation, slowing but still positive
earnings growth, relatively low interest rates and attractive valuations. These
conditions prevailed later, and the Dow Jones Industrial Average crossed the
13,000 mark for the first time in its history in late April.
Not unlike the equity market, the bond market also experienced volatility as
observers attempted to interpret mixed economic signals. A bond market rally
(falling yields and rising prices) late last year reversed itself early in 2007
amid some transitory signs of economic strength. Overall, yields have fluctuated
month to month but ended April little changed from the beginning of the year.
However, compared to one year ago, yields on 30-year Treasury bonds fell 36
basis points (.36%) and 10-year yields fell 44 basis points, while prices
correspondingly rose.
For its part, the Federal Reserve Board (the Fed) has left the target short-term
interest rate on hold at 5.25% since first pausing in its interest rate-hiking
campaign on August 8, 2006. The central bankers continue to express concern
about potential inflationary pressures, but also acknowledge signs of economic
weakness. Given this relatively "balanced" assessment, most observers believe
the Fed will keep interest rates on hold for now.
Against this backdrop, most major market indexes posted positive returns for the
annual and semi-annual reporting periods ended April 30, 2007:
Total Returns as of April 30, 2007 6-month 12-month
================================================================================================================
U.S. equities (Standard & Poor's 500 Index) + 8.60% +15.24%
----------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) + 6.86 + 7.83
----------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +15.46 +19.81
----------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) + 2.64 + 7.36
----------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.59 + 5.78
----------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 6.96 +11.72
----------------------------------------------------------------------------------------------------------------
If the first four months are any guide, 2007 could be a year of enhanced market
volatility. As you navigate the uncertainties, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more insight, we invite you to view "What's Ahead in 2007: An
Investment Perspective" and "Are You Prepared for Volatility?" at
www.blackrock.com/funds. We thank you for entrusting BlackRock with your
investment assets, and we look forward to continuing to serve you in the months
and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
Fund President and Director
SEMI-ANNUAL REPORTS APRIL 30, 2007 3
A Discussion With Your Funds' Portfolio Managers
The Funds posted total returns that surpassed their respective Lipper
category averages for the period, as we maintained our focus on generating yield
and protecting net asset value.
Describe the recent market environment relative to municipal bonds.
Long-term bond yields traded in a fairly broad and volatile range over the past
six months, only to end the period little changed. Overall, financial conditions
have remained relatively balanced, with moderate economic activity and
well-contained inflationary pressures. Recent commentary from the Federal
Reserve Board (the Fed) has supported this trading range. The Fed is expected to
maintain its "balanced" economic assessment at least into mid-year.
During the six-month reporting period, 30-year U.S. Treasury bond yields rose
nine basis points (.09%) to 4.81%, while 10-year Treasury note yields rose two
basis points to 4.63%. Similarly, movements were fairly muted in the tax-exempt
market. As measured by Municipal Market Data, yields on AAA-rated municipal
bonds maturing in 30 years declined three basis points to 4.10%, and yields on
AAA-rated municipal bonds maturing in 10 years rose 12 basis points to 3.76%.
Investor demand for municipal product continued to strengthen throughout the
six-month period. The Investment Company Institute reports that long-term
municipal bond funds received over $8.7 billion in net new cash flows during the
first three months of 2007, a 42% increase compared to the first three months of
2006. Weekly fund flows, as reported by AMG Data, also have risen. Weekly
inflows during the three-month period ended April 30, 2007, averaged over $489
million, up from a weekly average of $400 million in fourth quarter 2006. The
improving demand among retail investors reflects, in large part, increased
acceptance of lower nominal yields and bond coupon structure. Throughout much of
last year, retail-oriented municipal bond broker/dealers noted significant
individual investor resistance to purchasing tax-exempt issues with yields below
4.50% and/or issues bearing nominal coupons below 5%. As tax-exempt bond yields
have stabilized in recent months, it appears retail investors have become
increasingly comfortable purchasing tax-exempt bonds with those characteristics,
which has served to support the market's performance.
In terms of supply, issuance of long-term municipal bonds has increased over the
past six months. More than $225 billion in new bonds was issued during the April
reporting period, an increase of over 30% compared to the same six months one
year ago. Over the past three months, municipalities issued more than $106
billion in new long-term tax-exempt bonds, an increase of more than 32% compared
to the same period a year ago. So far this year, greater than $135 billion in
long-term municipal bonds have been underwritten, putting 2007 annual issuance
some 4% ahead of 2005's record pace. Issuers have continued to take advantage of
historically low interest rates to refinance outstanding issues. In the first
four months of 2007, we have seen 10 underwritings exceeding $1 billion in size.
These "mega-deals" have continued to be relatively easily absorbed by market
participants, especially non-traditional and foreign buyers who find the
liquidity afforded by these deals to be particularly attractive.
Looking ahead, we believe investor demand will be critical in maintaining the
tax-exempt market's strong technical position. The increase in new bond supply
seen this year is unlikely to abate significantly, leading to record or
near-record annual issuance. Relatively stable yield ratios compared to taxable
bonds, coupled with a comparatively steep municipal yield curve, should help to
sustain traditional and non-traditional investor interest in tax-exempt bonds
and support the market's performance into mid-2007.
4 SEMI-ANNUAL REPORTS APRIL 30, 2007
BlackRock MuniYield Fund, Inc.
How did the Fund perform during the period?
For the six-month period ended April 30, 2007, the Common Stock of BlackRock
MuniYield Fund, Inc. had net annualized yields of 5.53% and 5.24%, based on a
period-end per share net asset value of $14.89 and a per share market price of
$15.71, respectively, and $.408 per share income dividends. Over the same
period, the total investment return on the Fund's Common Stock was +2.19%, based
on a change in per share net asset value from $14.98 to $14.89, and assuming
reinvestment of all distributions.
The Fund's total return, based on net asset value, exceeded the +1.66% average
return of the Lipper General Municipal Debt Funds (Leveraged) category for the
six-month period. (Funds in this Lipper category invest primarily in municipal
debt issues rated in the top four credit-rating categories. These funds can be
leveraged via use of debt, preferred equity and/or reverse repurchase
agreements.)
As in prior reporting periods, Fund performance continued to be driven by our
above-average dividend yield, which is largely the result of the portfolio's
exposure to lower-rated, higher-yielding credits. Another significant driver of
positive performance was the refunding activity that has been evident in the
market for some time. A number of the Fund's holdings were refunded during the
period and enjoyed subsequent increases in value. An additional benefit of the
refunding activity was a boost in the overall credit profile of the portfolio as
some of our lower-rated or non-rated bonds were refunded (when a bond is
refunded, the risk of default essentially drops to zero and, therefore, raises
the credit quality to the equivalent of a AAA-rated issue).
For the most part, the Fund's interest rate exposure remained neutral during the
six-month period and did not have a significant effect on performance. We did,
however, employ some tactical hedging strategies in order to position the Fund a
bit more defensively (that is, less interest rate exposure) late in the period.
This move was in anticipation of the temporary weakness typically seen in the
municipal market around the April tax deadline, when investors are focused more
on allocating funds for tax payments than on buying bonds. While the "tax
effect" was fairly muted this year, our hedging strategies did prove beneficial
to performance for the period. On the negative side, a widening in credit
spreads in the health care industry was a detractor, although the Fund's neutral
exposure to that sector limited its influence on overall performance.
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Stock (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of distributions, please refer to the Financial Highlights section
of this report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or discount to the Fund's net asset value. As a
result, total investment returns based on changes in the market value of the
Fund's Common Stock may vary significantly from total investment returns based
on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
In our last report to shareholders, we noted that portfolio activity had been
focused on taking advantage of further flattening in the municipal yield curve
by shifting assets to the 10-year to 15-year area of the curve. During the most
recent six months, we made only modest efforts to pursue this strategy as we
came to believe that the yield curve will potentially maintain its flatness for
an extended period of time. While we still see the greatest value in the 10-year
to 15-year part of the curve, we also foresee continued strength on the long end
due, in part, to high demand from traditional investors who are drawn to the
positively sloped municipal curve versus other asset classes. Additionally,
issuers have lately become more inclined to raise capital through structured
derivative products rather than traditional bonds. Should investor demand for
structured products remain strong, the supply of long-term fixed rate bonds may
be reduced, which would lend further strength to the long end of the curve.
Other activity during the six-month period included an effort to increase
exposure to the high-grade housing and health care sectors as part of our larger
goal of upgrading the overall credit profile of the portfolio. As heavy issuance
occurred in both sectors, bond prices declined and we found attractive values on
high-grade issues (AA or AAA). Given the persistently narrow credit spreads of
these sectors and the added incentive of reduced prices on high-grade credits,
we were able to increase the quality of the portfolio with less yield loss than
is typically associated with a credit upgrade.
SEMI-ANNUAL REPORTS APRIL 30, 2007 5
A Discussion With Your Funds' Portfolio Managers (continued)
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Stock had average yields of: 3.50% for Series A, 3.65% for Series B,
3.45% for Series C, 3.40% for Series D, 3.55% for Series E, 3.53% for Series F
and 3.52% for Series G. The Fed opted to keep the target short-term interest
rate on hold at 5.25% throughout the period. As such, the Fund's borrowing costs
were stable, but relatively high during the period as we experienced a typical
spike related to the April tax-filing deadline. The municipal yield curve,
although flat by historical standards, remained positively sloped and continued
to generate an income benefit to the Common Stock shareholder from the
leveraging of Preferred Stock. As always, should the spread between short-term
and long-term interest rates narrow, the benefits of leverage will decline and,
as a result, reduce the yield on the Fund's Common Stock. (For a more complete
explanation of the benefits and risks of leveraging, see page 11 of this report
to shareholders.)
How would you characterize the Fund's position at the close of the period?
At period-end, the Fund was neutrally positioned in terms of interest rate risk,
as it appears that the Fed will refrain from changing its target short-term
interest rate for some time. When we see more definite signs that the economy is
indeed continuing to slow to the point where the Fed is likely to lower rates,
we will look to adjust the portfolio to take advantage of the falling-rate
environment. We also intend to continue working on reducing the portfolio's
credit exposure while maintaining the competitive income to shareholders that
the Fund has consistently achieved for several years. At period-end, our
borrowing costs were still elevated due to the seasonal spike associated with
tax season, but we expect rates to settle back rather quickly and allow us more
flexibility to pursue our credit strategies.
BlackRock MuniYield Insured Fund, Inc.
How did the Fund perform during the period?
For the six-month period ended April 30, 2007, the Common Stock of BlackRock
MuniYield Insured Fund, Inc. had net annualized yields of 4.45% and 4.73%, based
on a period-end per share net asset value of $15.22 and a per share market price
of $14.33, respectively, and $.336 per share income dividends. Over the same
period, the total investment return on the Fund's Common Stock was +1.85%, based
on a change in per share net asset value from $15.30 to $15.22, and assuming
reinvestment of all distributions.
The Fund's total return, based on net asset value, exceeded the +1.46% average
return of the Lipper Insured Municipal Debt Funds (Leveraged) category for the
six-month period. (Funds in this Lipper category invest primarily in municipal
debt issues insured as to timely payment. These funds can be leveraged via use
of debt, preferred equity and/or reverse repurchase agreements.) The Fund's
outperformance can be attributed to our long duration relative to our peers, a
posture we assumed for the majority of the period. Rates moved within a very
narrow range during the period, but our slightly long bias proved favorable at
times when the market rallied (that is, rates fell and prices increased). This
was particularly true toward the end of 2006.
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Stock (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of distributions, please refer to the Financial Highlights section
of this report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or discount to the Fund's net asset value. As a
result, total investment returns based on changes in the market value of the
Fund's Common Stock can vary significantly from total investment returns based
on changes in the Fund's net asset value.
6 SEMI-ANNUAL REPORTS APRIL 30, 2007
What changes were made to the portfolio during the period?
While we generally favored a long duration, we shifted to a slightly short bias
in January and February in anticipation of a market decline. We refocused our
efforts on increasing duration in March and April based on our belief that
turmoil in the subprime mortgage market would bring yields down. Throughout the
six months, we aimed to achieve additional yield for the portfolio by investing
in longer-dated bonds, specifically in the 25-year to 30-year maturity range,
while also seeking to protect the Fund's underlying value.
In our last report to shareholders, we noted a marked narrowing of credit
spreads between municipal bonds issued by high-tax states and those issued by
low-tax states. In seeking to capitalize on this trend, we looked to purchase
high-quality bonds issued by the high-tax states, as opposed to bonds issued by
low-tax states. Because of the relatively high income taxes imposed by these
states, their securities typically meet with strong retail demand, which in turn
creates a solid technical market, leading to better liquidity. We maintained
that bias during this period, especially with regard to California issues, in
which we maintained a position of approximately 23% of net assets.
Similarly, we maintained the Fund's exposure to the Pacific Northwest, where we
continue to observe solid credit fundamentals. Bonds issued by the State of
Washington made up approximately 10% of the portfolio.
Importantly, the Fund continued to be fully invested throughout the period,
consistent with our goal of maintaining an attractive level of income.
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Stock had average yields of 3.50% for Series A, 3.60% for Series B,
3.64% for Series C, 3.49% for Series D, 3.51% for Series E, 3.63% for Series F,
3.56% for Series G, 3.55% for Series H and 3.55% for Series I. The Fed kept its
target interest rate unchanged during the six-month period at 5.25%. As such,
the Fund's borrowing costs remained relatively stable. Importantly, the
municipal yield curve maintained its positive slope, particularly compared to
the Treasury curve, and continued to generate an income benefit to the Common
Stock shareholder from the leveraging of Preferred Stock. As always, should the
spread between short-term and long-term interest rates narrow, the benefits of
leveraging will decline and, as a result, reduce the yield available to the
Common Stock shareholder. (For a more complete explanation of the benefits and
risks of leveraging, see page 11 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We ended the period with a fully invested portfolio and a neutral to slightly
long duration relative to our peers. Municipal yields and credit spreads are
near their all-time lows and the slope of the yield curve is historically very
flat. However, a favorable supply/demand environment should continue to be
supportive of present valuations in the municipal market.
Against this backdrop, we intend to continue our efforts to enhance yield for
shareholders while also protecting the Fund's underlying value. To that end, we
continue to look for maturities in the 25-year to 30-year area and to favor a
neutral to slightly long portfolio duration, which offers the benefit of
incremental yield. We believe above-average yields can provide for competitive
Fund returns over time.
SEMI-ANNUAL REPORTS APRIL 30, 2007 7
A Discussion With Your Funds' Portfolio Managers (continued)
BlackRock MuniYield Quality Fund, Inc.
How did the Fund perform during the period?
For the six-month period ended April 30, 2007, the Common Stock of BlackRock
MuniYield Quality Fund, Inc. had net annualized yields of 4.53% and 4.79%, based
on a period-end per share net asset value of $15.21 and a per share market price
of $14.39, respectively, and $.342 per share income dividends. Over the same
period, the total investment return on the Fund's Common Stock was +1.69%, based
on a change in per share net asset value from $15.32 to $15.21, and assuming
reinvestment of all distributions.
The Fund's total return, based on net asset value, outpaced the +1.46% average
return of the Lipper Insured Municipal Debt Funds (Leveraged) category for the
six-month period. (Funds in this Lipper category invest primarily in municipal
debt issues insured as to timely payment. These funds can be leveraged via use
of debt, preferred equity and/or reverse repurchase agreements.)
The Fund's positive performance is primarily attributed to two factors. First,
in prior periods, we had focused on investing further out along the municipal
yield curve, a strategy that continued to benefit performance as longer-dated
bonds outperformed issues with shorter maturities during this period (that is,
the yield curve flattened). Second, several bond holdings were advance refunded
during the period, which also proved advantageous. When bonds are refunded ahead
of their maturity date, they generally rise sharply in value. Finally, it is
worth noting that the Fund's relatively neutral status in terms of duration (a
measure of interest rate sensitivity) provided an incremental advantage versus
our peers that had taken a more severe bias in terms of the direction of
interest rates. Overall, interest rates were volatile but little changed over
the course of the period.
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Stock (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of dividends, please refer to the Financial Highlights section of
this report. As a closed-end fund, the Fund's shares may trade in the secondary
market at a premium or discount to the Fund's net asset value. As a result,
total investment returns based on changes in the market value of the Fund's
Common Stock can vary significantly from total investment returns based on
changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We maintained the Fund's fully invested stance and relatively neutral posture on
interest rate risk. In terms of specific portfolio activity during the period,
we sold some recently advance refunded positions, as their book yields were not
significantly above current market yields, and moved into higher-yielding
current issues. In doing so, we focused on bonds that could be advance refunded
in the future, primarily premium-coupon, high-quality bonds in the 15-year to
20-year maturity range, which would allow us to replicate the same types of
trades again (that is, sell bonds with lower yields in exchange for bonds with
higher yields as the curve steepens).
The Fund has the ability to invest in bonds that are not insured, and we made
use of that uninsured basket in an effort to enhance yield in the portfolio. Of
course, "uninsured" does not necessarily mean substantially lower quality. In
many cases, uninsured bonds are AAA-rated due to other types of enhancements. As
such, our use of the uninsured basket did not translate into a meaningful drop
in the Fund's credit quality.
8 SEMI-ANNUAL REPORTS APRIL 30, 2007
We had ample opportunity to add single-family housing bonds and health
care-related issues to the portfolio given heavy issuance in the two sectors
during the period. In both cases, yields were more attractive than they had been
in the past couple of years. The single-family housing bonds are generally rated
AA or AAA, even without insurance. In the health care sector, we primarily found
opportunities in A-rated and AA-rated hospital issues. So, again, we were able
to take advantage without a huge sacrifice in terms of credit quality.
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Stock had average yields of 3.67% for Series A, 3.55% for Series B,
3.53% for Series C, 3.61% for Series D and 3.55% for Series E. The Fed kept its
target interest rate unchanged during the six-month period at 5.25%. As such,
the Fund's borrowing costs remained relatively stable. Importantly, the
municipal yield curve maintained its positive slope, particularly compared to
the Treasury curve, and continued to generate an income benefit to the Common
Stock shareholder from the leveraging of Preferred Stock. As always, should the
spread between short-term and long-term interest rates narrow, the benefits of
leveraging will decline and, as a result, reduce the yield available to the
Common Stock shareholder. (For a more complete explanation of the benefits and
risks of leveraging, see page 11 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
The Fund ended the period in a neutral position with respect to interest rate
risk. We believe this is the appropriate posture with the Fed on hold and given
the historical flatness of the yield curve. We will look for a steepening of the
yield curve to provide attractive investment opportunities for the portfolio. In
particular, we believe the 15-year to 20-year area of the curve could offer
strong relative performance in the future.
The Fund was fully invested at period-end, reflecting our efforts to enhance
tax-free income for our shareholders. Overall, we maintain our focus on
providing shareholders with a competitive yield and preservation of net asset
value within the context of a high-quality portfolio.
BlackRock MuniYield Quality Fund II, Inc.
How did the Fund perform during the period?
For the six-month period ended April 30, 2007, the Common Stock of BlackRock
MuniYield Quality Fund II, Inc. had net annualized yields of 4.46% and 4.77%,
based on a period-end per share net asset value of $13.55 and a per share market
price of $12.67, respectively, and $.300 per share income dividends. Over the
same period, the total investment return on the Fund's Common Stock was +1.76%,
based on a change in per share net asset value from $13.64 to $13.55, and
assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, outpaced the +1.46% average
return of the Lipper Insured Municipal Debt Funds (Leveraged) category for the
six-month period. (Funds in this Lipper category invest primarily in municipal
debt issues insured as to timely payment. These funds can be leveraged via use
of debt, preferred equity and/or reverse repurchase agreements.)
The Fund's positive performance is primarily attributed to two factors. First,
in prior periods, we had focused on investing further out along the municipal
yield curve, a strategy that continued to benefit performance as longer-dated
bonds outperformed issues with shorter maturities during this period (that is,
the yield curve flattened). Second, several bond holdings were advance refunded
during the period, which also proved advantageous. When bonds are refunded ahead
of their maturity date, they generally rise sharply in value. Finally, it is
worth noting that the Fund's relatively neutral status in terms of duration (a
measure of interest rate sensitivity) provided an incremental advantage versus
our peers that had taken a more severe bias in terms of the direction of
interest rates. Overall, interest rates were volatile but little changed over
the course of the period.
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Stock (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of distributions, please refer to the Financial Highlights section
of this report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or discount to the Fund's net asset value. As a
result, total investment returns based on changes in the market value of the
Fund's Common Stock can vary significantly from total investment returns based
on changes in the Fund's net asset value.
SEMI-ANNUAL REPORTS APRIL 30, 2007 9
A Discussion With Your Funds' Portfolio Managers (concluded)
What changes were made to the portfolio during the period?
We maintained the Fund's fully invested stance and relatively neutral posture on
interest rate risk. In terms of specific portfolio activity during the period,
we sold some recently advance refunded positions, as their book yields were not
significantly above current market yields, and moved into higher-yielding
current issues. In doing so, we focused on bonds that could be advance refunded
in the future, primarily premium-coupon, high-quality bonds in the 15-year to
20-year maturity range, which would allow us to replicate the same types of
trades again (that is, sell bonds with lower yields in exchange for bonds with
higher yields as the curve steepens).
The Fund has the ability to invest in bonds that are not insured, and we made
use of that uninsured basket in an effort to enhance yield in the portfolio. Of
course, "uninsured" does not necessarily mean substantially lower quality. In
many cases, uninsured bonds are AAA-rated due to other types of enhancements. As
such, our use of the uninsured basket did not translate into a meaningful drop
in the Fund's credit quality.
We had ample opportunity to add single-family housing bonds and health
care-related issues to the portfolio given heavy issuance in the two sectors
during the period. In both cases, yields were more attractive than they had been
in the past couple of years. The single-family housing bonds are generally rated
AA or AAA, even without insurance. In the health care sector, we primarily found
opportunities in A-rated and AA-rated hospital issues. So, again, we were able
to take advantage without a huge sacrifice in terms of credit quality.
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Stock had average yields of 3.64% for Series A, 3.60% for Series B,
3.55% for Series C and 3.57% for Series D. The Fed kept its target interest rate
unchanged during the six-month period at 5.25%. As such, the Fund's borrowing
costs remained relatively stable. Importantly, the municipal yield curve
maintained its positive slope, particularly compared to the Treasury curve, and
continued to generate an income benefit to the Common Stock shareholder from the
leveraging of Preferred Stock. As always, should the spread between short-term
and long-term interest rates narrow, the benefits of leveraging will decline
and, as a result, reduce the yield available to the Common Stock shareholder.
(For a more complete explanation of the benefits and risks of leveraging, see
page 11 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
The Fund ended the period in a neutral position with respect to interest rate
risk. We believe this is the appropriate posture with the Fed on hold and given
the historical flatness of the yield curve. We will look for a steepening of the
yield curve to provide attractive investment opportunities for the portfolio. In
particular, we believe the 15-year to 20-year area of the curve could offer
strong relative performance in the future.
The Fund was fully invested at period-end, reflecting our efforts to enhance
tax-free income for our shareholders. Overall, we maintain our focus on
providing shareholders with a competitive yield and preservation of net asset
value within the context of a high-quality portfolio.
Theodore R. Jaeckel Jr., CFA
Vice President and Portfolio Manager
BlackRock MuniYield Fund, Inc.
William R. Bock
Vice President and Portfolio Manager
BlackRock MuniYield Insured Fund, Inc.
Michael A. Kalinoski, CFA
Vice President and Portfolio Manager
BlackRock MuniYield Quality Fund, Inc.
BlackRock MuniYield Quality Fund II, Inc.
May 21, 2007
10 SEMI-ANNUAL REPORTS APRIL 30, 2007
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset value of
their Common Stock. However, these objectives cannot be achieved in all interest
rate environments. To leverage, each Fund issues Preferred Stock, which pays
dividends at prevailing short-term interest rates, and invests the proceeds in
long-term municipal bonds. The interest earned on these investments, net of
dividends to Preferred Stock, is paid to Common Stock shareholders in the form
of dividends, and the value of these portfolio holdings is reflected in the per
share net asset value of each Fund's Common Stock. However, in order to benefit
Common Stock shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest rates. At the
same time, a period of generally declining interest rates will benefit Common
Stock shareholders. If either of these conditions change, then the risks of
leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock capitalization of
$100 million and the issuance of Preferred Stock for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. If prevailing short-term interest rates are approximately 3%
and long-term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million of Preferred
Stock based on the lower short-term interest rates. At the same time, the fund's
total portfolio of $150 million earns the income based on long-term interest
rates.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term investments,
and therefore the Common Stock shareholders are the beneficiaries of the
incremental yield. However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the incremental
yield pickup on the Common Stock will be reduced or eliminated completely. At
the same time, the market value of the fund's Common Stock (that is, its price
as listed on the New York Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Stock's net asset
value will reflect the full decline in the price of the portfolio's investments,
since the value of the fund's Preferred Stock does not fluctuate. In addition to
the decline in net asset value, the market value of the fund's Common Stock may
also decline.
As of April 30, 2007, BlackRock MuniYield Fund, Inc., BlackRock MuniYield
Insured Fund, Inc., BlackRock MuniYield Quality Fund, Inc. and BlackRock
MuniYield Quality Fund II, Inc. had leverage amounts, due to Auction Market
Preferred Stock, of 33.85%, 35.75%, 35.07% and 34.55% of total net assets,
respectively, before the deduction of Preferred Stock.
As a part of their investment strategy, the Funds may invest in certain
securities whose potential income return is inversely related to changes in a
floating interest rate ("inverse floaters"). In general, income on inverse
floaters will decrease when short-term interest rates increase and increase when
short-term interest rates decrease. Investments in inverse floaters may be
characterized as derivative securities and may subject the Funds to the risks of
reduced or eliminated interest payments and losses of invested principal. In
addition, inverse floaters have the effect of providing investment leverage and,
as a result, the market value of such securities will generally be more volatile
than that of fixed rate, tax-exempt securities. To the extent the Funds invest
in inverse floaters, the market value of each Fund's portfolio and the net asset
value of each Fund's shares may also be more volatile than if the Funds did not
invest in these securities.
Swap Agreements
The Funds may invest in swap agreements, which are over-the-counter contracts in
which one party agrees to make periodic payments based on the change in market
value of a specified bond, basket of bonds, or index in return for periodic
payments based on a fixed or variable interest rate or the change in market
value of a different bond, basket of bonds or index. Swap agreements may be used
to obtain exposure to a bond or market without owning or taking physical custody
of securities. Swap agreements involve the risk that the party with whom each
Fund has entered into a swap will default on its obligation to pay the Fund and
the risk that the Fund will not be able to meet its obligations to pay the other
party to the agreement.
SEMI-ANNUAL REPORTS APRIL 30, 2007 11
Schedule of Investments as of April 30, 2007 (Unaudited)
BlackRock MuniYield Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Alabama -- 3.4%
Birmingham, Alabama, Special Care Facilities Financing
Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series C-2:
$ 4,540 5% due 11/15/2036 $ 4,707
3,300 5% due 11/15/2039 3,413
5,250 Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 5.50% due 1/01/2022 5,694
Tuscaloosa, Alabama, Special Care Facilities Financing
Authority, Residential Care Facility Revenue Bonds
(Capstone Village, Inc. Project), Series A:
2,200 5.625% due 8/01/2025 2,218
6,425 5.875% due 8/01/2036 6,550
================================================================================
Arizona -- 8.9%
Arizona State Transportation Board, Highway Revenue
Bonds, Sub-Series A:
5,825 5% due 7/01/2021 6,188
7,030 5% due 7/01/2022 7,469
5,240 5% due 7/01/2023 5,544
3,300 Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.75% due 7/01/2029 3,369
Maricopa County, Arizona, IDA, M/F Housing Revenue
Refunding Bonds (CRS Pine Ridge Housing
Corporation), Series A-1 (e)(h):
5,000 6% due 10/20/2031 5,374
5,000 6.05% due 10/20/2036 5,335
Phoenix, Arizona, IDA, Airport Facility, Revenue
Refunding Bonds (America West Airlines Inc.
Project), AMT:
3,000 6.25% due 6/01/2019 3,071
5,090 6.30% due 4/01/2023 5,180
Phoenix, Arizona, IDA, M/F Housing Revenue Bonds
(Summit Apartments LLC Project) (h):
1,610 6.25% due 7/20/2022 1,758
1,425 6.45% due 7/20/2032 1,555
1,305 6.55% due 7/20/2037 1,427
Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter Schools
Project II), Series A:
570 6.75% due 7/01/2011 (j) 633
830 6.75% due 7/01/2031 890
Vistancia Community Facilities District, Arizona, GO:
3,000 5.50% due 7/15/2020 3,247
2,125 5.75% due 7/15/2024 2,318
5,900 Yavapai County, Arizona, IDA, Hospital Facility Revenue
Bonds (Yavapai Regional Medical Center), Series A,
6% due 8/01/2033 6,377
================================================================================
Arkansas -- 0.7%
University of Arkansas, University Construction
Revenue Bonds (UAMS Campus) (i):
2,000 Series B, 5% due 11/01/2020 2,131
1,600 Series B, 5% due 11/01/2027 1,688
1,000 University of Arkansas, University Revenue Refunding
Bonds (UAMS Campus), Series A, 5%
due 11/01/2014 (i) 1,079
================================================================================
California -- 15.4%
California State Public Works Board, Lease
Revenue Bonds:
2,000 (Department of Corrections), Series C, 5%
due 6/01/2025 2,083
4,500 (Department of Mental Health -- Coalinga State
Hospital), Series A, 5.125% due 6/01/2029 4,730
8,760 California State, GO, 5% due 2/01/2014 (j) 9,445
California State, Various Purpose, GO:
6,800 5.25% due 11/01/2025 7,282
10,000 5% due 4/01/2031 (a) 10,773
5,550 5.50% due 11/01/2033 6,036
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds:
5,500 Series A-3, 7.875% due 6/01/2013 (j) 6,707
7,500 Series A-4, 7.80% due 6/01/2013 9,119
5,965 Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Refunding
Bonds, Senior Series A-1, 5.125% due 6/01/2047 5,976
25,970 Los Angeles, California, Unified School District, GO,
Series A, 5% due 7/01/2013 (g)(j) 27,890
5,145 Santa Clara, California, Subordinated Electric Revenue
Bonds, Series A, 5% due 7/01/2022 (i) 5,403
7,465 University of California Revenue Bonds (Multiple
Purpose Projects), Series Q, 5% due 9/01/2021 (g) 7,898
================================================================================
Portfolio Abbreviations
To simplify the listings of portfolio holdings in each fund's Schedule of
Investments, we have abbreviated the names of many of the securities according
to the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
PILOT Payment in Lieu of Taxes
RIB Residual Interest Bonds
ROLS Reset Option Long Securities
S/F Single-Family
VRDN Variable Rate Demand Notes
12 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Colorado -- 4.4%
$ 3,245 Colorado Educational and Cultural Facilities Authority,
Revenue Refunding Bonds (University of Denver
Project), Series B, 5.25% due 3/01/2016 (d)(j) $ 3,582
280 Colorado HFA, Revenue Refunding Bonds (S/F Program),
AMT, Series D-2, 6.90% due 4/01/2029 290
8,000 Denver, Colorado, City and County Airport Revenue
Bonds, AMT, Series D, 7.75% due 11/15/2013 (a) 8,963
Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee), Series A:
1,615 7.10% due 9/01/2014 1,724
5,065 7.35% due 9/01/2031 5,372
Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement Fees):
6,850 8% due 12/01/2025 7,609
1,885 8.125% due 12/01/2025 1,902
================================================================================
Connecticut -- 0.1%
350 Connecticut State Development Authority, IDR (AFCO
Cargo BDL-LLC Project), AMT, 7.35% due 4/01/2010 366
================================================================================
Delaware -- 0.3%
2,000 New Castle County, Delaware, PCR (General Motors
Corporation Project), VRDN, 7% due 10/01/2008 (n) 2,000
================================================================================
Florida -- 6.2%
4,240 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 4,437
Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:
11,500 Series A, 7.125% due 4/01/2030 12,465
5,000 Series B, 7.125% due 4/01/2030 5,420
4,705 Lee County, Florida, Revenue Bonds, 5%
due 10/01/2022 (a) 4,975
5,450 Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds, Series B,
6.50% due 5/01/2037 6,006
1,100 Orange County, Florida, Health Facilities Authority,
Health Care Revenue Refunding Bonds
(Orlando Lutheran Towers), 5.375% due 7/01/2020 1,106
2,500 Orlando, Florida, Greater Orlando Aviation Authority,
Airport Facilities Revenue Bonds (JetBlue Airways
Corp.), AMT, 6.50% due 11/15/2036 2,666
4,620 Santa Rosa Bay Bridge Authority, Florida, Revenue
Bonds, 6.25% due 7/01/2028 4,693
================================================================================
Georgia -- 1.5%
4,600 Atlanta, Georgia, Tax Allocation Bonds (Atlantic
Station Project), 7.90% due 12/01/2024 5,090
Brunswick and Glynn County, Georgia, Development
Authority, First Mortgage Revenue Bonds (Coastal
Community Retirement Corporation Project), Series A:
2,285 7.125% due 1/01/2025 1,840
3,595 7.25% due 1/01/2035 2,894
================================================================================
Idaho -- 1.6%
170 Idaho Housing Agency, S/F Mortgage Revenue
Refunding Bonds, AMT, Senior Series C-2, 7.15%
due 7/01/2023 175
10,000 Power County, Idaho, Industrial Development
Corporation, Solid Waste Disposal Revenue Bonds
(FMC Corporation Project), AMT, 6.45%
due 8/01/2032 10,600
================================================================================
Illinois -- 4.2%
1,000 Bolingbrook, Illinois, Special Services Area Number 1,
Special Tax Bonds (Forest City Project), 5.90%
due 9/01/2007 (m) 1,036
13,200 Chicago, Illinois, O'Hare International Airport Revenue
Bonds, Third Lien, AMT, Series B-2, 6%
due 1/01/2029 (p) 14,780
3,915 Chicago, Illinois, O'Hare International Airport, Special
Facility Revenue Refunding Bonds (American Airlines
Inc. Project), 8.20% due 12/01/2024 3,966
Illinois State Finance Authority Revenue Bonds:
1,750 (Friendship Village of Schaumburg), Series A,
5.625% due 2/15/2037 1,806
2,155 (Landing At Plymouth Place Project), Series A, 6%
due 5/15/2037 2,297
4,000 Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Bonds (McCormick
Place Expansion), Series A, 5.50% due 6/15/2023 (i) 4,306
================================================================================
Indiana -- 1.1%
2,850 Indiana Municipal Power Agency, Power Supply System
Revenue Bonds, Series A, 5% due 1/01/2029 (d) 3,000
4,300 Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A, 5% due 6/01/2013 (g)(j) 4,597
================================================================================
Kansas -- 0.2%
1,250 Lenexa, Kansas, Health Care Facility Revenue Bonds
(Lakeview Village Inc.), Series C, 6.875%
due 5/15/2032 1,358
================================================================================
Kentucky -- 0.5%
Kentucky Economic Development Finance Authority,
Health System Revenue Refunding Bonds
(Norton Healthcare, Inc.), Series A:
2,350 6.625% due 10/01/2010 (j) 2,584
650 6.625% due 10/01/2028 712
================================================================================
Louisiana -- 5.7%
6,750 Louisiana Public Facilities Authority, Hospital Revenue
Bonds (Franciscan Missionaries of Our Lady Health
System, Inc.), Series A, 5.25% due 8/15/2036 7,054
1,000 Louisiana Public Facilities Authority, Revenue
Refunding Bonds (Pennington Medical Foundation
Project), 5% due 7/01/2031 1,021
10,000 Louisiana State Citizens Property Insurance Corporation,
Assessment Revenue Bonds, Series B, 5%
due 6/01/2020 (a) 10,653
19,000 Port New Orleans, Louisiana, IDR, Refunding
(Continental Grain Company Project), 6.50%
due 1/01/2017 19,332
================================================================================
SEMI-ANNUAL REPORTS APRIL 30, 2007 13
Schedule of Investments (continued)
BlackRock MuniYield Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Maryland -- 4.0%
Baltimore, Maryland, Convention Center Hotel
Revenue Bonds:
$ 5,615 Senior Series A, 5.25% due 9/01/2039 (p) $ 6,071
1,920 Sub-Series B, 5.875% due 9/01/2039 2,048
2,580 Maryland State Community Development
Administration, Department of Housing and
Community Development, Residential Revenue
Refunding Bonds, AMT, Series A, 4.65%
due 9/01/2032 2,546
3,000 Maryland State Energy Financing Administration,
Limited Obligation Revenue Bonds (Cogeneration --
AES Warrior Run), AMT, 7.40% due 9/01/2019 2,990
Maryland State Health and Higher Educational
Facilities Authority, Revenue Refunding Bonds:
6,375 (Peninsula Regional Medical Center), 5%
due 7/01/2036 6,559
4,000 (University of Maryland Medical System), 6%
due 7/01/2032 4,314
500 Maryland State Industrial Development Financing
Authority, Economic Development Revenue Bonds
(Our Lady of Good Counsel School), Series A, 6%
due 5/01/2035 537
1,500 Prince Georges County, Maryland, Special Obligation
Bonds (National Harbor Project), 5.20%
due 7/01/2034 1,536
================================================================================
Massachusetts -- 2.8%
1,410 Massachusetts State College Building Authority,
Project Revenue Bonds, Series A, 5%
due 5/01/2031 (a) 1,496
3,500 Massachusetts State Development Finance Agency,
Human Service Provider Revenue Bonds (Seven Hills
Foundation & Affiliates), 5% due 9/01/2035 (k) 3,630
2,750 Massachusetts State Development Finance Agency,
Revenue Refunding Bonds (Western New England
College), Series A, 5% due 9/01/2033 (b) 2,885
10,000 Massachusetts State Special Obligation Dedicated Tax
Revenue Bonds, 5.25% due 1/01/2014 (d)(j) 10,859
================================================================================
Michigan -- 1.5%
6,060 Macomb County, Michigan, Hospital Finance Authority,
Hospital Revenue Bonds (Mount Clemens General
Hospital), Series B, 5.875% due 11/15/2034 6,425
1,000 Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (Henry Ford Health System),
Series A, 5.25% due 11/15/2032 1,056
2,500 Michigan State Strategic Fund, PCR, Refunding
(General Motors Corp.), 6.20% due 9/01/2020 2,562
================================================================================
Minnesota -- 1.2%
Eden Prairie, Minnesota, M/F Housing Revenue Bonds
(Rolling Hills Project), Series A (h):
420 6% due 8/20/2021 458
2,000 6.20% due 2/20/2043 2,168
935 Minneapolis, Minnesota, M/F Housing Revenue Bonds
(Gaar Scott Loft Project), AMT, 5.95% due 5/01/2030 971
4,500 Minnesota State Municipal Power Agency, Electric
Revenue Bonds, 5% due 10/01/2030 4,682
================================================================================
Mississippi -- 1.0%
6,405 Mississippi Business Finance Corporation Revenue
Bonds (Northrop Grumman Ship System), 4.55%
due 12/01/2028 6,401
================================================================================
Missouri -- 3.7%
2,690 Fenton, Missouri, Tax Increment Revenue Refunding
and Improvement Bonds (Gravois Bluffs), 7%
due 10/01/2011 (j) 3,066
Missouri State Highways and Transportation
Commission, First Lien State Road Revenue Bonds,
Series A:
5,000 5% due 5/01/2020 5,379
15,000 5% due 5/01/2021 16,101
20 Missouri State Housing Development Commission, S/F
Mortgage Revenue Bonds, Homeownership, AMT,
Series B, 7.55% due 9/01/2027 (f)(h) 20
================================================================================
Nebraska -- 0.3%
Lincoln, Nebraska, Sanitation and Sewer
Revenue Bonds:
865 4.25% due 6/15/2024 862
905 4.25% due 6/15/2025 900
================================================================================
New Hampshire -- 0.6%
3,425 New Hampshire Health and Education Facilities
Authority, Revenue Refunding Bonds (Elliot Hospital),
Series B, 5.60% due 10/01/2022 3,634
================================================================================
New Jersey -- 16.8%
11,435 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%
due 6/15/2024 12,033
New Jersey EDA, First Mortgage Revenue Bonds:
710 (Lions Gate Project), Series A, 5.75%
due 1/01/2025 738
230 (Lions Gate Project), Series A, 5.875%
due 1/01/2037 241
3,000 (The Presbyterian Home), Series A, 6.375%
due 11/01/2031 3,183
20,000 New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5% due 7/01/2029 (i) 21,044
4,400 New Jersey EDA, Retirement Community Revenue
Bonds (Cedar Crest Village Inc. Facility), Series A,
7.25% due 11/15/2011 (j) 5,051
8,825 New Jersey EDA, School Facilities Construction Revenue
Bonds, Series O, 5.25% due 3/01/2023 9,554
New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT:
3,905 6.25% due 9/15/2019 4,028
14,000 6.25% due 9/15/2029 14,468
New Jersey Health Care Facilities Financing Authority
Revenue Bonds (Pascack Valley Hospital Association):
1,515 6% due 7/01/2013 1,541
1,835 6.625% due 7/01/2036 1,901
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds,:
3,975 Series A, 5.50% due 12/15/2021 4,549
6,600 Series A, 5.50% due 12/15/2022 7,575
13,110 Series C, 5.05% due 12/15/2035 (a)(m) 3,698
5,425 Series D, 5% due 6/15/2019 (g) 5,796
9,410 Series D, 5% due 6/15/2020 9,943
7,000 Series D, 5% due 6/15/2020 (g) 7,456
================================================================================
14 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New York -- 15.4%
$ 2,200 Dutchess County, New York, IDA, Civic Facility Revenue
Refunding Bonds (Saint Francis Hospital), Series A,
7.50% due 3/01/2029 $ 2,446
2,400 Erie County, New York, IDA, Revenue Bonds (Orchard
Park CCRC, Inc. Project), Series A, 6%
due 11/15/2026 2,558
11,000 Metropolitan Transportation Authority, New York,
Transportation Revenue Refunding Bonds, Series F,
5% due 11/15/2035 11,529
New York City, New York, City IDA, PILOT Revenue
Bonds (Queens Baseball Stadium Project) (a):
2,000 5% due 1/01/2022 2,149
2,175 5% due 1/01/2023 2,333
1,250 New York City, New York, City IDA, Special Facility
Revenue Bonds (British Airways Plc Project), AMT,
7.625% due 12/01/2032 1,388
10,000 New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Revenue
Refunding Bonds, 5.50% due 6/15/2010 (j) 10,634
New York City, New York, GO:
10,000 Series M, 5% due 4/01/2021 10,562
2,500 Series O, 5% due 6/01/2033 2,622
6,500 New York Liberty Development Corporation, Revenue
Bonds (Goldman Sachs Headquarters), 5.25%
due 10/01/2035 7,437
New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds:
3,145 (Mount Sinai Health), Series A, 6.75%
due 7/01/2010 (j) 3,459
1,855 (Mount Sinai-NYU Medical Center Health System),
Series A, 6.75% due 7/01/2020 1,996
5,000 New York State Dormitory Authority, State Personal
Income Tax Revenue Bonds (Education), Series F, 5%
due 3/15/2035 5,266
8,360 New York State Dormitory Authority, Supported Debt
Revenue Refunding Bonds (Department of Health),
Series A, 5% due 7/01/2023 (c) 8,836
2,500 Suffolk County, New York, IDA, IDR, Refunding
(Nissequogue Cogeneration Partners Facility), AMT,
5.50% due 1/01/2023 2,486
9,400 Tobacco Settlement Financing Corporation of New
York Revenue Bonds, Series C-1, 5.50%
due 6/01/2021 10,171
10,000 Triborough Bridge and Tunnel Authority, New York,
Subordinate Revenue Bonds, 5.25%
due 11/15/2030 10,654
Westchester County, New York, IDA, Continuing Care
Retirement, Mortgage Revenue Bonds (Kendal on
Hudson Project), Series A:
3,450 6.375% due 1/01/2024 3,695
2,895 6.50% due 1/01/2034 3,106
================================================================================
North Carolina -- 1.8%
4,750 North Carolina Eastern Municipal Power Agency, Power
System Revenue Bonds, Series D, 6.75%
due 1/01/2026 5,096
150 North Carolina HFA, Home Ownership Revenue Bonds,
AMT, Series 8-A, 6.20% due 7/01/2016 154
1,000 North Carolina Medical Care Commission, Health Care
Facilities, First Mortgage Revenue Bonds (Arbor Acres
Community Project), 6.375% due 3/01/2012 (j) 1,109
5,000 North Carolina Medical Care Commission, Health Care
Facilities, First Mortgage Revenue Bonds (Presbyterian
Homes Project), 5.40% due 10/01/2027 5,187
675 North Carolina, HFA, S/F Revenue Bonds, Series II,
6.20% due 3/01/2016 (e) 699
================================================================================
Ohio -- 3.1%
3,000 Cincinnati, Ohio, City School District, GO (Classroom
Construction and Improvement), Refunding, 5.25%
due 12/01/2020 (d) 3,390
Cuyahoga County, Ohio, Mortgage Revenue Bonds
(West Tech Apartments Project), AMT (h):
141 5.75% due 9/20/2020 140
225 5.85% due 9/20/2030 223
5,065 Hamilton County, Ohio, Sewer System Improvement
Revenue Bonds (The Metropolitan Sewer District of
Greater Cincinnati), Series B, 5% due 12/01/2028 (i) 5,373
2,175 Lucas County, Ohio, Health Care Facility Revenue
Refunding and Improvement Bonds (Sunset
Retirement Communities), Series A, 6.625%
due 8/15/2030 2,325
5,000 Mason, Ohio, City School District, GO (School
Improvement), 5% due 6/01/2014 (g)(j) 5,382
970 Port of Greater Cincinnati Development Authority, Ohio,
Special Assessment Revenue Bonds (Cooperative
Public Parking Infrastructure Project), 6.30%
due 2/15/2024 1,050
Toledo-Lucas County, Ohio, Port Authority Revenue
Bonds (Saint Mary Woods Project), Series A:
750 6% due 5/15/2024 760
2,250 6% due 5/15/2034 2,264
================================================================================
Oregon -- 1.4%
4,405 Oregon State Department of Administrative Services,
COP, Series A, 6% due 5/01/2010 (a)(j) 4,734
2,720 Oregon State, GO, Refunding (Veterans Welfare),
Series 80A, 5.70% due 10/01/2032 2,737
1,830 Portland, Oregon, Housing Authority, Housing Revenue
Bonds (Pine Square and University Place), Series A,
5.875% due 1/01/2022 1,882
================================================================================
SEMI-ANNUAL REPORTS APRIL 30, 2007 15
Schedule of Investments (continued)
BlackRock MuniYield Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Pennsylvania -- 4.8%
$ 5,270 Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds
(National Gypsum Company), AMT, Series A, 6.25%
due 11/01/2027 $ 5,519
2,450 Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 97A, 4.60% due 10/01/2027 2,408
16,270 Pennsylvania State Higher Educational Facilities
Authority, Health Services Revenue Refunding Bonds
(Allegheny Delaware Valley Obligation), Series C,
5.875% due 11/15/2016 (i) 16,619
1,265 Philadelphia, Pennsylvania, Authority for IDR,
Commercial Development, 7.75% due 12/01/2017 1,268
5,000 Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Bonds (Guthrie Healthcare System),
Series B, 7.125% due 12/01/2011 (j) 6,010
================================================================================
Rhode Island -- 1.1%
4,240 Central Falls, Rhode Island, Detention Facility
Corporation, Detention Facility, Revenue Refunding
Bonds, 7.25% due 7/15/2035 4,765
Woonsocket, Rhode Island, GO (d):
1,225 6% due 10/01/2017 1,324
1,195 6% due 10/01/2018 1,291
================================================================================
South Dakota -- 0.8%
5,210 South Dakota State Health and Educational Facilities
Authority Revenue Bonds (Sanford Health), 5%
due 11/01/2040 5,380
================================================================================
Tennessee -- 3.9%
4,340 Hardeman County, Tennessee, Correctional Facilities
Corporation Revenue Bonds, 7.75% due 8/01/2017 4,443
10,000 McMinn County, Tennessee, IDB, Solid Waste Revenue
Bonds (Recycling Facility -- Calhoun Newsprint),
AMT, 7.40% due 12/01/2022 10,135
11,250 Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Saint Jude Children's Research Hospital),
5% due 7/01/2031 11,797
================================================================================
Texas -- 14.9%
16,000 Alliance Airport Authority, Inc., Texas, Special Facilities
Revenue Refunding Bonds (American Airlines Inc.
Project), AMT, 5.75% due 12/01/2029 16,241
10,000 Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier, Series A
6.70% due 1/01/2011 (j) 10,998
Bexar County, Texas, Housing Finance Corporation,
M/F Housing Revenue Bonds (Water at Northern
Hills Apartments), Series A (i):
1,300 5.80% due 8/01/2021 1,322
2,460 6% due 8/01/2031 2,505
1,000 6.05% due 8/01/2036 1,019
3,755 Brazos River Authority, Texas, Revenue Refunding
Bonds (Reliant Energy Inc. Project), Series B, 7.75%
due 12/01/2018 3,939
5,480 Dallas-Fort Worth, Texas, International Airport Facilities
Improvement Corporation Revenue Bonds (American
Airlines, Inc.), AMT, 7.25% due 11/01/2030 5,487
Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good
Shepherd Medical Center Project) (j)(k):
2,000 6.375% due 10/01/2010 2,184
3,000 6.875% due 10/01/2010 3,323
5,000 Guadalupe-Blanco River Authority, Texas, Sewage and
Solid Waste Disposal Facility Revenue Bonds
(E. I. du Pont de Nemours and Company Project),
AMT, 6.40% due 4/01/2026 5,058
3,900 Gulf Coast, Texas, IDA, Solid Waste Disposal Revenue
Bonds (Citgo Petroleum Corporation Project), AMT,
7.50% due 5/01/2025 4,367
Houston, Texas, Airport System, Special Facilities
Revenue Bonds (Continental Airlines), AMT, Series E:
3,500 7.375% due 7/01/2022 3,835
3,000 7% due 7/01/2029 3,245
1,600 Houston, Texas, Industrial Development Corporation
Revenue Bonds (Air Cargo), AMT, 6.375%
due 1/01/2023 1,714
Lower Colorado River Authority, Texas, PCR (Samsung
Austin Semiconductor), AMT:
4,830 6.375% due 4/01/2027 4,935
3,330 6.95% due 4/01/2030 3,608
7,030 Matagorda County, Texas, Navigation District Number 1,
Revenue Refunding Bonds (Reliant Energy Inc.),
Series C, 8% due 5/01/2029 7,372
3,900 Port Corpus Christi, Texas, Individual Development
Corporation, Environmental Facilities Revenue Bonds
(Citgo Petroleum Corporation Project), AMT, 8.25%
due 11/01/2031 3,987
6,500 Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A, 5.50%
due 8/15/2039 (a) 6,973
7,020 Tyler, Texas, Waterworks and Sewer Revenue Bonds,
5.70% due 9/01/2010 (d)(j) 7,454
================================================================================
Virginia -- 2.5%
James City County, Virginia, EDA, Residential Care
Facility, First Mortgage Revenue Refunding Bonds
(Williamsburg Landing, Inc.), Series A:
1,500 5.35% due 9/01/2026 1,553
2,000 5.50% due 9/01/2034 2,074
Pocahontas Parkway Association, Virginia, Toll Road
Revenue Bonds (j):
5,000 Senior-Series A, 5.50% due 8/15/2008 5,213
24,800 Senior-Series B, 6.67% due 8/15/2008 (m) 7,107
1,000 Winchester, Virginia, IDA, Residential Care Facilities,
Revenue Bonds (Westminster-Canterbury), Series A,
5.20% due 1/01/2027 1,021
================================================================================
Washington -- 0.3%
Vancouver, Washington, Housing Authority, Housing
Revenue Bonds (Teal Pointe Apartments
Project), AMT:
945 6% due 9/01/2022 970
1,250 6.20% due 9/01/2032 1,283
================================================================================
16 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
===============================================================================
Wisconsin -- 1.8%
$ 690 Milwaukee, Wisconsin, Revenue Bonds (Air Cargo),
AMT, 6.50% due 1/01/2025 $ 743
Wisconsin Health and Educational Facilities Authority,
Revenue Refunding Bonds (Eastcastle Place
Inc. Project):
1,000 6% due 12/01/2024 1,034
1,800 6.125% due 12/01/2034 1,852
7,925 Wisconsin State Health and Educational Facilities
Authority, Revenue Refunding Bonds (Franciscan
Sisters Healthcare), 5% due 9/01/2026 8,020
700 Wisconsin State, GO, AMT, Series B, 6.20%
due 11/01/2026 (i) 707
===============================================================================
Wyoming -- 1.2%
5,315 Wyoming Community Development Authority,
Housing Revenue Bonds, AMT, Series 3, 4.75%
due 12/01/2037 5,281
2,500 Wyoming Student Loan Corporation, Student Loan
Revenue Refunding Bonds, Series A, 6.20%
due 6/01/2024 2,640
===============================================================================
Puerto Rico -- 2.5%
7,755 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series N, 5.25% due 7/01/2034 (b) 8,956
7,100 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series UU, 5% due 7/01/2023 (g) 7,663
===============================================================================
U.S. Virgin Islands -- 1.0%
6,250 Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
6.125% due 7/01/2022 6,890
===============================================================================
Total Municipal Bonds
(Cost -- $901,211) -- 142.6% 955,553
Municipal Bonds Held in Trust (o)
===============================================================================
New York -- 3.2%
New York City, New York, GO, Refunding, Series A (d):
10,000 6.375% due 5/15/2014 10,820
10,000 6.375% due 5/15/2015 10,820
===============================================================================
South Carolina -- 2.8%
Charleston Educational Excellence Financing Corporation,
South Carolina, Revenue Bonds (Charleston County
School District) (b):
7,795 5.25% due 12/01/2028 8,415
6,920 5.25% due 12/01/2029 7,470
2,510 5.25% due 12/01/2030 2,708
===============================================================================
Puerto Rico -- 5.6%
30,000 Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Bonds, Series B,
5.875% due 7/01/2035 (i) 32,219
5,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series HH, 5.75% due 7/01/2010 (g)(j) 5,351
-------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $74,389) -- 11.6% 77,803
===============================================================================
===============================================================================
Shares
Held Short-Term Securities
===============================================================================
814 Merrill Lynch Institutional Tax-Exempt Fund,
3.70% (l)(q) 814
-------------------------------------------------------------------------------
Total Short-Term Securities (Cost -- $814) -- 0.1% 814
===============================================================================
Total Investments (Cost -- $976,414*) -- 154.3% 1,034,170
Other Assets Less Liabilities -- 2.4% 15,971
Liability for Trust Certificates,
Including Interest Expense Payable -- (5.5%) (36,622)
Preferred Stock, at Redemption Value -- (51.2%) (343,363)
----------
Net Assets Applicable to Common Stock -- 100.0% $ 670,156
==========
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 941,737
=========
Gross unrealized appreciation .......................... $ 57,719
Gross unrealized depreciation .......................... (1,399)
---------
Net unrealized appreciation ............................ $ 56,320
=========
(a) AMBAC Insured.
(b) Assured Guaranty Insured.
(c) CIFG Insured.
(d) FGIC Insured.
(e) FHA Insured.
(f) FNMA Collateralized.
(g) FSA Insured.
(h) GNMA Collateralized.
(i) MBIA Insured.
(j) Prerefunded.
(k) Radian Insured.
(l) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund (6,110) $120
--------------------------------------------------------------------------
(m) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(n) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(o) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details of Municipal Bonds Held in Trust.
(p) XL Capital Insured.
(q) Represents the current yield as of April 30, 2007.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007 17
Schedule of Investments as of April 30, 2007 (Unaudited)
BlackRock MuniYield Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Alaska -- 0.4%
$ 3,695 Alaska Energy Authority, Power Revenue Refunding
Bonds (Bradley Lake), Fourth Series, 6%
due 7/01/2018 (g) $ 4,319
================================================================================
Arizona -- 2.2%
21,355 Downtown Phoenix Hotel Corporation, Arizona,
Revenue Bonds, Senior Series A, 5%
due 7/01/2036 (c) 22,489
================================================================================
California -- 32.6%
10,000 Alameda Corridor Transportation Authority, California,
Capital Appreciation Revenue Refunding Bonds,
Subordinate Lien, Series A, 5.40%
due 10/01/2024 (a)(m) 8,274
5,000 Antioch, California, Public Finance Authority, Lease
Revenue Refunding Bonds (Municipal Facilities
Project), Series A, 5.50% due 1/01/2032 (b) 5,267
10,000 California Health Facilities Financing Authority
Revenue Bonds (Sutter Health), Series A, 5%
due 11/15/2042 10,329
10,000 California Infrastructure and Economic Development
Bank, Bay Area Toll Bridges Revenue Bonds,
First Lien, Series A, 5% due 7/01/2025 (c)(i) 11,213
California State Public Works Board, Lease
Revenue Bonds:
5,500 (Department of Corrections), Series C, 5.25%
due 6/01/2028 5,823
3,755 (Department of General Services), Series D,
5.25% due 6/01/2028 3,975
5,250 (Department of Mental Health -- Coalinga State
Hospital), Series A, 5.125% due 6/01/2029 5,518
California State, GO (b):
12,260 5.50% due 4/01/2014 (f) 13,612
640 5.50% due 4/01/2030 706
20,000 California State, GO, Refunding, 4.50%
due 10/01/2036 19,647
12,000 California State, Various Purpose, GO, 5.25%
due 11/01/2029 12,830
32,000 California State, Various Purpose, GO, Refunding,
5% due 6/01/2034 (d) 33,596
7,740 California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6% due 10/01/2023 8,438
10,000 California Statewide Communities Development
Authority Revenue Bonds (Sutter Health), Series A,
5% due 8/15/2038 (a) 10,577
4,205 California Statewide Communities Development
Authority, Water Revenue Bonds (Pooled Financing
Program), Series C, 5.25% due 10/01/2034 (g) 4,471
5,800 Fairfield-Suisun, California, Unified School District, GO
(Election of 2002), 5.50% due 8/01/2028 (b) 6,366
13,155 Huntington Beach, California, Union High School
District, GO (Election of 2004), 5% due 8/01/2029 (g) 13,857
1,000 Long Beach, California, Harbor Revenue Refunding
Bonds, AMT, Series B, 5.20% due 5/15/2027 (b) 1,057
10,000 Los Angeles, California, Unified School District, GO,
Series A, 5% due 7/01/2013 (b)(f) 10,739
Los Angeles, California, Water and Power Revenue
Bonds (Power System) (g):
12,775 Series B, 5% due 7/01/2035 13,353
35,200 Sub-Series A-1, 5% due 7/01/2035 37,178
7,500 Modesto, California, Irrigation District, COP,
Refunding and Capital Improvements, Series A,
5% due 10/01/2036 (a) 7,933
10,365 Pasadena, California, Area Community College
District, GO (Election of 2002), Series B,
5% due 8/01/2031 (a) 11,027
145 Port of Oakland, California, Revenue Bonds, AMT,
Series K, 5.75% due 11/01/2021 (c) 153
16,000 Riverside, California, Public Financing Authority,
Tax Allocation Refunding Bonds (University
Corridor/Sycamore), Series C, 5% due 8/01/2037 (b) 16,920
10,000 Riverside County, California, Public Financing
Authority, Tax Allocation Revenue Bonds
(Redevelopment Projects), 5% due 10/01/2035 (e) 10,440
10,000 San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Bonds, 5%
due 7/01/2036 (g) 10,503
8,170 San Francisco, California, Community College
District, GO (Election of 2001), Series C, 5%
due 6/15/2029 (g) 8,699
3,250 San Mateo, California, Union High School District,
COP (Phase One Projects), Series B, 4.486%
due 12/15/2043 (a) 1,838
8,310 Stockton, California, Public Financing Authority,
Lease Revenue Bonds (Parking & Capital Projects),
5.25% due 9/01/2034 (c) 8,879
7,785 University of California, Medical Center Pooled
Revenue Bonds, Series A, 4.50% due 5/15/2037 (b) 7,785
12,000 West Valley Mission Community College District,
California, GO (Election of 2004), Series A,
5% due 8/01/2030 (g) 12,776
================================================================================
District of Columbia -- 3.6%
District of Columbia, Ballpark Revenue Bonds,
Series B-1 (c):
25,000 5% due 2/01/2031 26,394
10,000 5% due 2/01/2035 10,528
================================================================================
Florida -- 3.4%
4,715 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 4,935
1,000 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, 5.375% due 10/01/2027 (c) 1,056
12,000 Miami-Dade County, Florida, School Board, COP,
Series A, 5% due 5/01/2032 (c) 12,704
2,400 Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), VRDN, Series A-10, 4.05%
due 10/01/2041 (g)(h) 2,400
2,400 Sarasota County, Florida, Public Hospital Board,
Hospital Revenue Bonds (Sarasota Memorial
Hospital), VRDN, Series A, 4.10%
due 7/01/2037 (a)(h) 2,400
11,000 South Broward Hospital District, Florida, Revenue
Refunding Bonds, 4.75% due 5/01/2028 11,202
================================================================================
Georgia -- 1.3%
12,500 Atlanta, Georgia, Airport General Revenue Refunding
Bonds, Series B, 5.25% due 1/01/2033 (g) 13,384
================================================================================
18 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Hawaii -- 0.5%
$ 2,000 Hawaii State, GO, Series CX, 5.50% due 2/01/2021 (g) $ 2,147
3,000 Hawaii State Harbor System Revenue Bonds, AMT,
Series A, 5% due 1/01/2031 (g) 3,131
================================================================================
Idaho -- 0.1%
1,000 Idaho Housing and Financing Association,
S/F Mortgage Revenue Bonds, AMT, Series C,
Class I, 4.75% due 7/01/2027 1,001
================================================================================
Illinois -- 5.3%
15,400 Chicago, Illinois, GO, Series C, 5% due 1/01/2035 (b) 16,064
1,500 Chicago, Illinois, O'Hare International Airport,
Revenue Refunding Bonds, Third Lien, AMT,
Series C-2, 5.25% due 1/01/2034 (e) 1,581
5,650 Illinois State Finance Authority, Revenue Refunding
Bonds (Bradley University Project), 5%
due 8/01/2034 (e) 5,946
Illinois State, GO:
5,000 5% due 4/01/2028 (a) 5,281
12,000 4.75% due 4/01/2032 (c) 12,419
McLean and Woodford Counties, Illinois, Community
Unit School District Number 005, GO, Refunding (g):
4,820 6.375% due 12/01/2011 (f) 5,351
1,215 6.375% due 12/01/2016 1,349
4,800 Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project), Series B,
5.75% due 6/15/2023 (b) 5,243
1,000 Regional Transportation Authority, Illinois, Revenue
Bonds, Series C, 7.75% due 6/01/2020 (c) 1,362
================================================================================
Indiana -- 5.3%
2,250 Indiana Health Facilities Financing Authority, Hospital
Revenue Bonds (Deaconess Hospital Obligated
Group), Series A, 5.375% due 3/01/2034 (a) 2,411
37,000 Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A 5.25% due 6/01/2014 (c)(f) 40,377
2,705 Indianapolis, Indiana, Local Public Improvement
Bond Bank, Revenue Bonds (Waterworks Project),
Series A, 5.125% due 7/01/2012 (b)(f) 2,887
Indianapolis, Indiana, Local Public Improvement
Bond Bank, Revenue Refunding Bonds (Indianapolis
Airport Authority Project), AMT, Series B (b):
2,000 5.25% due 1/01/2028 2,138
6,525 5.25% due 1/01/2030 6,969
================================================================================
Louisiana -- 2.0%
3,750 Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Bonds (Capital Projects and Equipment Acquisition),
Series A, 6.30% due 7/01/2030 (a) 4,491
6,615 Louisiana Public Facilities Authority, Hospital Revenue
Bonds (Franciscan Missionaries of Our Lady Health
System, Inc.), Series A, 5.25% due 8/15/2036 6,913
4,500 Louisiana State, Gas and Fuels Tax Revenue Bonds,
Series A, 5% due 5/01/2025 (e) 4,771
3,545 New Orleans, Louisiana, GO (Public Improvements),
5% due 10/01/2033 (b) 3,680
================================================================================
Massachusetts -- 5.6%
2,500 Massachusetts State, HFA, Housing Development
Revenue Refunding Bonds, Series B, 5.40%
due 12/01/2028 (b) 2,563
12,805 Massachusetts State, HFA, Rental Housing Mortgage
Revenue Bonds, AMT, Series A, 5.15%
due 7/01/2026 (g) 13,044
7,000 Massachusetts State, HFA, S/F Housing Revenue
Bonds, AMT, Series 128, 4.875% due 12/01/2038 (g) 7,040
7,550 Massachusetts State Port Authority Revenue Bonds,
Series A, 5% due 7/01/2033 (b) 7,891
14,950 Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A,
5% due 8/15/2037 (a) 15,940
10,000 Massachusetts State Special Obligation Dedicated
Tax Revenue Bonds, 5.75% due 1/01/2014 (c)(f) 11,151
================================================================================
Michigan -- 4.8%
12,000 Eastern Michigan University Revenue Refunding
Bonds, VRDN, 4.06% due 6/01/2027 (c)(h) 12,000
4,325 Michigan Higher Education Student Loan Authority,
Student Loan Revenue Bonds, AMT, Series XVII-Q,
5% due 3/01/2031 (a) 4,488
Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds:
4,000 (Oakwood Obligated Group), Series A,
5% due 7/15/2025 4,132
6,665 (Sparrow Obligated Group), 5% due 11/15/2036 6,857
20,000 Wayne County, Michigan, Airport Authority Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
AMT, 5% due 12/01/2029 (b) 20,893
================================================================================
Mississippi -- 1.0%
10,000 Mississippi Hospital Equipment and Facilities
Authority, Revenue Refunding Bonds (Mississippi
Baptist Health System, Inc.), Series A, 5%
due 8/15/2029 10,308
================================================================================
Missouri -- 2.2%
Missouri Joint Municipal Electric Utility Commission,
Power Project Revenue Bonds (Latan 2 Project),
Series A (a):
7,930 5% due 1/01/2027 8,416
8,325 5% due 1/01/2028 8,823
140 Missouri State Housing Development Commission,
S/F Mortgage Revenue Bonds (Homeownership
Loan Program), AMT, Series C-1, 7.15%
due 3/01/2032 (k) 149
5,000 Missouri State Housing Development Commission,
S/F Mortgage Revenue Refunding Bonds
(Homeownership Loan Program), AMT, Series D-1,
5% due 9/01/2037 (k)(l) 5,085
================================================================================
Montana -- 0.5%
5,505 Montana State Board of Housing, S/F Mortgage
Revenue Refunding Bonds, AMT, Series A-2,
4.80% due 12/01/2037 5,509
================================================================================
Nebraska -- 4.5%
1,600 Nebraska Educational Financing Authority Revenue
Bonds (Creighton University Project), VRDN,
Series C, 4.10% due 7/01/2035 (c)(h) 1,600
15,435 Nebraska Public Power District Revenue Bonds,
Series A, 5% due 1/01/2035 (a) 16,133
6,780 Omaha Convention Hotel Corporation, Nebraska,
Convention Center Revenue Bonds, First Tier,
Series A, 5.125% due 4/01/2032 (a) 7,086
SEMI-ANNUAL REPORTS APRIL 30, 2007 19
Schedule of Investments (continued)
BlackRock MuniYield Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Nebraska (concluded)
Public Power Generation Agency, Nebraska, Revenue
Bonds (Whelan Energy Center Unit 2), Series A (a):
$10,000 5% due 1/01/2032 $ 10,597
10,000 5% due 1/01/2037 10,573
================================================================================
Nevada -- 5.2%
25,000 Clark County, Nevada, Airport System Subordinate Lien
Revenue Bonds, Series A-2, 5% due 7/01/2030 (c) 26,131
6,000 Henderson, Nevada, Health Care Facilities Revenue
Bonds (Catholic Healthcare West), Series A,
5.625% due 7/01/2024 6,409
1,165 Reno, Nevada, Capital Improvement Revenue Bonds,
5.50% due 6/01/2019 (c) 1,252
20,000 Truckee Meadows, Nevada, Water Authority, Water
Revenue Refunding Bonds, 4.50% due 7/01/2030 (g) 19,999
================================================================================
New Hampshire -- 1.0%
10,000 New Hampshire State Business Finance Authority,
PCR, Refunding (Public Service Company Project),
AMT, Series B, 4.75% due 5/01/2021 (b) 10,216
================================================================================
New Jersey -- 5.3%
16,000 Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A, 5.75% due 11/01/2028 (g) 19,515
New Jersey EDA, Cigarette Tax Revenue Bonds:
3,060 5.75% due 6/15/2029 3,311
2,610 5.50% due 6/15/2031 2,770
14,135 5.75% due 6/15/2034 15,213
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds,
Series C (a)(m):
20,000 4.96% due 12/15/2035 5,642
20,000 5.03% due 12/15/2036 5,383
2,880 Newark, New Jersey, Housing Authority, Port
Authority -- Port Newark Marine Terminal
Additional Rent-Backed Revenue Bonds (City of
Newark Redevelopment Projects), 5.50%
due 1/01/2014 (b)(f) 3,173
================================================================================
New Mexico -- 0.2%
1,605 New Mexico Educational Assistance Foundation,
Student Loan Revenue Refunding Bonds (Student
Loan Program), AMT, First Sub-Series A-2,
6.65% due 11/01/2025 1,635
410 New Mexico Mortgage Finance Authority, S/F
Mortgage Revenue Bonds, AMT, Series C-2,
6.95% due 9/01/2031 (k) 415
================================================================================
New York -- 13.2%
10,250 Long Island Power Authority, New York, Electric
System Revenue Bonds, Series A, 5.10%
due 9/01/2029 10,811
12,500 Metropolitan Transportation Authority, New York,
Commuter Facilities Revenue Refunding Bonds,
Series B, 5.125% due 7/01/2024 (a)(i) 12,778
30,000 New York City, New York, City Municipal Water
Finance Authority, Water and Sewer System,
Revenue Refunding Bonds, Series B, 5%
due 6/15/2036 (g) 31,551
New York City, New York, GO:
1,880 Series B, 5.875% due 8/01/2016 (b) 2,019
10,000 Series J, 5.25% due 5/15/2024 10,697
1,000 Series J, 5.25% due 5/15/2025 1,069
New York City, New York, GO: (concluded)
20,000 Series M, 5% due 4/01/2030 (n) 21,095
6,000 Sub-Series C-1, 5.25% due 8/15/2026 6,427
6,645 New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds, Series B,
5% due 3/15/2030 (g) 7,016
19,500 Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, AMT, 137th Series,
5.125% due 7/15/2030 (g) 20,629
10,900 Syracuse, New York, IDA, PILOT Revenue Bonds
(Carousel Center Project), AMT, Series A, 5%
due 1/01/2036 (e) 11,384
================================================================================
Ohio -- 0.5%
5,000 Cleveland State University, Ohio, General Receipt
Revenue Bonds, Series A, 4.50% due 6/01/2036 (c) 4,992
================================================================================
Pennsylvania -- 4.1%
15,000 Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, 1998 General Ordinance,
7th Series, 5% due 10/01/2037 (a) 15,835
Philadelphia, Pennsylvania, School District, GO,
Series D (c)(f):
12,115 5.125% due 6/01/2014 13,135
6,000 5.25% due 6/01/2014 6,551
5,000 Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Bonds (Guthrie Healthcare System),
Series B, 7.125% due 12/01/2011 (f) 6,010
================================================================================
South Carolina -- 4.1%
5,000 Berkeley County, South Carolina, School District,
Installment Lease Revenue Bonds (Securing Assets
for Education Project), 5.125% due 12/01/2030 5,297
Charleston Educational Excellence Financing
Corporation, South Carolina, Revenue Bonds
(Charleston County School District) (n):
3,895 5.25% due 12/01/2028 4,205
3,465 5.25% due 12/01/2029 3,740
1,160 5.25% due 12/01/2030 1,251
Kershaw County, South Carolina, Public Schools
Foundation, Installment Power Revenue
Refunding Bonds (d):
3,775 5% due 12/01/2030 3,972
3,690 5% due 12/01/2031 3,882
1,000 South Carolina Housing Finance and Development
Authority, Mortgage Revenue Refunding Bonds,
AMT, Series A-2, 6.35% due 7/01/2019 (g) 1,035
18,030 South Carolina Transportation Infrastructure Bank
Revenue Bonds, Series A, 5% due 10/01/2029 (a) 18,793
================================================================================
Tennessee -- 5.1%
9,000 Knox County, Tennessee, Health, Educational and
Housing Facilities Board, Revenue Refunding
Bonds (University Health System Inc.), 5.25%
due 4/01/2027 9,367
30,000 Tennessee Energy Acquisition Corporation, Gas
Revenue Bonds, Series A, 5.25% due 9/01/2026 33,296
Tennessee HDA, Revenue Bonds (Homeownership
Program), AMT, Series 2C:
1,795 6.05% due 7/01/2012 1,839
2,250 6.15% due 7/01/2014 2,290
20 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Tennessee (concluded)
Tennessee HDA, Revenue Refunding Bonds
(Homeownership Program), AMT, Series A (g):
$ 3,110 5.25% due 7/01/2022 $ 3,198
2,205 5.35% due 1/01/2026 2,264
================================================================================
Texas -- 8.4%
1,880 Bexar, Texas, Metropolitan Water District, Waterworks
System Revenue Refunding Bonds, 6.35%
due 5/01/2025 (b) 1,884
1,000 Dallas-Fort Worth, Texas, International Airport,
Joint Revenue Bonds, AMT, Series A, 5%
due 11/01/2035 (g) 1,008
Harris County-Houston Sports Authority, Texas,
Revenue Refunding Bonds, Senior Lien, Series G (b):
1,665 5.75% due 11/15/2019 1,790
3,500 5.75% due 11/15/2020 3,763
10,000 5.25% due 11/15/2030 10,531
2,900 Harris County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Texas
Children's Hospital), VRDN, Series B-1, 4.11%
due 10/01/2029 (b)(h) 2,900
15,000 North Texas Municipal Water District, Texas, Water
System Revenue Bonds, 5% due 9/01/2031 (b) 15,894
5,890 North Texas Thruway Authority, Dallas North
Thruway System Revenue Bonds, Series A,
5% due 1/01/2035 (g) 6,164
4,825 Texas State Department of Housing and Community
Affairs, S/F Mortgage Revenue Bonds, AMT,
Series A, 5.45% due 9/01/2023 (b)(k) 4,985
10,000 Texas State Turnpike Authority, Central Texas
Turnpike System Revenue Bonds, First Tier, Series A,
5.50% due 8/15/2039 (a) 10,728
24,500 Waco, Texas, Health Facilities Development
Corporation, Mortgage Revenue Bonds (Hillcrest
Health System Projects), Series A, 5%
due 8/01/2031 (b)(p) 25,606
================================================================================
Vermont -- 0.6%
Vermont HFA, S/F Housing Revenue Bonds, AMT (g):
515 Series 12B, 6.30% due 11/01/2019 515
6,000 Series 27, 4.85% due 11/01/2032 6,050
================================================================================
Virginia -- 1.1%
2,500 Halifax County, Virginia, IDA, Exempt Facility
Revenue Refunding Bonds (Old Dominion
Electric Cooperative Project), AMT, 5.625%
due 6/01/2028 (a) 2,727
7,695 Virginia Port Authority, Port Facilities Revenue Bonds,
AMT, 5% due 7/01/2036 (c) 7,979
================================================================================
Washington -- 13.3%
Bellevue, Washington, GO, Refunding (b):
2,545 5.25% due 12/01/2026 2,751
2,455 5.25% due 12/01/2027 2,639
2,850 5.25% due 12/01/2028 3,064
3,000 5.25% due 12/01/2029 3,225
17,600 5% due 12/01/2034 18,459
3,030 Chelan County, Washington, Public Utility District
Number 001, Consolidated Revenue Bonds
(Chelan Hydro System), AMT, Series A, 5.45%
due 7/01/2037 (a) 3,211
Chelan County, Washington, Public Utility District
Number 001, Consolidated Revenue Refunding
Bonds (Chelan Hydro System), AMT (b):
6,595 Series B, 6.35% due 7/01/2026 6,752
6,000 Series C, 5.65% due 7/01/2032 6,405
10,000 King County, Washington, School District Number 401
(Highline), GO, 5.25% due 12/01/2025 (g) 10,904
10,000 Radford Court Properties, Washington, Student
Housing Revenue Bonds, 5.75% due 6/01/2032 (b) 10,636
1,720 Seattle, Washington, Drain and Wastewater Utility
Revenue Bonds, 5.75% due 11/01/2009 (b)(f) 1,820
Skagit County, Washington, Public Hospital District,
GO, Series A (b):
4,944 5.25% due 12/01/2025 5,312
5,450 5.25% due 12/01/2026 5,859
5,300 Tacoma, Washington, Regional Water Supply System,
Water Revenue Bonds, 5% due 12/01/2032 (b) 5,504
7,250 Tacoma, Washington, Solid Waste Utility
Revenue Refunding Bonds, Series B, 5.50%
due 12/01/2007 (a)(f) 7,395
21,365 Washington State, GO, Series D, 5% due 1/01/2029 (c) 22,746
7,000 Washington State Health Care Facilities Authority
Revenue Bonds (Providence Health System),
Series A, 5.25% due 10/01/2021 (b) 7,325
12,035 Washington State, Motor Vehicle Fuel Tax, GO,
Series B, 5% due 7/01/2031 (g) 12,770
================================================================================
West Virginia -- 0.6%
5,925 Harrison County, West Virginia, County Commission
for Solid Waste Disposal Revenue Bonds
(Monongahela Power), AMT, Series C, 6.75%
due 8/01/2024 (a) 5,939
================================================================================
Wisconsin -- 0.4%
3,395 Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (SynergyHealth Inc.),
6% due 11/15/2032 3,692
--------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $1,360,156) -- 138.4% 1,417,804
================================================================================
================================================================================
Municipal Bonds Held in Trust (j)
================================================================================
California -- 5.1%
14,900 California State, Various Purpose, GO, 5.50%
due 11/01/2033 (b) 16,178
10,030 Gavilan, California, Joint Community College District,
GO (Election of 2004), Series A, 5.50%
due 8/01/2028 (a) 11,008
14,000 Port of Oakland, California, Revenue Bonds, AMT,
Series K, 5.75% due 11/01/2021 (c) 14,731
9,460 Port of Oakland, California, Revenue Refunding
Bonds, AMT, Series L, 5.375% due 11/01/2027 (c) 10,044
================================================================================
Florida -- 1.1%
10,750 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, 5.375% due 10/01/2025 (c) 11,345
================================================================================
Georgia -- 2.7%
26,500 Atlanta, Georgia, Airport General Revenue
Refunding Bonds, AMT, Series A, 5.125%
due 1/01/2030 (g) 27,717
================================================================================
SEMI-ANNUAL REPORTS APRIL 30, 2007 21
Schedule of Investments (continued)
BlackRock MuniYield Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Held in Trust (j) Value
===============================================================================
Illinois -- 8.1%
$16,400 Chicago, Illinois, O'Hare International Airport,
General Airport Revenue Refunding Bonds, Third
Lien, AMT, Series C-2, 5.25% due 1/01/2030 (g) $ 17,294
Chicago, Illinois, O'Hare International Airport
Revenue Bonds, Third Lien, AMT, Series B-2:
16,680 5.25% due 1/01/2027 (b) 17,609
26,230 6% due 1/01/2027 (b) 29,354
17,200 6% due 1/01/2029 (e) 19,259
===============================================================================
Louisiana -- 1.5%
15,000 Louisiana Public Facilities Authority, Mortgage
Revenue Refunding Bonds (Baton Rouge General
Medical Center Project), 5.25% due 7/01/2033 (b) 15,918
===============================================================================
Michigan -- 1.4%
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison
Company Pollution Control Project), AMT (e):
8,000 Series A, 5.50% due 6/01/2030 8,607
5,000 Series C, 5.65% due 9/01/2029 5,302
===============================================================================
New Jersey -- 3.1%
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (b):
14,665 5.25% due 7/01/2031 15,733
15,000 5.25% due 7/01/2033 16,093
===============================================================================
Nevada -- 1.3%
12,675 Clark County, Nevada, IDR (Southwest Gas
Corporation Project), AMT, Series A, 5.25%
due 7/01/2034 (a) 13,386
===============================================================================
Oklahoma -- 0.9%
8,680 Oklahoma State Industries Authority Revenue
Refunding Bonds (Health System-Obligation
Group), Series A, 5.75% due 8/15/2029 (b) 9,125
===============================================================================
Pennsylvania -- 1.7%
15,600 Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, Series A, 5.50% due 12/01/2031 (a) 17,171
===============================================================================
Texas -- 6.8%
21,000 Dallas-Fort Worth, Texas, International Airport
Revenue Bonds, AMT, Series A, 5.50%
due 11/01/2033 (b) 22,552
15,000 Dallas-Fort Worth, Texas, International Airport,
Revenue Refunding and Improvement Bonds,
AMT, Series A, 5.625% due 11/01/2026 (c) 15,932
30,000 Houston, Texas, Airport System Revenue Refunding
Bonds, Sub-Lien, Series B, 5.50% due 7/01/2030 (g) 31,407
===============================================================================
Washington -- 4.4%
22,000 Port of Seattle, Washington, Revenue Bonds, AMT,
Series B, 5.0% due 10/01/2032 (a) 23,060
20,565 Port of Seattle, Washington, Revenue Refunding
Bonds, Series B, AMT, 5.20% due 7/01/2029 (b) 21,529
-------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $370,724) -- 38.1% 390,354
===============================================================================
Total Investments (Cost -- $1,730,880*) -- 176.5% 1,808,158
Liabilities in Excess of Other Assets -- (2.8%) (28,412)
Liability for Trust Certificates,
Including Interest Expense Payable -- (18.0%) (184,882)
Preferred Stock, at Redemption Value -- (55.7%) (570,560)
----------
Net Assets Applicable to Common Stock -- 100.0% $1,024,304
==========
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2007 as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 1,560,054
===========
Gross unrealized appreciation ........................ $ 66,313
Gross unrealized depreciation ........................ (874)
-----------
Net unrealized appreciation .......................... $ 65,439
===========
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FGIC Insured.
(d) CIFG Insured.
(e) XL Capital Insured.
(f) Prerefunded.
(g) FSA Insured.
(h) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(i) Escrowed to maturity.
(j) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details for Municipal Bonds Held in Trust.
(k) FNMA/GNMA Collateralized.
(l) FHLMC Collateralized.
(m) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(n) Assured Guaranty Insured.
(p) FHA Insured.
o Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund -- $ 71
--------------------------------------------------------------------------
22 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Insured Fund, Inc. (in Thousands)
o Forward Interest Rate Swaps outstanding as of April 30, 2007 were as
follows:
--------------------------------------------------------------------------------
Unrealized
Notional Appreciation
Amount (Depreciation)
--------------------------------------------------------------------------------
Pay a fixed rate of 5.339% and receive a
floating rate based on 3 month LIBOR
Broker, JPMorgan Chase
Expires May 2016 $ 55,000 $ (954)
Pay a fixed rate of 3.842% and receive a
floating rate based on 1-Week Bond Market
Association rate
Broker, JPMorgan Chase
Expires May 2017 $250,000 (3,727)
Pay a fixed rate of 3.618% and receive a
floating rate based on 1-Week Bond Market
Association Rate
Broker, JPMorgan Chase
Expires June 2017 $ 40,000 116
Pay a fixed rate of 3.723% and receive a
floating rate based on 1-Week Bond Market
Association rate
Broker, Citibank, N.A.
Expires June 2022 $ 5,000 48
--------------------------------------------------------------------------------
Total $(4,517)
=======
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007 23
Schedule of Investments as of April 30, 2007 (Unaudited)
BlackRock MuniYield Quality Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Alabama -- 0.7%
$ 3,000 Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 4.75% due 1/01/2025 $ 3,055
================================================================================
California -- 17.6%
4,150 Alameda Corridor Transportation Authority,
California, Capital Appreciation Revenue Refunding
Bonds, Subordinate Lien, Series A, 5.45%
due 10/01/2025 (a)(n) 3,434
1,250 Anaheim, California, Public Financing Authority,
Electric System Distribution Facilities Revenue Bonds,
Series A, 5% due 10/01/2031 (f) 1,305
2,200 Arcadia, California, Unified School District, Capital
Appreciation, GO (Election of 2006), Series A,
4.96% due 8/01/2039 (f)(n) 459
7,405 Cabrillo, California, Community College District, GO
(Election of 2004), Series B, 4.87% due 8/01/2038 (g)(n) 1,643
California State, GO:
2,790 5.50% due 4/01/2014 (h) 3,098
150 5.50% due 4/01/2028 164
California State, GO, Refunding:
4,450 5.25% due 9/01/2010 (h) 4,676
2,300 5.125% due 6/01/2027 2,405
3,450 California State University, Systemwide Revenue Bonds,
Series A, 5% due 11/01/2035 (d) 3,603
California State, Various Purpose, GO:
10,000 5.25% due 11/01/2029 10,692
3,200 5.50% due 11/01/2033 3,480
3,875 Chabot-Las Positas, California, Community College
District, GO (Election of 2004), Series B, 4.812%
due 8/01/2025 (a)(n) 1,635
1,200 Chino Valley, California, Unified School District, GO
(Election of 2002), Series C, 5.25% due 8/01/2030 (g) 1,300
2,150 East Side Union High School District, California, Santa
Clara County, GO (Election of 2002), Series D, 5%
due 8/01/2026 (b) 2,275
1,600 Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series B, 5.50% due 6/01/2013 (b)(h) 1,748
5,000 Hacienda-La Puente, California, Unified School
District, GO (Election of 2000), Series B, 5%
due 8/01/2027 (f) 5,229
Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B-1 (d):
4,000 5% due 10/01/2029 4,192
2,275 5% due 10/01/2036 2,382
2,000 Mount Diablo, California, Unified School District, GO
(Election of 2002), 5% due 7/01/2027 (d) 2,090
2,750 Orange County, California, Sanitation District, COP,
5% due 2/01/2033 (d) 2,867
2,000 Poway, California, Redevelopment Agency, Tax
Allocation Refunding Bonds (Paguay Redevelopment
Project), 5.125% due 6/15/2033 (a) 2,092
2,100 Sacramento, California, Unified School District, GO
(Election of 2002), 5% due 7/01/2030 (g) 2,224
9,000 San Diego County, California, Water Authority, Water
Revenue Refunding Bonds, COP, Series A, 5%
due 5/01/2032 (g) 9,398
2,725 San Mateo County, California, Community College
District, GO (Election of 2001), Series A, 5%
due 9/01/2026 (d) 2,840
1,700 San Mateo County, California, Union High School
District, COP (Phase One Projects), Series B, 4.758%
due 12/15/2043 (n) 961
1,950 Tamalpais, California, Union High School District, GO
(Election of 2001), 5% due 8/01/2028 (f) 2,039
3,150 Ventura County, California, Community College
District, GO (Election of 2002), Series B, 5%
due 8/01/2030 (g) 3,335
================================================================================
Colorado -- 3.8%
1,650 Colorado Health Facilities Authority Revenue Bonds
(Catholic Health Initiatives), Series A, 5.50%
due 3/01/2032 (c) 1,771
Colorado Health Facilities Authority Revenue Bonds
(Covenant Retirement Communities Inc.),
Series A (j):
1,600 5.50% due 12/01/2027 1,707
1,000 5.50% due 12/01/2033 1,063
9,000 E-470 Public Highway Authority, Colorado, Capital
Appreciation Revenue Refunding Bonds, Series B,
5.485% due 9/01/2029 (g)(n) 2,963
11,125 Northwest Parkway, Colorado, Public Highway
Authority, Capital Appreciation Revenue Bonds, Senior
Convertible, Series C, 5.345% due 6/15/2011 (f)(n) 10,212
================================================================================
District of Columbia -- 1.4%
2,500 District of Columbia, Revenue Refunding Bonds
(Catholic University of America Project), 5.625%
due 10/01/2029 (a) 2,620
6,000 District of Columbia, Revenue Refunding Bonds
(Georgetown University Project), 4.82%
due 4/01/2018 (a)(n) 3,687
================================================================================
Florida -- 3.2%
2,235 Beacon Tradeport Community Development District,
Florida, Special Assessment Revenue Refunding
Bonds (Commercial Project), Series A, 5.625%
due 5/01/2032 (j) 2,416
2,065 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 2,161
4,700 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Refunding Bonds (Adventist
Health System), Series G, 5.125% due 11/15/2032 4,863
5,200 Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series B, 5.125% due 1/01/2032 (d) 5,462
================================================================================
Georgia -- 5.4%
3,500 Atlanta, Georgia, Airport Passenger Facility Charge and
Subordinate Lien General Revenue Refunding Bonds,
Series C, 5% due 1/01/2033 (f) 3,656
24 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Quality Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Georgia (concluded)
Atlanta, Georgia, Water and Wastewater
Revenue Bonds:
$ 4,270 5% due 11/01/2034 (f) $ 4,488
1,200 Series A, 5% due 11/01/2033 (g) 1,247
1,675 Series A, 5% due 11/01/2039 (g) 1,741
Augusta, Georgia, Water and Sewer Revenue Bonds (f):
5,000 5.25% due 10/01/2034 5,384
2,820 5.25% due 10/01/2039 3,027
4,785 Monroe County, Georgia, Development Authority, PCR,
Refunding (Oglethorpe Power Corporation -- Scherer),
Series A, 6.80% due 1/01/2011 5,256
================================================================================
Hawaii -- 0.5%
2,000 Hawaii State, GO, Series CX, 5.50% due 2/01/2021 (f) 2,147
================================================================================
Illinois -- 15.5%
Chicago, Illinois, GO (Lakefront Millennium Parking
Facilities) (g)(h):
5,000 5.125% due 1/01/2009 5,211
2,500 5.75% due 1/01/2012 (n) 2,760
Chicago, Illinois, O'Hare International Airport Revenue
Bonds, Third Lien, AMT, Series B-2:
3,400 5.75% due 1/01/2023 (f) 3,733
4,000 5.75% due 1/01/2024 (f) 4,391
3,300 6% due 1/01/2029 (b) 3,695
Chicago, Illinois, O'Hare International Airport, Revenue
Refunding Bonds:
2,665 3rd Lien, AMT, Series A-2, 5.75% due 1/01/2021 (f) 2,922
3 DRIVERS, AMT, Series 250, 7.191%
due 1/01/2021 (g)(i)(r) 3
5,080 Cook County, Illinois, Capital Improvement, GO,
Series C, 5.50% due 11/15/2012 (a)(h) 5,534
Illinois Sports Facilities Authority, State Tax Supported
Revenue Bonds (a):
28,525 5.212% due 6/15/2030 (n) 26,749
5,500 5% due 6/15/2032 5,729
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project):
7,000 5.50% due 12/15/2024 (d) 7,342
3,500 Series B, 5.75% due 6/15/2023 (g) 3,823
================================================================================
Indiana -- 3.7%
4,500 Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A, 5.25% due 6/01/2014 (d)(h) 4,911
Indianapolis, Indiana, Local Public Improvement Bond
Bank, Revenue Refunding Bonds (Indianapolis Airport
Authority Project), AMT, Series B (g):
6,470 5.25% due 1/01/2028 6,915
5,055 5.25% due 1/01/2030 5,399
================================================================================
Louisiana -- 6.7%
5,100 Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Bonds (Capital Projects and Equipment Acquisition),
Series A, 6.30% due 7/01/2030 (a) 6,108
2,800 Louisiana State Citizens Property Insurance Corporation,
Assessment Revenue Bonds, Series B, 5%
due 6/01/2023 (a) 2,965
5,300 Louisiana State, Gas and Fuels Tax Revenue Bonds,
Series A, 4.75% due 5/01/2039 (f) 5,429
4,675 Louisiana State Transportation Authority, Senior Lien
Toll Revenue Capital Appreciation Bonds, Series B,
5.31% due 12/01/2027 (a)(n) 1,630
New Orleans, Louisiana, Ernest N. Morial Exhibit Hall
Authority, Special Tax, Sub-Series A (a):
6,150 5.25% due 7/15/2028 6,548
5,000 5% due 7/15/2033 5,216
800 Rapides Financing Authority, Louisiana, Revenue
Bonds (Cleco Power LLC Project), AMT, 4.70%
due 11/01/2036 (a) 804
1,900 Terrebonne Parish, Louisiana, Hospital Service District
Number 1, Hospital Revenue Bonds (Terrebonne
General Medical Center Project), 5.50%
due 4/01/2033 (a) 2,055
================================================================================
Maryland -- 1.3%
5,615 Baltimore, Maryland, Convention Center Hotel Revenue
Bonds, Senior Series A, 5.25% due 9/01/2039 (b) 6,071
================================================================================
Massachusetts -- 9.0%
3,550 Massachusetts Bay Transportation Authority, Revenue
Refunding Bonds (General Transportation System),
Series A, 7% due 3/01/2014 (g) 4,141
11,400 Massachusetts Bay Transportation Authority, Sales
Tax Revenue Refunding Bonds, Senior Series A-2,
4.80% due 7/01/2032 (n) 3,468
3,730 Massachusetts Bay, Massachusetts, Transportation
Authority, General Transportation System Revenue
Refunding Bonds, Series A, 7% due 3/01/2011 (g) 4,158
2,200 Massachusetts State, HFA, S/F Housing Revenue Bonds,
AMT, Series 128, 4.80% due 12/01/2027 2,212
3 Massachusetts State Port Authority, Special Facilities
Revenue Bonds, DRIVERS, AMT, Series 501, 6.687%
due 7/01/2009 (a)(i)(r) 3
Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A (f):
14,400 5% due 8/15/2030 15,230
4,300 4.75% due 8/15/2032 4,448
2,400 Massachusetts State Special Obligation Dedicated Tax
Revenue Bonds, 5.25% due 1/01/2014 (d)(h) 2,606
1,210 Massachusetts State Water Resource Authority,
General Revenue Refunding Bonds, Series B, 5.125%
due 8/01/2027 (g) 1,272
4,000 Massachusetts State, HFA, Rental Housing Mortgage
Revenue Bonds, AMT, Series C, 5.60%
due 1/01/2045 (f) 4,240
================================================================================
Michigan -- 3.7%
2,350 Detroit, Michigan, Sewage Disposal System, Second
Lien Revenue Bonds, Series B, 5% due 7/01/2036 (d) 2,479
2,300 Michigan Higher Education Student Loan Authority,
Student Loan Revenue Refunding Bonds, AMT,
Series XVII-G, 5.20% due 9/01/2020 (a) 2,397
Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds:
1,000 (Oakwood Obligated Group), Series A, 5%
due 7/15/2025 1,033
1,700 (Detroit Edison Company Pollution Control
Project), AMT, Series A, 5.50% due 6/01/2030 (b) 1,829
3,300 (Detroit Edison Company Pollution Control
Project), AMT, Series C, 5.65% due 9/01/2029 (b) 3,499
SEMI-ANNUAL REPORTS APRIL 30, 2007 25
Schedule of Investments (continued)
BlackRock MuniYield Quality Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Michigan (concluded)
$ 5,800 Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison Company
Pollution Control Project), AMT, Series C, 5.45%
due 12/15/2032 (b) $ 6,160
================================================================================
Minnesota -- 0.9%
4,199 Dakota County, Minnesota, Community Development
Agency, S/F Mortgage Revenue Bonds (Mortgage-
Backed Securities Program), Series B, 5.15%
due 12/01/2038 (o)(p) 4,362
================================================================================
Nebraska -- 2.0%
6,315 Municipal Energy Agency of Nebraska, Power
Supply System Revenue Bonds, Series A, 5%
due 4/01/2033 (f) 6,591
2,300 Washington County, Nebraska, Wastewater Facilities
Revenue Bonds (Cargill Inc. Project), AMT, 5.90%
due 11/01/2027 2,508
================================================================================
Nevada -- 7.5%
4,100 Carson City, Nevada, Hospital Revenue Bonds
(Carson-Tahoe Hospital Project), Series A, 5.50%
due 9/01/2033 (j) 4,389
Clark County, Nevada, Airport System Subordinate
Lien Revenue Bonds, Series A-2 (d):
2,000 5% due 7/01/2030 2,090
19,100 5% due 7/01/2036 19,916
2,300 Clark County, Nevada, IDR (Southwest Gas Corp.
Project), AMT, Series A, 4.75% due 9/01/2036 (d) 2,312
5,710 Washoe County, Nevada, School District, GO, 5.875%
due 12/01/2009 (f)(h) 6,018
================================================================================
New Hampshire -- 3.4%
10,000 New Hampshire Health and Education Facilities
Authority Revenue Bonds (Dartmouth-Hitchcock
Obligation Group, 5.50% due 8/01/2027 (f) 10,728
5,000 New Hampshire State Business Finance Authority, PCR,
Refunding (Public Service Company), AMT,
Series D, 6% due 5/01/2021 (g) 5,196
================================================================================
New Jersey -- 4.4%
New Jersey EDA, Cigarette Tax Revenue Bonds:
910 5.75% due 6/15/2029 985
1,385 5.50% due 6/15/2031 1,470
5,500 New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25% due 7/01/2031 (g) 5,903
New Jersey EDA, School Facilities Construction
Revenue Bonds, Series O:
3,860 5.125% due 3/01/2028 4,107
7,500 5.125% due 3/01/2030 7,969
================================================================================
New York -- 4.7%
8,990 Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A, 5%
due 11/15/2032 (d) 9,434
8,000 New York State Thruway Authority, General Revenue
Refunding Bonds, Series G, 5% due 1/01/2032 (f) 8,461
3,570 Tobacco Settlement Financing Corporation of New York
Revenue Bonds, Series A-1, 5.25% due 6/01/2022 (a) 3,821
================================================================================
Ohio -- 2.2%
2,500 Columbus, Ohio, City School District, GO (School
Facilities Construction and Improvements), 5.25%
due 12/01/2014 (f)(h) 2,742
2,000 Jackson, Ohio, Hospital Facilities Revenue Bonds
(Consolidated Health System -- Jackson Hospital),
6.125% due 10/01/2009 (h)(j) 2,127
5,250 Ohio State Air Quality, Development Authority
Revenue Bonds (Dayton Power and Light Company
Project), 4.80% due 9/01/2036 (d) 5,322
================================================================================
Oklahoma -- 0.5%
Tulsa, Oklahoma, Airports Improvement Trust, General
Revenue Bonds (Tulsa International Airport), AMT,
Series B (d):
1,000 6% due 6/01/2019 1,056
1,000 6.125% due 6/01/2026 1,059
================================================================================
Pennsylvania -- 5.6%
Pennsylvania State Public School Building Authority,
School Lease Revenue Bonds (The School District of
Philadelphia Project) (f)(h):
11,750 5% due 6/01/2013 12,555
6,000 5.25% due 6/01/2013 6,492
6,250 Philadelphia, Pennsylvania, Authority for Industrial
Development, Lease Revenue Bonds, Series B, 5.50%
due 10/01/2021 (f) 6,707
================================================================================
Rhode Island -- 0.5%
2,500 Providence, Rhode Island, GO, Series A, 5.70%
due 7/15/2007 (f)(h) 2,535
================================================================================
South Carolina -- 4.6%
3,750 Berkeley County, South Carolina, School District,
Installment Lease Revenue Bonds (Securing Assets for
Education Project), 5.125% due 12/01/2030 3,973
3,200 Kershaw County, South Carolina, Public Schools
Foundation, Installment Power Revenue Refunding
Bonds,5% due 12/01/2029 (k) 3,372
4,500 Scago Educational Facilities Corporation for Pickens
County School District, South Carolina, Revenue
Bonds, 5% due 12/01/2031 (f) 4,734
8,900 South Carolina Transportation Infrastructure Bank
Revenue Bonds, Series A, 5% due 10/01/2033 (a) 9,277
================================================================================
Tennessee -- 3.9%
7,850 Chattanooga, Tennessee, IDB, Lease Rent Revenue
Bonds (Southside Redevelopment Corporation),
5.875% due 10/01/2024 (a) 8,352
5,000 Memphis-Shelby County, Tennessee, Airport Authority,
Airport Revenue Bonds, AMT, Series D, 6.25%
due 3/01/2018 (a) 5,335
Tennessee HDA, Homeownership Revenue Bonds,
AMT, Series 2-C (a):
2,075 6.10% due 7/01/2013 2,128
2,390 6.20% due 7/01/2015 2,434
================================================================================
Texas -- 12.0%
2,000 Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), Trust Certificates,
Second Tier, Series B, 6% due 1/01/2011 (h) 2,152
1,000 Bell County, Texas, Health Facilities Development
Revenue Bonds (Lutheran General Health Care
System), 6.50% due 7/01/2019 (c) 1,210
Dallas-Fort Worth, Texas, International Airport Revenue
Refunding and Improvement Bonds, AMT, Series A (d):
1,835 5.875% due 11/01/2017 1,971
2,145 5.875% due 11/01/2018 2,304
2,385 5.875% due 11/01/2019 2,562
26 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Quality Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
===============================================================================
Texas (concluded)
Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good
Shepherd Medical Center Project) (h)(j):
$ 2,600 6.375% due 10/01/2010 $ 2,839
6,000 6.875% due 10/01/2010 6,646
4,000 Harris County -- Houston Sports Authority, Texas,
Revenue Refunding Bonds, Senior Lien, Series G,
5.75% due 11/15/2020 (g) 4,300
Leander, Texas, Independent School District, Capital
Appreciation, GO, Refunding (School Building) (n):
9,250 5.46% due 8/15/2028 (d) 3,142
13,350 5.58% due 8/15/2035 2,999
6,150 Lewisville, Texas, Independent School District, Capital
Appreciation and School Building, GO, Refunding,
4.748% due 8/15/2024 (d)(n) 2,741
7,150 North Harris County, Texas, Regional Water Authority,
Senior Lien Revenue Bonds, 5.125%
due 12/15/2035 (g) 7,522
2,100 Texas State Affordable Housing Corporation,
S/F Mortgage Revenue Bonds (Professional
Educators Program), AMT, Series A-1, 5.50%
due 12/01/2039 (o)(p) 2,247
7,200 Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A, 5.75%
due 8/15/2038 (a) 7,813
4,600 Travis County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.25% due 11/15/2009 (g)(h) 4,920
===============================================================================
Utah -- 3.7%
15,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds
(IHC Hospitals Inc.), 6.30% due 2/15/2015 (g) 17,040
===============================================================================
Virginia -- 0.7%
3,100 Halifax County, Virginia, IDA, Exempt Facility Revenue
Refunding Bonds (Old Dominion Electric Cooperative
Project), AMT, 5.625% due 6/01/2028 (a) 3,381
===============================================================================
Washington -- 2.7%
2,400 Port of Tacoma, Washington, Revenue Refunding Bonds,
Series A, 5.25% due 12/01/2014 (a)(h) 2,633
5,100 Tacoma, Washington, Regional Water Supply System,
Water Revenue Bonds, 5% due 12/01/2032 (g) 5,296
4,125 Washington State, GO, Series A and AT-6, 6.25%
due 2/01/2011 (f) 4,338
===============================================================================
Puerto Rico -- 1.6%
6,925 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series NN, 5.125% due 7/01/2029 7,243
-------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $589,010) -- 133.4% 617,369
===============================================================================
===============================================================================
Municipal Bonds Held in Trust (m)
===============================================================================
Arizona -- 1.4%
6,000 Maricopa County, Arizona, Public Finance Corporation,
Lease Revenue Bonds, 5.50% due 7/01/2014 (a) 6,403
===============================================================================
California -- 7.0%
5,700 California State, GO, Refunding, 5.25%
due 2/01/2033 (j) 6,087
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series B (h):
10,000 5.50% due 6/01/2013 (b) 10,927
14,160 5.625% due 6/01/2013 (k) 15,568
===============================================================================
Georgia -- 2.3%
10,000 Atlanta, Georgia, Airport Passenger Facility Charge,
Subordinate Lien Revenue Refunding Bonds, Series C,
5% due 1/01/2033 (f) 10,446
===============================================================================
Illinois -- 9.4%
10,000 Chicago, Illinois, Board of Education, GO (Chicago
School Reform Project), 5.75% due 12/01/2027 (a) 10,312
Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A (g):
13,665 5.75% due 1/01/2021 14,625
5,000 5.50% due 1/01/2022 5,279
12,500 5.375% due 1/01/2032 13,111
===============================================================================
Massachusetts -- 0.9%
3,825 Massachusetts State Port Authority, Special Facilities
Revenue Bonds (Delta Air Lines Inc. Project), AMT,
Series A, 5.50% due 1/01/2019 (a) 4,041
===============================================================================
New Jersey -- 3.1%
New Jersey EDA, Cigarette Tax Revenue Bonds (e):
7,150 5.50% due 6/15/2024 7,687
6,000 5.50% due 6/15/2031 6,572
===============================================================================
New York -- 3.2%
13,840 New York City, New York, GO, Series B, 5.875%
due 8/01/2016 (g) 14,863
===============================================================================
Oregon -- 3.4%
15,000 Portland, Oregon, Sewer System Revenue Bonds,
Series A, 5.75% due 8/01/2010 (d)(h) 15,946
===============================================================================
Texas -- 2.4%
10,470 Denton, Texas, Utility System Revenue Bonds, Series A,
6% due 12/01/2010 (f)(h) 11,268
===============================================================================
Washington -- 3.5%
15,000 Energy Northwest, Washington, Electric Revenue
Refunding Bonds (Project Number 1), Series A,
5.75% due 7/01/2017 (g) 16,364
-------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $162,425) -- 36.6% 169,499
===============================================================================
===============================================================================
Shares
Held Short-Term Securities
===============================================================================
3,015 Merrill Lynch Institutional Tax-Exempt Fund,
3.70% (l)(q) 3,015
-------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $3,015) -- 0.6% 3,015
===============================================================================
Total Investments (Cost -- $754,450*) -- 170.6% 789,883
Other Assets Less Liabilities -- 0.9% 4,092
Liability for Trust Certificates,
Including Interest Expense Payable -- (17.5%) (80,904)
Preferred Stock, at Redemption Value -- (54.0%) (250,156)
----------
Net Assets Applicable to Common Stock -- 100.0% $ 462,915
==========
SEMI-ANNUAL REPORTS APRIL 30, 2007 27
Schedule of Investments (concluded)
BlackRock MuniYield Quality Fund, Inc. (in Thousands)
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate Cost ......................................... $ 676,026
=========
Gross unrealized appreciation .......................... $ 34,155
Gross unrealized depreciation .......................... (196)
---------
Net unrealized appreciation ............................ $ 33,959
=========
(a) AMBAC Insured.
(b) XL Capital Insured.
(c) Escrowed to maturity.
(d) FGIC Insured.
(e) Assured Guaranty Insured.
(f) FSA Insured.
(g) MBIA Insured.
(h) Prerefunded.
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) Radian Insured.
(k) CIFG Insured.
(l) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund (3,701) $87
--------------------------------------------------------------------------
(m) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details of Municipal Bonds Held in Trust.
(n) Represents a step or zero coupon bond; the interest rate shown reflects
the effective yield at the time of purchase.
(o) FNMA/GNMA Collateralized.
(p) FHLMC Collateralized.
(q) Represents the current yield as of April 30, 2007.
(r) These securities are short-term floating rate certificates issued by
tender option bond trusts and are secured by the underlying municipal bond
securities.
o Forward interest rate swaps outstanding as of April 30, 2007 were as
follows:
--------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
--------------------------------------------------------------------------
Pay a fixed rate of 3.842% and receive a
floating rate based on 1-week Bond Market
Association Rate
Broker, JPMorgan Chase
Expires May 2017 $40,000 $(596)
--------------------------------------------------------------------------
Total $(596)
=====
See Notes to Financial Statements.
28 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited)
BlackRock MuniYield Quality Fund II, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Alabama -- 0.7%
$ 2,000 Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 4.75% due 1/01/2025 $ 2,037
================================================================================
Arizona -- 0.7%
1,800 Northern Arizona University System Revenue Bonds,
5.50% due 6/01/2014 (c)(g) 1,993
================================================================================
California -- 24.4%
7,150 Alameda Corridor Transportation Authority,
California, Capital Appreciation Revenue Refunding
Bonds, Subordinate Lien, Series A, 5.33%
due 10/01/2025 (a)(n) 5,917
3,800 Anaheim, California, Public Financing Authority,
Electric System Distribution Facilities Revenue Bonds,
Series A, 5% due 10/01/2031 (f) 3,967
1,400 Arcadia, California, Unified School District, Capital
Appreciation, GO (Election of 2006), Series A,
4.96% due 8/01/2039 (f)(n) 292
4,800 Cabrillo, California, Community College District,
GO (Election of 2004), Series B, 4.87%
due 8/01/2038 (i)(n) 1,065
2,500 California Health Facilities Financing Authority
Revenue Bonds (Kaiser Permanente), RIB, Series 26,
6.79% due 6/01/2022 (f)(j) 2,691
California State, GO, Refunding:
2,200 5.25% due 9/01/2010 (g) 2,312
1,500 5.125% due 6/01/2027 1,569
1,600 California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C, 5%
due 6/01/2025 1,666
2,200 California State University, Systemwide Revenue Bonds,
Series A, 5% due 11/01/2035 (c) 2,297
California State, Various Purpose, GO:
2,750 5.25% due 11/01/2029 2,940
6,500 5.50% due 11/01/2033 7,069
2,500 Chabot-Las Positas, California, Community College
District, GO (Election of 2004), Series B, 4.812%
due 8/01/2025 (a)(n) 1,055
East Side Union High School District, California, Santa
Clara County, GO (h):
15,000 Capital Appreciation, Series E, 5.15% due
8/01/2029 5,053
1,370 Series D, 5% due 8/01/2026 1,450
2,770 Fairfield-Suisun, California, Unified School District,
GO (Election of 2002), 5.50% due 8/01/2028 (i) 3,040
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series B (g):
2,300 5.50% due 6/01/2013 (h) 2,513
3,725 5.625% due 6/01/2013 (b) 4,095
2,815 John Swett Unified School District, California, GO,
Series A, 5.50% due 8/01/2026 (f) 3,015
Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B-1 (c):
2,600 5% due 10/01/2029 2,725
1,475 5% due 10/01/2036 1,544
2,300 Orange County, California, Sanitation District, COP,
5% due 2/01/2033 (c) 2,398
2,900 Palm Springs, California, Financing Authority, Lease
Revenue Refunding Bonds (Convention Center
Project), Series A, 5.50% due 11/01/2029 (i) 3,217
1,250 Poway, California, Redevelopment Agency, Tax
Allocation Refunding Bonds (Paguay Redevelopment
Project), 5.125% due 6/15/2033 (a) 1,307
5,000 Sacramento, California, Municipal Utility District,
Electric Revenue Bonds, Series N,
5% due 8/15/2028 (i) 5,187
1,350 Sacramento, California, Unified School District, GO
(Election of 2002), 5% due 7/01/2030 (i) 1,430
1,100 San Mateo, California, Union High School District,
COP (Phase One Projects), Series B, 4.486%
due 12/15/2043 (a)(n) 622
1,325 Tamalpais, California, Union High School District, GO
(Election of 2001), 5% due 8/01/2028 (f) 1,386
2,025 Ventura County, California, Community College District,
GO (Election of 2002), Series B, 5% due 8/01/2030 (i) 2,144
================================================================================
Colorado -- 5.7%
Colorado Health Facilities Authority Revenue Bonds,
Series A:
1,150 (Catholic Health Initiatives), 5.50%
due 3/01/2032 (d) 1,235
1,200 (Covenant Retirement Communities Inc.),
5.50% due 12/01/2027 (k) 1,280
675 (Covenant Retirement Communities Inc.),
5.50% due 12/01/2033 (k) 717
7,500 E-470 Public Highway Authority, Colorado, Capital
Appreciation Revenue Refunding Bonds, Series B,
5.607% due 9/01/2032 (i)(n) 2,073
10,975 Northwest Parkway, Colorado, Public Highway
Authority, Capital Appreciation Revenue
Bonds, Senior Convertible, Series C, 5.327%
due 6/15/2011 (f)(n) 10,074
1,735 Northwest Parkway, Colorado, Public Highway
Authority Revenue Bonds, Series A, 5.50%
due 6/15/2021 (a) 1,870
================================================================================
District of Columbia -- 0.8%
4,000 District of Columbia, Revenue Refunding Bonds
(Georgetown University Project), 4.598%
due 4/01/2018 (a)(n) 2,458
================================================================================
Florida -- 2.3%
1,250 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 1,308
1,700 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Refunding Bonds (Adventist
Health System), Series G, 5.125% due 11/15/2032 1,759
3,575 Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series B, 5.125% due 1/01/2032 (c) 3,755
================================================================================
Georgia -- 6.8%
5,000 Atlanta, Georgia, Airport General Revenue Refunding
Bonds, Series B, 5.25% due 1/01/2033 (f) 5,354
5,000 Atlanta, Georgia, Airport Revenue Refunding Bonds,
Series A, 5.875% due 1/01/2017 (c) 5,314
Atlanta, Georgia, Water and Wastewater
Revenue Bonds:
2,850 5% due 11/01/2034 (f) 2,995
800 Series A, 5% due 11/01/2033 (i) 832
4,075 Series A, 5% due 11/01/2039 (i) 4,236
1,880 Augusta, Georgia, Water and Sewer Revenue Bonds,
5.25% due 10/01/2039 (f) 2,018
================================================================================
SEMI-ANNUAL REPORTS APRIL 30, 2007 29
Schedule of Investments (continued)
BlackRock MuniYield Quality Fund II, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Illinois -- 15.7%
Chicago, Illinois, O'Hare International Airport Revenue
Bonds, Third Lien, AMT, Series B-2:
$ 5,200 5.75% due 1/01/2023 (f) $ 5,709
2,200 6% due 1/01/2029 (h) 2,463
2,460 Cook County, Illinois, Capital Improvement, GO,
Series C, 5.50% due 11/15/2012 (a)(g) 2,680
10,000 Illinois Regional Transportation Authority Revenue
Bonds, 6.50% due 7/01/2026 (i) 13,007
21,675 Illinois Sports Facilities Authority, State Tax Supported
Revenue Bonds, 5.264% due 6/15/2030 (a)(n) 20,325
3,500 Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Bonds (McCormick
Place Expansion), Series A, 5% due 12/15/2028 (i) 3,654
================================================================================
Indiana -- 2.4%
6,750 Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A, 5.25% due 6/01/2014 (c)(g) 7,366
================================================================================
Louisiana -- 8.2%
1,850 Jefferson Parish, Louisiana, Home Mortgage Authority,
S/F Mortgage Revenue Bonds, AMT, Series B-1,
6.65% due 12/01/2033 (e)(i) 1,924
5,500 Lafayette, Louisiana, Utilities Revenue Bonds, 5%
due 11/01/2028 (i) 5,795
2,300 Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Bonds (Capital Projects and Equipment Acquisition),
Series A, 6.30% due 7/01/2030 (a) 2,754
1,800 Louisiana State Citizens Property Insurance
Corporation, Assessment Revenue Bonds, Series B,
5% due 6/01/2023 (a) 1,906
3,500 Louisiana State, Gas and Fuels Tax Revenue Bonds,
Series A, 4.75% due 5/01/2039 (f) 3,585
3,185 Louisiana State Transportation Authority, Senior Lien
Toll Revenue Capital Appreciation Bonds, Series B,
5.31% due 12/01/2027 (a)(n) 1,110
4,200 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall
Authority, Special Tax, Sub-Series A, 5.25%
due 7/15/2028 (a) 4,472
1,750 Rapides Financing Authority, Louisiana, Revenue
Bonds (Cleco Power LLC Project), AMT, 4.70%
due 11/01/2036 (a) 1,758
1,300 Terrebonne Parish, Louisiana, Hospital Service District
Number 1, Hospital Revenue Bonds (Terrebonne
General Medical Center Project), 5.50%
due 4/01/2033 (a) 1,406
================================================================================
Massachusetts -- 3.5%
1,500 Massachusetts State HFA, S/F Housing Revenue Bonds,
AMT, Series 128, 4.80% due 12/01/2027 (f) 1,508
5,800 Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A,
5% due 8/15/2030 (f) 6,134
1,800 Massachusetts State Special Obligation Dedicated Tax
Revenue Bonds, 5.25% due 1/01/2014 (c)(g) 1,955
840 Massachusetts State Water Resource Authority,
General Revenue Refunding Bonds, Series B,
5.125% due 8/01/2027 (i) 883
================================================================================
Michigan -- 3.7%
1,500 Detroit, Michigan, Sewage Disposal System, Second Lien
Revenue Bonds, Series B, 5% due 7/01/2036 (c) 1,582
1,000 Michigan Higher Education Student Loan Authority,
Student Loan Revenue Refunding Bonds, AMT,
Series XVII-G, 5.20% due 9/01/2020 (a) 1,042
3,335 Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds (Sparrow Obligated
Group), 5% due 11/15/2036 3,431
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison
Company Pollution Control Project), AMT (h):
1,000 Series A, 5.50% due 6/01/2030 1,076
3,900 Series C, 5.45% due 12/15/2032 4,142
================================================================================
Minnesota -- 0.9%
2,699 Dakota County, Minnesota, Community Development
Agency, S/F Mortgage Revenue Bonds (Mortgage-
Backed Securities Program), Series B, 5.15%
due 12/01/2038 (e)(p) 2,804
================================================================================
Missouri -- 1.9%
Saint Louis County, Missouri, Pattonville R-3 School
District, GO (Missouri Direct Deposit Program) (c)(g):
4,000 5.75% due 3/01/2010 4,254
1,500 6% due 3/01/2010 1,606
================================================================================
Nebraska -- 0.4%
1,300 Municipal Energy Agency of Nebraska, Power
Supply System Revenue Bonds, Series A, 5%
due 4/01/2033 (f) 1,357
================================================================================
Nevada -- 3.2%
2,800 Carson City, Nevada, Hospital Revenue Bonds
(Carson -- Tahoe Hospital Project), Series A,
5.50% due 9/01/2033 (k) 2,997
Clark County, Nevada, Airport System Subordinate
Lien Revenue Bonds, Series A-2 (c):
1,500 5% due 7/01/2030 1,568
2,700 5% due 7/01/2036 2,815
2,200 Clark County, Nevada, IDR (Southwest Gas Corp.
Project), AMT, Series A, 4.75% due 9/01/2036 (c) 2,211
================================================================================
New Jersey -- 5.9%
New Jersey EDA, Cigarette Tax Revenue Bonds:
1,070 5.75% due 6/15/2029 1,158
500 5.50% due 6/15/2031 531
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (i):
2,400 5% due 7/01/2029 2,525
4,800 5.25% due 7/01/2033 5,149
New Jersey EDA, School Facilities Construction
Revenue Bonds:
4,250 Series O, 5.125% due 3/01/2028 4,522
4,000 Series P, 5.125% due 9/01/2028 4,258
================================================================================
New Mexico -- 2.2%
6,295 New Mexico State Highway Commission, Tax
Revenue Bonds, Senior Sub-Lien, Series A, 6%
due 6/15/2010 (f)(g) 6,709
================================================================================
New York -- 10.4%
Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A:
1,800 5% due 11/15/2032 (c) 1,889
7,500 5% due 11/15/2035 7,901
30 SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Quality Fund II, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New York (concluded)
$ 9,280 Nassau Health Care Corporation, New York, Health
System Revenue Bonds, 5.75% due 8/01/2009 (f)(g) $ 9,877
5,000 New York State Dormitory Authority, Revenue
Refunding Bonds (State University Educational
Facilities), 5.75% due 5/15/2010 (c)(g) 5,347
6,115 Tobacco Settlement Financing Corporation of New York
Revenue Bonds, Series A-1, 5.25% due 6/01/2022 (a) 6,545
================================================================================
Ohio -- 4.6%
7,100 Ohio State Air Quality, Development Authority
Revenue Bonds (Dayton Power and Light Company
Project), 4.80% due 9/01/2036 (c) 7,198
Plain, Ohio, Local School District, GO, Refunding (c):
5,120 6% due 6/01/2011 (g) 5,571
1,170 6% due 12/01/2020 1,268
================================================================================
Pennsylvania -- 3.9%
5,500 Pennsylvania State Public School Building Authority,
School Lease Revenue Bonds (The School District of
Philadelphia Project), 5% due 6/01/2013 (f)(g) 5,877
3,230 Philadelphia, Pennsylvania, Authority for Industrial
Development, Lease Revenue Bonds, Series B,
5.50% due 10/01/2020 (f) 3,480
2,350 Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, 1998 General Ordinance,
7th Series, 5% due 10/01/2032 2,476
================================================================================
Rhode Island -- 1.4%
4,010 Rhode Island State Health and Educational Building
Corporation, Higher Education Facilities Revenue
Bonds (University of Rhode Island), Series A,
5.70% due 9/15/2009 (g)(i) 4,230
================================================================================
South Carolina -- 4.8%
2,450 Berkeley County, South Carolina, School District,
Installment Lease Revenue Bonds (Securing Assets
for Education Project), 5.125% due 12/01/2030 2,595
2,075 Kershaw County, South Carolina, Public Schools
Foundation, Installment Power Revenue Refunding
Bonds, 5% due 12/01/2029 (b) 2,186
3,000 Scago Educational Facilities Corporation for Pickens
County School District, South Carolina, Revenue
Bonds, 5% due 12/01/2031 (f) 3,156
6,100 South Carolina Transportation Infrastructure Bank
Revenue Bonds, Series A, 5% due 10/01/2033 (a) 6,358
================================================================================
Tennessee -- 0.8%
2,150 Chattanooga, Tennessee, IDB, Lease Rent Revenue
Bonds (Southside Redevelopment Corporation),
5.875% due 10/01/2024 (a) 2,287
================================================================================
Texas -- 10.6%
2,000 Corpus Christi, Texas, Utility System Revenue Refunding
Bonds, Series A, 6% due 7/15/2010 (f)(g) 2,137
4,000 Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good
Shepherd Medical Center Project), 6.875%
due 10/01/2010 (g)(k) 4,431
Leander, Texas, Independent School District, Capital
Appreciation, GO, Refunding (School Building) (n):
9,345 5.51% due 8/15/2030 (c) 2,827
8,800 5.58% due 8/15/2035 1,977
3,915 Lewisville, Texas, Independent School District, Capital
Appreciation and School Building, GO, Refunding,
4.67% due 8/15/2024 (c)(n) 1,745
3,500 Lower Colorado River Authority, Texas, PCR
(Samsung Austin Semiconductor), AMT, 6.375%
due 4/01/2027 3,576
4,925 North Harris County, Texas, Regional Water
Authority, Senior Lien Revenue Bonds, 5.125%
due 12/15/2035 (i) 5,181
1,300 Texas State Affordable Housing Corporation,
S/F Mortgage Revenue Bonds (Professional
Educators Program), AMT, Series A-1, 5.50%
due 12/01/2039 (e)(p) 1,391
Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A (a):
4,800 5.75% due 8/15/2038 5,209
3,600 5.50% due 8/15/2039 3,862
================================================================================
Virginia -- 0.8%
2,100 Halifax County, Virginia, IDA, Exempt Facility Revenue
Refunding Bonds (Old Dominion Electric Cooperative
Project), AMT, 5.625% due 6/01/2028 (a) 2,291
================================================================================
Washington -- 5.4%
7,470 Port of Seattle, Washington, Revenue Bonds, AMT,
Series B, 6% due 2/01/2016 (i) 7,937
1,600 Port of Tacoma, Washington, Revenue Refunding
Bonds, Series A, 5.25% due 12/01/2014 (a)(g) 1,755
6,150 Seattle, Washington, Municipal Light and Power
Revenue Bonds, 6% due 10/01/2009 (g)(i) 6,535
================================================================================
Puerto Rico -- 1.2%
3,375 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series NN, 5.125% due 7/01/2029 3,530
--------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $383,241) -- 133.3% 404,030
================================================================================
================================================================================
Municipal Bonds Held in Trust (j)
================================================================================
California -- 1.4%
3,900 California State, GO, Refunding, 5.25%
due 2/01/2033 (k) 4,165
================================================================================
Georgia -- 5.9%
17,000 Atlanta, Georgia, Airport Passenger Facility Charge,
Subordinate Lien Revenue Refunding Bonds,
Series C, 5% due 1/01/2033 (f) 17,758
================================================================================
Illinois -- 5.9%
9,500 Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A, 5.50% due 1/01/2022 (i) 10,030
7,250 Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project), Series B,
5.75% due 6/15/2023 (i) 7,920
================================================================================
SEMI-ANNUAL REPORTS APRIL 30, 2007 31
Schedule of Investments (concluded)
BlackRock MuniYield Quality Fund II, Inc. (in Thousands)
Face
Amount Municipal Bonds Held in Trust (j) Value
===============================================================================
Massachusetts -- 8.7%
$20,000 Massachusetts State HFA, Housing Revenue Bonds
(Rental Mortgage), AMT, Series F, 5.25%
due 1/01/2046 (f) $ 20,581
Massachusetts State Port Authority, Special Facilities
Revenue Bonds (Delta Air Lines Inc. Project), AMT,
Series A (a):
2,900 5.50% due 1/01/2016 3,064
2,670 5.50% due 1/01/2019 2,821
===============================================================================
New Jersey -- 3.1%
New Jersey EDA, Cigarette Tax Revenue Bonds (l):
4,600 5.50% due 6/15/2024 4,945
4,000 5.50% due 6/15/2031 4,382
===============================================================================
Pennsylvania -- 2.3%
6,670 Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, 6% due 1/01/2017 (f) 7,052
===============================================================================
South Carolina -- 5.6%
Charleston Educational Excellence Financing
Corporation, South Carolina, Revenue Bonds
(Charleston County School District) (l):
2,725 5.25% due 12/01/2028 2,942
2,425 5.25% due 12/01/2029 2,618
880 5.25% due 12/01/2030 949
10,000 South Carolina Transportation Infrastructure Bank
Revenue Bonds, Series A, 5% due 10/01/2033 (a) 10,423
===============================================================================
Texas -- 2.2%
6,500 Dallas-Fort Worth, Texas, International Airport Revenue
Bonds, AMT, Series A, 6% due 11/01/2028 (c) 6,806
-------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $104,401) -- 35.1% 106,456
===============================================================================
===============================================================================
Shares
Held Short-Term Securities
===============================================================================
2,814 Merrill Lynch Institutional Tax-Exempt Fund,
3.70% (m)(o) 2,814
-------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $2,814) -- 0.9% 2,814
===============================================================================
Total Investments (Cost -- $490,456*) -- 169.3% 513,300
Other Assets Less Liabilities -- 0.4% 1,109
Liability for Trust Certificates,
Including Interest Expense Payable -- (16.9%) (51,152)
Preferred Stock, at Redemption Value -- (52.8%) (160,132)
----------
Net Assets Applicable to Common Stock -- 100.0% $ 303,125
==========
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 440,723
=========
Gross unrealized appreciation .......................... $ 22,271
Gross unrealized depreciation .......................... (204)
---------
Net unrealized appreciation ............................ $ 22,067
=========
(a) AMBAC Insured.
(b) CIFG Insured.
(c) FGIC Insured.
(d) Escrowed to maturity.
(e) FNMA/GNMA Collateralized.
(f) FSA Insured.
(g) Prerefunded.
(h) XL Capital Insured.
(i) MBIA Insured.
(j) Securities represent underlying bonds transferred to a separate
securitization trust established in a tenor option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details for Municipal Bonds Held in Trust.
(k) Radian Insured.
(l) Assured Guaranty Insured.
(m) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund (3,101) $71
--------------------------------------------------------------------------
(n) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(o) Represents the current yield as of April 30, 2007.
(p) FHLMC Collateralized.
o Forward interest rate swaps outstanding as of April 30, 2007 were as
follows:
--------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
--------------------------------------------------------------------------
Pay a fixed rate of 3.753% and receive a
floating rate based on 1-Week Bond
Market Association rate
Broker, JPMorgan Chase
Expires May 2017 $30,500 $(242)
Pay a fixed rate of 3.686% and receive a
floating rate based on 1-Week Bond
Market Association rate
Broker, JPMorgan Chase
Expires August 2017 $22,500 (40)
--------------------------------------------------------------------------
Total $(282)
=====
See Notes to Financial Statements.
32 SEMI-ANNUAL REPORTS APRIL 30, 2007
Statements of Net Assets
BlackRock BlackRock BlackRock
BlackRock MuniYield MuniYield MuniYield
MuniYield Insured Quality Quality
As of April 30, 2007 (Unaudited) Fund, Inc. Fund, Inc. Fund, Inc. Fund II, Inc.
===================================================================================================================================
Assets
-----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value* ..... $1,033,355,561 $1,808,157,766 $ 786,868,185 $ 510,485,718
Investments in affiliated securities, at value** ...... 814,176 -- 3,014,519 2,814,342
Cash .................................................. 105 52,141 79,932 76,426
Interest receivable ................................... 16,929,218 25,199,667 11,223,973 7,003,955
Receivable for securities sold ........................ 10,977,814 10,753,200 4,471,336 1,850,925
Unrealized appreciation on forward interest rate swaps -- 163,965 -- --
Prepaid expenses and other assets ..................... 22,570 32,431 51,416 22,203
--------------------------------------------------------------
Total assets .......................................... 1,062,099,444 1,844,359,170 805,709,361 522,253,569
--------------------------------------------------------------
===================================================================================================================================
Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Trust certificates .................................... 36,112,500 182,665,000 79,897,914 50,510,000
Collateral for swaps .................................. 600,000 -- -- --
Unrealized depreciation on forward interest rate swaps -- 4,680,475 596,240 282,445
Interest expense payable .............................. 509,441 2,217,211 1,006,433 642,198
Payable for securities purchased ...................... 7,620,146 55,178,440 8,923,635 6,086,931
Payable to investment adviser ......................... 414,545 653,579 291,747 189,258
Payable for swaps ..................................... -- -- -- 17,549
Dividends payable to Common Stock shareholders ........ 3,060,195 3,768,975 1,734,240 1,118,347
Payable to other affiliates ........................... 11,410 17,808 8,050 5,229
Accrued expenses and other liabilities ................ 251,702 313,199 180,979 144,321
--------------------------------------------------------------
Total liabilities ..................................... 48,579,939 249,494,687 92,639,238 58,996,278
--------------------------------------------------------------
===================================================================================================================================
Preferred Stock
-----------------------------------------------------------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value $.05
and $.10 per share*** of AMPS@ at $25,000 per share
liquidation preference .............................. 343,363,012 570,560,184 250,155,596 160,131,903
--------------------------------------------------------------
===================================================================================================================================
Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock ................. $ 670,156,493 $1,024,304,299 $ 462,914,527 $ 303,125,388
==============================================================
SEMI-ANNUAL REPORTS APRIL 30, 2007 33
Statements of Net Assets (concluded)
BlackRock BlackRock BlackRock
BlackRock MuniYield MuniYield MuniYield
MuniYield Insured Quality Quality
As of April 30, 2007 (Unaudited) Fund, Inc. Fund, Inc. Fund, Inc. Fund II, Inc.
===================================================================================================================================
Net Assets Consist of
-----------------------------------------------------------------------------------------------------------------------------------
Undistributed investment income -- net ................ $ 4,013,309 $ 4,857,326 $ 912,488 $ 816,138
Undistributed (accumulated) realized capital gains
(losses) -- net ..................................... (36,714,810) 2,705,693 905,671 (34,065,139)
Unrealized appreciation -- net ........................ 57,755,556 72,761,059 34,836,808 22,561,969
--------------------------------------------------------------
Total accumulated earnings (losses) -- net ............ 25,054,055 80,324,078 36,654,967 (10,687,032)
Common Stock, par value $.10 per share+ ............... 4,500,287 6,730,313 3,042,526 2,236,693
Paid-in capital in excess of par ...................... 640,602,151 937,249,908 423,217,034 311,575,727
--------------------------------------------------------------
Net assets applicable to Common Stock ................. $ 670,156,493 $1,024,304,299 $ 462,914,527 $ 303,125,388
==============================================================
Net asset value per share of Common Stock ............. $ 14.89 $ 15.22 $ 15.21 $ 13.55
==============================================================
Market price .......................................... $ 15.71 $ 14.33 $ 14.39 $ 12.67
==============================================================
* Identified cost on unaffiliated securities ........ $ 975,600,005 $1,730,880,197 $ 751,435,137 $ 487,641,304
==============================================================
** Identified cost on affiliated securities .......... $ 814,176 -- $ 3,014,519 $ 2,814,342
==============================================================
*** Preferred Stock authorized, issued and outstanding:
Series A Shares, $.05 per share ................. 1,800 -- 2,000 2,000
==============================================================
Series A Shares, $.10 per share ................. -- 2,200 -- --
==============================================================
Series B Shares, $.05 per share ................. 1,800 -- 2,000 2,000
==============================================================
Series B Shares, $.10 per share ................. -- 2,200 -- --
==============================================================
Series C Shares, $.05 per share ................. 1,800 -- 2,000 2,000
==============================================================
Series C Shares, $.10 per share ................. -- 2,200 -- --
==============================================================
Series D Shares, $.05 per share ................. 1,800 -- 2,000 --
==============================================================
Series D Shares, $.10 per share ................. -- 2,200 -- 400
==============================================================
Series E Shares, $.05 per share ................. 2,800 -- 2,000 --
==============================================================
Series E Shares, $.10 per share ................. -- 4,000 -- --
==============================================================
Series F Shares, $.05 per share ................. 1,720 -- -- --
==============================================================
Series F Shares, $.10 per share ................. -- 2,400 -- --
==============================================================
Series G Shares, $.05 per share ................. 2,000 -- -- --
==============================================================
Series G Shares, $.10 per share ................. -- 2,400 -- --
==============================================================
Series H Shares, $.10 per share ................. -- 2,600 -- --
==============================================================
Series I Shares, $.10 per share ................. -- 2,600 -- --
==============================================================
+ Common Stock issued and outstanding ............... 45,002,872 67,303,125 30,425,258 22,366,930
==============================================================
@ Auction Market Preferred Stock.
See Notes to Financial Statements.
34 SEMI-ANNUAL REPORTS APRIL 30, 2007
Statements of Operations
BlackRock BlackRock BlackRock
BlackRock MuniYield MuniYield MuniYield
MuniYield Insured Quality Quality
For the Six Months Ended April 30, 2007 (Unaudited) Fund, Inc. Fund, Inc. Fund, Inc. Fund II, Inc.
===================================================================================================================================
Investment Income
-----------------------------------------------------------------------------------------------------------------------------------
Interest .............................................. $ 26,486,056 $ 40,663,174 $ 17,917,343 $ 11,621,728
Dividends from affiliates ............................. 119,563 71,331 86,665 70,642
--------------------------------------------------------------
Total income .......................................... 26,605,619 40,734,505 18,004,008 11,692,370
--------------------------------------------------------------
===================================================================================================================================
Expenses
-----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees .............................. 2,517,300 3,966,607 1,773,230 1,152,049
Interest expense and fees ............................. 732,215 3,431,442 1,582,872 987,125
Commission fees ....................................... 442,287 710,665 315,638 204,957
Accounting services ................................... 139,579 184,211 110,922 78,619
Transfer agent fees ................................... 61,574 82,379 45,762 35,655
Professional fees ..................................... 42,040 35,185 28,919 26,425
Custodian fees ........................................ 23,460 39,268 18,905 12,527
Printing and shareholder reports ...................... 24,094 38,307 17,585 11,829
Pricing fees .......................................... 17,286 17,653 12,771 10,546
Directors' fees and expenses .......................... 18,606 25,578 14,725 11,602
Listing fees .......................................... 8,242 11,528 5,291 4,663
Other ................................................. 45,271 56,079 36,809 23,687
--------------------------------------------------------------
Total expenses before reimbursement ................... 4,071,954 8,598,902 3,963,429 2,559,684
Reimbursement of expenses ............................. (7,025) (3,459) (4,980) (4,063)
--------------------------------------------------------------
Total expenses after reimbursement .................... 4,064,929 8,595,443 3,958,449 2,555,621
--------------------------------------------------------------
Investment income -- net .............................. 22,540,690 32,139,062 14,045,559 9,136,749
--------------------------------------------------------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
-----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments -- net ................................ 3,662,213 8,831,953 1,757,296 1,063,193
Forward interest rate swaps -- net ................ 353,000 4,401,228 607,454 (1,179,452)
--------------------------------------------------------------
Total realized and unrealized gain (loss) -- net ...... 4,015,213 13,233,181 2,364,750 (116,259)
--------------------------------------------------------------
Change in unrealized appreciation/depreciation on:
Investments -- net ................................ (6,114,916) (13,570,745) (3,944,118) (2,328,194)
Forward interest rate swaps -- net ................ -- (4,744,322) (585,405) 1,018,151
--------------------------------------------------------------
Total change in unrealized
appreciation/depreciation -- net .................... (6,114,916) (18,315,067) (4,529,523) (1,310,043)
--------------------------------------------------------------
Total realized and unrealized loss -- net ............. (2,099,703) (5,081,886) (2,164,773) (1,426,302)
--------------------------------------------------------------
===================================================================================================================================
Dividends to Preferred Stock Shareholders
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net .............................. (5,979,290) (10,052,224) (4,441,346) (2,851,952)
--------------------------------------------------------------
Total dividends to Preferred Stock shareholders ....... (5,979,290) (10,052,224) (4,441,346) (2,851,952)
--------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations .. $ 14,461,697 $ 17,004,952 $ 7,439,440 $ 4,858,495
==============================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007 35
Statements of Changes in Net Assets BlackRock MuniYield Fund, Inc.
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
==========================================================================================================================
Operations
--------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................... $ 22,540,690 $ 48,122,220
Realized gain -- net ....................................................... 4,015,213 11,351,444
Change in unrealized appreciation -- net ................................... (6,114,916) 16,345,769
Dividends to Preferred Stock shareholders .................................. (5,979,290) (11,212,348)
--------------------------------
Net increase in net assets resulting from operations ....................... 14,461,697 64,607,085
--------------------------------
==========================================================================================================================
Dividends and Distributions to Common Stock Shareholders
--------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................... (18,648,645) (42,053,117)
Realized gain -- net ....................................................... -- (137,799)
--------------------------------
Net decrease in net assets resulting from dividends and distributions to
Common Stock shareholders ................................................ (18,648,645) (42,190,916)
--------------------------------
==========================================================================================================================
Stock Transactions
--------------------------------------------------------------------------------------------------------------------------
Value of shares issued to Common Stock shareholders in reinvestment of
dividends ................................................................ 1,976,579 5,095,713
Adjustment of offering costs resulting from the issuance of Preferred Stock -- 30,397
--------------------------------
Net increase in net assets derived from stock transactions ................. 1,976,579 5,126,110
--------------------------------
==========================================================================================================================
Net Assets Applicable to Common Stock
--------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets applicable to Common Stock ......... (2,210,369) 27,542,279
Beginning of period ........................................................ 672,366,862 644,824,583
--------------------------------
End of period* ............................................................. $ 670,156,493 $ 672,366,862
================================
* Undistributed investment income -- net ............................... $ 4,013,309 $ 6,100,554
================================
See Notes to Financial Statements.
36 SEMI-ANNUAL REPORTS APRIL 30, 2007
Statements of Changes in Net Assets BlackRock MuniYield Insured Fund, Inc.
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
==========================================================================================================================
Operations
--------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................... $ 32,139,062 $ 65,901,797
Realized gain (loss) -- net ................................................ 13,233,181 (894,104)
Change in unrealized appreciation/depreciation -- net ...................... (18,315,067) 32,084,422
Dividends and distributions to Preferred Stock shareholders ................ (10,052,224) (19,896,916)
--------------------------------
Net increase in net assets resulting from operations ....................... 17,004,952 77,195,199
--------------------------------
==========================================================================================================================
Dividends and Distributions to Common Stock Shareholders
--------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................... (22,748,456) (52,496,438)
Realized gain -- net ....................................................... -- (22,672,673)
--------------------------------
Net decrease in net assets resulting from dividends and distributions to
Common Stock shareholders ................................................ (22,748,456) (75,169,111)
--------------------------------
==========================================================================================================================
Net Assets Applicable to Common Stock
--------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets applicable to Common Stock ......... (5,743,504) 2,026,088
Beginning of period ........................................................ 1,030,047,803 1,028,021,715
--------------------------------
End of period* ............................................................. $1,024,304,299 $1,030,047,803
================================
* Undistributed investment income -- net ............................... $ 4,857,326 $ 5,518,944
================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007 37
Statements of Changes in Net Assets BlackRock MuniYield Quality Fund, Inc.
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
==========================================================================================================================
Operations
--------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................... $ 14,045,559 $ 30,209,734
Realized gain -- net ....................................................... 2,364,750 3,133,924
Change in unrealized appreciation/depreciation -- net ...................... (4,529,523) 7,934,032
Dividends to Preferred Stock shareholders .................................. (4,441,346) (8,213,090)
--------------------------------
Net increase in net assets resulting from operations ....................... 7,439,440 33,064,600
--------------------------------
==========================================================================================================================
Dividends to Common Stock Shareholders
--------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................... (10,527,139) (23,944,678)
--------------------------------
Net decrease in net assets resulting from dividends to Common Stock
shareholders ............................................................. (10,527,139) (23,944,678)
--------------------------------
==========================================================================================================================
Stock Transactions
--------------------------------------------------------------------------------------------------------------------------
Offering and underwriting costs, including adjustments, resulting from the
issuance of Preferred Stock .............................................. -- (4,076)
--------------------------------
Net decrease in net assets derived from Capital Stock transactions ......... -- (4,076)
--------------------------------
==========================================================================================================================
Net Assets Applicable to Common Stock
--------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets applicable to Common Stock ......... (3,087,699) 9,115,846
Beginning of period ........................................................ 466,002,226 456,886,380
--------------------------------
End of period* ............................................................. $ 462,914,527 $ 466,002,226
================================
* Undistributed investment income -- net ............................... $ 912,488 $ 1,835,414
================================
See Notes to Financial Statements.
38 SEMI-ANNUAL REPORTS APRIL 30, 2007
Statements of Changes in Net Assets BlackRock MuniYield Quality Fund II, Inc.
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
==========================================================================================================================
Operations
--------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................... $ 9,136,749 $ 19,260,899
Realized gain (loss) -- net ................................................ (116,259) 3,512,017
Change in unrealized appreciation/depreciation -- net ...................... (1,310,043) 4,732,128
Dividends to Preferred Stock shareholders .................................. (2,851,952) (5,311,655)
--------------------------------
Net increase in net assets resulting from operations ....................... 4,858,495 22,193,389
--------------------------------
==========================================================================================================================
Dividends to Common Stock Shareholders
--------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................... (6,844,280) (15,858,153)
--------------------------------
Net decrease in net assets resulting from dividends to Common Stock
shareholders ............................................................. (6,844,280) (15,858,153)
--------------------------------
==========================================================================================================================
Stock Transactions
--------------------------------------------------------------------------------------------------------------------------
Offering and underwriting costs, including adjustments, resulting from the
issuance of Preferred Stock .............................................. -- 54,002
--------------------------------
Net increase (decrease) in net assets resulting from stock transactions .... -- 54,002
--------------------------------
==========================================================================================================================
Net Assets Applicable to Common Stock
--------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets applicable to Common Stock ......... (1,985,785) 6,389,238
Beginning of period ........................................................ 305,111,173 298,721,935
--------------------------------
End of period* ............................................................. $ 303,125,388 $ 305,111,173
================================
* Undistributed investment income -- net ............................... $ 816,138 $ 1,375,621
================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007 39
Statements of Cash Flows
BlackRock BlackRock
MuniYield MuniYield
Quality Quality
For the Six Months Ended April 30, 2007 (Unaudited) Fund, Inc. Fund II, Inc.
==========================================================================================================================
Cash Provided by Operating Activities
--------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations ....................... $ 7,439,440 $ 4,858,495
Adjustments to reconcile net increase in net assets resulting from
operations to net cash provided by operating activities:
Decrease in receivables ................................................ 383,438 194,981
Decrease in other assets and prepaid expenses .......................... 1,040 15,190
Increase (decrease) in other liabilities ............................... (1,362,373) 141,570
Increase in dividends payable to Preferred Stock shareholders .......... 22,146 7,068
Realized and unrealized gain (loss) on investments and forward interest rate
swaps -- net ............................................................. 2,164,773 1,426,302
Realized gain (loss) on forward interest rate swaps ........................ 607,454 (1,179,452)
Amortization of premium and discount ....................................... 551,181 (209,463)
Proceeds from sales of long-term securities ................................ 53,687,717 43,155,924
Purchases of long-term securities .......................................... (58,163,978) (45,522,847)
Net proceeds from sales of short-term investments .......................... 3,701,399 3,100,618
--------------------------------
Cash provided by operating activities ...................................... 9,032,237 5,988,386
--------------------------------
==========================================================================================================================
Cash Used for Financing Activities
--------------------------------------------------------------------------------------------------------------------------
Dividends and distributions paid to Common Stock shareholders .............. (8,974,913) (5,927,134)
--------------------------------
Cash used for financing activities ......................................... (8,974,913) (5,927,134)
--------------------------------
==========================================================================================================================
Cash
--------------------------------------------------------------------------------------------------------------------------
Net increase in cash ....................................................... 57,324 61,252
Cash at beginning of period ................................................ 22,608 15,174
--------------------------------
Cash at end of period ...................................................... $ 79,932 $ 76,426
================================
==========================================================================================================================
Cash Flow Information
--------------------------------------------------------------------------------------------------------------------------
Cash paid for interest ..................................................... $ 4,469,340 $ 3,841,762
================================
Dividends and distributions paid to Preferred Stock shareholders ........... $ 2,953,859 $ 4,419,200
================================
See Notes to Financial Statements.
40 SEMI-ANNUAL REPORTS APRIL 30, 2007
Financial Highlights BlackRock MuniYield Fund, Inc.
For the Six
The following per share data and ratios Months Ended For the Year Ended October 31,
have been derived from information April 30, 2007 ----------------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .. $ 14.98 $ 14.48 $ 14.31 $ 13.85 $ 13.28 $ 13.55
----------------------------------------------------------------------------------------
Investment income -- net .............. .50+ 1.08+ 1.11+ 1.09+ 1.06+ 1.04
Realized and unrealized gain
(loss) -- net ....................... (.04) .61 .21 .41 .52 (.31)
Dividends and distributions to
Preferred Stock shareholders:
Investment income -- net .......... (.13) (.25) (.16) (.07) (.07) (.08)
Realized gain -- net .............. -- --++ -- -- -- --
----------------------------------------------------------------------------------------
Total from investment operations ...... .33 1.44 1.16 1.43 1.51 .65
----------------------------------------------------------------------------------------
Less dividends and distributions to
Common Stock shareholders:
Investment income -- net .......... (.42) (.94) (.99) (.96) (.94) (.92)
Realized gain -- net .............. -- --++ -- -- -- --
----------------------------------------------------------------------------------------
Total dividends and distributions to
Common Stock shareholders ........... (.42) (.94) (.99) (.96) (.94) (.92)
----------------------------------------------------------------------------------------
Offering and underwriting costs,
including adjustments, resulting from
issuance of Preferred Stock ......... -- --@ --++ (.01) -- --
----------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 14.89 $ 14.98 $ 14.48 $ 14.31 $ 13.85 $ 13.28
========================================================================================
Market price per share, end of period . $ 15.71 $ 15.76 $ 14.20 $ 13.74 $ 13.29 $ 12.88
========================================================================================
==================================================================================================================================
Total Investment Return*
----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .... 2.19%@@@ 10.30% 8.38% 11.04% 11.99% 5.07%
========================================================================================
Based on market price per share ....... 2.48%@@@ 18.33% 10.69% 11.11% 10.80% (.94%)
========================================================================================
==================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Stock
----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement
and excluding interest expense and
fees** .............................. 1.00%@@ 1.01% 1.02% .97% .99% 1.01%
========================================================================================
Total expenses, net of reimbursement** 1.22%@@ 1.29% 1.26% 1.13% 1.14% 1.24%
========================================================================================
Total expenses** ...................... 1.22%@@ 1.29% 1.26% 1.14% 1.14% 1.24%
========================================================================================
Total investment income -- net** ...... 6.76%@@ 7.35% 7.55% 7.75% 7.86% 7.97%
========================================================================================
Amount of dividends to Preferred Stock
shareholders ........................ 1.79%@@ 1.71% 1.10% .51% .50% .74%
========================================================================================
Investment income -- net, to Common
Stock shareholders .................. 4.97%@@ 5.64% 6.45% 7.24% 7.36% 7.23%
========================================================================================
==================================================================================================================================
Ratios Based on Average Net Assets Applicable to Preferred Stock
----------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock
shareholders ........................ 3.52%@@ 3.26% 2.09% 1.05% 1.02% 1.50%
========================================================================================
==================================================================================================================================
Supplemental Data
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock,
end of period (in thousands) ........ $ 670,156 $ 672,367 $ 644,825 $ 636,019 $ 615,169 $ 590,101
========================================================================================
Preferred Stock outstanding at
liquidation preference, end of period
(in thousands) ...................... 343,000 $ 343,000 $ 343,000 $ 343,000 $ 293,000 $ 293,000
========================================================================================
Portfolio turnover .................... 10% 32% 30% 22% 56% 94%
========================================================================================
==================================================================================================================================
Leverage
----------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ............. $ 2,954 $ 2,960 $ 2,880 $ 2,854 $ 3,100 $ 3,014
========================================================================================
==================================================================================================================================
Dividends Per Share on Preferred Stock Outstanding
----------------------------------------------------------------------------------------------------------------------------------
Series A -- Investment income -- net .. $ 433 $ 819 $ 524 $ 266 $ 256 $ 346
========================================================================================
Series B -- Investment income -- net .. $ 452 $ 809 $ 549 $ 268 $ 274 $ 369
========================================================================================
Series C -- Investment income -- net .. $ 427 $ 846 $ 531 $ 268 $ 261 $ 353
========================================================================================
Series D -- Investment income -- net .. $ 422 $ 826 $ 509 $ 260 $ 281 $ 504
========================================================================================
Series E -- Investment income -- net .. $ 440 $ 803 $ 522 $ 244 $ 236 $ 346
========================================================================================
Series F -- Investment income -- net .. $ 438 $ 806 $ 494 $ 253 $ 247 $ 324
========================================================================================
Series G+++ -- Investment income -- net $ 436 $ 807 $ 533 $ 60 -- --
========================================================================================
* Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
+ Based on average shares outstanding.
++ Amount is less than $(.01) per share.
+++ Series G was issued on August 31, 2004.
@ Amount is less than $.01 per share.
@@ Annualized.
@@@ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007 41
Financial Highlights BlackRock MuniYield Insured Fund, Inc.
For the Six
The following per share data and ratios Months Ended For the Year Ended October 31,
have been derived from information April 30, 2007 ----------------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .. $ 15.30 $ 15.27 $ 15.59 $ 15.36 $ 15.15 $ 15.18
----------------------------------------------------------------------------------------
Investment income -- net .............. .48@ .98@ 1.04@ 1.04@ 1.08@ 1.07
Realized and unrealized gain
(loss) -- net ....................... (.07) .46 (.22) .25 .16 (.04)
Dividends and distributions to
Preferred Stock shareholders:
Investment income -- net .......... (.15) (.25) (.16) (.07) (.08) (.11)
Realized gain -- net .............. -- (.04) (.02) -- -- --+
----------------------------------------------------------------------------------------
Total from investment operations ...... .26 1.15 .64 1.22 1.16 .92
----------------------------------------------------------------------------------------
Less dividends and distributions to
Common Stock shareholders:
Investment income -- net .......... (.34) (.78) (.95) (.97) (.95) (.95)
Realized gain -- net .............. -- (.34) (.01) -- -- --+
----------------------------------------------------------------------------------------
Total dividends, including adjustments,
and distributions to Common Stock
shareholders ........................ (.34) (1.12) (.96) (.97) (.95) (.95)
----------------------------------------------------------------------------------------
Offering and underwriting costs
resulting from issuance of Preferred
Stock ............................... -- -- --++ (.02) -- --
----------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 15.22 $ 15.30 $ 15.27 $ 15.59 $ 15.36 $ 15.15
========================================================================================
Market price per share, end of period . $ 14.33 $ 14.36 $ 14.70 $ 14.57 $ 14.51 $ 14.31
========================================================================================
==================================================================================================================================
Total Investment Return*
----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .... 1.85%+++ 8.09% 4.54% 8.52% 8.18% 6.52%
========================================================================================
Based on market price per share ....... 2.17%+++ 5.38% 7.69% 7.36% 8.19% 1.42%
========================================================================================
==================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Stock
----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement
and excluding interest expense and
fees** .............................. 1.01%@@@ 1.02% 1.01% .95% .94% .97%
========================================================================================
Total expenses, net of reimbursement** 1.68%@@@ 1.67% 1.60% 1.19% 1.18% 1.23%
========================================================================================
Total expenses** ...................... 1.68%@@@ 1.67% 1.60% 1.19% 1.18% 1.24%
========================================================================================
Total investment income -- net** ...... 6.29%@@@ 6.52% 6.62% 6.77% 6.99% 7.16%
========================================================================================
Amount of dividends to Preferred Stock
shareholders ........................ 1.97%@@@ 1.67% 1.05% .51% .49% .73%
========================================================================================
Investment income -- net, to Common
Stock shareholders .................. 4.32%@@@ 4.85% 5.57% 6.26% 6.50% 6.43%
========================================================================================
==================================================================================================================================
Ratios Based on Average Net Assets Applicable to Preferred Stock
----------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock
shareholders ........................ 3.56%@@@ 2.96% 1.94% 1.08% 1.06% 1.53%
========================================================================================
==================================================================================================================================
Supplemental Data
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock,
end of period (in thousands) ........ $1,024,304 $1,030,048 $1,028,022 $1,049,423 $ 953,662 $ 940,852
========================================================================================
Preferred Stock outstanding at
liquidation preference, end of period
(in thousands) ...................... $ 570,000 $ 570,000 $ 570,000 $ 570,000 $ 440,000 $ 440,000
========================================================================================
Portfolio turnover .................... 43% 95% 105% 122% 95% 82%
========================================================================================
==================================================================================================================================
Leverage
----------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ............. $ 2,797 $ 2,807 $ 2,804 $ 2,841 $ 3,167 $ 3,138
========================================================================================
==================================================================================================================================
Dividends Per Share on Preferred Stock Outstanding
----------------------------------------------------------------------------------------------------------------------------------
Series A -- Investment income -- net .. $ 433 $ 763 $ 478 $ 272 $ 270 $ 364
========================================================================================
Series B -- Investment income -- net .. $ 447 $ 750 $ 481 $ 283 $ 273 $ 364
========================================================================================
Series C -- Investment income -- net .. $ 451 $ 744 $ 502 $ 251 $ 268 $ 360
========================================================================================
Series D -- Investment income -- net .. $ 433 $ 779 $ 474 $ 264 $ 247 $ 348
========================================================================================
Series E -- Investment income -- net .. $ 435 $ 729 $ 471 $ 259 $ 240 $ 352
========================================================================================
Series F -- Investment income -- net .. $ 450 $ 766 $ 481 $ 271 $ 274 $ 359
========================================================================================
Series G -- Investment income -- net .. $ 441 $ 714 $ 487 $ 269 $ 304 $ 545
========================================================================================
Series H@@ -- Investment income -- net $ 441 $ 725 $ 493 $ 63 -- --
========================================================================================
Series I@@ -- Investment income -- net $ 440 $ 718 $ 498 $ 65 -- --
========================================================================================
* Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
+ Amount is less than $(.01) per share.
++ Amount is less than $.01 per share.
+++ Aggregate total investment return.
@ Based on average shares outstanding.
@@ Series H and Series I were issued on August 23, 2004.
@@@ Annualized.
See Notes to Financial Statements.
42 SEMI-ANNUAL REPORTS APRIL 30, 2007
Financial Highlights BlackRock MuniYield Quality Fund, Inc.
For the Six
The following per share data and ratios Months Ended For the Year Ended October 31,
have been derived from information April 30, 2007 ----------------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .. $ 15.32 $ 15.02 $ 15.54 $ 15.36 $ 15.19 $ 15.27
----------------------------------------------------------------------------------------
Investment income -- net .............. .46+ .99+ .99+ 1.03+ 1.07+ 1.06
Realized and unrealized gain
(loss) -- net ....................... (.07) .37 (.39) .19 .13 (.13)
Dividends and distributions to
Preferred Stock shareholders:
Investment income -- net .......... (.15) (.27) (.14) (.07) (.07) (.09)
Realized gain -- net .............. -- -- -- -- -- --@
----------------------------------------------------------------------------------------
Total from investment operations ...... .24 1.09 .46 1.15 1.13 .84
----------------------------------------------------------------------------------------
Less dividends and distributions to
Common Stock shareholders:
Investment income -- net .......... (.35) (.79) (.96) (.97) (.96) (.91)
Realized gain -- net .............. -- -- -- -- -- (.01)
----------------------------------------------------------------------------------------
Total dividends and distributions to
Common Stock shareholders ........... (.35) (.79) (.96) (.97) (.96) (.92)
----------------------------------------------------------------------------------------
Offering and underwriting costs,
including adjustments, resulting from
the issuance of Preferred Stock ..... -- --@ (.02) -- -- --
----------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 15.21 $ 15.32 $ 15.02 $ 15.54 $ 15.36 $ 15.19
========================================================================================
Market price per share, end of period . $ 14.39 $ 14.48 $ 14.27 $ 14.83 $ 14.35 $ 13.74
========================================================================================
==================================================================================================================================
Total Investment Return*
----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .... 1.69%@@@ 7.78% 3.10% 8.26% 8.13% 6.12%
========================================================================================
Based on market price per share ....... 1.79%@@@ 7.22% 2.64% 10.58% 11.68% 2.94%
========================================================================================
==================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Stock
----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement
and excluding interest expenses and
fees** .............................. 1.03%@@ 1.04% .96% .94% .94% .96%
========================================================================================
Total expenses, net of reimbursement** 1.72%@@ 1.75% .96% .94% .94% .96%
========================================================================================
Total expenses** ...................... 1.72%@@ 1.76% .96% .95% .95% .96%
========================================================================================
Total investment income -- net** ...... 6.09%@@ 6.61% 6.46% 6.74% 6.89% 7.03%
========================================================================================
Amount of dividends to Preferred Stock
shareholders ........................ 1.93%@@ 1.80% .93% .45% .42% .61%
========================================================================================
Investment income -- net, to Common
Stock shareholders .................. 4.16%@@ 4.81% 5.53% 6.29% 6.47% 6.42%
========================================================================================
==================================================================================================================================
Ratios Based on Average Net Assets Applicable to Preferred Stock
----------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock
shareholders ........................ 3.58%@@ 3.29% 2.12% 1.04% .99% 1.40%
========================================================================================
==================================================================================================================================
Supplemental Data
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock,
end of period (in thousands) ........ $ 462,915 $ 466,002 $ 456,886 $ 472,848 $ 467,370 $ 462,156
========================================================================================
Preferred Stock outstanding at
liquidation preference, end of period
(in thousands) ...................... $ 250,000 $ 250,000 $ 250,000 $ 200,000 $ 200,000 $ 200,000
========================================================================================
Portfolio turnover .................... 7% 33% 29% 28% 30% 37%
========================================================================================
==================================================================================================================================
Leverage
----------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ............. $ 2,852 $ 2,864 $ 2,828 $ 3,364 $ 3,337 $ 3,311
========================================================================================
==================================================================================================================================
Dividends Per Share on Preferred Stock Outstanding
----------------------------------------------------------------------------------------------------------------------------------
Series A -- Investment income -- net .. $ 455 $ 830 $ 540 $ 271 $ 273 $ 370
========================================================================================
Series B -- Investment income -- net .. $ 441 $ 810 $ 520 $ 255 $ 238 $ 337
========================================================================================
Series C -- Investment income -- net .. $ 438 $ 844 $ 536 $ 261 $ 253 $ 349
========================================================================================
Series D -- Investment income -- net .. $ 447 $ 815 $ 514 $ 251 $ 228 $ 339
========================================================================================
Series E ++ -- Investment income -- net $ 440 $ 808 $ 72 -- -- --
========================================================================================
* Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
+ Based on average shares outstanding.
++ Series E was issued on September 21, 2005.
@ Amount is less than $(.01) per share.
@@ Annualized.
@@@ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007 43
Financial Highlights BlackRock MuniYield Quality Fund II, Inc.
For the Six
The following per share data and ratios Months Ended For the Year Ended October 31,
have been derived from information April 30, 2007 ----------------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .. $ 13.64 $ 13.36 $ 13.72 $ 13.44 $ 13.27 $ 13.21
----------------------------------------------------------------------------------------
Investment income -- net .............. .41+ .86+ .89+ .94+ .97+ .94
Realized and unrealized gain
(loss) -- net ....................... (.06) .37 (.25) .27 .09 --++
Dividends to Preferred Stock
shareholders from investment
income -- net ....................... (.13) (.24) (.14) (.07) (.07) (.10)
----------------------------------------------------------------------------------------
Total from investment operations ...... .22 .99 .50 1.14 .99 .84
----------------------------------------------------------------------------------------
Less dividends to Common Stock
shareholders from investment
income -- net ....................... (.31) (.71) (.85) (.86) (.82) (.78)
----------------------------------------------------------------------------------------
Offering and underwriting costs,
including adjustments, resulting from
the issuance of Preferred Stock ..... -- --++ (.01) -- -- --
----------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 13.55 $ 13.64 $ 13.36 $ 13.72 $ 13.44 $ 13.27
========================================================================================
Market price per share, end of period . $ 12.67 $ 12.93 $ 12.86 $ 12.69 $ 12.18 $ 11.75
========================================================================================
==================================================================================================================================
Total Investment Return**
----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .... 1.76%@ 7.98% 3.98% 9.32% 8.28% 7.27%
========================================================================================
Based on market price per share ....... .37%@ 6.34% 8.21% 11.57% 10.83% 3.95%
========================================================================================
==================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Stock
----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement
and excluding interest expenses and
fees*** ............................. 1.04%* 1.05% 1.03% 1.01% 1.03% 1.06%
========================================================================================
Total expenses, net of reimbursement*** 1.69%* 1.66% 1.49% 1.21% 1.30% 1.42%
========================================================================================
Total expenses*** ..................... 1.69%* 1.66% 1.49% 1.22% 1.31% 1.42%
========================================================================================
Total investment income -- net*** ..... 6.05%* 6.44% 6.51% 7.00% 7.17% 7.26%
========================================================================================
Amount of dividends to Preferred Stock
shareholders ........................ 1.89%* 1.78% 1.03% .51% .50% .78%
========================================================================================
Investment income -- net, to Common
Stock shareholders .................. 4.16%* 4.66% 5.48% 6.49% 6.67% 6.48%
========================================================================================
==================================================================================================================================
Ratios Based on Average Net Assets Applicable to Preferred Stock
----------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock
shareholders ........................ 3.59%* 3.32% 2.08% 1.04% 1.00% 1.51%
========================================================================================
==================================================================================================================================
Supplemental Data
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock,
end of period (in thousands) ........ $ 303,125 $ 305,111 $ 298,722 $ 306,764 $ 300,502 $ 296,847
========================================================================================
Preferred Stock outstanding at
liquidation preference, end of period
(in thousands) ...................... $ 160,000 $ 160,000 $ 160,000 $ 150,000 $ 150,000 $ 150,000
========================================================================================
Portfolio turnover .................... 9% 37% 29% 27% 35% 34%
========================================================================================
==================================================================================================================================
Leverage
----------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ............. $ 2,895 $ 2,907 $ 2,867 $ 3,045 $ 3,003 $ 2,979
========================================================================================
==================================================================================================================================
Dividends Per Share on Preferred Stock Outstanding
----------------------------------------------------------------------------------------------------------------------------------
Series A -- Investment income -- net .. $ 451 $ 832 $ 536 $ 271 $ 276 $ 390
========================================================================================
Series B -- Investment income -- net .. $ 446 $ 860 $ 514 $ 253 $ 240 $ 388
========================================================================================
Series C -- Investment income -- net .. $ 440 $ 803 $ 510 $ 252 $ 235 $ 351
========================================================================================
Series D+++ -- Investment income -- net $ 442 $ 804 $ 71 -- -- --
========================================================================================
* Annualized.
** Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
+ Based on average shares outstanding.
++ Amount is less than $.01 per share.
+++ Series D was issued on September 21, 2005.
@ Aggregate total investment return.
See Notes to Financial Statements.
44 SEMI-ANNUAL REPORTS APRIL 30, 2007
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock MuniYield Fund, Inc., BlackRock MuniYield Insured Fund, Inc.,
BlackRock MuniYield Quality Fund, Inc. and BlackRock MuniYield Quality Fund II,
Inc. (the "Funds" or individually as the "Fund"), are registered under the
Investment Company Act of 1940, as amended, as non-diversified, closed-end
management investment companies. The Funds' financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. These unaudited financial statements reflect all adjustments,
which are, in the opinion of management, necessary to present a fair statement
of the results for the interim period. All such adjustments are of a normal,
recurring nature. The Funds determine and make available for publication the net
asset value of their Common Stock on a daily basis. The Funds' Common Stock
shares are listed on the New York Stock Exchange under the symbol MYD for
BlackRock MuniYield Fund, Inc., MYI for BlackRock MuniYield Insured Fund, Inc.,
MQY for BlackRock MuniYield Quality Fund, Inc. and MQT for BlackRock MuniYield
Quality Fund II, Inc. The following is a summary of significant accounting
policies followed by the Funds.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of each of the Funds under the general
direction of the respective Board of Directors. Such valuations and procedures
are reviewed periodically by the Boards of Directors of the Funds. Financial
futures contracts and options thereon, which are traded on exchanges, are valued
at their closing prices as of the close of such exchanges. Options written or
purchased are valued at the last sale price in the case of exchange-traded
options. Options traded in the OTC market are valued at the last asked price
(options written) or the last bid price (options purchased). Swap agreements are
valued by quoted fair values received daily by the Funds' pricing service.
Short-term investments with a remaining maturity of 60 days or less are valued
at amortized cost, which approximates market value, under which method the
investment is valued at cost and any premium or discount is amortized on a
straight line basis to maturity. Effective April 2, 2007, short-term securities
purchased with a maturity of greater than 60 days may be valued at amortized
cost. Investments in open-end investment companies are valued at their net asset
value each business day. Securities and other assets for which market quotations
are not readily available are valued at fair value as determined in good faith
by or under the direction of each Fund's Board of Directors.
(b) Derivative financial instruments -- Each Fund may engage in various
portfolio investment strategies both to increase the return of the Fund and to
hedge, or protect, its exposure to interest rate movements and movements in the
securities markets. Losses may arise due to changes in the value of the contract
due to an unfavorable change in the price of the underlying security or if the
counterparty does not perform under the contract. The counterparty for certain
instruments may pledge cash or securities as collateral.
o Financial futures contracts -- Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
o Options -- Each Fund may purchase and write call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund
is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market
value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added
to (or deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option expires
(or the Fund enters into a closing transaction), the Fund realizes a gain
or loss on the option to the extent of the premiums received or paid (or
gain or loss to the extent the cost of the closing transaction exceeds the
premium paid or received).
Written and purchased options are non-income producing investments.
SEMI-ANNUAL REPORTS APRIL 30, 2007 45
Notes to Financial Statements (continued)
o Forward interest rate swaps -- Each Fund may enter into forward interest
rate swaps. In a forward interest rate swap, the Fund and the counterparty
agree to make periodic net payments on a specified notional contract
amount, commencing on a specified future effective date, unless terminated
earlier. When the agreement is closed, the Fund records a realized gain or
loss in an amount equal to the value of the agreement.
o Swaps -- Each Fund may enter into swap agreements, which are OTC contracts
in which the Fund and a counterparty agree to make periodic net payments
on a specified notional amount. The net payments can be made for a set
period of time or may be triggered by a predetermined credit event. The
net periodic payments may be based on a fixed or variable interest rate;
the change in market value of a specified security, basket of securities,
or index; or the return generated by a security. These periodic payments
received or made by the Fund are recorded in the accompanying Statement of
Operations as realized gains or losses, respectively. Gains or losses are
also realized upon termination of the swap agreements. Swaps are
marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). Risks include changes in the returns of the
underlying instruments, failure of the counterparties to perform under the
contracts' terms and the possible lack of liquidity with respect to the
swap agreements.
(c) Municipal bonds held in trust -- Certain Funds invest in leveraged residual
certificates ("TOB Residuals") issued by tender option bond trusts ("TOBs"). A
TOB is established by a third party sponsor forming a special purpose entity,
into which a Fund, or an agent on behalf of the Fund, transfers municipal
securities. A TOB typically issues two classes of beneficial interests:
short-term floating rate certificates, which are sold to third party investors,
and residual certificates, which are generally issued to the Fund which made the
transfer or to affiliates of the Fund. Each Fund's transfers of the municipal
securities to a TOB do not qualify for sale treatment under Statement of
Financial Accounting Standards No. 140 "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities," therefore the municipal
securities deposited into a TOB are presented in the Funds' schedules of
investments and the proceeds from the transactions are reported as liability for
trust certificates. Similarly, proceeds from residual certificates issued to
affiliates, if any, from the transaction are included in the liability for trust
certificates. Interest income from the underlying security is recorded by the
Funds on an accrual basis. Interest expense incurred on the secured borrowing
and other expenses related to remarketing, administration and trustee services
to a TOB are reported as expenses of a Fund. The floating rate certificates have
interest rates that generally reset weekly and their holders have the option to
tender certificates to the TOB for redemption at par at each reset date. The
residual interests held by the Funds include the right of the Funds (1) to cause
the holders of a proportional share of floating rate certificates to tender
their certificates at par, and (2) to transfer a corresponding share of the
municipal securities from the TOB to the Funds. At April 30, 2007, the aggregate
value of the underlying municipal securities transferred to TOBs and the
liability for trust certificates were:
--------------------------------------------------------------------------------
Underlying
Municipal
Liability Range of Bonds
for Trust Interest Transferred
Certificates Rates to TOBs
--------------------------------------------------------------------------------
BlackRock
MuniYield
Fund, Inc. ........ $ 36,112,500 3.95% - 3.98% $ 77,803,233
BlackRock
MuniYield Insured
Fund, Inc. ........ $182,665,000 3.92% - 4.02% $390,354,034
BlackRock
MuniYield Quality
Fund, Inc. ........ $ 79,897,914 3.95% - 4.02% $169,499,155
BlackRock
MuniYield Quality
Fund II, Inc. ..... $ 50,510,000 3.91% - 4.02% $106,455,776
--------------------------------------------------------------------------------
Financial transactions executed through TOBs generally will underperform the
market for fixed rate municipal bonds in a rising interest rate environment, but
tend to outperform the market for fixed rate bonds when interest rates decline
or remain relatively stable. Should short-term interest rates rise, a Fund's
investments in TOB Residuals likely will adversely affect a Fund's investment
income -- net and distributions to shareholders. Fluctuations in the market
value of municipal securities deposited into the TOB may adversely affect the
Funds' net asset values per share.
While the Funds' investment policies and restrictions expressly permit
investments in inverse floating rate securities such as TOB Residuals, they
generally do not allow the Funds to borrow money for purposes of making
investments. The Funds' management believes that the Funds' restrictions on
borrowings do not apply to the secured borrowings deemed to have occurred for
accounting purposes.
(d) Income taxes -- It is each Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substan-
46 SEMI-ANNUAL REPORTS APRIL 30, 2007
Notes to Financial Statements (continued)
tially all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
(e) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Funds amortize all
premiums and discounts on debt securities.
(f) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(g) Offering costs -- Direct expenses relating to the public offering of each
Fund's Preferred Stock were charged to capital at the time of issuance of the
shares. Any adjustments to estimates of offering costs were recorded back to
capital.
(h) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including mutual funds, before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
the last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on each of the Fund's financial statements, if any, is currently being assessed.
In September 2006, "Statement of Financial Accounting Standards No. 157, Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS 157
and its impact on each of the Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued "Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on each of the Fund's financial
statements, if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Investment Advisory Agreement between each Fund and BlackRock Advisors, LLC
(the "Manager"), an indirect, wholly owned subsidiary of BlackRock, Inc. became
effective on September 29, 2006. Prior to September 29, 2006, Fund Asset
Management, L.P. ("FAM") was the Funds' manager. The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect, wholly owned subsidiary of
Merrill Lynch & Co., Inc. ("Merrill Lynch"), which is the limited partner.
Merrill Lynch and The PNC Financial Services Group, Inc. are principal owners of
BlackRock, Inc.
The Manager is responsible for the management of each of the Fund's portfolios
and provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of each Fund. For such services, each Fund
pays a monthly fee at an annual rate of .50% of the Fund's average daily net
assets, including proceeds from the issuance of Preferred Stock. The Manager has
agreed to reimburse its management fee by the amount of management fees each
Fund pays to the Manager indirectly through its investment in the Black Rock
Institutional Tax-Exempt Fund. The reimbursements were as follows:
--------------------------------------------------------------------------------
For the Six
Months Ended
April 30, 2007
Reimbursement
by Manager
--------------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. ............................... $7,025
BlackRock MuniYield Insured Fund, Inc. ....................... $3,459
BlackRock MuniYield Quality Fund, Inc. ....................... $4,980
BlackRock MuniYield Quality Fund II, Inc. .................... $4,063
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORTS APRIL 30, 2007 47
Notes to Financial Statements (continued)
In addition, the Manager has entered into separate sub-advisory agreements with
BlackRock Investment Management, LLC, an affiliate of the Manager, with respect
to each Fund, under which the Manager pays the Sub-Adviser for services it
provides a fee that is a percentage of the management fee paid by each Fund to
the Manager.
The Funds reimbursed the Manager for certain accounting services. The
reimbursements were as follows:
--------------------------------------------------------------------------------
Reimbursement
to the Manager
--------------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. .............................. $ 9,813
BlackRock MuniYield Insured Fund, Inc. ...................... $15,011
BlackRock MuniYield Quality Fund, Inc. ...................... $ 6,885
BlackRock MuniYield Quality Fund II, Inc. ................... $ 4,462
--------------------------------------------------------------------------------
Certain officers and/or directors of the Funds are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended April 30, 2007 were as follows:
--------------------------------------------------------------------------------
Total Total
Purchases Sales
--------------------------------------------------------------------------------
BlackRock MuniYield
Fund, Inc. ........................... $117,225,723 $108,061,910
BlackRock MuniYield
Insured Fund, Inc. ................... $809,963,306 $762,862,940
BlackRock MuniYield
Quality Fund, Inc. ................... $ 65,079,294 $ 58,154,053
BlackRock MuniYield
Quality Fund II, Inc. ................ $ 50,304,370 $ 45,006,849
--------------------------------------------------------------------------------
4. Stock Transactions:
Each Fund is authorized to issue 200,000,000 shares of stock, including
Preferred Stock, par value $.10 per share, all of which were initially
classified as Common Stock. The Board of Directors is authorized, however, to
reclassify any unissued shares of stock without approval of the holders of
Common Stock.
Common Stock
BlackRock MuniYield Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2007 and
during the year ended October 31, 2006, increased by 132,043 and 346,987,
respectively, as a result of dividend reinvestment.
BlackRock MuniYield Insured Fund, Inc., BlackRock MuniYield Quality Fund, Inc.
and BlackRock MuniYield Quality Fund II, Inc.
Shares issued and outstanding during the six months ended April 30, 2007 and the
year ended October 31, 2006 remained constant.
Preferred Stock
Auction Market Preferred Stock are redeemable shares of Preferred Stock of the
Funds, with a liquidation preference of $25,000 per share, plus accrued and
unpaid dividends that entitle their holders to receive cash dividends at an
annual rate that may vary for the successive dividend periods. The yields in
effect at April 30, 2007 were as follows:
--------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
BlackRock MuniYield MuniYield MuniYield
MuniYield Insured Quality Quality
Fund, Inc. Fund, Inc. Fund, Inc. Fund II, Inc.
--------------------------------------------------------------------------------
Series A .............. 3.42% 3.65% 3.70% 3.75%
Series B .............. 3.75% 3.70% 3.85% 3.85%
Series C .............. 3.62% 3.62% 3.849% 3.92%
Series D .............. 3.54% 3.56% 3.88% 3.80%
Series E .............. 3.88% 3.86% 3.92% --
Series F .............. 3.80% 3.80% -- --
Series G .............. 3.55% 3.82% -- --
Series H .............. -- 3.90% -- --
Series I .............. -- 3.88% -- --
--------------------------------------------------------------------------------
Shares issued and outstanding for each of the Funds during the six months ended
April 30, 2007 and during the year ended October 31, 2006 remained constant.
48 SEMI-ANNUAL REPORTS APRIL 30, 2007
Notes to Financial Statements (concluded)
Each Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of each
auction. For the six months ended April 30, 2007, Merrill Lynch, Pierce, Fenner
& Smith Incorporated earned commissions as follows:
--------------------------------------------------------------------------------
Commissions
--------------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. ................................. $161,904
BlackRock MuniYield Insured Fund, Inc. ......................... $223,849
BlackRock MuniYield Quality Fund, Inc. ......................... $119,850
BlackRock MuniYield Quality Fund II, Inc. ...................... $ 91,505
--------------------------------------------------------------------------------
5. Capital Loss Carryforward:
BlackRock MuniYield Fund, Inc.
At October 31, 2006, the Fund had a net capital loss carryforward of
$34,653,455, of which $2,657,924 expires in 2007, $25,806,020 expires in 2008,
$6,000,235 expires in 2009 and $189,276 expires in 2010. These amounts will be
available to offset like amounts of any future taxable gains.
BlackRock MuniYield Insured Fund, Inc.
At October 31, 2006, the Fund had a net capital loss carryforward of $1,489,118,
all of which expires in 2014. These amounts will be available to offset like
amounts of any future taxable gains.
BlackRock MuniYield Quality Fund, Inc.
At October 31, 2006, the Fund had a net capital loss carryforward of $1,773, all
of which expires in 2012. These amounts will be available to offset like amounts
of any future taxable gains.
BlackRock MuniYield Quality Fund II, Inc.
At October 31, 2006, the Fund had a net capital loss carryforward of
$32,892,456, of which $181,057 expires in 2007, $26,079,903 expires in 2008,
$1,096,837 expires in 2010 and $5,534,659 expires in 2012. These amounts will be
available to offset like amounts of any future taxable gains.
6. Subsequent Event:
On June 1, 2007, each Fund paid a tax-exempt income dividend to holders of
Common Stock of record on May 15, 2007. The amount of the tax-exempt income
dividend per share was as follows:
--------------------------------------------------------------------------------
Per Share
Amount
--------------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. ................................ $.068000
BlackRock MuniYield Insured Fund, Inc. ........................ $.056000
BlackRock MuniYield Quality Fund, Inc. ........................ $.057000
BlackRock MuniYield Quality Fund II, Inc. ..................... $.050000
--------------------------------------------------------------------------------
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules 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 Funds' Forms N-Q are available on the SEC's
Web site at http://www.sec.gov. The Funds' 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.
SEMI-ANNUAL REPORTS APRIL 30, 2007 49
Officers and Directors
Robert C. Doll, Jr., Fund President and Director
James H. Bodurtha, Director
Kenneth A. Froot, Director
Joe Grills, Director
Herbert I. London, Director
Roberta Cooper Ramo, Director
Robert S. Salomon, Jr., Director
Donald C. Burke, Vice President and Treasurer
John M. Loffredo, Senior Vice President
William R. Bock, Vice President
Theodore R. Jaeckel Jr., Vice President
Michael A. Kalinoski, Vice President
Karen Clark, Fund Chief Compliance Officer
Alice A. Pellegrino, Secretary
BlackRock MuniYield Fund, Inc. and
BlackRock MuniYield Quality Fund II, Inc.
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street -- 11 East
New York, NY 10286
Preferred Stock:
The Bank of New York
101 Barclay Street -- 7 West
New York, NY 10286
Address of the Funds
P.O. Box 9011
Princeton, NJ 08543-9011
BlackRock MuniYield Insured Fund, Inc. and
BlackRock MuniYield Quality Fund, Inc.
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Stock:
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
Preferred Stock:
The Bank of New York
101 Barclay Street -- 7 West
New York, NY 10286
Investment Objectives
NYSE Symbol BlackRock MuniYield Fund, Inc. seeks to provide shareholders
MYD with as high a level of current income exempt from federal
income taxes as is consistent with its investment policies and
prudent investment management by investing primarily in a
portfolio of long-term, investment grade municipal obligations
the interest on which, in the opinion of bond counsel to the
issuer, is exempt from federal income taxes.
NYSE Symbol BlackRock MuniYield Insured Fund, Inc. seeks to provide
MYI shareholders with as high a level of current income exempt
from federal income taxes as is consistent with its investment
policies and prudent investment management by investing
primarily in a portfolio of long-term, investment grade
municipal obligations the interest on which, in the opinion of
bond counsel to the issuer, is exempt from federal income
taxes.
NYSE Symbol BlackRock MuniYield Quality Fund, Inc. seeks to provide
MQY shareholders with as high a level of current income exempt
from federal income taxes as is consistent with its investment
policies and prudent investment management by investing
primarily in a portfolio of long-term, high-grade municipal
obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from federal income taxes.
NYSE Symbol BlackRock MuniYield Quality Fund II, Inc. seeks to provide
MQT shareholders with as high a level of current income exempt
from federal income taxes as is consistent with its investment
policies and prudent investment management by investing
primarily in a portfolio of long-term, high-grade municipal
obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from federal income taxes.
The Fund invests primarily in insured municipal bonds.
50 SEMI-ANNUAL REPORTS APRIL 30, 2007
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
Dividend Policy
The Funds' dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Funds may
at times pay out less than the entire amount of net investment income earned in
any particular month and may at times in any month pay out such accumulated but
undistributed income in addition to net investment income earned in that month.
As a result, the dividends paid by the Funds for any particular month may be
more or less than the amount of net investment income earned by the Funds during
such month. The Funds' current accumulated but undistributed net investment
income, if any, is disclosed in the Statement of Net Assets, which comprises
part of the Financial Information included in this report.
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on
the Funds' Web site. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Funds' electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
SEMI-ANNUAL REPORTS APRIL 30, 2007 51
These reports, including the financial information herein, are transmitted to
shareholders of BlackRock MuniYield Fund, Inc., BlackRock MuniYield Insured
Fund, Inc., BlackRock MuniYield Quality Fund, Inc. and BlackRock MuniYield
Quality Fund II, Inc. for their information. This is not a prospectus. Past
performance results shown in these reports should not be considered a
representation of future performance. The Funds have leveraged their Common
Stock and intend to remain leveraged by issuing Preferred Stock to provide the
Common Stock shareholders with potentially higher rates of return. Leverage
creates risks for Common Stock shareholders, including the likelihood of greater
volatility of net asset value and market price of shares of the Common Stock,
and the risk that fluctuations in the short-term dividend rates of the Preferred
Stock may affect the yield to Common Stock shareholders. Statements and other
information herein are as dated and are subject to change.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's Web site
at http://www.sec.gov. Information about how the Funds voted proxies relating to
securities held in the Funds' portfolios during the most recent 12-month period
ended June 30 is available (1) at www.blackrock.com and (2) on the Securities
and Exchange Commission's Web site at http://www.sec.gov.
BlackRock MuniYield Fund, Inc.
BlackRock MuniYield Insured Fund, Inc.
BlackRock MuniYield Quality Fund, Inc.
BlackRock MuniYield Quality Fund II, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#MYQII-4/07
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Schedule of Investments - The registrant's Schedule of Investments 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 Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not
Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The registrant's
Nominating Committee will consider nominees to the Board recommended
by shareholders when a vacancy becomes available. Shareholders who
wish to recommend a nominee should send nominations which include
biographical information and set forth the qualifications of the
proposed nominee to the registrant's Secretary. There have been no
material changes to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial officers
or persons performing similar functions have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act")) are effective as of a date within 90 days of the filing
of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities and Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the second fiscal quarter of the
period covered by this report that have materially affected, or are
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
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.
BlackRock MuniYield Quality Fund, Inc.
By: /s/ Robert C. Doll, Jr.
--------------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock MuniYield Quality Fund, Inc.
Date: June 19, 2007
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/ Robert C. Doll, Jr.
--------------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock MuniYield Quality Fund, Inc.
Date: June 19, 2007
By: /s/ Donald C. Burke
--------------------------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock MuniYield Quality Fund, Inc.
Date: June 19, 2007