UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-6501
Name of Fund: MuniYield Michigan Insured Fund II, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr.,
President, MuniYield Michigan Insured Fund II, 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: (609) 282-2800
Date of fiscal year end: 10/31/05
Date of reporting period: 11/01/04 - 1/31/05
Item 1 - Schedule of Investments
MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of January 31, 2005 (in Thousands)
Face
Amount Municipal Bonds Value
Michigan - 141.1% $2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2034 (d) $2,508
Anchor Bay, Michigan, School District, GO (School Building and Site) (c)(f):
4,250 Series I, 6% due 5/01/2009 4,784
3,165 Series II, 5.75% due 5/01/2010 3,585
2,150 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2026 (e) 2,345
2,175 Carman-Ainsworth, Michigan, Community School, GO, 5.50% due 5/01/2018 (c) 2,445
2,175 Central Michigan University, General Revenue Bonds, 5% due 10/01/2034 (a) 2,285
1,000 Central Montcalm, Michigan, Public Schools, GO, 5.75% due 5/01/2024 (e) 1,107
3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2029 (c) 4,137
1,500 Comstock Park, Michigan, Public Schools, GO, 5.75% due 5/01/2029 (c) 1,650
2,420 Delta County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A,
6.25% due 4/15/2027 2,762
Detroit, Michigan, City School District (School Building and Site Improvement),
GO, Series A (c):
1,480 5.375% due 5/01/2024 1,656
2,000 5% due 5/01/2032 2,075
100 Detroit, Michigan, Sewer Disposal Revenue Bonds, Senior Lien, VRDN, Series A,
1.84% due 7/01/2033 (d)(i) 100
Detroit, Michigan, Water Supply System Revenue Bonds:
1,000 DRIVERS, Series 200, 9.35% due 7/01/2011 (c)(f)(g) 1,316
4,600 Senior Lien, Series A, 5% due 7/01/2034 (e) 4,782
2,000 Series B, 5.25% due 7/01/2032 (e) 2,142
4,400 Series B, 5% due 7/01/2034 (e) 4,578
2,500 Dickinson County, Michigan, Economic Development Corporation,
Environmental Improvement Revenue Refunding Bonds (International Paper
Company Project), Series A, 5.75% due 6/01/2016 2,710
2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds,
5.80% due 11/01/2024 (h) 2,299
East Grand Rapids, Michigan, Public School District, GO (d)(f):
1,610 5.75% due 5/01/2009 1,796
6,300 6% due 5/01/2009 7,091
Portfolio Abbreviations
To simplify the listings of MuniYield Michigan Insured II, Inc.'s
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HDA Housing Development Authority
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
VRDN Variable Rate Demand Notes
MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of January 31, 2005 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Michigan (concluded Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d):
$2,000 5.25% due 5/01/2023 $2,210
1,000 5% due 5/01/2026 1,061
1,250 5% due 5/01/2029 1,313
385 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 5.375% due 7/01/2020 (h) 399
1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 1,887
3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due
5/01/2028 (c) 3,840
Grand Blanc, Michigan, Community Schools, GO (c):
1,000 5.625% due 5/01/2017 1,139
1,000 5.625% due 5/01/2018 1,139
1,100 5.625% due 5/01/2019 1,253
1,600 Grand Ledge, Michigan, Public Schools District, GO, Refunding, 5.375% due
5/01/2005 (e)(f) 1,642
Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A (a):
1,340 5.50% due 10/01/2018 1,515
320 5.50% due 10/01/2019 362
1,500 Grand Rapids, Michigan, Sanitation Sewer System Revenue Refunding and
Improvement Bonds, Series A, 5.50% due 1/01/2022 (c) 1,762
225 Harper Woods, Michigan, City School District, School Building and Site, GO,
Refunding, 5% due 5/01/2034 (c) 235
7,425 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 8,501
1,275 Haslett, Michigan, Public School District, Building and Site, GO, 5.625% due
5/01/2018 (e) 1,449
2,000 Howell, Michigan, Public Schools, GO, 5.875% due 5/01/2009 (e)(f) 2,241
2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO,
5% due 5/01/2029 (d) 2,794
3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,431
7,550 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue
Refunding Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2028 (e) 8,068
3,000 Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health),
Series A, 5.50% due 1/15/2031 (e) 3,222
1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,589
1,455 Mayville, Michigan, Community Schools, School Building and Site, GO, 5%
due 5/01/2034 (c) 1,524
1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue
Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,059
Michigan Higher Education Facilities Authority, Revenue Refunding Bonds
(College for Creative Studies):
550 5.85% due 12/01/2022 569
1,000 5.90% due 12/01/2027 1,027
3,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds,
AMT, Series XVII-B, 5.40% due 6/01/2018 (a) 3,131
Michigan State Building Authority Revenue Bonds:
1,185 (Facilities Program), Series II, 4.67%** due 10/15/2009 (a)(b) 1,023
1,675 (Facilities Program), Series II, 4.77%** due 10/15/2010 (a)(b) 1,379
2,675 GO, RIB, Series 481, 8.89% due 4/15/2009 (e)(g) 3,347
Michigan State Building Authority, Revenue Refunding Bonds:
2,000 (Facilities Program), Series II, 5% due 10/15/2029 (e) 2,096
3,500 RIB, Series 517X, 8.89% due 10/15/2010 (d)(g) 4,433
Michigan State COP:
3,870 5.50% due 6/01/2027 (a) 4,228
5,380 RIB, Series 530, 9.36% due 9/01/2011 (e)(g) 6,902
1,500 Michigan State Comprehensive Transportation, Revenue Refunding Bonds, Series A,
5.50% due 11/01/2018 (d) 1,695
635 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30%
due 10/01/2037 (e) 648
655 Michigan State, HDA, Revenue Refunding Bonds, AMT, Series B, 5.50% due 6/01/2030 (e) 680
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan
Obligation Group), Series A, 5.50% due 4/15/2018 (a) 1,102
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds:
1,300 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 1,383
1,250 (Sparrow Obligation Group), 5.625% due 11/15/2031 1,315
2,000 Michigan State Hospital Finance Authority Revenue Bonds (Mercy Health Services),
Series R, 5.375% due 8/15/2026 (a)(b) 2,090
Michigan State Hospital Finance Authority, Revenue Refunding Bonds:
8,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 9,194
2,500 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (f) 2,873
3,760 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (e)(f) 4,342
3,215 (Mercy Health Services), Series X, 6% due 8/15/2014 (e) 3,615
1,000 (Mercy Mount Clemens), Series A, 6% due 5/15/2014 (e) 1,120
2,000 (Mercy-Mount Clemens), Series A, 5.75% due 5/15/2029 (e) 2,188
1,250 (Mid-Michigan Obligation Group), Series A, 5.375% due 6/01/2027 (d) 1,346
5,500 (Trinity Health), Series A, 6% due 12/01/2027 (a) 6,283
1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,067
3,450 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 3,612
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds:
8,000 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (e) 8,486
2,000 (Detroit Edison Company Fund - Pollution), Series AA, 6.95% due 5/01/2011 (c) 2,410
3,200 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,350
1,375 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 1,506
5,000 RIB, Series 382, 10.64% due 9/01/2025 (e)(g) 5,425
3,700 Michigan State Strategic Fund, PCR, Refunding (General Motors Corp.), 6.20%
due 9/01/2020 3,840
1,500 Milan, Michigan, Area Schools, GO, Series A, 5.75% due 5/01/2010 (c)(f) 1,699
6,500 Monroe County, Michigan, Economic Development Corp., Limited Obligation
Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due
9/01/2022 (c) 8,720
2,500 Oxford, Michigan, Area Community School District, GO, 5.40% due 5/01/2006 (c)(f) 2,619
1,000 Plainwell, Michigan, Community Schools, School District, School Building and
Site, GO, 5.50% due 5/01/2018 (d) 1,132
1,000 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds
(Tax Increment-Development Area Number 3), 5.375% due 6/01/2017 (h) 1,066
1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due
5/01/2026 (d) 1,061
1,900 Rochester, Michigan, Community School District, GO, Series II, 5.50% due
5/01/2018 (e) 2,145
1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,674
Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c):
1,450 5% due 7/01/2024 1,553
1,000 5% due 7/01/2034 1,046
6,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison
Company), RIB, Series 282, 10.64% due 8/01/2024 (a)(g) 8,304
2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due 5/01/2023 (e) 2,961
Southfield, Michigan, Public Schools, School Building and Site, GO, Series A (d):
1,950 5.25% due 5/01/2027 2,119
1,000 5% due 5/01/2029 1,051
1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,048
800 University of Michigan, University Hospital Revenue Refunding Bonds, VRDN,
Series A, 1.84% due 12/01/2019 (i) 800
6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan
Wayne County), AMT, Series A, 5.375% due 12/01/2015 (e) 6,956
1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel,
Series A, 5% due 12/01/2030 (e) 1,225
1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (e) 1,397
Guam - 0.9% 1,440 A.B. Won Guam International Airport Authority, General Revenue Refunding Bonds,
Series A, 5.25% due 10/01/2019 (e) 1,601
Puerto Rico - 3.3% 2,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts,
Class R, Series 16 HH, 9.333% due 7/01/2013 (d)(g) 2,904
2,900 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E, 5.75% due 2/01/2007 (f) 3,086
Total Investments (Cost - $241,061*) - 145.3% 266,660
Other Assets Less Liabilities - 3.2% 5,839
Preferred Stock, at Redemption Value - (48.5%) (89,029)
--------
Net Assets Applicable to Common Stock - 100.0% $183,470
========
*The cost and unrealized appreciation (depreciation) of investments
as of January 31, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $241,061
========
Gross unrealized appreciation $ 25,704
Gross unrealized depreciation (105)
--------
Net unrealized appreciation $ 25,599
========
**Represents a zero coupon bond; the interest rate shown reflects
the effective yield at the time of purchase by the Fund.
(a)AMBAC Insured.
(b)Escrowed to maturity.
(c)FGIC Insured.
(d)FSA Insured.
(e)MBIA Insured.
(f)Prerefunded.
(g)The rate disclosed is that currently in effect. The rate changes
periodically and inversely based upon prevailing market rates.
(h) ACA Insured.
(i)Security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security.
The rate disclosed is that currently in effect. This rate changes
periodically based upon prevailing market rates.
Investments in companies considered to be an affiliate of the
Fund (such companies are defined as "Affiliated Companies"
in Section 2(a)(3) of the Investment Company Act of 1940)
were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal Money Fund (4,166) $ 11
Forward interest rate swaps outstanding as of January 31, 2005 were
as follows:
(in Thousands)
Notional Unrealized
Amount Depreciation
Receive a variable rate equal to
7-Day Bond Market Association Municipal
Swap Index Rate and pay a fixed rate
equal to 3.619%
Broker, JPMorgan Chase Bank
Expires February 2015 $ 6,000 $(63)
Receive a variable rate equal to
7-Day Bond Market Association Municipal
Swap Index Rate and pay a fixed rate equal
to 3.565%
Broker, JPMorgan Chase Bank
Expires April 2015 $ 13,500 (33)
Total $(96)
=====
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed
such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
2(b) - There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 3 - Exhibits
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.
MuniYield Michigan Insured Fund II, Inc.
By: /s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.,
President
MuniYield Michigan Insured Fund II, Inc.
Date: March 21, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: /s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.,
President
MuniYield Michigan Insured Fund II, Inc.
Date: March 21, 2005
By: /s/ Donald C. Burke
Donald C. Burke,
Chief Financial Officer
MuniYield Michigan Insured Fund II, Inc.
Date: March 21, 2005