N-CSRS 1 e603993_ncsrs-muniyield.txt 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 811-06414 Name of Fund: BlackRock MuniYield Fund, Inc. (MYD) Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock MuniYield 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 Fund, Inc. By: /s/ Donald C. Burke ----------------------------------- Donald C. Burke Chief Executive Officer of BlackRock MuniYield 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 Fund, Inc. Date: June 23, 2008 By: /s/ Neal J. Andrews ----------------------------------- Neal J. Andrews Chief Financial Officer (principal financial officer) of BlackRock MuniYield Fund, Inc. Date: June 23, 2008