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. (MQY)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, 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, Option 4
Date of fiscal year end: 10/31/2008
Date of reporting period: 11/01/2007 - 04/30/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
Semi-Annual Report BLACKROCK
APRIL 30, 2008 | (UNAUDITED)
BlackRock MuniYield Fund, Inc. (MYD)
BlackRock MuniYield Insured Fund, Inc. (MYI)
BlackRock MuniYield Quality Fund, Inc. (MQY)
BlackRock MuniYield Quality Fund II, Inc. (MQT)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
--------------------------------------------------------------------------------
A Letter to Shareholders ................................................. 3
Semi-Annual Reports:
Fund Summaries ........................................................... 4
The Benefits and Risks of Leveraging ..................................... 8
Swap Agreements .......................................................... 8
Financial Statements:
Schedules of Investments .............................................. 9
Statements of Assets and Liabilities .................................. 31
Statements of Operations .............................................. 33
Statements of Changes in Net Assets ................................... 34
Statements of Cash Flows .............................................. 37
Financial Highlights ..................................................... 38
Notes to Financial Statements ............................................ 42
Officers and Directors ................................................... 48
Additional Information ................................................... 49
2 SEMI-ANNUAL REPORT APRIL 30, 2008
A Letter to Shareholders
Dear Shareholder
Over the past several months, financial markets have been buffeted by the
housing recession, the credit market unraveling and related liquidity freeze and
steadily rising commodity prices. Counterbalancing these difficulties were
booming export activity, a robust non-financial corporate sector and, notably,
aggressive and timely monetary and fiscal policy actions.
Amid the market tumult, the Federal Reserve Board (the "Fed") intervened with a
series of moves to bolster liquidity and ensure financial market stability.
Since September 2007, the central bank slashed the target federal funds rate 325
basis points (3.25%), bringing the rate to 2.0% as of period-end. Of greater
magnitude, however, were the Fed's other policy decisions, which included
opening the discount window directly to broker dealers and investment banks and
backstopping the unprecedented rescue of Bear Stearns.
The Fed's response to the financial crisis helped to improve credit conditions
and investor mood. After hitting a low point on March 17 (coinciding with the
collapse of Bear Stearns), equity markets found a welcome respite in April, when
the S&P 500 Index of U.S. stocks posted positive monthly performance for the
first time since October 2007. International markets, which outpaced those of
the U.S. for much of 2007, saw a reversal in that trend, as effects of the
credit crisis and downward pressures on growth were far-reaching.
In contrast to equity markets, Treasury securities rallied (yields fell as
prices correspondingly rose), as a broad "flight-to-quality" theme persisted.
The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its
highest level in five years), fell to 4.04% by year-end and to 3.77% by April
30. Treasury issues relinquished some of their gains in April, however, as
investor appetite for risk returned and other high-quality fixed income sectors
outperformed.
Problems within the monoline insurance industry and the failure of auctions for
auction rate securities plagued the municipal bond market, driving yields higher
and prices lower across the curve. However, in conjunction with the more recent
shift in sentiment, the sector delivered strong performance in the final month
of the reporting period.
Overall, the major benchmark indexes generated results that generally reflected
heightened investor risk aversion:
Total Returns as of April 30, 2008 6-month 12-month
================================================================================================================================
U.S. equities (S&P 500 Index) - 9.64% - 4.68%
--------------------------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) -12.92 -10.96
--------------------------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) - 9.21 - 1.78
--------------------------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Index) + 4.08 + 6.87
--------------------------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.47 + 2.79
--------------------------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) - 0.73 - 0.80
--------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
As you navigate today's volatile markets, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more up-to-date commentary on the economy and financial markets,
we invite you to visit www.blackrock.com/funds. As always, 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/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary as of April 30, 2008 (Unaudited) BlackRock MuniYield Fund, Inc.
Investment Objective
BlackRock MuniYield Fund, Inc. (MYD) seeks to provide 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.
Performance
For the six months ended April 30, 2008, the Fund returned +2.96% based on
market price, with dividends reinvested. The Fund's return based on net asset
value ("NAV") was -3.14%, with dividends reinvested. For the same period, the
closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an
average return of -2.54% on a NAV basis. Recent underperformance reflects the
Fund's neutral duration position, as municipal bond yields rose (and prices
correspondingly fell) during the period. Performance was also negatively
impacted by the Fund's above-average exposure to lower-rated issues, which
underperformed amid continued widening in credit spreads. However, the
incremental income generated by these issues allowed the Fund's distribution
yield to remain well above that of the Lipper peer average.
Fund Information
Symbol on New York Stock Exchange ........................... MYD
Initial Offering Date ....................................... November 29, 1991
Yield on Closing Market Price as of April 30, 2008 ($13.71)* 5.95%
Tax Equivalent Yield** ...................................... 9.15%
Current Monthly Distribution per share of Common Stock*** ... $0.068
Current Annualized Distribution per share of Common Stock*** $0.816
Leverage as of April 30, 2008**** ........................... 39%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** A change in the distribution rate was declared on June 2, 2008. The
Monthly Distribution per Common Stock was decreased to $0.064. The Yield
on Closing Market Price, Current Monthly Distribution and Current
Annualized Distribution do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the
future.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock
("Preferred Stock") and Tender Option Bond Trusts ("TOBs")) minus the sum
of accrued liabilities (other than debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
4/30/08 10/31/07 Change High Low
--------------------------------------------------------------------------------
Market Price .......... $ 13.71 $ 13.72 (0.07%) $ 14.90 $ 12.74
Net Asset Value ....... $ 13.50 $ 14.36 (5.99%) $ 14.40 $ 12.94
--------------------------------------------------------------------------------
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 4/30/08 10/31/07
--------------------------------------------------------------------------------
Hospital ......................................... 18% 17%
Transportation ................................... 17 20
City, County & State ............................. 14 15
Industrial & Pollution Control ................... 14 15
Education ........................................ 8 5
Housing .......................................... 8 4
Power ............................................ 7 8
Sales Tax ........................................ 6 7
Tobacco .......................................... 4 3
Lease Revenue .................................... 3 3
Water & Sewer .................................... 1 2
Resource Recovery ................................ -- 1
--------------------------------------------------------------------------------
Credit Quality Allocations*
Credit Rating 4/30/08 10/31/07
--------------------------------------------------------------------------------
AAA/Aaa .......................................... 40% 40%
AA/Aa ............................................ 17 17
A/A .............................................. 13 11
BBB/Baa .......................................... 8 10
BB/Baa ........................................... 2 1
B/B .............................................. 3 4
CCC/Caa .......................................... 2 2
Not Rated** ...................................... 15 15
--------------------------------------------------------------------------------
* Using the higher of Standard & Poor's or Moody's Investors Service
ratings.
** The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of April 30, 2008 and October 31, 2007,
the market value of these securities was $26,663,652 representing 3% and
$28,842,801 representing 3%, respectively, of the Fund's long-term
investments.
4 SEMI-ANNUAL REPORT APRIL 30, 2008
Fund Summary as of April 30, 2008 (Unaudited)
BlackRock MuniYield Insured Fund, Inc.
Investment Objective
BlackRock MuniYield Insured Fund, Inc. (MYI) seeks to provide 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.
Performance
For the six months ended April 30, 2008, the Fund returned +1.51% based on
market price, with dividends reinvested. The Fund's return based on NAV was
-4.92%, with dividends reinvested. For the same period, the closed-end Lipper
Insured Municipal Debt Funds (Leveraged) category posted an average return of
-1.58% on a NAV basis. Comparative performance was hindered by the Fund's
relatively longer duration. Also detracting from results were the Fund's
alternative minimum tax (AMT) and prepaid natural gas utility holdings, which
underperformed the AAA-rated municipal bond scale. Conversely, the Fund's
relatively higher yield aided performance.
Fund Information
Symbol on New York Stock Exchange ............................. MYI
Initial Offering Date ......................................... March 27, 1992
Yield on Closing Market Price as of April 30, 2008 ($12.90)* .. 5.21%
Tax Equivalent Yield** ........................................ 8.02%
Current Monthly Distribution per share of Common Stock*** ..... $0.056
Current Annualized Distribution per share of Common Stock*** .. $0.672
Leverage as of April 30, 2008**** ............................. 44%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Preferred Stock and TOBs) minus the
sum of accrued liabilities (other than debt representing financial
leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
4/30/08 10/31/07 Change High Low
--------------------------------------------------------------------------------
Market Price .......... $ 12.90 $ 13.04 (1.07%) $ 13.77 $ 11.94
Net Asset Value ....... $ 13.50 $ 14.57 (7.34%) $ 14.69 $ 12.47
--------------------------------------------------------------------------------
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 4/30/08 10/31/07
--------------------------------------------------------------------------------
Transportation ................................... 33% 30%
City, County & State ............................. 19 16
Power ............................................ 10 14
Hospital ......................................... 10 9
Sales Tax ........................................ 7 7
Housing .......................................... 6 7
Education ........................................ 5 5
Lease Revenue .................................... 4 4
Water & Sewer .................................... 3 4
Industrial & Pollution Control ................... 2 3
Resource Recovery ................................ 1 1
--------------------------------------------------------------------------------
Credit Quality Allocations*
Credit Rating 4/30/08 10/31/07
--------------------------------------------------------------------------------
AAA/Aaa .......................................... 71% 83%
AA/Aa ............................................ 9 7
A/A .............................................. 15 6
BBB/Baa .......................................... 3 2
Not Rated** ...................................... 2 2
--------------------------------------------------------------------------------
* Using the higher of Standard & Poor's or Moody's Investors Service
ratings.
** The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of April 30, 2008 and October 31, 2007,
the market value of these securities was $26,663,652 representing 3% and
$28,842,801 representing 3%, respectively, of the Fund's long-term
investments.
SEMI-ANNUAL REPORT APRIL 30, 2008 5
Fund Summary as of April 30, 2008 (Unaudited)
BlackRock MuniYield Quality Fund, Inc.
Investment Objective
BlackRock MuniYield Quality Fund, Inc. (MQY) seeks to provide 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.
Performance
For the six months ended April 30, 2008, the Fund returned +5.37% based on
market price, with dividends reinvested. The Fund's return based on NAV was
-2.02%, with dividends reinvested. For the same period, the closed-end Lipper
Insured Municipal Debt Funds (Leveraged) category posted an average return of
-1.58% on a NAV basis. Fund performance was negatively impacted by two key
factors: above-average exposure to the longer end of the yield curve, which
underperformed as long-term rates increased and short-term rates declined; and
above-average exposure to bonds insured by certain monoline insurance companies,
which experienced unprecedented downgrades from their AAA ratings.
Fund Information
Symbol on New York Stock Exchange ............................. MQY
Initial Offering Date ......................................... June 26, 1992
Yield on Closing Market Price as of April 30, 2008 ($13.49)* .. 5.07%
Tax Equivalent Yield** ........................................ 7.80%
Current Monthly Distribution per share of Common Stock*** ..... $0.057
Current Annualized Distribution per share of Common Stock*** .. $0.684
Leverage as of April 30, 2008**** ............................. 42%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Preferred Stock and TOBs) minus the
sum of accrued liabilities (other than debt representing financial
leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
4/30/08 10/31/07 Change High Low
--------------------------------------------------------------------------------
Market Price .......... $ 13.49 $ 13.20 2.20% $ 14.15 $ 12.32
Net Asset Value ....... $ 14.14 $ 14.88 (4.97%) $ 15.11 $ 13.18
--------------------------------------------------------------------------------
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 4/30/08 10/31/07
--------------------------------------------------------------------------------
City, County & State ............................. 24% 24%
Transportation ................................... 23 22
Water & Sewer .................................... 11 9
Industrial & Pollution Control ................... 9 9
Hospital ......................................... 8 8
Education ........................................ 8 9
Sales Tax ........................................ 7 8
Power ............................................ 3 4
Lease Revenue .................................... 3 3
Housing .......................................... 3 2
Tobacco .......................................... 1 2
--------------------------------------------------------------------------------
Credit Quality Allocations*
Credit Rating 4/30/08 10/31/07
--------------------------------------------------------------------------------
AAA/Aaa .......................................... 74% 83%
AA/Aa ............................................ 12 7
A/A .............................................. 10 6
BBB/Baa .......................................... 2 2
Not Rated** ...................................... 2 2
--------------------------------------------------------------------------------
* Using the higher of Standard & Poor's or Moody's Investors Service
ratings.
** The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of April 30, 2008 and October 31, 2007,
the market value of these securities was $23,697,906 representing 3% and
$45,095,000 representing 6%, respectively, of the Fund's long-term
investments.
6 SEMI-ANNUAL REPORT APRIL 30, 2008
Fund Summary as of April 30, 2008 (Unaudited)
BlackRock MuniYield Quality Fund II, Inc.
Investment Objective
BlackRock MuniYield Quality Fund II, Inc. (MQT) seeks to provide 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.
Performance
For the six months ended April 30, 2008, the Fund returned +1.39% based on
market price, with dividends reinvested. The Fund's return based on NAV was
-2.52%, with dividends reinvested. For the same period, the closed-end Lipper
Insured Municipal Debt Funds (Leveraged) category posted an average return of
-1.58% on a NAV basis. Fund performance was negatively impacted by two key
factors: above-average exposure to the longer end of the yield curve, which
underperformed as long-term rates increased and short-term rates declined; and
above-average exposure to bonds insured by certain monoline insurance companies,
which experienced unprecedented downgrades from their AAA ratings.
Fund Information
Symbol on New York Stock Exchange ............................. MQT
Initial Offering Date ......................................... August 28, 1992
Yield on Closing Market Price as of April 30, 2008 ($11.46)* .. 5.24%
Tax Equivalent Yield** ........................................ 8.06%
Current Monthly Distribution per share of Common Stock*** ..... $0.050
Current Annualized Distribution per share of Common Stock*** .. $0.600
Leverage as of April 30, 2008**** ............................. 42%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Preferred Stock and TOBs) minus the
sum of accrued liabilities (other than debt representing financial
leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
4/30/08 10/31/07 Change High Low
--------------------------------------------------------------------------------
Market Price .......... $ 11.46 $ 11.60 (1.21%) $ 12.20 $ 10.60
Net Asset Value ....... $ 12.51 $ 13.17 (5.01%) $ 13.44 $ 11.56
--------------------------------------------------------------------------------
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 4/30/08 10/31/07
--------------------------------------------------------------------------------
Transportation ................................... 27% 27%
City, County & State ............................. 18 19
Education ........................................ 8 7
Power ............................................ 8 9
Sales Tax ........................................ 8 8
Housing .......................................... 7 7
Hospital ......................................... 7 7
Water & Sewer .................................... 6 5
Industrial & Pollution Control ................... 5 5
Lease Revenue .................................... 3 4
Tobacco .......................................... 2 2
Resource Recovery ................................ 1 --
--------------------------------------------------------------------------------
Credit Quality Allocations*
Credit Rating 4/30/08 10/31/07
--------------------------------------------------------------------------------
AAA/Aaa .......................................... 73% 85%
AA/Aa ............................................ 14 9
A/A .............................................. 11 6
BBB/Baa .......................................... 1 --
Not Rated** ...................................... 1 --
--------------------------------------------------------------------------------
* Using the higher of Standard & Poor's or Moody's Investors Service
ratings.
** The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of April 30, 2008 and October 31, 2007,
the market value of these securities was $23,697,906 representing 3% and
$45,095,000 representing 6%, respectively, of the Fund's long-term
investments.
SEMI-ANNUAL REPORT APRIL 30, 2008 7
The Benefits and Risks of Leveraging
BlackRock MuniYield Fund, Inc., BlackRock MuniYield Insured Fund, Inc.,
BlackRock MuniYield Quality Fund, Inc. and BlackRock MuniYield Quality Fund II,
Inc. (each a "Fund" and, collectively, the "Funds") utilize leverage to seek to
enhance the yield and NAV 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 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 NAV 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 NAV, the market value of the fund's Common Stock may also decline.
In addition, the Funds may from time to time leverage their assets through the
use of tender option bond ("TOB") programs. In a typical TOB program, the Fund
transfers one or more municipal bonds to a TOB trust, which issues short-term
variable rate securities to third-party investors and a residual interest to the
Fund. The cash received by the TOB trust from the issuance of the short-term
securities (less transaction expenses) is paid to the Fund, which invests the
cash in additional portfolio securities. The distribution rate on the short-term
securities is reset periodically (typically every seven days) through a
remarketing of the short-term securities. Any income earned on the bonds in the
TOB trust, net of expenses incurred by the TOB trust, that is not paid to the
holders of the short-term securities is paid to the Fund. In connection with
managing the Funds' assets, the Funds' investment advisor may at any time
retrieve the bonds out of the TOB trust typically within seven days. TOB
investments generally will provide the Fund with economic benefits in periods of
declining short-term interest rates, but expose the Fund to risks during periods
of rising short-term interest rates similar to those associated with Preferred
Stock issued by the Fund, as described above. Additionally, fluctuations in the
market value of municipal securities deposited into the TOB trust may adversely
affect the Funds' NAVs per share. (See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to TOB trusts.)
Under the Investment Company Act of 1940, the Funds are permitted to issue
Preferred Stock in an amount of up to 50% of their total managed assets at the
time of issuance. Each Fund also anticipates that its total economic leverage
will not exceed 50% of its total managed assets. Economic leverage includes
Preferred Stock and TOBs. As of April 30, 2008, BlackRock MuniYield Fund, Inc.,
BlackRock MuniYield Insured Fund, Inc., BlackRock MuniYield Quality Fund, Inc.
and BlackRock MuniYield Quality Fund II, Inc. had economic leverage of 39%, 44%,
42% and 42% of managed assets, respectively.
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.
8 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments April 30, 2008 (Unaudited)
BlackRock MuniYield Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Alabama -- 2.8%
Birmingham, Alabama, Special Care Facilities
Financing Authority, Revenue Refunding Bonds
(Ascension Health Credit), Series C-2,
5%, 11/15/36 $ 4,540 $ 4,465,317
-------------
Jefferson County, Alabama, Limited Obligation
School Warrants, Series A, 5.50%, 1/01/22 (r) 5,250 4,869,270
Tuscaloosa, Alabama, Special Care Facilities
Financing Authority, Residential Care Facility
Revenue Bonds (Capstone Village, Inc. Project),
Series A (r):
5.625%, 8/01/25 2,200 1,942,578
5.875%, 8/01/36 6,425 5,677,259
-------------
16,954,424
=============================================================================================================================
Arizona -- 12.9%
Arizona State Transportation Board, Highway Revenue
Bonds, Sub-Series A:
5%, 7/01/21 5,825 6,099,824
5%, 7/01/22 7,030 7,301,499
5%, 7/01/23 5,240 5,459,661
Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1),
Series A, 6.75%, 7/01/29 3,300 2,985,411
Maricopa County, Arizona, IDA, M/F Housing Revenue
Refunding Bonds (CRS Pine Ridge Housing
Corporation), Series A-1 (a)(b):
6%, 10/20/31 5,000 5,119,800
6.05%, 10/20/36 5,000 5,057,300
Phoenix, Arizona, IDA, Airport Facility, Revenue
Refunding Bonds (America West Airlines Inc.
Project), AMT:
6.25%, 6/01/19 3,000 2,629,320
6.30%, 4/01/23 5,090 4,450,849
Phoenix, Arizona, IDA, M/F Housing Revenue Bonds
(Summit Apartments LLC Project)(b):
6.25%, 7/20/22 1,610 1,686,652
6.45%, 7/20/32 1,425 1,479,150
6.55%, 7/20/37 1,305 1,350,257
Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter Schools
Project II), Series A:
6.75%, 7/01/11 (c) 570 636,701
6.75%, 7/01/31 775 783,463
Pima County, Arizona, IDA, Revenue Bonds (Tucson
Electric Power Company), Series A,
6.375%, 9/01/29 3,000 3,017,610
Salt Verde Financial Corporation, Arizona, Senior
Gas Revenue Bonds:
5%, 12/01/32 10,020 9,097,960
5%, 12/01/37 11,525 10,302,082
Vistancia Community Facilities District, Arizona, GO:
5.50%, 7/15/20 3,000 2,973,450
5.75%, 7/15/24 2,125 2,107,108
Yavapai County, Arizona, IDA, Hospital Facility
Revenue Bonds (Yavapai Regional Medical Center),
Series A, 6%, 8/01/33 5,900 5,938,881
-------------
78,476,978
=============================================================================================================================
California -- 11.5%
California State, GO, 5%, 4/01/31 (d) 10 10,117
California State, GO, Refunding, 5%, 6/01/32 11,335 11,359,144
California State Public Works Board, Lease
Revenue Bonds:
(Department of Corrections), Series C,
5%, 6/01/25 2,000 2,014,440
(Department of Mental Health -- Coalinga
State Hospital), Series A, 5.125%, 6/01/29 4,500 4,526,640
California State, Various Purpose, GO:
5.25%, 11/01/25 6,800 7,022,768
5.50%, 11/01/33 5,550 5,725,103
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds (c):
Series A-3, 7.875%, 6/01/13 5,500 6,603,465
Series A-4, 7.80%, 6/01/13 7,500 8,979,900
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Refunding
Bonds, Senior Series A-1, 5.125%, 6/01/47 5,965 4,806,358
Sacramento County, California, Airport System
Revenue Bonds, AMT, Senior Series B, 5.25%,
7/01/39 (e) 6,135 6,046,533
Santa Clara, California, Subordinated Electric
Revenue Bonds, Series A, 5%, 7/01/22 (f) 5,145 5,295,646
University of California Revenue Bonds (Multiple
Purpose Projects), Series Q, 5%, 9/01/21 (e) 7,465 7,759,718
-------------
70,149,832
=============================================================================================================================
Colorado -- 8.0%
Colorado Educational and Cultural Facilities Authority,
Revenue Refunding Bonds (University of Denver
Project), Series B, 5.25%, 3/01/16 (c)(g) 3,245 3,632,745
Colorado HFA, Revenue Refunding Bonds
(S/F Program), AMT, Series D-2, 6.90%, 4/01/29 230 240,164
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 on the right.
AMT Alternative Minimum Tax (subject to)
ARS Auction Rate Securities
CABS Capital Appreciation Bonds
COP Certificates of Participation
CRVS Custodial Residual and Variable Securities
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
EDR Economic Development Revenue Bonds
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
PILOT Payment in Lieu of Taxes
S/F Single-Family
SIMFA Securities Industry and Financials Market Association
VRDN Variable Rate Demand Notes
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 9
Schedule of Investments (continued) BlackRock MuniYield Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Colorado (concluded)
Colorado Health Facilities Authority Revenue Bonds
(Catholic Health)(e):
Series C-3, 5.10%, 10/01/41 $ 7,485 $ 7,502,440
Series C-7, 5%, 9/01/36 4,790 4,801,209
Colorado Health Facilities Authority, Revenue
Refunding Bonds (Poudre Valley Health Care) (e):
5.20%, 3/01/31 1,425 1,448,541
Series B, 5.25%, 3/01/36 2,840 2,881,038
Series C, 5.25%, 3/01/40 5,000 5,065,400
Denver, Colorado, City and County Airport Revenue
Bonds, AMT, Series D, 7.75%, 11/15/13 (d) 7,080 7,917,564
Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee), Series A:
7.10%, 9/01/14 1,415 1,478,463
7.35%, 9/01/31 5,065 5,087,691
Plaza Metropolitan District Number 1, Colorado,
Tax Allocation Revenue Bonds (Public
Improvement Fees):
8%, 12/01/25 6,850 7,217,982
8.125%, 12/01/25 1,885 1,893,219
-------------
49,166,456
=============================================================================================================================
Connecticut -- 3.1%
Connecticut State Development Authority, IDR (AFCO
Cargo BDL-LLC Project), AMT, 7.35%, 4/01/10 250 252,482
Connecticut State Health and Educational Facilities
Authority Revenue Bonds (Yale University):
Series T-1, 4.70%, 7/01/29 9,135 9,254,029
Series X-3, 4.85%, 7/01/37 9,265 9,401,473
-------------
18,907,984
=============================================================================================================================
Delaware -- 0.3%
New Castle County, Delaware, PCR (General Motors
Corporation Project), VRDN, 7%, 10/01/08 (h) 2,000 2,000,000
=============================================================================================================================
Florida -- 6.5%
Greater Orlando Aviation Authority, Florida, Airport
Facilities Revenue Bonds (JetBlue Airways Corp.),
AMT, 6.50%, 11/15/36 2,500 2,064,825
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25%, 11/15/36 4,240 4,135,781
Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:
Series A, 7.125%, 4/01/30 11,500 11,146,490
Series B, 7.125%, 4/01/30 5,000 4,846,300
Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (Tampa General Hospital Project),
5%, 10/01/36 2,870 2,664,795
Lee County, Florida, Revenue Bonds, 5%,
10/01/22 (d) 4,705 4,848,267
Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds,
Series B, 6.50%, 5/01/37 5,395 4,859,816
Orange County, Florida, Health Facilities Authority,
Health Care Revenue Refunding Bonds (Orlando
Lutheran Towers), 5.375%, 7/01/20 1,100 1,003,398
Santa Rosa Bay Bridge Authority, Florida, Revenue
Bonds, 6.25%, 7/01/28 4,620 4,210,021
-------------
39,779,693
=============================================================================================================================
Georgia -- 2.1%
Atlanta, Georgia, Tax Allocation Bonds (Atlantic
Station Project), 7.90%, 12/01/11 (c) 4,600 5,437,660
Brunswick and Glynn County, Georgia, Development
Authority, First Mortgage Revenue Bonds (Coastal
Community Retirement Corporation Project),
Series A (i)(j)(q)(r):
7.125%, 1/01/25 2,285 1,530,950
7.25%, 1/01/35 3,595 2,408,650
Main Street Natural Gas, Inc., Georgia, Gas Project
Revenue Bonds, Series A, 6.375%, 7/15/38 3,445 3,446,895
-------------
12,824,155
=============================================================================================================================
Idaho -- 1.7%
Idaho Housing Agency, S/F Mortgage Revenue
Refunding Bonds, AMT, Senior Series C-2,
7.15%, 7/01/23 90 93,272
Power County, Idaho, Industrial Development
Corporation, Solid Waste Disposal Revenue Bonds
(FMC Corporation Project), AMT, 6.45%, 8/01/32 10,000 10,077,200
-------------
10,170,472
=============================================================================================================================
Illinois -- 3.8%
Bolingbrook, Illinois, Special Services Area Number 1,
Special Tax Bonds (Forest City Project),
5.90%, 3/01/27 1,000 970,070
Chicago, Illinois, O'Hare International Airport
Revenue Bonds, Third Lien, AMT, Series B-2, 6%,
1/01/29 (k) 13,200 13,510,068
Illinois State Finance Authority Revenue
Bonds, Series A:
(Friendship Village of Schaumburg), 5.625%,
2/15/37 1,750 1,418,182
(Landing At Plymouth Place Project),
6%, 5/15/37 2,155 1,940,254
(Monarch Landing, Inc. Project), 7%, 12/01/37 1,445 1,418,354
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Bonds (McCormick
Place Expansion), Series A, 5.50%, 6/15/23 (f) 4,000 4,250,440
-------------
23,507,368
=============================================================================================================================
Kansas -- 0.2%
Lenexa, Kansas, Health Care Facility Revenue
Bonds (Lakeview Village Inc.), Series C, 6.875%,
5/15/12 (c) 1,250 1,443,000
=============================================================================================================================
Kentucky -- 0.5%
Kentucky Economic Development Finance Authority,
Health System Revenue Refunding Bonds
(Norton Healthcare, Inc.), Series A:
6.625%, 10/01/10 (c) 2,350 2,594,752
6.625%, 10/01/28 650 687,290
-------------
3,282,042
=============================================================================================================================
Louisiana -- 7.6%
Louisiana Local Government Environmental Facilities
and Community Development Authority Revenue
Bonds (Westlake Chemical Corporation),
6.75%, 11/01/32 10,000 9,800,700
Louisiana Public Facilities Authority, Hospital Revenue
Bonds (Franciscan Missionaries of Our Lady Health
System, Inc.), Series A, 5.25%, 8/15/36 6,750 6,690,465
Louisiana Public Facilities Authority, Revenue
Refunding Bonds (Pennington Medical Foundation
Project), 5%, 7/01/31 1,000 948,670
See Notes to Financial Statements.
10 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments (continued) BlackRock MuniYield Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Louisiana (concluded)
Louisiana State Citizens Property Insurance
Corporation, Assessment Revenue Bonds, Series B,
5%, 6/01/20 (d) $10,000 $ 10,025,300
Port New Orleans, Louisiana, IDR, Refunding
(Continental Grain Company Project),
6.50%, 1/01/17 19,000 19,007,030
-------------
46,472,165
=============================================================================================================================
Maryland -- 3.9%
Baltimore, Maryland, Convention Center Hotel
Revenue Bonds:
Senior Series A, 5.25%, 9/01/39 (k) 5,615 5,798,217
Sub-Series B, 5.875%, 9/01/39 1,920 1,760,064
Maryland State Community Development
Administration, Department of Housing and
Community Development, Residential Revenue
Refunding Bonds, AMT, Series A, 4.65%, 9/01/32 2,580 2,284,409
Maryland State Energy Financing Administration,
Limited Obligation Revenue Bonds (Cogeneration --
AES Warrior Run), AMT, 7.40%, 9/01/19 3,000 2,886,150
Maryland State Health and Higher Educational
Facilities Authority, Revenue Refunding Bonds:
(Peninsula Regional Medical Center),
5%, 7/01/36 5,000 4,888,800
(University of Maryland Medical System),
6%, 7/01/12 (c) 4,000 4,446,920
Maryland State Industrial Development Financing
Authority, EDR (Our Lady of Good Counsel School),
Series A, 6%, 5/01/35 500 488,250
Prince Georges County, Maryland, Special Obligation
Bonds (National Harbor Project), 5.20%, 7/01/34 1,500 1,256,115
-------------
23,808,925
=============================================================================================================================
Massachusetts -- 2.8%
Massachusetts State Development Finance Agency,
Human Service Provider Revenue Bonds (Seven
Hills Foundation & Affiliates), 5%, 9/01/35 (l) 3,500 3,239,810
Massachusetts State Development Finance Agency,
Revenue Refunding Bonds (Western New England
College), Series A, 5%, 9/01/33 (m) 2,750 2,781,790
Massachusetts State Special Obligation Dedicated
Tax Revenue Bonds, 5.25%, 1/01/14 (c)(g) 10,000 10,903,100
-------------
16,924,700
=============================================================================================================================
Michigan -- 1.4%
Macomb County, Michigan, Hospital Finance Authority,
Hospital Revenue Bonds (Mount Clemens General
Hospital), Series B, 5.875%, 11/15/34 6,060 5,629,134
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (Henry Ford Health System),
Series A, 5.25%, 11/15/32 1,000 986,400
Michigan State Strategic Fund, PCR, Refunding
(General Motors Corp.), 6.20%, 9/01/20 2,500 2,143,900
-------------
8,759,434
=============================================================================================================================
Minnesota -- 0.6%
Eden Prairie, Minnesota, M/F Housing Revenue
Bonds (Rolling Hills Project), Series A (b):
6%, 8/20/21 420 451,072
6.20%, 2/20/43 2,000 2,121,260
Minneapolis, Minnesota, M/F Housing Revenue
Bonds (Gaar Scott Loft Project), AMT,
5.95%, 5/01/30 920 938,308
-------------
3,510,640
=============================================================================================================================
Mississippi -- 0.3%
Mississippi Business Finance Corporation Revenue
Bonds (Northrop Grumman Ship System),
4.55%, 12/01/28 2,300 2,104,178
=============================================================================================================================
Missouri -- 4.0%
Fenton, Missouri, Tax Increment Revenue Refunding
and Improvement Bonds (Gravois Bluffs), 7%,
10/01/11 (c) 2,690 3,069,909
Missouri State Highways and Transportation
Commission, First Lien State Road Revenue
Bonds, Series A:
5%, 5/01/20 5,000 5,338,500
5%, 5/01/21 15,000 15,920,550
-------------
24,328,959
=============================================================================================================================
Nebraska -- 0.3%
Lincoln, Nebraska, Sanitation and Sewer
Revenue Bonds:
4.25%, 6/15/24 865 860,969
4.25%, 6/15/25 905 893,036
-------------
1,754,005
=============================================================================================================================
New Hampshire -- 0.6%
New Hampshire Health and Education Facilities
Authority, Revenue Refunding Bonds (Elliot
Hospital), Series B, 5.60%, 10/01/22 3,425 3,516,105
=============================================================================================================================
New Jersey -- 17.1%
New Jersey EDA, Cigarette Tax
Revenue Bonds, 5.50%, 6/15/24 11,435 11,054,672
New Jersey EDA, First Mortgage Revenue
Bonds, Series A:
(Lions Gate Project), 5.75%, 1/01/25 710 650,807
(Lions Gate Project), 5.875%, 1/01/37 230 200,514
(The Presbyterian Home), 6.375%, 11/01/31 3,000 2,911,260
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5%, 7/01/29 (f) 20,000 20,188,800
New Jersey EDA, Retirement Community Revenue
Bonds (Cedar Crest Village Inc. Facility), Series A,
7.25%, 11/15/11 (c) 4,400 5,073,860
New Jersey EDA, School Facilities Construction
Revenue Bonds, Series O, 5.25%, 3/01/23 8,825 9,279,135
New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT:
6.25%, 9/15/19 3,905 3,458,932
6.25%, 9/15/29 14,000 11,720,380
New Jersey Health Care Facilities Financing
Authority Revenue Bonds (Pascack Valley
Hospital Association)(r):
6%, 7/01/13 1,335 859,740
6.625%, 7/01/36 1,835 1,181,740
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 11
Schedule of Investments (continued) BlackRock MuniYield Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
New Jersey (concluded)
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:
Series A, 5.50%, 12/15/21 $ 3,975 $ 4,471,557
Series A, 5.50%, 12/15/22 6,600 7,406,982
Series C, 5.05%, 12/15/35 (d)(j) 13,110 3,036,014
Series D, 5%, 6/15/19 (e) 5,425 5,758,203
Series D, 5%, 6/15/20 9,410 9,955,121
Series D, 5%, 6/15/20 (e) 7,000 7,381,080
-------------
104,588,797
=============================================================================================================================
New York -- 10.2%
Dutchess County, New York, IDA, Civic Facility
Revenue Refunding Bonds (Saint Francis Hospital),
Series A, 7.50%, 3/01/29 2,200 2,333,804
Metropolitan Transportation Authority, New York,
Transportation Revenue Refunding Bonds, Series F,
5%, 11/15/35 11,000 11,047,740
New York City, New York, City IDA, PILOT Revenue
Bonds (Queens Baseball Stadium Project) (d):
5%, 1/01/22 2,000 2,056,540
5%, 1/01/23 2,175 2,224,003
New York City, New York, City IDA, Special Facility
Revenue Bonds (British Airways Plc Project), AMT,
7.625%, 12/01/32 1,250 1,251,837
New York City, New York, GO, Refunding, Series A (g):
6.375%, 5/15/14 1,020 1,094,083
6.375%, 5/15/15 95 101,900
New York City, New York, GO, Series O, 5%, 6/01/33 2,500 2,535,025
New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding
Bonds, Series A:
(Mount Sinai Health), 6.75%, 7/01/10 (c) 3,145 3,454,499
(Mount Sinai-NYU Medical Center Health
System), 6.75%, 7/01/20 1,855 1,934,338
New York State Dormitory Authority, State Personal
Income Tax Revenue Bonds (Education), Series F,
5%, 3/15/35 5,000 5,098,750
Suffolk County, New York, IDA, IDR, Refunding
(Nissequogue Cogeneration Partners Facility),
AMT, 5.50%, 1/01/23 2,500 2,222,700
Tobacco Settlement Financing Corporation of
New York Revenue Bonds, Series C-1,
5.50%, 6/01/21 9,400 9,811,438
Triborough Bridge and Tunnel Authority, New York,
Subordinate Revenue Bonds, 5.25%, 11/15/30 10,000 10,349,200
Westchester County, New York, IDA, Continuing Care
Retirement, Mortgage Revenue Bonds (Kendal on
Hudson Project), Series A:
6.50%, 1/01/13 (c) 2,895 3,284,638
6.375%, 1/01/24 3,450 3,486,984
-------------
62,287,479
=============================================================================================================================
North Carolina -- 5.1%
North Carolina Capital Facilities Finance Agency,
Revenue Refunding Bonds (Duke University Project),
Series A, 5%, 10/01/41 18,905 19,308,055
North Carolina Eastern Municipal Power Agency, Power
System Revenue Bonds, Series D, 6.75%, 1/01/26 4,750 4,979,425
North Carolina HFA, Home Ownership Revenue
Bonds, AMT, Series 8-A, 6.20%, 7/01/16 145 147,073
North Carolina, HFA, S/F Revenue Bonds, Series II,
6.20%, 3/01/16 (a) 615 643,579
North Carolina Medical Care Commission, Health
Care Facilities, First Mortgage Revenue Bonds:
(Arbor Acres Community Project), 6.375%,
3/01/12 (c) 1,000 1,119,750
(Presbyterian Homes Project),
5.40%, 10/01/27 5,000 4,827,200
-------------
31,025,082
=============================================================================================================================
Ohio -- 4.5%
Buckeye Tobacco Settlement Financing Authority,
Ohio, Tobacco Settlement Asset-Backed Bonds,
Series A-2, 6.50%, 6/01/47 7,835 7,618,284
Cincinnati, Ohio, City School District, GO (Classroom
Construction and Improvement), Refunding,
5.25%, 12/01/20 (g) 3,000 3,299,520
Hamilton County, Ohio, Sewer System Improvement
Revenue Bonds (The Metropolitan Sewer District of
Greater Cincinnati), Series B, 5%, 12/01/28 (f) 5,065 5,203,123
Lucas County, Ohio, Health Care Facility Revenue
Refunding and Improvement Bonds (Sunset
Retirement Communities), Series A,
6.625%, 8/15/30 2,175 2,233,051
Mason, Ohio, City School District, GO (School
Improvement), 5%, 6/01/14 (c)(e) 5,000 5,491,950
Port of Greater Cincinnati Development Authority,
Ohio, Special Assessment Revenue Bonds
(Cooperative Public Parking Infrastructure Project),
6.30%, 2/15/24 970 987,188
Toledo-Lucas County, Ohio, Port Authority Revenue
Bonds (Saint Mary Woods Project), Series A:
6%, 5/15/24 750 692,610
6%, 5/15/34 2,250 1,977,210
-------------
27,502,936
=============================================================================================================================
Oregon -- 1.5%
Oregon State Department of Administrative Services,
COP, Series A, 6%, 5/01/10 (c)(d) 4,405 4,756,167
Oregon State, GO, Refunding (Veterans Welfare),
Series 80A, 5.70%, 10/01/32 2,380 2,407,489
Portland, Oregon, Housing Authority, Housing Revenue
Bonds (Pine Square and University Place), Series A,
5.875%, 1/01/22 1,830 1,835,325
-------------
8,998,981
=============================================================================================================================
Pennsylvania -- 5.0%
Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds
(National Gypsum Company), AMT, Series A,
6.25%, 11/01/27 5,270 4,595,756
Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 97A, 4.60%, 10/01/27 2,450 2,210,439
Pennsylvania State Higher Educational Facilities
Authority, Health Services Revenue Refunding
Bonds (Allegheny Delaware Valley Obligation),
Series C, 5.875%, 11/15/16 (f) 16,270 16,264,143
Philadelphia, Pennsylvania, Authority for IDR,
Commercial Development, 7.75%, 12/01/17 1,265 1,266,278
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Bonds (Guthrie Healthcare System),
Series B, 7.125%, 12/01/11 (c) 5,000 6,043,850
-------------
30,380,466
=============================================================================================================================
See Notes to Financial Statements.
12 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments (continued) BlackRock MuniYield Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Rhode Island -- 1.1%
Central Falls, Rhode Island, Detention Facility
Corporation, Detention Facility, Revenue Refunding
Bonds, 7.25%, 7/15/35 $ 4,240 $ 4,373,475
Woonsocket, Rhode Island, GO (g):
6%, 10/01/17 1,225 1,284,903
6%, 10/01/18 1,195 1,249,755
-------------
6,908,133
=============================================================================================================================
South Dakota -- 0.8%
South Dakota State Health and Educational Facilities
Authority Revenue Bonds (Sanford Health),
5%, 11/01/40 5,210 4,934,235
=============================================================================================================================
Tennessee -- 2.5%
Hardeman County, Tennessee, Correctional Facilities
Corporation Revenue Bonds,
7.75%, 8/01/17 4,065 4,092,805
Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue
Refunding Bonds (Saint Jude Children's Research
Hospital), 5%, 7/01/31 11,250 11,331,788
-------------
15,424,593
=============================================================================================================================
Texas -- 13.7%
Alliance Airport Authority, Inc., Texas, Special Facilities
Revenue Refunding Bonds (American Airlines Inc.
Project), AMT, 5.75%, 12/01/29 3,500 2,179,310
Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier, Series A,
6.70%, 1/01/11 (c) 10,000 10,982,400
Bexar County, Texas, Housing Finance Corporation,
M/F Housing Revenue Bonds (Water at Northern
Hills Apartments), Series A (f):
5.80%, 8/01/21 1,300 1,332,669
6%, 8/01/31 2,460 2,526,445
6.05%, 8/01/36 1,000 1,027,540
Dallas-Fort Worth, Texas, International Airport
Facility Improvement Corporation, Revenue
Refunding Bonds (American Airlines, Inc.), AMT,
5.50%, 11/01/30 12,500 7,440,875
Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good
Shepherd Medical Center Project) (c)(l):
6.375%, 10/01/10 2,000 2,198,640
6.875%, 10/01/10 3,000 3,332,580
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%, 4/01/26 5,000 5,008,150
Gulf Coast, Texas, IDA, Solid Waste Disposal Revenue
Bonds (Citgo Petroleum Corporation Project),
AMT, 7.50%, 5/01/25 3,900 4,108,611
Houston, Texas, Airport System, Special Facilities
Revenue Bonds (Continental Airlines), AMT,
Series E:
7.375%, 7/01/22 3,500 3,374,665
7%, 7/01/29 3,000 2,752,770
Houston, Texas, Industrial Development Corporation
Revenue Bonds (Air Cargo), AMT, 6.375%, 1/01/23 1,595 1,598,637
Lower Colorado River Authority, Texas, PCR (Samsung
Austin Semiconductor), AMT:
6.375%, 4/01/27 4,830 4,834,395
6.95%, 4/01/30 3,330 3,445,384
SA Energy Acquisition Public Facilities Corporation,
Texas, Gas Supply Revenue Bonds:
5.50%, 8/01/23 6,955 6,961,468
5.50%, 8/01/25 6,365 6,322,354
Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A,
5.50%, 8/15/39 (d) 6,500 6,660,940
Tyler, Texas, Waterworks and Sewer Revenue Bonds,
5.70%, 9/01/10 (c)(g) 7,020 7,531,898
-------------
83,619,731
=============================================================================================================================
Virginia -- 3.0%
James City County, Virginia, EDA, Residential Care
Facility, First Mortgage Revenue Refunding Bonds
(Williamsburg Landing, Inc.), Series A:
5.35%, 9/01/26 1,500 1,411,545
5.50%, 9/01/34 2,000 1,819,240
Pocahontas Parkway Association, Virginia, Toll
Road Revenue Bonds, Senior Series B, 6.67%,
8/15/08 (c)(j) 24,800 7,417,928
Virginia State, HDA, Commonwealth Mortgage
Revenue Bonds Series H, Sub-Series H-1,
5.35%, 7/01/31 (f) 6,725 6,785,256
Winchester, Virginia, IDA, Residential Care Facilities,
Revenue Bonds (Westminster-Canterbury),
Series A, 5.20%, 1/01/27 1,000 916,260
-------------
18,350,229
=============================================================================================================================
Washington -- 1.3%
Central Puget Sound Regional Transportation
Authority, Washington, Sales and Use Tax Revenue
Bonds, Series A, 5%, 11/01/32 (e) 5,380 5,523,323
Vancouver, Washington, Housing Authority, Housing
Revenue Bonds (Teal Pointe Apartments
Project), AMT:
6%, 9/01/22 945 953,146
6.20%, 9/01/32 1,250 1,250,625
-------------
7,727,094
=============================================================================================================================
Wisconsin -- 1.4%
Milwaukee, Wisconsin, Revenue Bonds (Air Cargo),
AMT, 6.50%, 1/01/25 685 689,980
Wisconsin State, GO, AMT, Series B, 6.20%,
11/01/26 (f) 700 710,675
Wisconsin State Health and Educational Facilities
Authority, Revenue Refunding Bonds (Franciscan
Sisters Healthcare), 5%, 9/01/26 7,925 7,139,950
-------------
8,540,605
=============================================================================================================================
Wyoming -- 0.8%
Wyoming Community Development Authority,
Housing Revenue Bonds, AMT, Series 3,
4.75%, 12/01/37 5,315 4,624,103
=============================================================================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 13
Schedule of Investments (concluded) BlackRock MuniYield Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Puerto Rico -- 2.6%
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series N, 5.25%, 7/01/34 (m) $ 7,755 $ 8,283,426
Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series UU, 5%, 7/01/23 (e) 7,100 7,369,303
-------------
15,652,729
=============================================================================================================================
U.S. Virgin Islands -- 1.0%
Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery),
AMT, 6.125%, 7/01/22 6,250 6,237,625
-----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $897,594,673) -- 146.5% 894,644,333
=============================================================================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (n)
=============================================================================================================================
South Carolina -- 2.9%
Charleston Educational Excellence Financing
Corporation, South Carolina, Revenue Bonds
(Charleston County School District) (m):
5.25%, 12/1/28 7,795 8,095,809
5.25%, 12/1/29 6,920 7,178,116
5.25%, 12/1/30 2,510 2,598,754
-------------
17,872,679
=============================================================================================================================
Virginia -- 5.1%
Virginia State, HDA, Commonwealth Mortgage
Revenue Bonds, Series H, Sub-Series H-1,
5.375%, 7/1/36 (f) $30,390 31,034,543
=============================================================================================================================
Puerto Rico -- 6.2%
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, Series B, 5.875%, 7/1/35 (f) 30,000 32,487,900
Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series HH, 5.75%, 7/01/10 (c)(e) 5,000 5,354,150
-------------
37,842,050
-----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts
(Cost -- $86,026,320) -- 14.2% 86,749,272
=============================================================================================================================
Short-Term Securities Shares
=============================================================================================================================
Merrill Lynch Institutional Tax-Exempt Fund,
2.49% (o)(p) 6,231,470 6,231,470
-----------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $6,231,470) -- 1.0% 6,231,470
=============================================================================================================================
Total Investments (Cost -- $989,852,463*) -- 161.7% 987,625,075
Other Assets Less Liabilities -- 1.3% 8,131,109
Liability for Trust Certificates,
Including Interest Expense and Fees Payable -- (6.8%) (41,977,334)
Preferred Stock, at Redemption Value -- (56.2%) (343,223,181)
-------------
Net Assets Applicable to Common Stock -- 100.0% $ 610,555,669
=============
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ................................... $ 947,363,783
=============
Gross unrealized appreciation .................... $ 25,486,242
Gross unrealized depreciation .................... (26,786,215)
-------------
Net unrealized depreciation ...................... $ (1,299,973)
=============
(a) FHA Insured.
(b) GNMA Collateralized.
(c) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(d) AMBAC Insured.
(e) FSA Insured.
(f) MBIA Insured.
(g) FGIC Insured.
(h) Variable rate security. Rate shown is as of report date. Maturity shown is
the final maturity date.
(i) Non-income producing security.
(j) Represents a zero coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(k) XL Capital Insured.
(l) Radian Insured.
(m) Assured Guaranty Insured.
(n) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(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 $1,330,097 $129,525
-------------------------------------------------------------------------
(p) Represents the current yield as of report date.
(q) Issuer filed for bankruptcy or is in default of interest payments.
(r) Security is illiquid.
o Forward interest rate swap outstanding as of April 30, 2008 was as
follows:
-------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Depreciation
-------------------------------------------------------------------------
Pay a fixed rate of 3.646% and receive a floating
rate based on 1-week SIMFA Municipal Swap Index
Broker, JPMorgan Chase
Expires July 2023 $ 15,600 $(210,912)
-------------------------------------------------------------------------
See Notes to Financial Statements.
14 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments April 30, 2008 (Unaudited)
BlackRock MuniYield Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Alaska -- 0.5%
Alaska Energy Authority, Power Revenue Refunding
Bonds (Bradley Lake), Fourth Series,
6%, 7/01/18 (a) $ 3,695 $ 4,283,798
=============================================================================================================================
Arizona -- 5.5%
Downtown Phoenix Hotel Corporation, Arizona,
Revenue Bonds, Senior Series A, 5%, 7/01/36 (b) 21,355 20,036,115
Maricopa County and Phoenix, Arizona, IDA,
S/F Mortgage Revenue Bonds, AMT, Series A-2,
5.80%, 7/01/40 (c)(d) 7,750 7,636,308
Phoenix, Arizona, Civic Improvement Corporation,
Wastewater System Revenue Refunding Bonds,
5%, 7/01/37 (e) 13,000 13,296,660
Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds, 5%, 12/01/32 2,535 2,301,729
Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds, 5%, 12/01/37 7,750 6,927,648
-------------
50,198,460
=============================================================================================================================
California -- 33.4%
Alameda Corridor Transportation Authority, California,
Capital Appreciation Revenue Refunding Bonds,
Subordinate Lien, Series A, 5.40%, 10/01/24 (f)(o) 10,000 8,279,700
Alameda County, California, Joint Powers Authority,
Lease Revenue Refunding Bonds, 5%, 12/01/34 (a) 7,000 7,172,270
Antioch, California, Public Finance Authority, Lease
Revenue Refunding Bonds (Municipal Facilities
Project), Series A, 5.50%, 1/01/32 (e) 5,000 5,185,250
California State, GO, 5.50%, 4/01/30 (e) 10 10,430
California State, GO, Refunding:
5%, 4/01/38 10,000 9,968,800
5.25%, 3/01/38 20,000 20,477,000
California State Public Works Board, Lease
Revenue Bonds:
(Department of Corrections), Series C,
5.25%, 6/01/28 5,500 5,587,450
(Department of General Services), Series D,
5.25%, 6/01/28 3,755 3,814,704
(Department of Mental Health -- Coalinga
State Hospital), Series A, 5.125%, 6/01/29 5,250 5,281,080
California State, Various Purpose, GO, Refunding,
5%, 6/01/34 (h) 25,000 25,297,877
California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6%, 10/01/23 7,740 8,121,582
California Statewide Communities Development
Authority Revenue Bonds (Sutter Health), Series D,
5.05%, 8/15/38 (a) 7,500 7,553,325
California Statewide Communities Development
Authority, Water Revenue Bonds (Pooled Financing
Program), Series C, 5.25%, 10/01/34 (a) 4,205 4,338,298
Fairfield-Suisun, California, Unified School District,
GO (Election of 2002), 5.50%, 8/01/28 (e) 5,800 6,112,968
Gavilan, California, Joint Community College
District, GO (Election of 2004), Series A,
5.50%, 8/01/28 (f) 10,030 10,609,834
Las Virgenes, California, Unified School District, GO,
Series A, 5%, 8/01/31 (a) 10,000 10,278,300
Los Angeles, California, Community College
District, GO (Election of 2001), Series A,
5%, 8/01/32 (a)(b) 15,000 15,458,400
Los Angeles, California, Municipal Improvement
Corporation, Lease Revenue Bonds, Series B1,
4.75%, 8/01/37 (b) 15,000 14,628,450
Los Angeles, California, Unified School District, GO,
Series E, 5%, 7/01/30 (f) 10,000 10,204,600
Mendocino-Lake Community College District,
California, GO (Election of 2006), Series A,
5%, 8/01/31 (e) 10,985 11,187,893
Monterey Peninsula Community College District,
California, GO, CABS, Series C (a)(o):
5.13%, 8/01/30 13,020 3,735,829
5.17%, 8/01/33 13,350 3,226,829
Pasadena, California, Area Community College District,
GO (Election of 2002), Series B, 5%, 8/01/31 (f) 10,365 10,596,243
Port of Oakland, California, Revenue Refunding
Bonds, AMT, Series L, 5.375%, 11/01/27 (b)(e) 9,465 9,504,374
Redding, California, Electric System, COP, Series A,
5%, 6/01/30 (a) 2,900 2,959,769
Riverside County, California, Public Financing
Authority, Tax Allocation Revenue Bonds
(Redevelopment Projects), 5%, 10/01/35 (i) 10,000 9,499,200
Sacramento County, California, Airport System
Revenue Bonds, AMT, Senior Series A,
5%, 7/01/41 (a) 18,000 18,213,480
San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Bonds, 5%, 7/01/36 (a) 10,000 10,212,100
San Francisco, California, City and County Airport
Commission, International Airport Revenue Bonds,
AMT, Second Series, Issue 23A, 5%, 5/01/30 (b) 19,390 18,255,685
San Jose, California, Airport Revenue Refunding
Bonds, AMT, Series A, 5.50%, 3/01/32 (f) 12,965 13,063,145
San Mateo, California, Union High School District,
COP (Phase One Projects), Series B,
4.486%, 12/15/43 (f)(o) 3,250 1,548,625
Simi Valley, California, Unified School District, GO
(Election of 2004), Series C, 4.79%, 8/01/32 (a)(o) 10,000 2,763,400
Southern California Public Power Authority, Natural
Gas Project Number 1 Revenue Bonds, Series A,
5%, 11/01/33 2,000 1,908,540
Stockton, California, Public Financing Authority,
Lease Revenue Bonds (Parking & Capital Projects),
5.25%, 9/01/34 (b) 8,311 8,403,072
-------------
303,458,502
=============================================================================================================================
Colorado -- 1.6%
Colorado HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series A-3, Class III, 4.80%,
11/01/37 (e) 8,000 7,018,640
Colorado Health Facilities Authority, Revenue
Refunding Bonds (Poudre Valley Health Care),
Series C, 5.25%, 3/01/40 (a) 7,000 7,091,560
-------------
14,110,200
=============================================================================================================================
Connecticut -- 0.6%
Connecticut State Health and Educational Facilities
Authority Revenue Bonds (Yale University),
Series T-1, 4.70%, 7/01/29 5,000 5,065,150
=============================================================================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 15
Schedule of Investments (continued) BlackRock MuniYield Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
District of Columbia -- 1.2%
District of Columbia, Water and Sewer Authority,
Public Utility Revenue Refunding Bonds,
Subordinate Lien, Series A, 5%, 10/01/34 (j) $ 1,510 $ 1,535,715
Metropolitan Washington Airports Authority, D.C.,
Airport System Revenue Bonds, AMT, Series B,
5%, 10/01/32 (f) 10,000 9,486,400
-------------
11,022,115
=============================================================================================================================
Florida -- 8.8%
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
ARS, VRDN, Series F, 4.25%, 11/15/35 (a)(k) 4,075 4,075,000
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds, AMT:
DRIVERS, VRDN, Series 2586Z, 7.46%,
10/01/15 (i)(j)(k)(m) 37 32,124
(Miami International Airport), 5.375%,
10/01/25 (b) 10,750 10,683,458
(Miami International Airport), 5.375%,
10/01/27 (b) 1,000 993,400
(Miami International Airport), Series A,
5%, 10/01/38 (h) 5,000 4,563,900
Series E, 5.125%, 10/01/24 (e) 8,000 7,873,200
Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds, 5%, 7/01/39 (f) 10,000 9,936,800
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), VRDN, Series A-2, 2.50%,
10/01/41 (a)(k) 3,300 3,300,000
Orange County, Florida, School Board, COP, VRDN,
Series B, 3.50%, 8/01/27 (e)(k) 18,105 18,105,000
Orlando, Florida, Senior Tourist Development Tax
Revenue Bonds (6th Cent Contract Payments),
Series A, 5.25%, 11/01/38 (j) 15,000 15,498,600
Orlando-Orange County Expressway Authority, Florida,
Expressway Revenue Bonds, VRDN (f)(k):
Sub-Series D, 3.34%, 7/01/40 2,460 2,460,000
Sub-Series E, 3.34%, 7/01/40 2,540 2,540,000
-------------
80,061,482
=============================================================================================================================
Georgia -- 3.3%
Atlanta, Georgia, Airport General Revenue Refunding
Bonds, Series B, 5.25%, 1/01/33 (a) 12,500 12,890,625
Main Street Natural Gas, Inc., Georgia, Gas Project
Revenue Bonds, Series A, 6.25%, 7/15/33 6,635 6,559,560
Metropolitan Atlanta Rapid Transit Authority, Georgia,
Sales Tax Revenue Refunding Bonds, Third Indenture,
Series B, 5%, 7/01/37 (a) 10,000 10,288,300
-------------
29,738,485
=============================================================================================================================
Hawaii -- 0.6%
Hawaii State, GO, Series CX, 5.50%, 2/01/21 (a) 2,000 2,128,540
Hawaii State Harbor System Revenue Bonds, AMT,
Series A, 5%, 1/01/31 (a) 3,000 2,885,670
-------------
5,014,210
=============================================================================================================================
Idaho -- 0.0%
Idaho Housing and Financing Association,
S/F Mortgage Revenue Bonds, AMT, Series G-1,
Class III, 5.125%, 1/01/29 5 4,844
=============================================================================================================================
Illinois -- 11.9%
Chicago, Illinois, GO, Series C, 5%, 1/01/35 (e) 3,880 3,937,075
Chicago, Illinois, Midway Airport Revenue Bonds,
Second Lien, VRDN, AMT (e)(k):
Series A, 2.65%, 1/01/29 7,700 7,700,000
Series B, 2.65%, 1/01/29 2,800 2,800,000
Chicago, Illinois, O'Hare International Airport
Revenue Bonds, Third Lien, AMT, Series B-2:
5.25%, 1/01/27 (e) 16,685 16,546,514
6%, 1/01/29 (i) 17,200 17,604,028
Illinois Municipal Electric Agency, Power Supply
Revenue Bonds, Series A (b):
5%, 2/01/35 (e) 25,000 24,925,000
5.25%, 2/01/35 15,000 15,061,350
McLean and Woodford Counties, Illinois, Community
Unit School District Number 005, GO, Refunding,
6.375%, 12/01/16 (a) 1,215 1,351,384
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project), Series B,
5.75%, 6/15/23 (e) 4,800 5,153,232
Northern Illinois Municipal Power Agency, Power
Project Revenue Refunding Bonds (Prairie State
Project), Series A, 5%, 1/01/37 (e) 12,000 11,999,160
Regional Transportation Authority, Illinois, Revenue
Bonds, Series C, 7.75%, 6/01/20 (b) 1,000 1,283,900
-------------
108,361,643
=============================================================================================================================
Indiana -- 4.4%
Indiana Bond Bank, Special Program Gas Revenue
Bonds, Series A, 5.25%, 10/15/20 25,955 26,121,891
Indiana Health Facilities Financing Authority, Hospital
Revenue Bonds (Deaconess Hospital Obligated
Group), Series A, 5.375%, 3/01/34 (f) 2,250 2,288,677
Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A, 5.25%, 6/01/14 (b)(l) 10,000 11,121,200
-------------
39,531,768
=============================================================================================================================
Kentucky -- 2.2%
Louisville and Jefferson Counties, Kentucky,
Metropolitan Sewer District, Sewer and Drain
System Revenue Bonds, Series A, 5.25%,
5/15/37 (b) 20,005 20,279,469
=============================================================================================================================
Louisiana -- 1.9%
Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Bonds (Capital Projects and Equipment Acquisition
Program), Series A, 6.30%, 7/01/30 (f) 3,750 3,910,087
Louisiana State, Gas and Fuels Tax Revenue Bonds,
Series A, 5%, 5/01/36 (a) 10,000 10,171,500
New Orleans, Louisiana, GO (Public Improvements),
5%, 10/01/33 (e) 3,545 3,440,600
-------------
17,522,187
=============================================================================================================================
See Notes to Financial Statements.
16 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments (continued) BlackRock MuniYield Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Massachusetts -- 7.8%
Boston, Massachusetts, Housing Authority, Capital
Program Revenue Bonds (a):
5%, 4/01/23 $ 2,000 $ 2,090,640
5%, 4/01/27 2,000 2,067,900
5%, 4/01/28 2,720 2,799,234
Massachusetts State, HFA, Housing Development
Revenue Refunding Bonds, Series B, 5.40%,
12/01/28 (e) 2,500 2,570,875
Massachusetts State, HFA, Rental Housing Mortgage
Revenue Bonds, AMT, Series A, 5.15%, 7/01/26 (a) 12,365 12,392,203
Massachusetts State, HFA, S/F Housing Revenue
Bonds, AMT, Series 128, 4.875%, 12/01/38 (a) 12,950 11,722,340
Massachusetts State Port Authority Revenue Bonds,
Series A, 5%, 7/01/33 (e) 7,550 7,659,324
Massachusetts State Port Authority, Special Facilities
Revenue Refunding Bonds (BOSFUEL Project), AMT,
5%, 7/01/38 (b) 19,755 18,036,710
Massachusetts State Special Obligation Dedicated
Tax Revenue Bonds, 5.75%, 1/01/14 (b)(l) 10,000 11,158,300
--------------
70,497,526
=============================================================================================================================
Michigan -- 3.4%
Michigan Higher Education Student Loan Authority,
Student Loan Revenue Bonds, AMT, Series XVII-Q,
5%, 3/01/31 (f) 4,325 4,003,047
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison
Company Pollution Control Project), AMT (i):
Series A, 5.50%, 6/01/30 8,000 7,989,440
Series C, 5.65%, 9/01/29 5,000 5,052,450
Michigan State, HDA, Rental Housing Revenue
Bonds, AMT, Series B, 4.95%, 4/01/44 (a) 10,000 9,026,900
Wayne County, Michigan, Airport Authority, Revenue
Refunding Bonds, AMT, 5.375%, 12/01/32 (j) 5,000 4,955,950
--------------
31,027,787
=============================================================================================================================
Missouri -- 0.0%
Missouri State Housing Development Commission,
S/F Mortgage Revenue Bonds (Homeownership
Loan Program), AMT, Series C-1, 7.15%, 3/01/32 (c) 110 116,329
=============================================================================================================================
Nevada -- 6.1%
Clark County, Nevada, Airport System Subordinate
Lien Revenue Bonds, Series A-2, 5%, 7/01/30 (b) 25,000 24,636,000
Clark County, Nevada, IDR (Southwest Gas
Corporation Project), AMT, Series A, 5.25%,
7/01/34 (f) 12,675 11,535,391
Henderson, Nevada, Health Care Facilities Revenue
Bonds (Catholic Healthcare West), Series A,
5.625%, 7/01/24 6,000 6,138,960
Las Vegas, Nevada, Convention and Visitors Authority
Revenue Bonds, 5%, 7/01/37 (f) 11,950 11,930,999
Reno, Nevada, Capital Improvement Revenue Bonds,
5.50%, 6/01/19 (b) 1,165 1,193,100
--------------
55,434,450
=============================================================================================================================
New Jersey -- 3.3%
Garden State Preservation Trust of New Jersey,
Open Space and Farmland Preservation Revenue
Bonds, Series A, 5.75%, 11/01/28 (a) 10,000 11,292,700
New Jersey EDA, Cigarette Tax Revenue Bonds:
5.75%, 6/15/29 3,060 2,990,293
5.50%, 6/15/31 2,610 2,453,922
5.75%, 6/15/34 14,135 13,527,054
--------------
30,263,969
=============================================================================================================================
New Mexico -- 0.2%
New Mexico Educational Assistance Foundation,
Student Loan Revenue Refunding Bonds (Student
Loan Program), AMT, First Sub-Series A-2,
6.65%, 11/01/25 1,605 1,648,223
New Mexico Mortgage Finance Authority,
S/F Mortgage Revenue Bonds, AMT, Series C-2,
6.95%, 9/01/31 (c) 335 343,797
--------------
1,992,020
=============================================================================================================================
New York -- 8.4%
Metropolitan Transportation Authority, New York,
Commuter Facilities Revenue Refunding Bonds,
Series B, 5.125%, 7/01/24 (f)(m) 5,335 5,430,176
Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds, VRDN,
Series D-2, 3.50%, 11/01/34 (f)(k) 15,000 15,000,000
New York City, New York, GO:
Series J, 5.25%, 5/15/24 10,000 10,376,600
Series J, 5.25%, 5/15/25 1,000 1,036,590
Series M, 5%, 4/01/30 (j) 15,000 15,280,350
New York State Dormitory Authority, Non-State
Supported Debt Revenue Bonds (Presbyterian
Hospital of New York), 5%, 8/15/36 (a)(g) 10,000 10,096,000
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, AMT, 137th Series,
5.125%, 7/15/30 (a) 19,500 19,408,935
--------------
76,628,651
=============================================================================================================================
Ohio -- 2.4%
Cleveland, Ohio, Public Power System Revenue
Bonds, Series B, 5%, 11/15/38 (e) 2,000 2,014,080
Lorain County, Ohio, Hospital Revenue Refunding
Bonds (Catholic Healthcare Partners), Series C-2,
5%, 4/01/33 (a) 15,000 15,046,800
Montgomery County, Ohio, Revenue Bonds (Catholic
Health Initiatives), VRDN, Series C-1, 5%,
10/01/41 (a) 5,000 5,047,000
--------------
22,107,880
=============================================================================================================================
Oklahoma -- 1.0%
Oklahoma State Industries Authority, Health System
Revenue Refunding Bonds (Integris Baptist Medical
Center), Series A, 5.75%, 8/15/09 (e)(l) 8,675 9,149,176
=============================================================================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 17
Schedule of Investments (continued) BlackRock MuniYield Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Pennsylvania -- 3.1%
Pennsylvania State Turnpike Commission, Oil
Franchise Tax Revenue Bonds, Series C,
5%, 12/01/32 (e) $16,000 $ 16,409,440
Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, Series A1, 5%, 6/01/38 (j) 12,000 12,295,800
--------------
28,705,240
=============================================================================================================================
South Carolina -- 3.0%
Charleston Educational Excellence Financing
Corporation, South Carolina, Revenue Bonds
(Charleston County School District)(j):
5.25%, 12/01/28 3,895 4,045,308
5.25%, 12/01/29 3,465 3,594,244
5.25%, 12/01/30 1,160 1,201,018
Kershaw County, South Carolina, Public Schools
Foundation, Installment Power Revenue Refunding
Bonds (h):
5%, 12/01/30 3,775 3,641,138
5%, 12/01/31 3,690 3,551,404
South Carolina Housing Finance and Development
Authority, Mortgage Revenue Refunding Bonds,
AMT, Series A-2, 6.35%, 7/01/19 (a) 790 815,912
South Carolina Transportation Infrastructure Bank
Revenue Bonds, Series A, 5%, 10/01/29 (f) 10,000 10,058,600
--------------
26,907,624
=============================================================================================================================
Tennessee -- 0.6%
Tennessee HDA, Revenue Refunding Bonds
(Homeownership Program), AMT, Series A (a):
5.25%, 7/01/22 2,975 2,985,085
5.35%, 1/01/26 2,105 2,106,053
--------------
5,091,138
=============================================================================================================================
Texas -- 22.9%
Canyon, Texas, Regional Water Authority, Contract
Revenue Bonds (Wells Ranch Project), 5%,
8/01/32 (f) 8,435 8,502,733
Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Bonds, AMT:
Series A, 5%, 11/01/35 (a) 1,000 941,670
Series C-1, 5.75%, 11/01/18 (e) 15,000 15,147,150
Dallas-Fort Worth, Texas, International Airport Revenue
Refunding and Improvement Bonds, AMT,
Series A, 5.625%, 11/01/26 (b) 15,000 15,049,500
El Paso County, Texas, Hospital District, GO, Series A,
5%, 8/15/37 (j) 10,000 10,023,200
Friendswood, Texas, Independent School District, GO,
5%, 2/15/37 12,955 13,205,291
Harris County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Texas
Children's Hospital), VRDN, Series B-1, 2.60%,
10/01/29 (e)(k)(m) 3,200 3,200,000
Harris County, Texas, Hospital District, Senior Lien
Revenue Refunding Bonds, Series A, 5.25%,
2/15/37 (e) 10,000 10,161,100
Harris County-Houston Sports Authority, Texas,
Revenue Refunding Bonds, Senior Lien, Series G (e):
5.75%, 11/15/19 1,665 1,737,161
5.75%, 11/15/20 3,500 3,638,880
5.25%, 11/15/30 10,000 10,086,400
Houston, Texas, Combined Utility System, First Lien
Revenue Refunding Bonds, Series A, 5%,
11/15/36 (a) 10,695 10,930,932
Houston, Texas, Independent School District, GO,
5%, 2/15/33 10,000 10,206,100
Judson, Texas, Independent School District, School
Building, GO, 5%, 2/01/37 (j) 10,000 10,140,800
Matagorda County, Texas, Navigation District
Number 1, PCR, Refunding (Central Power and
Light Company Project), AMT, 5.20%, 5/01/30 (e) 6,250 6,051,125
North Texas Tollway Authority, Dallas North Tollway
System Revenue Bonds, Series A, 5%,
1/01/15 (a)(l) 5,890 6,429,524
North Texas Tollway Authority, Dallas North Tollway
System Revenue Bonds, Series A:
6%, 1/01/25 6,250 6,724,063
5.125%, 1/01/28 (e) 25,500 26,153,310
North Texas Tollway Authority, System Revenue
Refunding Bonds, Series B, 5.75%, 1/01/40 (e) 10,000 10,560,900
SA Energy Acquisition Public Facilities Corporation,
Texas, Gas Supply Revenue Bonds, 5.50%,
8/01/27 4,500 4,441,770
Texas State Department of Housing and Community
Affairs, S/F Mortgage Revenue Bonds, AMT,
Series A, 5.45%, 9/01/23 (c)(e) 4,705 4,729,984
Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A (f):
5.50%, 8/15/39 10,000 10,247,600
5%, 8/15/42 10,000 9,906,900
--------------
208,216,093
=============================================================================================================================
Vermont -- 0.4%
Vermont HFA, Revenue Refunding Bonds, AMT,
Series C, 5.50%, 11/01/38 (a) 3,000 2,973,690
Vermont HFA, S/F Housing Revenue Bonds, AMT,
Series 12B, 6.30%, 11/01/19 (a) 415 420,739
--------------
3,394,429
=============================================================================================================================
Virginia -- 0.5%
Fairfax County, Virginia, EDA, Residential Care
Facilities, Mortgage Revenue Refunding Bonds
(Goodwin House, Inc.), 5.125%, 10/01/42 2,750 2,359,940
Halifax County, Virginia, IDA, Exempt Facility Revenue
Refunding Bonds (Old Dominion Electric
Cooperative Project), AMT, 5.625%, 6/01/28 (f) 2,500 2,532,600
--------------
4,892,540
=============================================================================================================================
Washington -- 13.4%
Bellevue, Washington, GO, Refunding (e):
5.25%, 12/01/26 2,545 2,652,653
5.25%, 12/01/27 2,455 2,560,270
5.25%, 12/01/28 2,850 2,965,596
5.25%, 12/01/29 3,000 3,118,230
5%, 12/01/34 17,600 17,905,360
Chelan County, Washington, Public Utility District
Number 001, Consolidated Revenue Bonds
(Chelan Hydro System), AMT, Series A,
5.45%, 7/01/37 (f) 3,030 2,994,852
See Notes to Financial Statements.
18 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments (continued) BlackRock MuniYield Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Washington (concluded)
Chelan County, Washington, Public Utility District
Number 001, Consolidated Revenue Refunding
Bonds (Chelan Hydro System), AMT, Series C,
5.65%, 7/01/32 (e) $ 6,000 $ 6,037,020
King County, Washington, Public Hospital District
Number 001, GO, Refunding, Series A, 5%,
12/01/37 (j) 15,000 15,225,000
King County, Washington, Sewer Revenue Bonds,
5%, 1/01/37 (a) 15,785 16,112,223
Radford Court Properties, Washington, Student
Housing Revenue Bonds, 5.75%, 6/01/32 (e) 10,000 10,450,900
Seattle, Washington, Housing Authority Revenue
Bonds (High Rise Rehabilitation Program --
Phase 3), AMT, 5.15%, 11/01/27 (a) 6,255 6,089,868
Skagit County, Washington, Public Hospital District,
GO, Series A (e):
5.25%, 12/01/25 4,945 5,046,768
5.25%, 12/01/26 5,450 5,540,688
Tacoma, Washington, Regional Water Supply System,
Water Revenue Bonds, 5%, 12/01/32 (e) 5,300 5,369,060
Washington State Health Care Facilities Authority
Revenue Bonds (Providence Health System),
Series A, 5.25%, 10/01/21 (e) 7,000 7,297,291
Washington State, Motor Vehicle Fuel Tax, GO,
Series B, 5%, 7/01/31 (a) 12,035 12,309,639
--------------
121,675,418
=============================================================================================================================
West Virginia -- 0.7%
Harrison County, West Virginia, County Commission
for Solid Waste Disposal Revenue Bonds
(Monongahela Power), AMT, Series C, 6.75%,
8/01/24 (f) 5,925 5,937,561
=============================================================================================================================
Wisconsin -- 0.4%
Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (SynergyHealth Inc.),
6%, 11/15/32 3,395 3,318,205
=============================================================================================================================
Puerto Rico -- 0.3%
Puerto Rico Sales Tax Financing Corporation,
Sales Tax Revenue Refunding Bonds, Series A,
5.01%, 8/01/43 (e)(o) 20,000 2,776,800
-----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $1,399,473,572) -- 153.8% 1,396,785,149
=============================================================================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (q)
=============================================================================================================================
California -- 4.6%
California State University Revenue Systemwide --
Series A, 5%, 11/1/2016 (f) 18,435 18,905,277
California Statewide Cmn, 5.25%, 7/1/2047 (a) 12,000 12,219,720
Orange County, California, Sanitation District, COP
Series B, 5%, 2/1/2037 (a) 10,780 10,970,375
--------------
42,095,372
=============================================================================================================================
Florida -- 4.0%
Miami-Dade County Florida Aviation Revenue Bonds,
AMT, Miami International Airport, Airport and
Marina Imports, 5%, 10/1/2040 (i)(j) 15,000 13,641,184
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, Series A, 5%, 10/01/39 (e) 25,000 23,024,000
--------------
36,665,184
=============================================================================================================================
Illinois -- 4.8%
Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series C-2, 5.25%, 1/1/30 (a) 16,400 16,086,760
Chicago, Illinois, O'Hare International Airport Revenue
Bonds, Third Lien, AMT, Series B-2, 6%, 1/1/27 (e) 26,230 27,039,195
--------------
43,125,955
=============================================================================================================================
Indiana -- 1.3%
Indianapolis Indiana Gas Utilities Revenue Bonds,
2nd Lien -- Series B, 5.25%, 8/15/2027 (j) 11,000 11,370,370
==============================================================================================================================
Louisiana -- 3.2%
Louisiana Public Facilities Authority, Mortgage
Revenue Refunding Bonds (Baton Rouge General
Medical Center Project), 5.25%, 7/1/33 (e) 15,000 15,203,850
New Orleans, Louisiana, Aviation Board Revenue
Bonds, Airport and Marina Imports, AMT, Series A,
5.25%, 1/01/32 (a)(g) 14,030 13,749,540
--------------
28,953,390
=============================================================================================================================
New York -- 2.3%
New York State Dormitory Authority, Non-State
Supported Debt, 5.25%, 2/15/2031 (a) 20,000 20,602,600
=============================================================================================================================
Pennsylvania -- 3.9%
Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 100A, 5.35%, 10/01/33 20,000 19,484,000
Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, Series A, 5.50%, 12/1/31 (f) 15,600 16,339,908
--------------
35,823,908
=============================================================================================================================
Washington -- 4.1%
Central Puget Sound Regional Transportation
Authority, Washington, Sales and Use Tax Revenue
Bonds, Series A, 5%, 11/1/2034 (a) 17,000 17,190,759
Port Seattle, Washington, Revenue Refunding Bonds,
Series B, AMT, 5.20%, 7/1/29 (e) 20,565 20,022,907
--------------
37,213,666
-----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts
(Cost -- $259,645,491) -- 28.2% 255,850,445
=============================================================================================================================
Short-Term Securities Shares
=============================================================================================================================
Merrill Lynch Institutional Tax-Exempt Fund,
2.49% (n)(p) 312,813 312,813
-----------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $312,813) -- 0.0% 312,813
=============================================================================================================================
Total Investments (Cost -- $1,659,431,876*) -- 182.0% 1,652,948,407
Liabilities in Excess of Other Assets -- (5.0%) (45,068,474)
Liability for Trust Certificates,
Including Interest Expense and Fees Payable -- (14.2%) (128,948,439)
Preferred Stock, at Redemption Value -- (62.8%) (570,533,022)
--------------
Net Assets Applicable to Common Stock -- 100.0% $ 908,398,472
==============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 19
Schedule of Investments (concluded) BlackRock MuniYield Insured Fund, Inc.
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ...................................... $ 1,532,202,740
===============
Gross unrealized appreciation ....................... $ 20,573,912
Gross unrealized depreciation ....................... (28,039,121)
---------------
Net unrealized depreciation ......................... $ (7,465,209)
===============
(a) FSA Insured.
(b) FGIC Insured.
(c) FNMA/GNMA Collateralized.
(d) FHLMC Collateralized.
(e) MBIA Insured.
(f) AMBAC Insured.
(g) FHA Insured.
(h) CIFG Insured.
(i) XL Capital Insured.
(j) Assured Guaranty Insured.
(k) Variable rate security. Rate shown is as of report date. Maturity shown is
the final maturity date.
(l) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(m) Security is collateralized by municipal or U.S. Treasury obligations.
(n) Represents the current yield as of report date.
(o) Represents a zero coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(p) 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 (4,589,540) $193,534
-------------------------------------------------------------------------
(q) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
o Forward interest rate swap outstanding as of April 30, 2008 was as
follows:
------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Depreciation
------------------------------------------------------------------------
Pay a fixed rate of 3.337% and receive a
floating rate based on 1-week SIFMA Municipal
Swap Index
Broker, JPMorgan Chase
Expires July 2018 $247,000 $(1,041,599)
------------------------------------------------------------------------
See Notes to Financial Statements.
20 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments April 30, 2008 (Unaudited)
BlackRock MuniYield Quality Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Alabama -- 2.3%
Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 4.75%, 1/01/25 $ 3,000 $ 2,524,110
University of Alabama, General Revenue Bonds,
Series A, 5%, 7/01/34 (a) 7,275 7,394,165
--------------
9,918,275
=============================================================================================================================
Arizona -- 0.7%
Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds, 5%, 12/01/32 3,320 3,014,494
=============================================================================================================================
California -- 23.3%
Alameda Corridor Transportation Authority, California,
Capital Appreciation Revenue Refunding Bonds,
Subordinate Lien, Series A, 5.45%,
10/01/25 (b)(c) 4,150 3,428,564
Anaheim, California, Public Financing Authority,
Electric System Distribution Facilities Revenue
Bonds, Series A, 5%, 10/01/31 (d) 1,250 1,267,250
Arcadia, California, Unified School District, Capital
Appreciation, GO (Election of 2006), Series A,
4.96%, 8/01/39 (c)(d) 2,200 381,788
Cabrillo, California, Community College District, GO
(Election of 2004), Series B (a)(c):
5.20%, 8/01/37 3,250 601,477
4.87%, 8/01/38 7,405 1,282,694
California State, GO, 5.50%, 4/01/28 5 5,191
California State, GO, Refunding:
5.25%, 9/01/10 (e) 4,450 4,697,108
5.125%, 6/01/27 30 30,370
5.25%, 2/01/33 (f) 5,700 5,804,994
California State University, Systemwide Revenue
Bonds, Series A, 5%, 11/01/35 (g) 3,450 3,454,519
California State, Various Purpose, GO:
5.25%, 11/01/29 10,000 10,248,400
5.50%, 11/01/33 3,200 3,300,960
Chino Valley, California, Unified School District, GO
(Election of 2002), Series C, 5.25%, 8/01/30 (a) 1,200 1,237,848
Coast Community College District, California, GO,
Refunding (Election of 2002), Series C, 5.45%,
8/01/13 (c)(d) 2,800 2,113,356
East Side Union High School District, California,
Santa Clara County, GO (Election of 2002),
Series D, 5%, 8/01/26 (h) 2,150 2,155,031
Fresno, California, Unified School District, GO
(Election of 2001), Series E, 5%, 8/01/30 (d) 1,230 1,265,080
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series B, 5.50%, 6/01/13 (e)(h) 11,600 12,686,108
Los Angeles, California, Municipal Improvement
Corporation, Lease Revenue Bonds, Series B1,
4.75%, 8/01/37 (g) 3,410 3,325,534
Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B-1 (g):
5%, 10/01/29 4,000 4,081,600
5%, 10/01/36 2,275 2,309,398
Mount Diablo, California, Unified School District, GO
(Election of 2002), 5%, 7/01/27 (g) 2,000 2,003,480
Orange County, California, Sanitation District, COP:
5%, 2/01/33 (g) 2,750 2,777,610
Series B, 5%, 2/01/30 (d) 3,500 3,579,415
Series B, 5%, 2/01/31 (d) 1,200 1,226,364
Poway, California, Redevelopment Agency, Tax
Allocation Refunding Bonds (Paguay
Redevelopment Project), 5.125%, 6/15/33 (b) 2,000 2,003,140
Rancho Cucamonga, California, Redevelopment
Agency, Tax Allocation Refunding Bonds (Rancho
Redevelopment Project), Series A, 5%, 9/01/34 (a) 550 550,776
Sacramento, California, Unified School District, GO
(Election of 2002), 5%, 7/01/30 (a) 2,100 2,148,090
San Diego County, California, Water Authority, Water
Revenue Refunding Bonds, COP, Series A, 5%,
5/01/32 (a) 9,000 9,131,130
San Jose, California, Airport Revenue Refunding
Bonds, AMT, Series A, 5.50%, 3/01/32 (b) 5,300 5,340,121
San Mateo County, California, Community College
District, GO (Election of 2001), Series A, 5%,
9/01/26 (g) 2,725 2,780,127
Tamalpais, California, Union High School District, GO
(Election of 2001), 5%, 8/01/28 (d) 1,950 1,991,360
Ventura County, California, Community College District,
GO (Election of 2002), Series B, 5%, 8/01/30 (a) 3,150 3,215,048
--------------
100,423,931
=============================================================================================================================
Colorado -- 1.6%
Colorado Health Facilities Authority Revenue Bonds:
(Catholic Health Initiatives), Series A, 5.50%,
3/01/32 (i) 1,650 1,745,535
(Covenant Retirement Communities Inc.), Series A,
5.50%, 12/01/27 (f) 1,600 1,612,800
(Covenant Retirement Communities Inc.), Series A,
5.50%, 12/01/33 (f) 1,000 994,510
E-470 Public Highway Authority, Colorado, Capital
Appreciation Revenue Refunding Bonds, Series B,
5.485%, 9/01/29 (a)(c) 9,000 2,597,490
--------------
6,950,335
=============================================================================================================================
District of Columbia -- 0.9%
District of Columbia, GO, Series A, 4.75%, 6/01/36 (g) 1,090 1,030,224
District of Columbia, Revenue Refunding Bonds
(Catholic University of America) (b):
5.625%, 10/01/09 (e) 1,930 2,039,161
5.625%, 10/01/29 570 587,545
--------------
3,656,930
=============================================================================================================================
Florida -- 5.9%
Beacon Tradeport Community Development District,
Florida, Special Assessment Revenue Refunding
Bonds (Commercial Project), Series A, 5.625%,
5/01/32 (f) 2,235 2,240,073
Duval County, Florida, School Board, COP (Master
Lease Program), 5%, 7/01/33 (d) 3,100 3,145,353
Florida State Department of Environmental Protection,
Preservation Revenue Bonds, Series B, 5%,
7/01/27 (a) 2,845 2,922,469
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 21
Schedule of Investments (continued) BlackRock MuniYield Quality Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Florida (concluded)
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25%, 11/15/36 $ 5,415 $ 5,281,899
Miami, Florida, Special Obligation Revenue Bonds
(Street and Sidewalk Improvement Program), 5%,
1/01/37 (h)(l) 1,100 1,101,595
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT:
5%, 10/01/40 (h)(j) 6,300 5,875,947
Series A, 5%, 10/01/38 (k) 3,000 2,738,340
Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series B, 5.125%, 1/01/32 (g) 2,200 2,241,426
--------------
25,547,102
=============================================================================================================================
Georgia -- 5.8%
Atlanta, Georgia, Airport Passenger Facility Charge
and Subordinate Lien General Revenue Refunding
Bonds, Series C, 5%, 1/01/33 (d) 3,500 3,549,840
Atlanta, Georgia, Water and Wastewater Revenue Bonds:
5%, 11/01/34 (d) 4,270 4,331,487
Series A, 5%, 11/01/33 (a) 1,200 1,206,048
Series A, 5%, 11/01/39 (a) 2,525 2,531,616
Augusta, Georgia, Water and Sewer Revenue Bonds (d):
5.25%, 10/01/34 5,000 5,181,950
5.25%, 10/01/39 2,820 2,905,615
Monroe County, Georgia, Development Authority, PCR,
Refunding (Oglethorpe Power Corporation -- Scherer),
Series A, 6.80%, 1/01/11 4,785 5,172,107
--------------
24,878,663
=============================================================================================================================
Hawaii -- 0.5%
Hawaii State, GO, Series CX, 5.50%, 2/01/21 (d) 2,000 2,128,540
=============================================================================================================================
Illinois -- 19.8%
Chicago, Illinois, GO (Lakefront Millennium Parking
Facilities), 5.125%, 1/01/09 (a)(e) 5,000 5,198,150
Chicago, Illinois, O'Hare International Airport Revenue
Bonds, Third Lien, AMT, Series B-2:
5.75%, 1/01/23 (d) 3,400 3,510,738
5.75%, 1/01/24 (d) 4,000 4,122,320
6%, 1/01/29 (h) 3,300 3,377,517
Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A, 5.75%, 1/01/21 (a) 13,665 13,934,884
Chicago, Illinois, O'Hare International Airport, Revenue
Refunding Bonds, Third Lien, AMT, Series A-2,
5.75%, 1/01/21 (d) 2,665 2,763,738
Chicago, Illinois, Water Revenue Refunding Bonds,
Second Lien, 5.25%, 11/01/33 (d) 3,925 4,135,615
Cook County, Illinois, Capital Improvement, GO,
Series C, 5.50%, 11/15/12 (b)(e) 5,080 5,629,046
Illinois Sports Facilities Authority, State Tax Supported
Revenue Bonds (b):
5.212%, 6/15/30 (c) 28,525 26,079,552
5%, 6/15/32 5,500 5,526,840
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project):
5.50% 12/15/24 (g) 7,000 7,253,540
Series B, 5.75%, 6/15/23 (a) 3,500 3,757,565
--------------
85,289,505
=============================================================================================================================
Indiana -- 1.7%
Indianapolis, Indiana, Local Public Improvement
Bond Bank, Revenue Refunding Bonds (Indianapolis
Airport Authority Project), AMT, Series B (a):
5.25%, 1/01/28 2,470 2,439,989
5.25%, 1/01/30 5,055 4,945,812
--------------
7,385,801
=============================================================================================================================
Louisiana -- 4.5%
Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Bonds (Capital Projects and Equipment Acquisition
Program), Series A, 6.30%, 7/01/30 (b) 5,100 5,317,719
Louisiana State Citizens Property Insurance
Corporation, Assessment Revenue Bonds, Series B,
5%, 6/01/23 (b) 2,800 2,738,960
Louisiana State, Gas and Fuels Tax Revenue Bonds,
Series A, 4.75%, 5/01/39 (d) 7,050 6,937,553
Louisiana State Transportation Authority, Senior Lien
Toll Revenue Capital Appreciation Bonds, Series B,
5.31%, 12/01/27 (b)(c) 4,675 1,575,802
Rapides Financing Authority, Louisiana, Revenue
Bonds (Cleco Power LLC Project), AMT, 4.70%,
11/01/36 (b) 800 703,624
Terrebonne Parish, Louisiana, Hospital Service District
Number 1, Hospital Revenue Bonds (Terrebonne
General Medical Center Project), 5.50%,
4/01/33 (b) 1,900 1,959,850
--------------
19,233,508
=============================================================================================================================
Maryland -- 1.7%
Baltimore, Maryland, Convention Center Hotel
Revenue Bonds, Senior Series A, 5.25%,
9/01/39 (h) 7,115 7,347,162
=============================================================================================================================
Massachusetts -- 5.7%
Massachusetts Bay Transportation Authority, General
Transportation System Revenue Refunding Bonds,
Series A, 7%, 3/01/11 (a) 3,730 4,156,227
Massachusetts Bay Transportation Authority, Revenue
Refunding Bonds (General Transportation System),
Series A, 7%, 3/01/14 (a) 3,550 4,105,042
Massachusetts Bay Transportation Authority, Sales Tax
Refunding Bonds, Senior Series A-2, 5.209%,
7/01/35 (c) 13,400 3,069,136
Massachusetts State, HFA, Rental Housing Mortgage
Revenue Bonds, AMT, Series C, 5.60%, 1/01/45 (d) 4,000 4,083,000
Massachusetts State, HFA, S/F Housing Revenue
Bonds, AMT, Series 128, 4.80%, 12/01/27 (d) 2,200 2,049,102
Massachusetts State Port Authority, Special Facilities
Revenue Bonds (Delta Air Lines Inc. Project), AMT,
Series A, 5.50%, 1/01/19 (b) 3,825 3,637,958
See Notes to Financial Statements.
22 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments (continued) BlackRock MuniYield Quality Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Massachusetts (concluded)
Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A, 5%,
8/15/30 (d) $ 2,100 $ 2,147,481
Massachusetts State Water Resource Authority,
General Revenue Refunding Bonds, Series B,
5.125%, 8/01/27 (a) 1,210 1,242,295
--------------
24,490,241
=============================================================================================================================
Michigan -- 4.1%
Detroit, Michigan, Sewage Disposal System, Second
Lien Revenue Bonds, Series B, 5%, 7/01/36 (a)(g) 4,650 4,652,790
Michigan Higher Education Student Loan Authority,
Student Loan Revenue Refunding Bonds, AMT,
Series XVII-G, 5.20%, 9/01/20 (b) 2,300 2,278,587
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison Company
Pollution Control Project), AMT (h):
Series A, 5.50%, 6/01/30 1,700 1,697,756
Series C, 5.65%, 9/01/29 3,300 3,334,617
Series C, 5.45%, 12/15/32 5,800 5,729,878
--------------
17,693,628
=============================================================================================================================
Minnesota -- 0.9%
Dakota County, Minnesota, Community Development
Agency, S/F Mortgage Revenue Bonds (Mortgage-
Backed Securities Program), Series B, 5.15%,
12/01/38 (l)(m) 4,120 4,021,732
=============================================================================================================================
Nebraska -- 2.0%
Municipal Energy Agency of Nebraska, Power Supply
System Revenue Bonds, Series A, 5%, 4/01/33 (d) 6,315 6,402,652
Washington County, Nebraska, Wastewater Facilities
Revenue Bonds (Cargill Inc. Project), AMT, 5.90%,
11/01/27 2,300 2,410,883
--------------
8,813,535
=============================================================================================================================
Nevada -- 10.0%
Carson City, Nevada, Hospital Revenue Bonds
(Carson-Tahoe Hospital Project), Series A, 5.50%,
9/01/33 (f) 4,100 4,077,491
Clark County, Nevada, Airport System Subordinate
Lien Revenue Bonds, Series A-2 (g):
5%, 7/01/30 2,000 1,970,880
5%, 7/01/36 19,100 18,675,216
Clark County, Nevada, IDR (Southwest Gas Corp.
Project), AMT (g):
Series A, 4.75%, 9/01/36 2,300 1,836,619
Series D, 5.25%, 3/01/38 12,000 10,341,840
Washoe County, Nevada, School District, GO, 5.875%,
12/01/09 (d)(e) 5,710 6,026,562
--------------
42,928,608
=============================================================================================================================
New Hampshire -- 3.7%
New Hampshire Health and Education Facilities
Authority Revenue Bonds (Dartmouth-Hitchcock
Obligation Group), 5.50%, 8/01/27 (d) 10,000 10,580,600
New Hampshire State Business Finance Authority,
PCR, Refunding (Public Service Company), AMT,
Series D, 6%, 5/01/21 (a) 5,000 5,107,300
--------------
15,687,900
=============================================================================================================================
New Jersey -- 4.2%
New Jersey EDA, Cigarette Tax Revenue Bonds:
5.75%, 6/15/29 910 889,270
5.50%, 6/15/31 1,385 1,302,177
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25%, 7/01/31 (a) 5,500 5,651,140
New Jersey EDA, School Facilities Construction
Revenue Bonds, Series O:
5.125%, 3/01/28 2,660 2,737,805
5.125%, 3/01/30 7,500 7,679,625
--------------
18,260,017
=============================================================================================================================
New York -- 4.2%
Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project), Series A, 5.75%,
5/01/28 (d) 2,000 2,192,700
Metropolitan Transportation Authority, New York,
Revenue Bonds, Series B, 5%, 11/15/35 (a) 3,000 3,033,750
Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A, 5%,
11/15/32 (g) 8,990 8,998,361
Tobacco Settlement Financing Corporation of New
York Revenue Bonds, Series A-1, 5.25%, 6/01/22 (b) 3,570 3,674,030
--------------
17,898,841
=============================================================================================================================
Ohio -- 0.5%
Jackson, Ohio, Hospital Facilities Revenue Bonds
(Consolidated Health System -- Jackson Hospital),
6.125%, 10/01/09 (e)(f) 2,000 2,125,840
=============================================================================================================================
Oklahoma -- 0.5%
Tulsa, Oklahoma, Airports Improvement Trust, General
Revenue Bonds (Tulsa International Airport), AMT,
Series B (g):
6%, 6/01/19 1,000 1,013,780
6.125%, 6/01/26 1,000 1,013,060
--------------
2,026,840
=============================================================================================================================
Pennsylvania -- 1.7%
Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 99A, 5.25%, 10/01/32 2,000 1,925,360
Philadelphia, Pennsylvania, Authority for Industrial
Development, Lease Revenue Bonds, Series B,
5.50%, 10/01/11 (d)(e) 5,000 5,489,500
--------------
7,414,860
=============================================================================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 23
Schedule of Investments (continued) BlackRock MuniYield Quality Fund, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
South Carolina -- 1.6%
Berkeley County, South Carolina, School District,
Installment Lease Revenue Bonds (Securing Assets
for Education Project), 5.125%, 12/01/30 $ 3,750 $ 3,742,350
Kershaw County, South Carolina, Public Schools
Foundation, Installment Power Revenue Refunding
Bonds, 5%, 12/01/29 (k) 3,200 3,093,248
--------------
6,835,598
=============================================================================================================================
Tennessee -- 2.1%
Memphis-Shelby County, Tennessee, Airport Authority,
Airport Revenue Bonds, AMT, Series D, 6.25%,
3/01/18 (b) 5,000 5,147,650
Tennessee Energy Acquisition Corporation, Gas
Revenue Bonds, Series A, 5.25%, 9/01/26 4,035 3,892,000
--------------
9,039,650
=============================================================================================================================
Texas -- 17.0%
Bell County, Texas, Health Facilities Development
Revenue Bonds (Lutheran General Health Care
System), 6.50%, 7/01/19 (i) 1,000 1,190,280
Dallas-Fort Worth, Texas, International Airport Revenue
Refunding and Improvement Bonds, AMT, Series A (g):
5.875%, 11/01/17 1,835 1,871,957
5.875%, 11/01/18 2,145 2,180,607
5.875%, 11/01/19 2,385 2,420,489
Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Bonds, AMT, Series B, 6%, 11/01/23 (a) 800 808,328
Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good
Shepherd Medical Center Project) (e):
6.375%, 10/01/10 2,600 2,858,232
6.875%, 10/01/10 6,000 6,665,160
Harris County-Houston Sports Authority, Texas,
Revenue Refunding Bonds, Senior Lien, Series G,
5.75%, 11/15/20 (a) 4,000 4,158,720
Leander, Texas, Independent School District, Capital
Appreciation, GO, Refunding (School Building),
5.58%, 8/15/35 (c) 13,350 2,987,329
Lewisville, Texas, Independent School District, Capital
Appreciation and School Building, GO, Refunding,
4.748%, 8/15/24 (c)(g) 6,150 2,519,593
North Harris County, Texas, Regional Water Authority,
Senior Lien Revenue Bonds, 5.125%, 12/15/35 (a) 7,150 7,199,478
North Texas Tollway Authority, System Revenue
Refunding Bonds:
5.75%, 1/01/40 (a) 12,300 12,980,190
First Tier, Series A, 6%, 1/01/25 850 914,473
Texas State Affordable Housing Corporation, S/F
Mortgage Revenue Bonds (Professional Educators
Home Loan Program), AMT, Series A-1, 5.50%,
12/01/39 (l)(m) 2,083 2,011,601
Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A (b):
5.75%, 8/15/38 7,200 7,475,976
5%, 8/15/42 10,000 9,906,900
Travis County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.25%, 11/15/09 (a)(e) 4,600 4,916,250
--------------
73,065,563
=============================================================================================================================
Utah -- 4.0%
Salt Lake City, Utah, Hospital Revenue Refunding
Bonds (IHC Hospitals Inc.), 6.30%, 2/15/15 (a) 15,000 17,019,450
=============================================================================================================================
Vermont -- 0.2%
Vermont HFA, Revenue Refunding Bonds, AMT,
Series C, 5.50%, 11/01/38 (d) 1,000 991,230
=============================================================================================================================
Virginia -- 1.5%
Halifax County, Virginia, IDA, Exempt Facility Revenue
Refunding Bonds (Old Dominion Electric
Cooperative Project), AMT, 5.625%, 6/01/28 (b) 3,100 3,140,424
Virginia State, HDA, Commonwealth Mortgage
Revenue Bonds, Series H, Sub-Series H-1, 5.35%,
7/01/31 (a) 3,200 3,228,672
--------------
6,369,096
=============================================================================================================================
Washington -- 3.4%
Central Puget Sound Regional Transportation
Authority, Washington, Sales and Use Tax Revenue
Bonds, Series A, 5%, 11/01/32 (d) 2,500 2,566,600
King County, Washington, Sewer, GO, 5%, 1/01/35 (g) 880 891,387
Port of Tacoma, Washington, Revenue Refunding
Bonds, Series A, 5.25%, 12/01/14 (b)(e) 2,400 2,679,600
Tacoma, Washington, Regional Water Supply System,
Water Revenue Bonds, 5%, 12/01/32 (a) 5,100 5,166,453
Washington State, GO, Series A and AT-6, 6.25%,
2/01/11 (d) 3,185 3,372,151
--------------
14,676,191
=============================================================================================================================
Puerto Rico -- 0.3%
Puerto Rico Commonwealth Aqueduct and Sewer
Authority, Senior Lien Revenue Bonds, Series A, 6%,
7/01/44 (f) 1,200 1,263,349
=============================================================================================================================
Total Municipal Bonds
(Cost -- $584,784,493) -- 136.3% 586,396,415
=============================================================================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (n)
=============================================================================================================================
California -- 3.6%
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series B, 5.625% 6/1/13 (e)(k) 14,160 15,567,646
=============================================================================================================================
Florida -- 0.4%
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, Series A, 5% 10/01/40 (h) 1,900 1,772,111
=============================================================================================================================
Georgia -- 2.4%
Atlanta, Georgia, Airport Passenger Facility Charge,
Subordinate Lien Revenue Refunding Bonds,
Series C, 5% 1/1/33 (d) 10,000 10,142,400
=============================================================================================================================
See Notes to Financial Statements.
24 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments (concluded) BlackRock MuniYield Quality Fund, Inc.
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Par
Tender Option Bond Trusts (n) (000) Value
=============================================================================================================================
Illinois -- 4.1%
Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien,
AMT (a):
Series A, 5.50% 1/1/22 $ 5,000 $ 5,049,150
Series A, 5.375% 1/1/32 12,500 12,326,125
--------------
17,375,275
=============================================================================================================================
Massachusetts -- 3.4%
Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A, 5%
8/15/30 (d) 14,400 14,725,584
=============================================================================================================================
New Jersey -- 6.6%
New Jersey EDA, Cigarette Tax Revenue Bonds (j):
5.50% 6/15/24 7,150 7,356,420
5.50% 6/15/31 6,000 6,213,780
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25% 7/1/31 (a) 14,660 15,062,857
--------------
28,633,057
=============================================================================================================================
New York -- 5.8%
New York City, New York, GO, Series B, 5.875%
8/1/16 (a) 13,840 14,800,634
New York State Thruway Authority, General Revenue
Refunding Bonds, Series G, 5% 1/01/32 (d) 10,000 10,222,900
--------------
25,023,534
=============================================================================================================================
Oregon -- 3.8%
Portland, Oregon, Sewer System Revenue Bonds,
Series A, 5.75% 8/1/10 (e)(g) 15,000 16,083,300
=============================================================================================================================
Texas -- 2.6%
Denton, Texas, Utility System Revenue Bonds, Series
A, 6% 12/1/10 (d)(e) 10,470 11,371,781
=============================================================================================================================
Total Municipal Bonds Transferred to
Tender Option Bond Trusts
(Cost -- $139,924,206) -- 32.7% 140,694,688
=============================================================================================================================
Short-Term Securities Shares
=============================================================================================================================
Merrill Lynch Institutional Tax-Exempt Fund,
2.49% (o)(p) 16,027,208 16,027,208
=============================================================================================================================
Total Short-Term Securities
(Cost -- $16,027,208) -- 3.7% 16,027,208
=============================================================================================================================
Total Investments
(Cost -- $740,735,907*) -- 172.7% 743,118,311
Other Assets Less Liabilities -- 1.2% 5,349,188
Liability for Trust Certificates,
Including Interest Expense and Fees Payable -- (15.8%) (68,122,727)
Preferred Stock, at Redemption Value -- (58.1%) (250,147,281)
--------------
Net Assets Applicable to Common Stock -- 100.0% $ 430,197,491
==============
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 673,292,645
=============
Gross unrealized appreciation ........................ $ 15,281,520
Gross unrealized depreciation ........................ (12,984,544)
-------------
Net unrealized appreciation .......................... $ 2,296,976
=============
(a) MBIA Insured.
(b) AMBAC Insured.
(c) Represents a zero coupon or step bond. Rate shown reflects the effective
yield at the time of purchase.
(d) FSA Insured.
(e) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(f) Radian Insured.
(g) FGIC Insured.
(h) XL Capital Insured.
(i) Security is collateralized by municipal or U.S. Treasury obligations.
(j) Assured Guaranty Insured.
(k) CIFG Insured.
(l) FHLMC Collateralized.
(m) FNMA/GNMA Collateralized.
(n) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(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 15,019,537 $106,237
-------------------------------------------------------------------------
(p) Represents the current yield as of report date.
o Forward interest rate swap outstanding as of April 30, 2008 was as
follows:
-------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Depreciation
-------------------------------------------------------------------------
Pay a fixed rate of 3.665% and receive a floating
rate based on 1-week SIFMA Municipal
Swap Index
Broker, JPMorgan Chase
Expires July 2023 $20,000 $(291,400)
-------------------------------------------------------------------------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 25
Schedule of Investments April 30, 2008 (Unaudited)
BlackRock MuniYield Quality Fund II, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Alabama -- 1.7%
Jefferson County, Alabama, Limited Obligation
School Warrants, Series A, 4.75%, 1/01/25 $ 2,000 $ 1,682,740
University of Alabama, General Revenue Bonds,
Series A, 5%, 7/01/34 (a) 2,950 2,998,321
--------------
4,681,061
=============================================================================================================================
Arizona -- 2.4%
Salt Verde Financial Corporation, Arizona, Senior
Gas Revenue Bonds, 5%, 12/01/37 7,500 6,704,175
=============================================================================================================================
California -- 29.9%
Alameda Corridor Transportation Authority, California,
Capital Appreciation Revenue Refunding Bonds,
Subordinate Lien, Series A, 5.33%, 10/01/25 (b)(c) 7,150 5,907,044
Anaheim, California, Public Financing Authority,
Electric System Distribution Facilities Revenue
Bonds, Series A, 5%, 10/01/31 (d) 3,800 3,852,440
Antelope Valley, California, Community College
District, GO (Election of 2004), Series B,
5.25%, 8/01/39 (a) 550 573,452
Arcadia, California, Unified School District, Capital
Appreciation, GO (Election of 2006), Series A,
4.96%, 8/01/39 (c)(d) 1,400 242,956
Cabrillo, California, Community College District, GO
(Election of 2004), Series B (a)(c):
5.20%, 8/01/37 2,100 388,647
4.87%, 8/01/38 4,800 831,456
California Health Facilities Financing Authority
Revenue Bonds (Kaiser Permanente), Series A,
5.50%, 6/01/22 (d)(e) 5,000 5,108,500
California State, GO, Refunding:
5.25%, 9/01/10 (i) 2,200 2,322,166
5.125%, 6/01/27 20 20,246
5.25%, 2/01/33 (h) 3,900 3,971,838
5%, 6/01/37 (g) 5,700 5,774,556
California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C,
5%, 6/01/25 1,600 1,611,552
California State University, Systemwide Revenue
Bonds, Series A, 5%, 11/01/35 (f) 2,200 2,202,882
California State, Various Purpose, GO:
5.25%, 11/01/29 2,750 2,818,310
5.50%, 11/01/33 6,500 6,705,075
Coast Community College District, California, GO,
Refunding (Election of 2002), Series C,
5.45%, 8/01/13 (c)(d) 1,800 1,358,586
East Side Union High School District, California, Santa
Clara County, Capital Appreciation, GO (Election of
2002), Series E, 5.15%, 8/01/29 (c)(g) 15,000 4,618,650
East Side Union High School District, California, Santa
Clara County, GO (Election of 2002), Series D,
5%, 8/01/26 (g) 1,370 1,373,206
Fairfield-Suisun, California, Unified School District,
GO (Election of 2002), 5.50%, 8/01/28 (a) 2,770 2,919,469
Fresno, California, Unified School District, GO
(Election of 2001), Series E, 5%, 8/01/30 (d) 800 822,816
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series B, 5.50%, 6/01/13 (g)(i) 2,300 2,515,349
John Swett Unified School District, California, GO,
Series A, 5.50%, 8/01/26 (d) 2,815 2,975,990
Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B-1 (f):
5%, 10/01/29 2,600 2,653,040
5%, 10/01/36 1,475 1,497,302
Monterey Peninsula Community College District,
California, GO, CABS, Series C, 5.08%,
8/01/28 (c)(d) 11,975 3,882,056
Orange County, California, Sanitation District, COP,
5%, 2/01/33 (f) 2,300 2,323,092
Palm Springs, California, Financing Authority, Lease
Revenue Refunding Bonds (Convention Center
Project), Series A, 5.50%, 11/01/29 (a) 2,900 3,032,124
Poway, California, Redevelopment Agency, Tax
Allocation Refunding Bonds (Paguay
Redevelopment Project), 5.125%, 6/15/33 (b) 1,250 1,251,963
Rancho Cucamonga, California, Redevelopment
Agency, Tax Allocation Refunding Bonds (Rancho
Redevelopment Project), Series A, 5%, 9/01/34 (a) 375 375,529
Sacramento, California, Municipal Utility District,
Electric Revenue Bonds, Series N, 5%, 8/15/28 (a) 5,000 5,037,300
Sacramento, California, Unified School District, GO
(Election of 2002), 5%, 7/01/30 (a) 1,350 1,380,915
Tamalpais, California, Union High School District,
GO (Election of 2001), 5%, 8/01/28 (d) 1,325 1,353,103
Ventura County, California, Community College
District, GO (Election of 2002), Series B,
5%, 8/01/30 (a) 2,025 2,066,816
--------------
83,768,426
=============================================================================================================================
Colorado -- 1.7%
Colorado Health Facilities Authority Revenue Bonds,
(Catholic Health Initiatives), Series A,
5.50%, 3/01/32 (e) 1,150 1,216,585
Colorado Health Facilities Authority Revenue Bonds
(Covenant Retirement Communities Inc.) Series A (h):
5.50%, 12/01/27 1,200 1,209,600
5.50%, 12/01/33 676 671,294
E-470 Public Highway Authority, Colorado, Capital
Appreciation Revenue Refunding Bonds, Series B,
5.607%, 9/01/32 (a)(c) 7,500 1,783,500
--------------
4,880,979
=============================================================================================================================
District of Columbia -- 0.2%
District of Columbia, GO, Series A, 4.75%, 6/01/36 (f) 500 472,580
=============================================================================================================================
See Notes to Financial Statements.
26 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments (continued) BlackRock MuniYield Quality Fund II, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Florida -- 7.5%
Duval County, Florida, School Board, COP (Master
Lease Program), 5%, 7/01/33 (d) $ 2,000 $ 2,029,260
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25%, 11/15/36 3,050 2,975,031
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Refunding Bonds (Adventist
Health System), Series G, 5.125%, 11/15/32 1,700 1,639,038
Miami, Florida, Special Obligation Revenue Bonds
(Street and Sidewalk Improvement Program),
5%, 1/01/37 (a) 730 731,059
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, 5%, 10/01/40 (g)(j) 11,300 10,539,397
Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series B, 5.125%, 1/01/32 (f) 1,575 1,604,657
Peace River/Manasota Regional Water Supply
Authority, Florida, Utility System Revenue Bonds,
Series A, 5%, 10/01/30 (d) 1,365 1,390,348
--------------
20,908,790
=============================================================================================================================
Georgia -- 5.5%
Atlanta, Georgia, Airport Revenue Refunding Bonds,
Series A, 5.875%, 1/01/17 (f) 5,000 5,169,750
Atlanta, Georgia, Water and Wastewater
Revenue Bonds:
5%, 11/01/34 (d) 2,850 2,891,040
Series A, 5%, 11/01/33 (a) 800 804,032
Series A, 5%, 11/01/39 (a) 4,610 4,622,078
Augusta, Georgia, Water and Sewer Revenue Bonds,
5.25%, 10/01/39 (d) 1,880 1,937,077
--------------
15,423,977
=============================================================================================================================
Illinois -- 17.4%
Chicago, Illinois, O'Hare International Airport Revenue
Bonds, Third Lien, AMT, Series B-2:
5.75%, 1/01/23 (d) 5,200 5,369,364
6%, 1/01/29 (g) 2,200 2,251,678
Chicago, Illinois, Water Revenue Refunding Bonds,
Second Lien, 5.25%, 11/01/33 (d) 2,550 2,686,833
Cook County, Illinois, Capital Improvement, GO,
Series C, 5.50%, 11/15/12 (b)(i) 2,460 2,725,877
Illinois Regional Transportation Authority Revenue
Bonds, 6.50%, 7/01/26 (a) 10,000 12,364,200
Illinois Sports Facilities Authority, State Tax Supported
Revenue Bonds, 5.264%, 6/15/30 (b)(c) 21,675 19,816,802
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Bonds (McCormick
Place Expansion), Series A, 5%, 12/15/28 (a) 3,500 3,566,290
--------------
48,781,044
=============================================================================================================================
Louisiana -- 7.0%
Jefferson Parish, Louisiana, Home Mortgage Authority,
S/F Mortgage Revenue Bonds, AMT, Series B-1,
6.65%, 12/01/33 (a)(k) 1,490 1,564,917
Lafayette, Louisiana, Utilities Revenue Bonds,
5%, 11/01/28 (a) 5,500 5,560,830
Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Bonds (Capital Projects and Equipment Acquisition
Program), Series A, 6.30%, 7/01/30 (b) 2,300 2,398,187
Louisiana State Citizens Property Insurance
Corporation, Assessment Revenue Bonds,
Series B, 5%, 6/01/23 (b) 1,800 1,760,760
Louisiana State, Gas and Fuels Tax Revenue Bonds,
Series A (d):
5%, 5/01/36 2,350 2,390,302
4.75%, 5/01/39 1,975 1,943,499
Louisiana State Transportation Authority, Senior Lien
Toll Revenue Capital Appreciation Bonds, Series B,
5.31%, 12/01/27 (b)(c) 3,185 1,073,568
Rapides Financing Authority, Louisiana, Revenue
Bonds (Cleco Power LLC Project), AMT,
4.70%, 11/01/36 (b) 1,750 1,539,178
Terrebonne Parish, Louisiana, Hospital Service
District Number 1, Hospital Revenue Bonds
(Terrebonne General Medical Center Project),
5.50%, 4/01/33 (b) 1,300 1,340,950
--------------
19,572,191
=============================================================================================================================
Massachusetts -- 3.4%
Massachusetts Bay Transportation Authority, Sales
Tax Revenue Refunding Bonds, Senior Series A-2,
5.12%, 7/01/35 (c) 2,290 524,502
Massachusetts State, HFA, S/F Housing Revenue
Bonds, AMT, Series 128, 4.80%, 12/01/27 (d) 1,500 1,397,115
Massachusetts State Port Authority, Special Facilities
Revenue Bonds (Delta Air Lines Inc. Project), AMT,
Series A (b):
5.50%, 1/01/16 2,900 2,851,773
5.50%, 1/01/19 2,670 2,539,437
Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A,
5%, 8/15/30 (d) 1,400 1,431,654
Massachusetts State Water Resource Authority,
General Revenue Refunding Bonds, Series B,
5.125%, 8/01/27 (a) 840 862,420
--------------
9,606,901
=============================================================================================================================
Michigan -- 3.2%
Detroit, Michigan, Sewage Disposal System, Second
Lien Revenue Bonds, Series B, 5%, 7/01/36 (a)(f) 3,000 3,001,800
Michigan Higher Education Student Loan Authority,
Student Loan Revenue Refunding Bonds, AMT,
Series XVII-G, 5.20%, 9/01/20 (b) 1,000 990,690
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison
Company Pollution Control Project), AMT (g):
Series A, 5.50%, 6/01/30 1,000 998,680
Series C, 5.45%, 12/15/32 3,900 3,852,849
--------------
8,844,019
=============================================================================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 27
Schedule of Investments (continued) BlackRock MuniYield Quality Fund II, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Minnesota -- 0.9%
Dakota County, Minnesota, Community Development
Agency, S/F Mortgage Revenue Bonds (Mortgage-
Backed Securities Program), Series B,
5.15%, 12/01/38 (k)(l) $ 2,649 $ 2,585,396
=============================================================================================================================
Missouri -- 2.1%
Saint Louis County, Missouri, Pattonville R-3 School
District, GO (Missouri Direct Deposit Program)(f)(i):
5.75%, 3/01/10 4,000 4,278,920
6%, 3/01/10 1,500 1,611,300
--------------
5,890,220
=============================================================================================================================
Nebraska -- 0.5%
Municipal Energy Agency of Nebraska, Power Supply
System Revenue Bonds, Series A, 5%, 4/01/33 (d) 1,300 1,318,044
=============================================================================================================================
Nevada -- 3.1%
Carson City, Nevada, Hospital Revenue Bonds
(Carson-Tahoe Hospital Project), Series A,
5.50%, 9/01/33 (h) 2,800 2,784,628
Clark County, Nevada, Airport System Subordinate
Lien Revenue Bonds, Series A-2 (f):
5%, 7/01/30 1,500 1,478,160
5%, 7/01/36 2,700 2,639,952
Clark County, Nevada, IDR (Southwest Gas Corp.
Project), AMT, Series A, 4.75%, 9/01/36 (f) 2,200 1,756,766
--------------
8,659,506
=============================================================================================================================
New Jersey -- 5.9%
New Jersey EDA, Cigarette Tax Revenue Bonds:
5.75%, 6/15/29 1,070 1,045,625
5.50%, 6/15/31 500 470,100
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (a):
5%, 7/01/29 2,400 2,422,656
5.25%, 7/01/33 4,800 4,924,128
New Jersey EDA, School Facilities Construction
Revenue Bonds:
Series O, 5.125%, 3/01/28 3,380 3,478,865
Series P, 5.125%, 9/01/28 4,000 4,124,240
--------------
16,465,614
=============================================================================================================================
New Mexico -- 2.4%
New Mexico State Highway Commission, Tax
Revenue Bonds, Senior Sub-Lien, Series A,
6%, 6/15/2010 (d)(i) 6,295 6,755,479
=============================================================================================================================
New York -- 8.3%
Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A,
5%, 11/15/32 (f) 1,800 1,801,674
Nassau Health Care Corporation, New York, Health
System Revenue Bonds, 5.75%, 8/01/09 (d)(i) 9,280 9,868,259
New York State Dormitory Authority, Revenue
Refunding Bonds (State University Educational
Facilities), 5.75%, 5/15/10 (f)(i) 5,000 5,386,150
Tobacco Settlement Financing Corporation of New York
Revenue Bonds, Series A-1, 5.25%, 6/01/22 (b) 6,115 6,293,191
--------------
23,349,274
=============================================================================================================================
Ohio -- 2.5%
Plain, Ohio, Local School District, GO, Refunding (f):
6%, 6/01/11 (i) 5,120 5,618,074
6%, 12/01/20 1,170 1,247,407
--------------
6,865,481
=============================================================================================================================
Pennsylvania -- 0.5%
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, 6%, 1/01/17 (d) 5 5,261
Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 99A, 5.25%, 10/01/32 1,340 1,289,991
--------------
1,295,252
=============================================================================================================================
Rhode Island -- 1.5%
Rhode Island State Health and Educational Building
Corporation, Higher Education Facilities Revenue
Bonds (University of Rhode Island), Series A,
5.70%, 9/15/09 (a)(i) 4,010 4,229,828
=============================================================================================================================
South Carolina -- 5.2%
Berkeley County, South Carolina, School District,
Installment Lease Revenue Bonds (Securing Assets
for Education Project), 5.125%, 12/01/30 2,450 2,445,002
Kershaw County, South Carolina, Public Schools
Foundation, Installment Power Revenue Refunding
Bonds, 5%, 12/01/29 (n) 2,075 2,005,778
South Carolina Transportation Infrastructure Bank
Revenue Bonds, Series A, 5%, 10/01/33 (b) 10,000 10,038,900
--------------
14,489,680
=============================================================================================================================
Tennessee -- 1.8%
Tennessee Energy Acquisition Corporation,
Gas Revenue Bonds:
Series A, 5.25%, 9/01/26 3,920 3,781,075
Series C, 5%, 2/01/27 1,500 1,394,565
--------------
5,175,640
=============================================================================================================================
Texas -- 12.8%
Corpus Christi, Texas, Utility System Revenue
Refunding Bonds, Series A, 6%, 7/15/10 (d)(i) 2,000 2,152,480
Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Bonds, AMT, Series B, 6%, 11/01/23 (a) 600 606,246
Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good
Shepherd Medical Center Project), 6.875%,
10/01/10 (h)(i) 4,000 4,443,440
Leander, Texas, Independent School District, Capital
Appreciation, GO, Refunding (School Building),
5.58%, 8/15/35 (c)(m) 8,800 1,969,176
Lewisville, Texas, Independent School District, Capital
Appreciation and School Building, GO, Refunding,
4.67%, 8/15/24 (c)(f) 3,915 1,603,936
Lower Colorado River Authority, Texas, PCR (Samsung
Austin Semiconductor), AMT, 6.375%, 4/01/27 3,500 3,503,185
Matagorda County, Texas, Navigation District
Number 1, PCR, Refunding (Central Power and Light
Company Project), AMT, 5.20%, 5/01/30 (a) 2,250 2,178,405
North Harris County, Texas, Regional Water Authority,
Senior Lien Revenue Bonds, 5.125%, 12/15/35 (a) 4,924 4,959,081
North Texas Tollway Authority, System Revenue
Refunding Bonds:
5.75%, 1/01/40 (a) 3,600 3,799,080
First Tier, Series A, 6%, 1/01/25 525 564,821
See Notes to Financial Statements.
28 SEMI-ANNUAL REPORT APRIL 30, 2008
Schedule of Investments (continued) BlackRock MuniYield Quality Fund II, Inc.
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================================================
Texas (concluded)
Texas State Affordable Housing Corporation, S/F
Mortgage Revenue Bonds (Professional Educators
Home Loan Program), AMT, Series A-1, 5.50%,
12/01/39 (k)(l) $ 1,289 $ 1,245,278
Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A (b):
5.75%, 8/15/38 4,800 4,983,984
5.50%, 8/15/39 3,600 3,689,136
--------------
35,698,248
=============================================================================================================================
Vermont -- 1.1%
Vermont HFA, Revenue Refunding Bonds, AMT,
Series C, 5.50%, 11/01/38 (d) 700 693,861
Vermont HFA, S/F Housing Revenue Bonds, AMT,
Series 27, 4.85%, 11/01/32 (d) 2,755 2,519,007
--------------
3,212,868
=============================================================================================================================
Virginia -- 1.5%
Halifax County, Virginia, IDA, Exempt Facility Revenue
Refunding Bonds (Old Dominion Electric
Cooperative Project), AMT, 5.625%, 6/01/28 (b) 2,100 2,127,384
Virginia State, HDA, Commonwealth Mortgage
Revenue Bonds, Series H, Sub-Series H-1,
5.35%, 7/01/31 (a) 2,000 2,017,920
--------------
4,145,304
=============================================================================================================================
Washington -- 6.4%
Port of Seattle, Washington, Revenue Bonds, AMT,
Series B, 6%, 2/01/16 (a) 7,470 7,657,945
Port of Tacoma, Washington, GO, AMT, Series B,
4.875%, 12/01/38 (j) 2,100 1,995,966
Port of Tacoma, Washington, Revenue Refunding
Bonds, Series A, 5.25%, 12/01/14 (b)(i) 1,600 1,786,400
Seattle, Washington, Municipal Light and Power
Revenue Bonds, 6%, 10/01/09 (a)(i) 6,150 6,530,747
--------------
17,971,058
-----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $380,470,586) -- 136.4% 381,751,035
=============================================================================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (o)
=============================================================================================================================
Florida -- 0.4%
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, Series A, 5% 10/01/40 (g) 1,250 1,165,863
=============================================================================================================================
Georgia -- 8.0%
Atlanta, Georgia, Airport Passenger Facility Charge,
Subordinate Lien Revenue Refunding Bonds,
Series C, 5% 1/1/33 (d) 17,000 17,242,080
Atlanta, Georgia, Airport Revenue Bonds, Airport and
Marina Imports, Series B, 5.25% 1/01/33 (d) 5,000 5,156,250
--------------
22,398,330
=============================================================================================================================
Illinois -- 6.2%
Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A, 5.50% 1/1/22 (a) 9,500 9,593,385
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project), Series B,
5.75% 6/15/23 (a) 7,250 7,783,527
--------------
17,376,912
=============================================================================================================================
Massachusetts -- 8.9%
Massachusetts State HFA, Housing Revenue Bonds
(Rental Mortgage), AMT, Series F, 5.25% 1/1/46 (d) 20,000 18,785,600
Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A,
5% 8/15/30 (d) 5,800 5,931,138
--------------
24,716,738
=============================================================================================================================
New Jersey -- 3.2%
New Jersey EDA, Cigarette Tax Revenue Bonds (j):
5.50% 6/15/24 4,600 4,747,265
5.50% 6/15/31 4,000 4,128,057
--------------
8,875,322
=============================================================================================================================
South Carolina -- 3.3%
Charleston Educational Excellence Financing
Corporation, South Carolina, Revenue Bonds
(Charleston County School District) (j):
5.25% 12/1/28 2,725 2,830,158
5.25% 12/1/29 2,425 2,515,452
5.25% 12/1/30 880 911,117
Pickens County South Carolina, Scago Educational
Facility Revenue Bonds, Federal and State
Tax-exempt, 5% 12/1/31 (d) 3,000 3,039,570
--------------
9,296,297
=============================================================================================================================
Texas -- 1.8%
Dallas-Fort Worth, Texas, International Airport Revenue
Bonds, AMT, Series A, 5.50% 11/1/33 (a) 5,000 5,002,350
=============================================================================================================================
Total Municipal Bonds Transferred to
Tender Option Bond Trusts
(Cost -- $91,833,354) -- 31.8% 88,831,812
=============================================================================================================================
Short-Term Securities Shares
=============================================================================================================================
Merrill Lynch Institutional Tax-Exempt Fund,
2.49% (p)(q) 11,217,179 11,217,179
-----------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $11,217,179) -- 4.0% 11,217,179
=============================================================================================================================
Total Investments (Cost -- $483,521,119*) -- 172.2% 481,800,026
Other Assets Less Liabilities -- 1.0% 2,768,608
Liability for Trust Certificates,
Including Interest Expense and Fees Payable -- (16.0%) (44,629,595)
Preferred Stock, at Redemption Value -- (57.2%) (160,123,793)
--------------
Net Assets Applicable to Common Stock -- 100.0% $ 279,815,246
==============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 29
Schedule of Investments (concluded) BlackRock MuniYield Quality Fund II, Inc.
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 439,394,676
=============
Gross unrealized appreciation ........................ $ 8,463,101
Gross unrealized depreciation ........................ (10,272,751)
-------------
Net unrealized depreciation .......................... $ (1,809,650)
=============
(a) MBIA Insured.
(b) AMBAC Insured.
(c) Represents a zero coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(d) FSA Insured.
(e) Security is collateralized by municipal or U.S. Treasury obligations.
(f) FGIC Insured.
(g) XL Capital Insured.
(h) Radian Insured.
(i) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(j) Assured Guaranty Insured.
(k) FNMA/GNMA Collateralized.
(l) FHLMC Collateralized.
(m) PSF Guaranteed
(n) CIFG Insured.
(o) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(p) 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 9,909,999 $72,731
-------------------------------------------------------------------------
(q) Represents the current yield as of report date.
o Forward rate interest swaps outstanding as of April 30, 2008 were as
follows:
--------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Depreciation
--------------------------------------------------------------------------
Pay a fixed rate of 3.6% and receive a
floating rate based on 1-week SIMFA
Municipal Swap Index
Broker, JPMorgan Chase
Expires June 2023 $ 17,000 $(160,446)
Pay a fixed rate of 3.734% and receive a
floating rate based on 1-week SIMFA
Municipal Swap Index
Broker, JPMorgan Chase
Expires May 2028 $ 9,000 (117,342)
Pay a fixed rate of 3.958% and receive a
floating rate based on 1-week SIMFA
Municipal Swap Index
Broker, JPMorgan Chase
Expires May 2028 $ 9,500 (396,207)
--------------------------------------------------------------------------
Total $(673,995)
=========
See Notes to Financial Statements.
30 SEMI-ANNUAL REPORT APRIL 30, 2008
Statements of Assets and Liabilities
BlackRock BlackRock BlackRock
BlackRock MuniYield MuniYield MuniYield
MuniYield Insured Quality Quality
April 30, 2008 (Unaudited) Fund, Inc. Fund, Inc. Fund, Inc. Fund II, Inc.
====================================================================================================================================
Assets
------------------------------------------------------------------------------------------------------------------------------------
Investments at value -- unaffiliated 1 ..................... $ 981,393,605 $1,652,635,594 $ 727,091,103 $ 470,582,847
Investments at value -- affiliated 2 ....................... 6,231,470 312,813 16,027,208 11,217,179
Cash ....................................................... 48,476 5,622 251,559 87,484
Investment sold receivable ................................. 50,778,587 27,888,177 -- --
Interest receivable ........................................ 16,592,129 20,629,133 10,747,461 6,788,456
Dividends receivable -- affiliated ......................... -- 40 18 --
Other assets ............................................... 16,235 24,197 11,310 --
Prepaid expenses ........................................... 3,764 5,470 2,930 2,235
--------------------------------------------------------------------
Total assets ............................................... 1,055,064,266 1,701,501,046 754,131,589 488,678,201
--------------------------------------------------------------------
====================================================================================================================================
Accrued Liabilities
------------------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on forward interest rate swaps ..... 210,912 1,041,599 291,400 673,995
Investments purchased payable .............................. 55,473,686 88,004,895 3,292,075 2,057,547
Income dividends payable -- Common Stock ................... 3,075,450 3,768,975 1,734,240 1,118,347
Interest expense and fees payable .......................... 399,834 713,366 582,727 414,595
Investment advisory fees payable ........................... 388,024 600,934 275,586 178,141
Officer and Directors fees payable ......................... 36,891 24,449 10,910 --
Other affiliates payable ................................... 5,602 8,725 3,920 2,582
Other accrued expenses and other liabilities ............... 117,517 171,536 55,959 78,955
--------------------------------------------------------------------
Total accrued liabilities .................................. 59,707,916 94,334,479 6,246,817 4,524,162
--------------------------------------------------------------------
====================================================================================================================================
Other Liabilities
------------------------------------------------------------------------------------------------------------------------------------
Trust certificates 3 ....................................... 41,577,500 128,235,073 67,540,000 44,215,000
--------------------------------------------------------------------
Total Liabilities .......................................... 101,285,416 222,569,552 73,786,817 48,739,162
--------------------------------------------------------------------
====================================================================================================================================
Preferred Stock
------------------------------------------------------------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value
$0.05 and $0.10 per share 4 at $25,000 per share
liquidation preference ................................... 343,223,181 570,533,022 250,147,281 160,123,793
--------------------------------------------------------------------
====================================================================================================================================
Net Assets Applicable to Common Stock
------------------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Stock ...................... $ 610,555,669 $ 908,398,472 $ 430,197,491 $ 279,815,246
====================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 31
Statements of Assets and Liabilities (concluded)
BlackRock BlackRock BlackRock
BlackRock MuniYield MuniYield MuniYield
MuniYield Insured Quality Quality
April 30, 2008 (Unaudited) Fund, Inc. Fund, Inc. Fund, Inc. Fund II, Inc.
====================================================================================================================================
Net Assets Applicable to Common Stock Shareholders Consist of
------------------------------------------------------------------------------------------------------------------------------------
Common Stock, par value $0.10 per share 5 .................. $ 4,522,721 $ 6,730,313 $ 3,042,526 $ 2,236,693
Paid-in capital in excess of par ........................... 643,741,515 943,024,418 423,217,034 311,575,727
Undistributed net investment income ........................ 2,459,956 6,465,444 1,960,154 1,279,559
Accumulated net realized losses ............................ (37,730,223) (40,296,635) (113,227) (32,881,645)
Net unrealized appreciation/depreciation ................... (2,438,300) (7,525,068) 2,091,004 (2,395,088)
---------------------------------------------------------------------
Net Assets Applicable to Common Stock shareholders ......... $ 610,555,669 $ 908,398,472 $ 430,197,491 $ 279,815,246
=====================================================================
Net asset value per share of Common Stock .................. $ 13.50 $ 13.50 $ 14.14 $ 12.51
=====================================================================
1 Investments at cost -- unaffiliated ................... $ 983,620,993 $ 1,659,119,063 $ 724,708,699 $ 472,303,940
=====================================================================
2 Investments at cost -- affiliated ..................... $ 6,231,470 $ 312,813 $ 16,027,208 $ 11,217,179
=====================================================================
3 Represents short-term floating rate certificates
issued by tender option bond trusts.
=====================================================================
4 Preferred Stock authorized, issued and outstanding:
Series A Shares, $0.05 per share .................... 1,800 -- 2,000 2,000
=====================================================================
Series A Shares, $0.10 per share .................... -- 2,200 -- --
=====================================================================
Series B Shares, $0.05 per share .................... 1,800 -- 2,000 2,000
=====================================================================
Series B Shares, $0.10 per share .................... -- 2,200 -- --
=====================================================================
Series C Shares, $0.05 per share .................... 1,800 -- 2,000 2,000
=====================================================================
Series C Shares, $0.10 per share .................... -- 2,200 -- --
=====================================================================
Series D Shares, $0.05 per share .................... 1,800 -- 2,000 --
=====================================================================
Series D Shares, $0.10 per share .................... -- 2,200 -- 400
=====================================================================
Series E Shares, $0.05 per share .................... 2,800 -- 2,000 --
=====================================================================
Series E Shares, $0.10 per share .................... -- 4,000 -- --
=====================================================================
Series F Shares, $0.05 per share .................... 1,720 -- -- --
=====================================================================
Series F Shares, $0.10 per share .................... -- 2,400 -- --
=====================================================================
Series G Shares, $0.05 per share .................... 2,000 -- -- --
=====================================================================
Series G Shares, $0.10 per share .................... -- 2,400 -- --
=====================================================================
Series H Shares, $0.10 per share .................... -- 2,600 -- --
=====================================================================
Series I Shares, $0.10 per share .................... -- 2,600 -- --
=====================================================================
5 Common Stock issued and outstanding ................... 45,227,209 67,303,125 30,425,258 22,366,930
=====================================================================
See Notes to Financial Statements.
32 SEMI-ANNUAL REPORT APRIL 30, 2008
Statements of Operations
BlackRock BlackRock BlackRock
BlackRock MuniYield MuniYield MuniYield
MuniYield Insured Quality Quality
Six Months Ended April 30, 2008 (Unaudited) Fund, Inc. Fund, Inc. Fund, Inc. Fund II, Inc.
===================================================================================================================================
Investment Income
-----------------------------------------------------------------------------------------------------------------------------------
Interest ............................................................... $ 27,148,731 $ 38,249,219 $ 18,567,255 $ 12,197,027
Dividends from affiliates .............................................. 129,525 193,534 106,237 72,731
---------------------------------------------------------
Total income ........................................................... 27,278,256 38,442,753 18,673,492 12,269,758
---------------------------------------------------------
===================================================================================================================================
Expenses
-----------------------------------------------------------------------------------------------------------------------------------
Investment advisory .................................................... 2,413,132 3,747,967 1,715,283 1,109,501
Accounting services .................................................... 132,069 161,810 90,534 72,491
Commissions for Preferred Stock ........................................ 421,482 704,779 312,280 204,553
Transfer agent ......................................................... 36,670 49,853 31,867 22,112
Professional ........................................................... 63,331 85,628 51,210 38,182
Custodian .............................................................. 22,569 34,998 18,822 12,873
Printing ............................................................... 19,793 28,232 12,650 8,949
Officer and Directors .................................................. 31,820 45,798 18,835 14,180
Registration ........................................................... 7,542 10,637 4,899 4,373
Miscellaneous .......................................................... 68,902 88,648 54,507 40,525
---------------------------------------------------------
Total expenses excluding interest expenses and fees .................... 3,217,310 4,958,350 2,310,887 1,527,739
Interest expense and fees 1 ............................................ 690,028 2,796,209 1,214,451 811,258
---------------------------------------------------------
Total expenses ......................................................... 3,907,338 7,754,559 3,525,338 2,338,997
Less fees waived by advisor ............................................ (10,006) (14,934) (8,468) (5,515)
---------------------------------------------------------
Total expenses after waiver ............................................ 3,897,332 7,739,625 3,516,870 2,333,482
---------------------------------------------------------
Net investment income .................................................. 23,380,924 30,703,128 15,156,622 9,936,276
---------------------------------------------------------
===================================================================================================================================
Realized and Unrealized Gain (Loss)
-----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) from:
Investments .......................................................... (1,674,172) (5,872,613) 1,134,362 1,209,029
Swaps ................................................................ (2,658,450) (14,239,629) (396,000) (665,072)
---------------------------------------------------------
(4,332,622) (20,112,242) 738,362 543,957
---------------------------------------------------------
Net change in unrealized appreciation/depreciation on:
Investments .......................................................... (32,704,621) (47,946,232) (20,309,924) (14,798,556)
Swaps ................................................................ (210,912) (1,683,124) (350,800) (805,810)
---------------------------------------------------------
(32,915,533) (49,629,356) (20,660,724) (15,604,366)
---------------------------------------------------------
Total realized and unrealized loss ..................................... (37,248,155) (69,741,598) (19,922,362) (15,060,409)
---------------------------------------------------------
===================================================================================================================================
Dividends and Distributions to Preferred Stock Shareholders From
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................. (6,362,317) (10,689,816) (4,078,514) (3,011,502)
Net realized gain ...................................................... -- -- (984,160) --
---------------------------------------------------------
Total dividends and distributions to Preferred Stock shareholders ...... (6,362,317) (10,689,816) (5,062,674) (3,011,502)
---------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations ................... $(20,229,548) $(49,728,286) $ (9,828,414) $ (8,135,635)
=========================================================
1 Related to tender option bond trusts.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 33
Statements of Changes in Net Assets BlackRock MuniYield Fund, Inc.
Six Months
Ended
April 30, Year Ended
2008 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
================================================================================================================================
Operations
--------------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................................. $ 23,380,924 $ 47,245,298
Net realized gain (loss) ............................................................... (4,332,622) 7,332,422
Net change in unrealized appreciation/depreciation ..................................... (32,915,533) (33,393,239)
Dividends to Preferred Stock shareholders from net investment income ................... (6,362,317) (12,440,786)
--------------------------------
Net increase (decrease) in net assets resulting from operations ........................ (20,229,548) 8,743,695
--------------------------------
================================================================================================================================
Dividends to Common Stock Shareholders From
--------------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................................. (18,423,899) (37,039,818)
--------------------------------
================================================================================================================================
Common Stock Transactions
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of common dividends ....................................................... 1,634,813 3,503,564
--------------------------------
================================================================================================================================
Net Assets Applicable to Common Stock Shareholders
--------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Stock ................................ (37,018,634) (24,792,559)
Beginning of period .................................................................... 647,574,303 672,366,862
--------------------------------
End of period .......................................................................... $ 610,555,669 $ 647,574,303
================================
End of period undistributed net investment income ...................................... $ 2,459,956 $ 3,865,248
================================
Statements of Changes in Net Assets BlackRock MuniYield Insured Fund, Inc.
Six Months
Ended
April 30, Year Ended
2008 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
==================================================================================================================================
Operations
----------------------------------------------------------------------------------------------------------------------------------
Net investment income .............................................................. $ 30,703,128 $ 69,741,370
Net realized loss .................................................................. (20,112,242) (3,882,395)
Net change in unrealized appreciation/depreciation ................................. (49,629,356) (48,971,838)
Dividends to Preferred Stock shareholders from net investment income ............... (10,689,816) (20,832,026)
--------------------------------------
Net decrease in net assets resulting from operations ............................... (49,728,286) (3,944,889)
--------------------------------------
==================================================================================================================================
Dividends to Common Stock Shareholders From
----------------------------------------------------------------------------------------------------------------------------------
Net investment income .............................................................. (22,613,850) (45,362,306)
--------------------------------------
==================================================================================================================================
Net Assets Applicable to Common Stock Shareholders
----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Stock ............................ (72,342,136) (49,307,195)
Beginning of period ................................................................ 980,740,608 1,030,047,803
--------------------------------------
End of period ...................................................................... $ 908,398,472 $ 980,740,608
======================================
End of period undistributed net investment income .................................. $ 6,465,444 $ 9,065,982
======================================
See Notes to Financial Statements.
34 SEMI-ANNUAL REPORT APRIL 30, 2008
Statements of Changes in Net Assets BlackRock MuniYield Quality Fund, Inc.
Six Months
Ended
April 30, Year Ended
2008 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
===================================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income ............................................................................ $ 15,156,622 $ 29,581,364
Net realized gain ................................................................................ 738,362 3,782,218
Net change in unrealized appreciation/depreciation ............................................... (20,660,724) (16,584,007)
Dividends and distributions to Preferred Stock shareholders from:
Net investment income .......................................................................... (4,078,514) (9,191,938)
Net realized gain .............................................................................. (984,160) --
------------------------------
Net increase (decrease) in net assets resulting from operations .................................. (9,828,414) 7,587,637
------------------------------
===================================================================================================================================
Dividends and Distributions to Common Stock Shareholders From
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income ............................................................................ (10,405,438) (20,932,577)
Net realized gain ................................................................................ (2,225,943) --
------------------------------
Decrease in net assets resulting from dividends and distributions to Common Stock shareholders ... (12,631,381) (20,932,577)
------------------------------
===================================================================================================================================
Net Assets Applicable to Common Stock Shareholders
-----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Stock .......................................... (22,459,795) (13,344,940)
Beginning of period .............................................................................. 452,657,286 466,002,226
------------------------------
End of period .................................................................................... $ 430,197,491 $ 452,657,286
==============================
End of period undistributed net investment income ................................................ $ 1,960,154 $ 1,287,484
==============================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 35
Statements of Changes in Net Assets BlackRock MuniYield Quality Fund II, Inc.
Six Months
Ended
April 30, Year Ended
2008 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
===================================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................................. $ 9,936,276 $ 19,161,647
Net realized gain ...................................................................... 543,957 523,278
Net change in unrealized appreciation/depreciation ..................................... (15,604,366) (10,662,734)
Dividends to Preferred Stock shareholders from net investment income ................... (3,011,502) (5,918,044)
-----------------------------------
Net increase (decrease) in net assets resulting from operations ........................ (8,135,635) 3,104,147
-----------------------------------
===================================================================================================================================
Dividends to Common Stock Shareholders From
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................................. (6,710,079) (13,554,360)
-----------------------------------
===================================================================================================================================
Net Assets Applicable to Common Stock Shareholders
-----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Stock ................................ (14,845,714) (10,450,213)
Beginning of period .................................................................... 294,660,960 305,111,173
-----------------------------------
End of period .......................................................................... $ 279,815,246 $ 294,660,960
===================================
End of period undistributed net investment income ...................................... $ 1,279,559 $ 1,064,864
===================================
See Notes to Financial Statements.
36 SEMI-ANNUAL REPORT APRIL 30, 2008
Statement of Cash Flows BlackRock MuniYield Quality Fund II, Inc.
Six Months
Ended
April 30,
2008
(Unaudited)
==============================================================================================================================
Cash Provided by Operating Activities
------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations ..................................................... $ (5,124,133)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash
provided by operating activities:
Decrease in receivables .............................................................................. 303,192
Decrease in other liabilities ........................................................................ (178,128)
Decrease in dividends payable to Preferred Stock shareholders ............................................ (30,573)
Net realized and unrealized loss ......................................................................... 14,421,471
Amortization of premium and discount on investments ...................................................... (827,772)
Proceeds from sales of long-term securities .............................................................. 48,639,467
Purchases of long-term securities ........................................................................ (44,100,420)
Net purchases of short-term securities ................................................................... (9,909,999)
------------
Cash provided by operating activities .................................................................... 3,193,105
------------
==============================================================================================================================
Cash Used for Financing Activities
------------------------------------------------------------------------------------------------------------------------------
Cash receipts from trust certificates .................................................................... 15,760,000
Cash payments from trust certificates .................................................................... (12,250,000)
Cash dividends paid to shareholders ...................................................................... (6,710,079)
------------
Cash used for financing activities ....................................................................... (3,200,079)
------------
==============================================================================================================================
Cash
------------------------------------------------------------------------------------------------------------------------------
Net decrease in cash ..................................................................................... (6,974)
Cash at beginning of period .............................................................................. 94,458
------------
Cash at end of period .................................................................................... $ 87,484
============
==============================================================================================================================
Cash Flow Information
------------------------------------------------------------------------------------------------------------------------------
Cash paid for interest ................................................................................... $ 951,682
============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 37
Financial Highlights BlackRock MuniYield Fund, Inc.
Six Months
Ended Year Ended October 31,
April 30, 2008 -------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Common Share Operating Performance
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................. $ 14.36 $ 14.98 $ 14.48 $ 14.31 $ 13.85 $ 13.28
--------------------------------------------------------------------------
Net investment income 1 ............................... 0.52 1.05 1.08 1.11 1.09 1.06
Net realized and unrealized gain (loss) ............... (0.83) (0.57) 0.61 0.21 0.41 0.52
Dividends and distributions to Preferred Stock
shareholders from:
Net investment income ............................. (0.14) (0.28) (0.25) (0.16) (0.07) (0.07)
Net realized gain ................................. -- -- -- 2 -- -- --
--------------------------------------------------------------------------
Net increase from investment operations ............... (0.45) 0.20 1.44 1.16 1.43 1.51
--------------------------------------------------------------------------
Dividends and distributions to Common Stock
shareholders from:
Net investment income ............................. (0.41) (0.82) (0.94) (0.99) (0.96) (0.94)
Net realized gain ................................. -- -- -- 2 -- -- --
--------------------------------------------------------------------------
Total dividends and distributions to Common Stock
shareholders ........................................ (0.41) (0.82) (0.94) (0.99) (0.96) (0.94)
--------------------------------------------------------------------------
Capital charges with respect to issuance of
Preferred Stock ..................................... -- -- -- 3 -- 2 (0.01) --
--------------------------------------------------------------------------
Net asset value, end of period ........................ $ 13.50 $ 14.36 $ 14.98 $ 14.48 $ 14.31 $ 13.85
==========================================================================
Market price, end of period ........................... $ 13.71 $ 13.72 $ 15.76 $ 14.20 $ 13.74 $ 13.29
==========================================================================
===================================================================================================================================
Total Investment Return 4
-----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............................. (3.14%) 5 1.40% 10.30% 8.38% 11.04% 11.99%
==========================================================================
Based on market price ................................. 2.96% 5 (7.91%) 18.33% 10.69% 11.11% 10.80%
==========================================================================
===================================================================================================================================
Ratios to Average Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding interest
expense and fees 6,7 ................................ 1.02% 8 1.01% 1.01% 1.02% 0.97% 0.99%
==========================================================================
Total expenses after waiver 6 ......................... 1.25% 8 1.22% 1.29% 1.26% 1.13% 1.14%
==========================================================================
Total expenses 6 ...................................... 1.25% 8 1.23% 1.29% 1.26% 1.14% 1.14%
==========================================================================
Net investment income 6 ............................... 7.47% 8 7.14% 7.35% 7.55% 7.75% 7.86%
==========================================================================
Dividends to Preferred Stock shareholders ............. 2.03% 8 1.88% 1.71% 1.10% 0.51% 0.50%
==========================================================================
Net investment income to Common Stock shareholders .... 5.44% 8 5.26% 5.64% 6.45% 7.24% 7.36%
==========================================================================
===================================================================================================================================
Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end
of period (000) ..................................... $ 610,556 $ 647,574 $ 672,367 $ 644,825 $ 636,019 $ 615,169
==========================================================================
Preferred Stock outstanding at liquidation
preference, end of period (000) ..................... $ 343,000 $ 343,000 $ 343,000 $ 343,000 $ 343,000 $ 293,000
==========================================================================
Portfolio turnover .................................... 17% 18% 32% 30% 22% 56%
==========================================================================
Asset coverage per $1,000 ............................. $ 2,780 $ 2,888 $ 2,960 $ 2,880 $ 2,854 $ 3,100
==========================================================================
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Amount is less than $0.01 per share.
4 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.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Stock shareholders.
7 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
8 Annualized.
See Notes to Financial Statements.
38 SEMI-ANNUAL REPORT APRIL 30, 2008
Financial Highlights BlackRock MuniYield Insured Fund, Inc.
Six Months
Ended
April 30, Year Ended October 31,
2008 -------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Common Share Operating Performance
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................. $ 14.57 $ 15.30 $ 15.27 $ 15.59 $ 15.36 $ 15.15
--------------------------------------------------------------------------
Net investment income 1 ............................... 0.46 1.04 0.98 1.04 1.04 1.08
Net realized and unrealized gain (loss) ............... (1.03) (0.79) 0.46 (0.22) 0.25 0.16
Dividends and distributions to Preferred
Stock shareholders from:
Net investment income ............................. (0.16) (0.31) (0.25) (0.16) (0.07) (0.08)
Net realized gain ................................. -- -- (0.04) (0.02) -- --
--------------------------------------------------------------------------
Net increase (decrease) from investment operations .... (0.73) (0.06) 1.15 0.64 1.22 1.16
--------------------------------------------------------------------------
Dividends and distributions to Common
Stock shareholders from:
Net investment income ............................. (0.34) (0.67) (0.78) (0.95) (0.97) (0.95)
Net realized gain ................................. -- -- (0.34) (0.01) -- --
--------------------------------------------------------------------------
Total dividends and distributions to Common Stock
shareholders ........................................ (0.34) (0.67) (1.12) (0.96) (0.97) (0.95)
--------------------------------------------------------------------------
Capital charges with respect to issuance of
Preferred Stock ..................................... -- -- -- -- 2 (0.02) --
--------------------------------------------------------------------------
Net asset value, end of period ........................ $ 13.50 $ 14.57 $ 15.30 $ 15.27 $ 15.59 $ 15.36
==========================================================================
Market price, end of period ........................... $ 12.90 $ 13.04 $ 14.36 $ 14.70 $ 14.57 $ 14.51
==========================================================================
===================================================================================================================================
Total Investment Return 3
-----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............................. (4.92%) 4 (0.06%) 8.09% 4.54% 8.52% 8.18%
==========================================================================
Based on market price ................................. 1.51% 4 (4.70%) 5.38% 7.69% 7.36% 8.19%
==========================================================================
===================================================================================================================================
Ratios to Average Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding interest
expense and fees 5,6 ................................ 1.06% 7 1.03% 1.02% 1.01% 0.95% 0.94%
==========================================================================
Total expenses after waiver 5 ......................... 1.66% 7 1.71% 1.67% 1.60% 1.19% 1.18%
==========================================================================
Total expenses 5 ...................................... 1.66% 7 1.71% 1.67% 1.60% 1.19% 1.18%
==========================================================================
Net investment income 5 ............................... 6.57% 7 6.94% 6.52% 6.62% 6.77% 6.99%
==========================================================================
Dividends to Preferred Stock shareholders ............. 2.29% 7 2.06% 1.67% 1.05% 0.51% 0.49%
==========================================================================
Net investment income to Common Stock shareholders .... 4.28% 7 4.88% 4.85% 5.57% 6.26% 6.50%
==========================================================================
===================================================================================================================================
Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end
of period (000) ..................................... $ 908,398 $ 980,741 $1,030,048 $1,028,022 $1,049,423 $ 953,662
==========================================================================
Preferred Stock outstanding at liquidation
preference, end of period (000) ..................... $ 570,000 $ 570,000 $ 570,000 $ 570,000 $ 570,000 $ 440,000
==========================================================================
Portfolio turnover .................................... 50% 117% 95% 105% 122% 95%
==========================================================================
Asset coverage per $1,000 ............................. $ 2,594 $ 2,721 $ 2,807 $ 2,804 $ 2,841 $ 3,167
==========================================================================
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 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.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Stock shareholders.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
7 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 39
Financial Highlights BlackRock MuniYield Quality Fund, Inc.
Six Months
Ended Year Ended October 31,
April 30, 2008 -------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Common Share Operating Performance
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................. $ 14.88 $ 15.32 $ 15.02 $ 15.54 $ 15.36 $ 15.19
--------------------------------------------------------------------------
Net investment income 1 ............................... 0.50 0.97 0.99 0.99 1.03 1.07
Net realized and unrealized gain (loss) ............... (0.67) (0.42) 0.37 (0.39) 0.19 0.13
Dividends and distributions to Preferred
Stock shareholders from:
Net investment income ............................. (0.13) (0.30) (0.27) (0.14) (0.07) (0.07)
Net realized gain ................................. (0.03) -- -- -- -- --
--------------------------------------------------------------------------
Net increase (decrease) from investment operations .... (0.33) 0.25 1.09 0.46 1.15 1.13
--------------------------------------------------------------------------
Dividends and distributions to Common
Stock shareholders from:
Net investment income ............................. (0.34) (0.69) (0.79) (0.96) (0.97) (0.96)
Net realized gain ................................. (0.07) -- -- -- -- --
--------------------------------------------------------------------------
Total dividends and distributions to Common Stock
shareholders ........................................ (0.41) (0.69) (0.79) (0.96) (0.97) (0.96)
--------------------------------------------------------------------------
Capital charges with respect to issuance of
Preferred Stock ..................................... -- -- -- 2 (0.02) -- --
--------------------------------------------------------------------------
Net asset value, end of period ........................ $ 14.14 $ 14.88 $ 15.32 $ 15.02 $ 15.54 $ 15.36
==========================================================================
Market price, end of period ........................... $ 13.49 $ 13.20 $ 14.48 $ 14.27 $ 14.83 $ 14.35
==========================================================================
===================================================================================================================================
Total Investment Return 3
-----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............................. (2.02%) 4 2.00% 7.78% 3.10% 8.26% 8.13%
==========================================================================
Based on market price ................................. 5.37% 4 (4.26%) 7.22% 2.64% 10.58% 11.68%
==========================================================================
===================================================================================================================================
Ratios to Average Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding interest
expense and fees 5,6 ................................ 1.05% 7 1.04% 1.04% 0.96% 0.94% 0.94%
==========================================================================
Total expenses after waiver 5.......................... 1.60% 7 1.71% 1.75% 1.44% 1.25% 1.24%
==========================================================================
Total expenses 5 ...................................... 1.61% 7 1.71% 1.76% 1.45% 1.25% 1.24%
==========================================================================
Net investment income 5 ............................... 6.91% 7 6.46% 6.61% 6.46% 6.74% 6.89%
==========================================================================
Dividends to Preferred Stock shareholders ............. 1.86% 7 2.01% 1.80% 0.93% 0.45% 0.42%
==========================================================================
Net investment income to Common Stock shareholders .... 5.05% 7 4.45% 4.81% 5.53% 6.29% 6.47%
==========================================================================
===================================================================================================================================
Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end
of period (000) ..................................... $ 430,197 $ 452,657 $ 466,002 $ 456,886 $ 472,848 $ 467,370
==========================================================================
Preferred Stock outstanding at liquidation
preference, end of period (000) ..................... $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 200,000 $ 200,000
==========================================================================
Portfolio turnover .................................... 13% 24% 33% 29% 28% 30%
==========================================================================
Asset coverage per $1,000 ............................. $ 2,721 $ 2,811 $ 2,864 $ 2,828 $ 3,364 $ 3,337
==========================================================================
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 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.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Stock shareholders.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
7 Annualized.
See Notes to Financial Statements.
40 SEMI-ANNUAL REPORT APRIL 30, 2008
Financial Highlights BlackRock MuniYield Quality Fund II, Inc.
Six Months
Ended Year Ended October 31,
April 30, 2008 -------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Common Share Operating Performance
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................. $ 13.17 $ 13.64 $ 13.36 $ 13.72 $ 13.44 $ 13.27
--------------------------------------------------------------------------
Net investment income 1 ............................... 0.44 0.86 0.86 0.89 0.94 0.97
Net realized and unrealized gain (loss) ............... (0.67) (0.46) 0.37 (0.25) 0.27 0.09
Dividends to Preferred Stock shareholders from
net investment income ............................... (0.13) (0.26) (0.24) (0.14) (0.07) (0.07)
--------------------------------------------------------------------------
Net increase (decrease) from investment operations .... (0.36) 0.14 0.99 0.50 1.14 0.99
--------------------------------------------------------------------------
Dividends to Common Stock shareholders from net
investment income ................................... (0.30) (0.61) (0.71) (0.85) (0.86) (0.82)
--------------------------------------------------------------------------
Capital charges with respect to issuance of
Preferred Stock ..................................... -- -- -- 2 (0.01) -- --
--------------------------------------------------------------------------
Net asset value, end of period ........................ $ 12.51 $ 13.17 $ 13.64 $ 13.36 $ 13.72 $ 13.44
==========================================================================
Market price, end of period ........................... $ 11.46 $ 11.60 $ 12.93 $ 12.86 $ 12.69 $ 12.18
==========================================================================
===================================================================================================================================
Total Investment Return 3
-----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............................. (2.52%) 4 1.39% 7.98% 3.98% 9.32% 8.28%
==========================================================================
Based on market price ................................. 1.39% 4 (5.79%) 6.34% 8.21% 11.57% 10.83%
==========================================================================
===================================================================================================================================
Ratios to Average Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding
interest expense and fees 5,6 ....................... 1.07% 7 1.06% 1.05% 1.03% 1.01% 1.03%
==========================================================================
Total expenses after waiver 5 ......................... 1.63% 7 1.72% 1.66% 1.49% 1.21% 1.30%
==========================================================================
Total expenses 5 ...................................... 1.64% 7 1.73% 1.66% 1.49% 1.22% 1.31%
==========================================================================
Net investment income 5 ............................... 6.96% 7 6.39% 6.44% 6.51% 7.00% 7.17%
==========================================================================
Dividends to Preferred Stock shareholders ............. 2.11% 7 1.97% 1.78% 1.03% 0.51% 0.50%
==========================================================================
Net investment income to Common Stock shareholders .... 4.85% 7 4.42% 4.66% 5.48% 6.49% 6.67%
==========================================================================
===================================================================================================================================
Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end
of period (000) ..................................... $ 279,815 $ 294,661 $ 305,111 $ 298,722 $ 306,764 $ 300,502
==========================================================================
Preferred Stock outstanding at liquidation
preference, end of period (000) ..................... $ 160,000 $ 160,000 $ 160,000 $ 160,000 $ 150,000 $ 150,000
==========================================================================
Portfolio turnover .................................... 11% 20% 37% 29% 27% 35%
==========================================================================
Asset coverage, end of period (000) ................... $ 2,749 $ 2,842 $ 2,907 $ 2,867 $ 3,045 $ 3,003
==========================================================================
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 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.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Stock shareholders.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
7 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT APRIL 30, 2008 41
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 (the "1940 Act"), as non-diversified,
closed-end management investment companies. The Funds' financial statements are
prepared in conformity with accounting principles generally accepted in the
United States of America, which may require the use of management accruals and
estimates. Actual results may differ from these estimates. The Funds determine
and make available for publication the net asset value of their Common Stock on
a daily basis.
The following is a summary of significant accounting policies followed by the
Funds:
Valuation of Investments: Municipal investments (including commitments to
purchase such investments on a "when-issued" basis) are valued on the basis of
prices provided by dealers or pricing services selected under the supervision of
each Fund's Board of Directors (the "Board"). In determining the value of a
particular investment, pricing services may use certain information with respect
to transactions in such investments, quotations from bond dealers, pricing
matrixes, market transactions in comparable investments and various
relationships between investments. Swap agreements are valued by quoted fair
values received daily by the Funds' pricing service. Short-term securities may
be valued at amortized cost.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by a method approved by the
Board as reflecting fair value ("Fair Value Assets"). When determining the price
for Fair Value Assets, the investment advisor and/or sub-advisor seeks to
determine the price that the Fund might reasonably expect to receive from the
current sale of that asset in an arm's-length transaction. Fair value
determinations shall be based upon all available factors that the investment
advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets
is subsequently reported to the Board or a committee thereof.
Derivative Financial Instruments: The Funds may engage in various portfolio
investment strategies to increase the returns of the Funds and to hedge, or
protect, their exposure to interest rate movements and movements in the
securities markets. Losses may arise if the value of the contract decreases due
to an unfavorable change in the price of the underlying security, or if the
counterparty does not perform under the contract.
o Forward interest rate swaps -- The Funds may enter into forward interest
rate swaps. In a forward interest rate swap, each 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. These periodic payments received or made by the Funds
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).
When the swap is terminated, the Funds will record a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract, if any. Each Fund
generally intends to close each forward interest rate swap before the
accrual date specified in the agreement and therefore avoid entering into
the interest rate swap underlying each forward interest rate swap.
Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may
purchase securities on a when-issued basis and may purchase or sell securities
on a forward commitment basis. Settlement of such transactions normally occurs
within a month or more after the purchase or sale commitment is made. The Funds
may purchase securities under such conditions only with the intention of
actually acquiring them, but may enter into a separate agreement to sell the
securities before the settlement date. Since the value of securities purchased
may fluctuate prior to settlement, the Funds may be required to pay more at
settlement than the security is worth. In addition, the purchaser is not
entitled to any of the interest earned prior to settlement. Upon making a
commitment to purchase a security on a when-issued basis, the Funds will hold
liquid assets worth at least the equivalent of the amount due.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds leverage
their assets through the use of tender option bond trusts ("TOBs"). A TOB is
established by a third party sponsor forming a special purpose entity, into
which one or more funds, or an agent on behalf of the funds, transfers municipal
securities. Other funds managed by the investment advisor may also contribute
municipal securities to a TOB into which the Funds have contributed 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 ("TOB Residuals"), which are generally issued to the participating
funds that made the transfer. The TOB Residuals held by a Fund include the right
of the Fund (1) to cause the holders of a proportional share of the floating
rate certificates to tender their certificates at par, and (2) to transfer,
within seven days, a corresponding share of the municipal securities from the
TOB to the Fund. The cash received by the TOB from the sale of the short-term
floating rate certificates, less transaction expenses, is paid to the Fund,
which typically invests the cash in additional municipal securities. Each Fund's
transfer of the municipal securities to a TOB is accounted for as a secured
borrowing, therefore the municipal securities deposited into a TOB are presented
in the Fund's Schedule of Investments and the proceeds from the transaction are
reported as a liability of the Fund.
42 SEMI-ANNUAL REPORT APRIL 30, 2008
Notes to Financial Statements (continued)
Interest income from the underlying securities 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 the Funds. 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. As of
April 30, 2008, the aggregate value of the underlying municipal securities
transferred to TOBs, the related liability for trust certificates and the range
of interest rates on the trust certificates during the period were as follows:
--------------------------------------------------------------------------------
Underlying
Municipal
Bonds Liability Range of
Transferred for Trust Interest
to TOBs Certificates Rates
--------------------------------------------------------------------------------
BlackRock MuniYield
Fund, Inc. ................ $ 86,749,272 $ 41,577,500 2.654% -- 2.816%
BlackRock MuniYield
Insured Fund, Inc. ........ $255,850,445 $128,235,073 2.076% -- 3.512%
BlackRock MuniYield
Quality Fund, Inc. ........ $140,694,688 $ 67,540,000 2.332% -- 3.428%
BlackRock MuniYield
Quality Fund II, Inc. ..... $ 88,831,812 $ 44,215,000 2.309% -- 3.377%
--------------------------------------------------------------------------------
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, the Funds'
investment in TOBs likely will adversely affect the Funds' investment income and
dividends to Common Stock shareholders. Fluctuations in the market value of
municipal securities deposited into the TOB may adversely affect the Funds' net
asset value per share.
Segregation: In cases in which the 1940 Act and the interpretive positions of
the Securities and Exchange Commission ("SEC") require that each Fund segregate
assets in connection with certain investments (e.g., when-issued securities or
swaps), each Fund will, consistent with certain interpretive letters issued by
the SEC, designate on its books and records cash or other liquid debt securities
having a market value at least equal to the amount that would otherwise be
required to be physically segregated.
Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally
issued at a significant discount from face value and do not provide for periodic
interest payments. Zero-coupon bonds may experience greater volatility in market
value than similar maturity debt obligations which provide for regular interest
payments.
Investment Transactions and Investment Income: Investment trans-actions 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 method. The Funds amortize all
premiums and discounts on debt securities.
Dividends and Distributions: Dividends from net investment income are declared
daily and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates. Dividends and distributions to preferred shareholders are
accrued and determined as described in Note 4.
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 substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
Effective April 30, 2008 each Fund implemented Financial Accounting Standards
Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income
Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). 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 investment companies, before being
measured and recognized in the financial statements. The investment advisor has
evaluated the application of FIN 48 to each Fund, and has determined that the
adoption of FIN 48 does not have a material impact on the Funds' financial
statements. Each Fund files U.S. federal and various state and local tax
returns. No income tax returns are currently under examination. The statute of
limitations on each of the Fund's U.S. federal tax returns remain open for the
years ended October 31, 2004 through October 31, 2006. The statutes of
limitations on each of the Fund's state and local tax returns may remain open
for an additional year depending upon the jurisdiction.
Recent Accounting Pronouncements: 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. The impact on each of the Fund's
financial statements disclosures, if any, is currently being assessed.
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and 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. The impact on each of the Fund's
financial statement disclosures, if any, is currently being assessed.
SEMI-ANNUAL REPORT APRIL 30, 2008 43
Notes to Financial Statements (continued)
In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures
about Derivative Instruments and Hedging Activities -- an amendment of FASB
Statement No. 133" (FAS 161), was issued and is effective for fiscal years
beginning after November 15, 2008. FAS 161 is intended to improve financial
reporting for derivative instruments by requiring enhanced disclosure that
enables investors to understand how and why an entity uses derivatives, how
derivatives are accounted for, and how derivative instruments affect an entity's
results of operations and financial position. The investment advisor is
currently evaluating the implications of FAS 161 and the impact on each of the
Funds' financial statement disclosures, if any, is currently being assessed.
Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan:
Under the deferred compensation plan approved by each Fund's Board,
non-interested Directors ("Independent Directors") may defer a portion of their
annual complex-wide compensation. Deferred amounts earn an approximate return as
though equivalent dollar amounts have been invested in common shares of other
certain BlackRock Closed-End Funds selected by the Independent Directors. This
has approximately the same economic effect for the Independent Directors as if
the Independent Directors had invested the deferred amounts directly in other
certain BlackRock Closed-End Funds.
The deferred compensation plan is not funded and obligations there-under
represent general unsecured claims against the general assets of the Funds. The
Funds may, however, elect to invest in common stock of other certain BlackRock
Closed-End Funds selected by the Independent Directors in order to match its
deferred compensation obligations.
Other: Expenses directly related to each of the Funds are charged to that Fund.
Other operating expenses shared by several funds are pro-rated among those funds
on the basis of relative net assets or other appropriate methods.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Funds have entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the "Advisor"), an indirect, wholly owned subsidiary of
BlackRock, Inc. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC
Financial Services Group, Inc. are principal owners of BlackRock, Inc.
The Advisor 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 0.50% of the Fund's average daily net
assets, including proceeds from the issuance of Preferred Stock and TOBs.
The Advisor has agreed to waive its advisory fees by the amount of investment
advisory fees each Fund pays to the Advisor indirectly through its investment in
Merrill Lynch Institutional Tax-Exempt Fund. These amounts are shown on the
Statements of Operations as fees waived by the Advisor.
The Advisor has entered into a separate sub-advisory agreement with BlackRock
Investment Management, LLC, an affiliate of the Advisor, under which the Advisor
pays the sub-advisor for services, which are included in accounting services
expenses on the Statements of Operations. It provides a monthly fee that is
percentage of the investment advisory fee paid by each Fund to the Advisor.
For the six months ended April 30, 2008, the Funds reimbursed the Advisor for
certain accounting services, which are included in accounting services expenses
on the Statements of Operations. The reimbursements were as follows:
--------------------------------------------------------------------------------
Reimbursement
to the Advisor
--------------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. ................................. $ 8,300
BlackRock MuniYield Insured Fund, Inc. ......................... $12,173
BlackRock MuniYield Quality Fund, Inc. ......................... $ 4,915
BlackRock MuniYield Quality Fund II, Inc. ...................... $ 3,906
--------------------------------------------------------------------------------
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, 2008, were as follows:
--------------------------------------------------------------------------------
Total Total
Purchases Sales
--------------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. ................. $168,033,774 $165,863,838
BlackRock MuniYield Insured Fund, Inc. ......... $800,730,168 $841,627,784
BlackRock MuniYield Quality Fund, Inc. ......... $ 94,771,031 $123,574,644
BlackRock MuniYield Quality Fund II, Inc. ...... $ 52,386,741 $ 60,305,248
--------------------------------------------------------------------------------
4. Capital Stock Transactions:
Each Fund is authorized to issue 200,000,000 shares of stock, including
Preferred Stock, par value $0.10 per share, all of which were initially
classified as Common Stock. Each Board is authorized, however, to reclassify any
unissued shares of stock without approval of the holders of Common Stock.
44 SEMI-ANNUAL REPORT APRIL 30, 2008
Notes to Financial Statements (continued)
Common Stock
BlackRock MuniYield Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2008 and
during the year ended October 31, 2007, increased by 119,879 and 236,501,
respectively, as a result of dividend reinvestment.
BlackRock MuniYield Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2008 and the
year ended October 31, 2007 remained constant.
BlackRock MuniYield Quality Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2008 and the
year ended October 31, 2007 remained constant.
BlackRock MuniYield Quality Fund II, Inc.
Shares issued and outstanding during the six months ended April 30, 2008 and the
year ended October 31, 2007 remained constant.
Preferred Stock
Preferred Stock has, with a liquidation preference of $25,000 per share, plus
accrued and unpaid dividends that entitles its holders to receive cash dividends
at varying annualized rates for each dividend period. The yields in effect at
April 30, 2008 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 ............ 2.833% 1 2.924% 1 2.756% 1 2.778% 1
Series B ............ 2.924% 1 2.772% 1 3.594% 1 3.061% 1
Series C ............ 3.777% 1 3.031% 1 3.594% 1 3.594% 1
Series D ............ 3.412% 1 3.488% 1 3.594% 1 4.368% 2
Series E ............ 3.777% 1 3.488% 1 4.368% 2 --
Series F ............ 3.488% 1 2.756% 1 -- --
Series G ............ 4.368% 2 3.594% 1 -- --
Series H ............ -- 4.368% 2 -- --
Series I ............ -- 4.368% 2 -- --
--------------------------------------------------------------------------------
1 The maximum applicable rate on this series of Preferred Stock is the
higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny
S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax
rate
2 The maximum applicable rate on this series of Preferred Stock is the
higher of 110% of the Telerate/BBA LIBOR or 110% of 90% of the Kenny S&P
30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.
Shares issued and outstanding of Preferred Stock for each of the Funds during
the six months ended April 30, 2008 and during the year ended October 31, 2007
remained constant.
Each Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate of 0.25%, calculated on aggregate principal amount. For the
six months ended April 30, 2008, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions as
follows:
--------------------------------------------------------------------------------
Commissions
--------------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. ................................ $180,411
BlackRock MuniYield Insured Fund, Inc. ........................ $258,012
BlackRock MuniYield Quality Fund, Inc. ........................ $176,160
BlackRock MuniYield Quality Fund II, Inc. ..................... $112,292
--------------------------------------------------------------------------------
Dividends on seven-day Preferred Stock are cumulative at a rate, which is reset
every seven days based on the results of an auction. If the Preferred Stock
fails to clear the auction on an auction date, each Fund is required to pay the
maximum applicable rate on the Preferred Stock to holders of such shares for
each successive dividend period until such time as the stock is successfully
auctioned. The maximum applicable rate on the Preferred Stock is footnoted as
applicable on the above chart. During the six months ended April 30, 2008, the
Preferred Stock of each Fund was successfully auctioned at each auction date
until February 13, 2008. The low, high and average dividend rates on the
Preferred Stock for each Fund for the six months ended April 30, 2008 were as
follows:
--------------------------------------------------------------------------------
Series Low High Average
--------------------------------------------------------------------------------
BlackRock MuniYield A 2.833% 4.250% 3.588%
Fund, Inc. B 2.924% 4.750% 3.858%
C 3.016% 4.500% 3.671%
D 3.090% 4.204% 3.641%
E 2.833% 4.750% 3.688%
F 2.772% 4.600% 3.609%
G 3.100% 5.198% 3.971%
--------------------------------------------------------------------------------
BlackRock MuniYield A 2.924% 4.600% 3.691%
Insured Fund, Inc. B 2.772% 4.600% 3.733%
C 3.031% 4.900% 3.841%
D 3.229% 4.400% 3.815%
E 2.772% 4.356% 3.497%
F 2.756% 4.750% 3.799%
G 2.756% 4.508% 3.645%
H 2.930% 5.198% 4.054%
I 3.000% 4.977% 3.936%
--------------------------------------------------------------------------------
BlackRock MuniYield A 2.756% 4.750% 3.780%
Quality Fund, Inc. B 2.756% 4.508% 3.685%
C 3.299% 4.508% 3.810%
D 2.866% 4.750% 3.690%
E 3.100% 5.198% 3.975%
--------------------------------------------------------------------------------
BlackRock MuniYield A 2.778% 4.60% 3.834%
Quality Fund II, Inc. B 3.061% 4.80% 3.809%
C 2.778% 4.508% 3.676%
D 2.850% 5.198% 3.899%
--------------------------------------------------------------------------------
Since February 13, 2008, the Preferred Stock of each Fund failed to clear any
auctions. As a result, the Preferred Stock dividend rates were reset to the
maximum applicable rate, which ranged from 2.756% to 5.198%. A failed auction is
not an event of default for the Funds but it is a liquidity event for the
holders of the Preferred Stock. A failed auction occurs when there are more
sellers of a fund's auction rate preferred stock than buyers. It is impossible
to predict how long this imbalance will last. An auction for
SEMI-ANNUAL REPORT APRIL 30, 2008 45
Notes to Financial Statements (continued)
each Fund's Preferred Stock may not occur for some time, if ever, and even if
liquidity does resume, holders of the Preferred Stock may not have the ability
to sell the Preferred Stock at its liquidation preference.
A Fund may not declare dividends or make other distributions on common shares or
purchase any such shares if, at the time of the declaration, distribution or
purchase, asset coverage with respect to the outstanding Preferred Stock is less
than 200%.
The Preferred Stock is redeemable at the option of each Fund, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared, if certain requirements relating to the
composition of the assets and liabilities of a Fund, as set forth in each Fund's
Articles Supplementary, are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of Common
Stock (one vote per share) and will vote together with holders of Common Stock
(one vote per share) as a single class. However, holders of Preferred Stock,
voting as a separate class, are also entitled to elect two Directors/Trustees
for each Fund. In addition, the 1940 Act requires that, along with approval by
shareholders that might otherwise be required, the approval of the holders of a
majority of any outstanding Preferred Stock, voting separately as a class would
be required to (a) adopt any plan of reorganization that would adversely affect
the Preferred Stock, (b) change a Fund's subclassification as a closed-end
investment company or change its fundamental investment restrictions or (c)
change its business so as to cease to be an investment company.
5. Concentration Risk:
Each Fund's investments are concentrated in certain states, which may be
affected by adverse financial, social, environmental, economic, regulatory and
political factors.
Many municipalities insure repayment of their bonds, which reduces the risk of
loss due to issuer default. The market value of these bonds may fluctuate for
other reasons and there is no assurance that the insurer will meet its
obligation.
6. Capital Loss Carryforward:
BlackRock MuniYield Fund, Inc.
As of October 31, 2007, the Fund had a capital loss carryforward of $27,592,398,
of which $21,402,887 expires in 2008, $6,000,235 expires in 2009, and $189,276
expires in 2010. This amount will be available to offset future realized capital
gains.
BlackRock MuniYield Insured Fund, Inc.
As of October 31, 2007, the Fund had a capital loss carryforward of $7,469,073,
of which $1,489,118 expires in 2014 and $5,979,955 expires in 2015. This amount
will be available to offset future realized capital gains.
BlackRock MuniYield Quality Fund II, Inc.
As of October 31, 2007, the Fund had a capital loss carryforward of $32,574,400,
of which $25,942,904 expires in 2008, $1,096,837 expires in 2010 and $5,534,659
expires in 2012. These amounts will be available to offset future realized
capital gains.
7. Restatement Information:
Subsequent to the initial issuance of BlackRock MuniYield Insured Fund, Inc.'s
October 31, 2006 financial statements, the Fund determined that the criteria for
sale accounting in FAS 140 had not been met for certain transfers of municipal
bonds and that these transfers should have been accounted for as secured
borrowings rather than as sales. As a result, certain financial highlights for
each of the two years in the period ended October 31, 2005 have been restated to
give effect to recording the transfers of the municipal bonds as secured
borrowings, including recording interest on the bonds as interest income and
interest on the secured borrowings as interest expense.
--------------------------------------------------------------------------------
Financial Highlights for BlackRock MuniYield Insured Fund, Inc.
For the Years Ended October 31, 2005 and 2004
--------------------------------------------------------------------------------
2005 2004
------------------ -------------------
Previously Previously
Reported Restated Reported Restated
--------------------------------------------------------------------------------
Total expenses, net of reimbursement1 ... 1.01% 1.60% .95% 1.19%
Total expenses1 ......................... 1.01% 1.60% .95% 1.19%
Portfolio turnover ...................... 123.85% 105% 144.40% 122%
--------------------------------------------------------------------------------
1 Do not reflect the effect of dividends to Preferred Stock shareholders.
46 SEMI-ANNUAL REPORT APRIL 30, 2008
Notes to Financial Statements (concluded)
8. Subsequent Events:
Each Fund paid a tax-exempt income dividend to holders of its Common Stock on
June 2, 2008 to shareholders of record on May 15, 2008. The amount of the
tax-exempt income dividend per share was as follows:
----------------------------------------------------------------------------
Per Share
Amount
----------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. ........................ $0.068000
BlackRock MuniYield Insured Fund, Inc. ................ $0.056000
BlackRock MuniYield Quality Fund, Inc. ................ $0.057000
BlackRock MuniYield Quality Fund II, Inc. ............. $0.050000
----------------------------------------------------------------------------
The dividends declared on Preferred Stock for the period May 1, 2008 to May 31,
2008 for the Funds were as follows:
--------------------------------------------------------------------------------
Series Amount
--------------------------------------------------------------------------------
BlackRock MuniYield Fund, Inc. A $ 97,794
B $100,944
C $130,392
D $117,792
E $178,892
F $136,396
G $168,440
--------------------------------------------------------------------------------
BlackRock MuniYield Insured Fund, Inc. A $170,975
B $163,349
C $138,686
D $148,787
E $267,877
F $166,009
G $167,795
H $219,822
I $224,763
--------------------------------------------------------------------------------
BlackRock MuniYield Quality Fund, Inc. A $142,117
B $144,753
C $143,786
D $138,810
E $178,878
--------------------------------------------------------------------------------
BlackRock MuniYield Quality Fund II, Inc. A $139,724
B $125,607
C $138,786
D $ 34,768
--------------------------------------------------------------------------------
On June 2, 2008, the Funds announced the following redemptions of Preferred
Stock at a price of $25,000 per share plus any accrued and unpaid dividends
through the redemption date:
--------------------------------------------------------------------------------
Shares
Redemption to be Aggregate
Series Date Redeemed Price
--------------------------------------------------------------------------------
BlackRock MuniYield A 7/2/2008 375 $ 9,375,000
Fund, Inc. B 7/9/2008 375 $ 9,375,000
C 6/25/2008 375 $ 9,375,000
D 6/18/2008 375 $ 9,375,000
E 6/18/2008 584 $14,600,000
F 6/26/2008 359 $ 8,975,000
G 6/23/2008 417 $10,425,000
--------------------------------------------------------------------------------
BlackRock MuniYield A 6/26/2008 744 $18,600,000
Insured Fund, Inc. B 7/3/2008 744 $18,600,000
C 7/10/2008 744 $18,600,000
D 7/17/2008 744 $18,600,000
E 6/26/2008 1,353 $33,825,000
F 7/8/2008 812 $20,300,000
G 6/24/2008 812 $20,300,000
H 6/27/2008 880 $22,000,000
I 6/23/2008 880 $22,000,000
--------------------------------------------------------------------------------
BlackRock MuniYield A 7/8/2008 464 $11,600,000
Quality Fund, Inc. B 6/24/2008 464 $11,600,000
C 7/18/2008 464 $11,600,000
D 6/27/2008 464 $11,600,000
E 6/23/2008 464 $11,600,000
--------------------------------------------------------------------------------
BlackRock MuniYield A 7/7/2008 397 $ 9,925,000
Quaility Fund II, Inc. B 7/14/2008 397 $ 9,925,000
C 6/30/2008 397 $ 9,925,000
D 6/24/2008 79 $ 1,975,000
--------------------------------------------------------------------------------
The Funds will finance the Preferred Stock redemptions with cash received from
TOB transactions.
SEMI-ANNUAL REPORT APRIL 30, 2008 47
Officers and Directors
G. Nicholas Beckwith, III, Director
Richard E. Cavanagh, Director
Richard S. Davis, Director
Kent Dixon, Director
Frank J. Fabozzi, Director
Kathleen F. Feldstein, Director
James T. Flynn, Director
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director
Karen P. Robards, Director
Robert S. Salomon, Jr., Director
Donald C. Burke, Fund President and
Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance
Officer of the Funds
Howard Surloff, Secretary
BlackRock MuniYield Fund, Inc. and
BlackRock MuniYield Quality Fund II, Inc.
Custodian
The Bank of New York Mellon
New York, NY 10286
Transfer Agent
Common Stock and Preferred Stock
BNY Mellon Shareowner Services
Jersey City, NJ 07310
For All Funds:
Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540
Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036
BlackRock MuniYield Insured Fund, Inc. and
BlackRock MuniYield Quality Fund, Inc.
Custodian
State Street Bank and Trust Company
Boston, MA 02101
Transfer Agents
Common Stock:
Computershare Trust Company, N.A.
Providence, RI 02940
Preferred Stock:
BNY Mellon Owner Services
Jersey City, NJ 07310
48 SEMI-ANNUAL REPORT APRIL 30, 2008
Additional 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 particular 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 Statements of Assets and
Liabilities, which comprises part of the financial information included in this
report.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Funds' Forms N-Q are available on the SEC's website at
http://www.sec.gov and 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 (800) SEC-0330. The Funds' Forms N-Q
may also be obtained upon request and without charge by calling (800) 441-7762.
Electronic Delivery
Electronic copies of most financial reports are available on the Funds' websites
or shareholders can sign up for e-mail notifications of quarterly statements,
annual and semi-annual reports by enrolling in the Funds' electronic delivery
program.
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.
SEMI-ANNUAL REPORT APRIL 30, 2008 49
Additional Information (concluded)
General Information
The Funds will mail only one copy of shareholder documents, including annual and
semi-annual reports and proxy statements, to shareholders with multiple accounts
at the same address. This practice is commonly called "householding" and it is
intended to reduce expenses and eliminate duplicate mailings of shareholder
documents. Mailings of your shareholder documents may be householded
indefinitely unless you instruct us otherwise. If you do not want the mailing of
these documents to be combined with those for other members of your household,
please contact the Funds at (800) 441-7762.
Quarterly performance, semi-annual and annual reports and other information
regarding the Funds may be found on BlackRock's website, which can be accessed
at http://www.blackrock.com. This reference to BlackRock's website is intended
to allow investors public access to information regarding the Funds and does
not, and is not intended to, incorporate BlackRock's website into this report.
Deposit Securities
Effective May 30, 2008, following approval by the Funds' Board and the
applicable ratings agencies, the definition of "Deposited Securities" in the
Funds' Articles Supplementary was amended in order to facilitate the redemption
of the Funds' Preferred Stock. The following phrase was added to the definition
of "Deposit Securities" found in the Funds' Articles Supplementary:
; provided, however, that solely in connection with any redemption of
AMPS, the term Deposit Securities shall include (i) any committed
financing pursuant to a credit agreement, reverse repurchase agreement
facility or similar credit arrangement, in each case which makes available
to the Corporation, no later than the day preceding the applicable
redemption date, cash in an amount not less than the aggregate amount due
to Holders by reason of the redemption of their shares of AMPS on such
redemption date; and (ii) cash amounts due and payable to the Corporation
out of a sale of its securities if such cash amount is not less than the
aggregate amount due to Holders by reason of the redemption of their
shares of AMPS on such redemption date and such sale will be settled not
later than the day preceding the applicable redemption date.
50 SEMI-ANNUAL REPORT APRIL 30, 2008
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 websites.
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.
SEMI-ANNUAL REPORT APRIL 30, 2008 51
This report is transmitted to shareholders only. It is not a prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. The Funds have leveraged their Common
Stock. Leverage creates risks for Common Stock shareholders, including the
likelihood of greater volatility of net asset value and market price of the
Common Stock, and the risk that fluctuations in the short-term dividend rates of
the Preferred Stock, currently set at the maximum reset rate as a result of
failed auctions, 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 (800) 441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's website
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 upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and
Exchange Commission's website 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.
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#MYQII-4/08
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 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual
period covered since the previous Form N-CSR filing.
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 and Governance 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 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 1940 Act)
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/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniYield Quality Fund, Inc.
Date: June 23, 2008
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/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: June 23, 2008
By: /s/ Neal J. Andrews
-----------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: June 23, 2008