N-CSR 1 mynyins.txt BLACKROCK MUNIYIELD NEW YORK INSURED FUND, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-06500 Name of Fund: BlackRock MuniYield New York Insured Fund, Inc. (MYN) Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock MuniYield New York Insured 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: 10/31/2007 Date of reporting period: 11/01/2006 - 10/31/2007 Item 1 - Report to Stockholders EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS Annual Report OCTOBER 31, 2007 BlackRock MuniYield Arizona Fund, Inc. (MZA) BlackRock MuniYield California Fund, Inc. (MYC) BlackRock MuniYield California Insured Fund, Inc. (MCA) BlackRock MuniYield Florida Fund (MYF) BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM) BlackRock MuniYield New York Insured Fund, Inc. (MYN) (BLACKROCK logo) NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE This report, including the financial information herein, is transmitted to shareholders of BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. for their information. This 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/Shares and intend to remain leveraged by issuing Preferred Stock/Shares to provide the Common Stock Shareholders/ Common Shareholders with potentially higher rates of return. Leverage creates risks for Common Stock Shareholders/Common Shareholders, including the likelihood of greater volatility of net asset value and market price of shares of the Common Stock/Shares, and the risk that fluctuations in the short-term dividend rates of the Preferred Stock/Shares may affect the yield to Common Stock Shareholders/Common Shareholders. Statements and other information herein are as dated and are subject to change. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free 1-800-441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission's Web site at http://www.sec.gov. Information about how the Funds vote proxies relating to securities held in the Funds' portfolios during the most recent 12-month period ended June 30 is available (1) at www.blackrock.com; and (2) on the Securities and Exchange Commission's Web site at http://www.sec.gov. (GO PAPERLESS... logo) It's Fast, Convenient, & Timely! Table of Contents Page A Letter to Shareholders 3 Annual Report: Fund Summaries 4 Financial Statements: Schedules of Investments 10 Statements of Net Assets 34 Statements of Operations 36 Statements of Changes in Net Assets 38 Financial Highlights 41 Notes to Financial Statements 47 Report of Independent Registered Public Accounting Firm 53 The Benefits and Risks of Leveraging 54 Swap Agreements 54 Automatic Dividend Reinvestment Plan 55 Important Tax Information 56 Officers and Directors or Trustees 57 Additional Information 60 ANNUAL REPORT OCTOBER 31, 2007 A Letter to Shareholders Dear Shareholder The October reporting period was fairly tumultuous for financial markets, but culminated in positive performance for most major benchmarks:
Total Returns as of October 31, 2007 6-month 12-month U.S. equities (S&P 500 Index) +5.49% +14.56% Small cap U.S. equities (Russell 2000 Index) +2.25% + 9.27% International equities (MSCI Europe, Australasia, Far East Index) +8.19% +24.91% Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +2.68% + 5.38% Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.30% + 2.91% High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -0.07% + 6.89% Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.
Subprime mortgage woes dominated headlines for much of 2007, but intensified in the summer and fall, spawning a widespread liquidity and credit crisis with ramifications across global markets. The Federal Reserve Board (the "Fed") and other countries' central banks stepped in to inject liquidity into the markets and bolster investor confidence. The Fed cut the federal funds rate by 0.50% in September and another 0.25% on the final day of the reporting period, bringing its target rate to 4.50%. In taking action, the central bankers, who had long deemed themselves inflation fighters, were seeking to stem the fallout from the credit crunch and forestall a wider economic unraveling. By period-end, the Fed had cited the risks between slower economic growth and faster inflation as equally balanced. Amid the volatility throughout the past year, equity markets have displayed surprising resilience. Most recently, the credit turmoil dampened corporate merger-and-acquisition (M&A) activity, a key source of strength for equity markets. Still, market fundamentals have held firm, dividend payouts and share buybacks have continued to grow, and valuations remain attractive. These tailwinds generally have prevailed over the headwinds created by the slowing U.S. economy, troubled housing market and, recently, a more difficult corporate earnings backdrop. International markets fared even better than U.S. equities, benefiting from robust M&A activity and generally stronger economies. In fixed income markets, mixed economic signals and the credit woes resulted in a flight to quality. At the height of the uncertainty, investors shunned bonds associated with the housing and credit markets in favor of higher- quality Treasury issues. The yield on 10-year Treasury issues, which touched 5.30% in June (its highest level in five years), fell to 4.48% by period-end, while prices correspondingly rose. The tax-exempt bond market has been challenged by a combination of record-setting supply year-to-date, economic uncertainty and concerns around the credit worthiness of bond insurers. This has brought municipal bond prices to relatively attractive levels and, as such, demand generally has remained firm. As you navigate market volatility, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more market insight and commentary from BlackRock investment professionals, 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/ Robert C. Doll, Jr. ------------------------ Robert C. Doll, Jr. Vice Chairman, BlackRock, Inc. /s/ Peter J. Hayes ------------------- Peter J. Hayes Managing Director, BlackRock, Inc. THIS PAGE NOT PART OF YOUR FUND REPORT Fund Summary as of October 31, 2007 BlackRock MuniYield Arizona Fund, Inc. Investment Objective BlackRock MuniYield Arizona Fund, Inc. (MZA) seeks to provide shareholders with as high a level of current income exempt from federal and Arizona 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 and Arizona income taxes. Fund Information Symbol on American Stock Exchange MZA Initial Offering Date October 29, 1993 Yield on Closing Market Price as of October 31, 2007 ($13.66)* 5.01% Tax Equivalent Yield** 7.71% Current Monthly Distribution per share of Common Stock*** $.057 Current Annualized Distribution per share of Common Stock*** $.684 Leverage as of October 31, 2007**** 38.88% * 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. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. **** As a percentage of managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred Stock that may be outstanding) 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: 10/31/07 10/31/06 Change High Low Market Price $13.66 $14.79 (7.64%) $15.26 $13.25 Net Asset Value $13.96 $14.53 (3.92%) $14.70 $13.43 The following charts show the portfolio composition and credit quality allocations of the Fund's long-term investments: Portfolio Composition Sector 10/31/07 10/31/06 Education 29% 28% City, County & State 21 17 Hospital 13 14 Housing 10 6 Lease Revenue 7 10 Power 6 6 Industrial & Pollution Control 4 5 Water & Sewer 4 6 Sales Tax 3 6 Transportation 3 2 Credit Quality Allocations* Credit Rating 10/31/07 10/31/06 AAA/Aaa 49% 55% AA/Aa 9 6 A/A 17 12 BBB/Baa 19 21 BB/Ba 2 2 NR (Not Rated) 4 4 * Using the higher of S&P's or Moody's ratings. ANNUAL REPORT OCTOBER 31, 2007 Fund Summary as of October 31, 2007 BlackRock MuniYield California Fund, Inc. Investment Objective BlackRock MuniYield California Fund, Inc. (MYC) seeks to provide shareholders with as high a level of current income exempt from federal and California income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal and California income taxes. Fund Information Symbol on New York Stock Exchange MYC Initial Offering Date February 28, 1992 Yield on Closing Market Price as of October 31, 2007 ($13.25)* 4.98% Tax Equivalent Yield** 7.66% Current Monthly Distribution per share of Common Stock*** $.055 Current Annualized Distribution per share of Common Stock*** $.660 Leverage as of October 31, 2007**** 35.97% * 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. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. **** As a percentage of managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred Stock that may be outstanding) 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: 10/31/07 10/31/06 Change High Low Market Price $13.25 $14.00 (5.36%) $14.50 $12.38 Net Asset Value $14.60 $15.11 (3.38%) $15.29 $14.10 The following charts show the portfolio composition and credit quality allocations of the Fund's long-term investments: Portfolio Composition Sector 10/31/07 10/31/06 City, County & State 18% 20% Education 15 15 Water & Sewer 12 13 Lease Revenue 12 14 Sales Tax 11 15 Power 9 10 Hospital 8 4 Transportation 6 6 Industrial & Pollution Control 4 0 Resouorce Recovery 2 1 Housing 2 1 Tobacco 1 1 Credit Quality Allocations* Credit Rating 10/31/07 10/31/06 AAA/Aaa 79% 82% AA/Aa 3 3 A/A 12 11 BBB/Baa 6 4 * Using the higher of S&P's or Moody's ratings. ANNUAL REPORT OCTOBER 31, 2007 Fund Summary as of October 31, 2007 BlackRock MuniYield California Insured Fund, Inc. Investment Objective BlackRock MuniYield California Insured Fund, Inc. (MCA) seeks to provide shareholders with as high a level of current income exempt from federal and California 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 and California income taxes. Fund Information Symbol on New York Stock Exchange MCA Initial Offering Date October 30, 1992 Yield on Closing Market Price as of October 31, 2007 ($13.16)* 5.11% Tax Equivalent Yield** 7.86% Current Monthly Distribution per share of Common Stock*** $.056 Current Annualized Distribution per share of Common Stock*** $.672 Leverage as of October 31, 2007**** 39.49% * 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. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. **** As a percentage of managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred Stock that may be outstanding) 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: 10/31/07 10/31/06 Change High Low Market Price $13.16 $14.64 (10.11%) $14.82 $12.53 Net Asset Value $14.63 $15.09 (3.05%) $15.28 $14.16 The following charts show the portfolio composition and credit quality allocations of the Fund's long-term investments: Portfolio Composition Sector 10/31/07 10/31/06 City, County & State 28% 27% Lease Revenue 14 19 Education 13 11 Transportation 11 11 Sales Tax 11 10 Water & Sewer 10 13 Power 4 3 Housing 4 3 Industrial & Pollution Control 3 0 Hospital 2 3 Credit Quality Allocations* Credit Rating 10/31/07 10/31/06 AAA/Aaa 95% 97% AA/Aa 2 1 A/A 3 2 * Using the higher of S&P's or Moody's ratings. ANNUAL REPORT OCTOBER 31, 2007 Fund Summary as of October 31, 2007 BlackRock MuniYield Florida Fund Investment Objective BlackRock MuniYield Florida Fund (MYF) 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 municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes and which enables shares of the Fund to be exempt from Florida intangible personal property taxes. Fund Information Symbol on New York Stock Exchange MYF Initial Offering Date February 28, 1992 Yield on Closing Market Price as of October 31, 2007 ($12.86)* 5.41% Tax Equivalent Yield** 8.32% Current Monthly Distribution per Common Share*** $.058 Current Annualized Distribution per Common Share*** $.696 Leverage as of October 31, 2007**** 35.79% * 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. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. **** As a percentage of managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred Shares that may be outstanding) 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: 10/31/07 10/31/06 Change High Low Market Price $12.86 $14.35 (10.38%) $14.60 $12.56 Net Asset Value $14.53 $15.11 (3.84%) $15.25 $14.05 The following charts show the portfolio composition and credit quality allocations of the Fund's long-term investments: Portfolio Composition Sector 10/31/07 10/31/06 Transportation 21% 21% Hospital 19 17 Lease Revenue 15 16 City, County & State 11 13 Water & Sewer 10 13 Sales Tax 8 9 Education 7 6 Housing 5 2 Industrial & Pollution Control 2 2 Power 2 1 Credit Quality Allocations* Credit Rating 10/31/07 10/31/06 AAA/Aaa 80% 79% AA/Aa 2 3 A/A 7 7 BBB/Baa 9 9 NR (Not Rated) 2 2 * Using the higher of S&P's or Moody's ratings. ANNUAL REPORT OCTOBER 31, 2007 Fund Summary as of October 31, 2007 BlackRock MuniYield Michigan Insured Fund II, Inc. Investment Objective BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM) seeks to provide shareholders with as high a level of current income exempt from federal and Michigan income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long- term municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal and Michigan income taxes. Fund Information Symbol on New York Stock Exchange MYM Initial Offering Date February 28, 1992 Yield on Closing Market Price as of October 31, 2007 ($12.61)* 5.33% Tax Equivalent Yield** 8.20% Current Monthly Distribution per share of Common Stock*** $.056 Current Annualized Distribution per share of Common Stock*** $.672 Leverage as of October 31, 2007**** 36.67% * 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. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. **** As a percentage of managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred Stock that may be outstanding) 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: 10/31/07 10/31/06 Change High Low Market Price $12.61 $13.97 (9.74%) $14.14 $12.25 Net Asset Value $14.13 $14.60 (3.22%) $14.73 $13.72 The following charts show the portfolio composition and credit quality allocations of the Fund's long-term investments: Portfolio Composition Sector 10/31/07 10/31/06 Hospital 22% 21% City, County & State 21 25 Industrial & Pollution Control 12 15 Lease Revenue 12 13 Transportation 10 8 Education 9 7 Water & Sewer 8 8 Sales Tax 3 1 Power 2 2 Housing 1 0 Credit Quality Allocations* Credit Rating 10/31/07 10/31/06 AAA/Aaa 83% 85% AA/Aa 4 4 A/A 11 8 BBB/Baa 2 3 * Using the higher of S&P's or Moody's ratings. ANNUAL REPORT OCTOBER 31, 2007 Fund Summary as of October 31, 2007 BlackRock MuniYield New York Insured Fund, Inc. Investment Objective BlackRock MuniYield New York Insured Fund, Inc. (MYN) seeks to provide shareholders with as high a level of current income exempt from federal income tax and New York State and New York City personal income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income tax and New York State and New York City personal income taxes. Fund Information Symbol on New York Stock Exchange MYN Initial Offering Date February 28, 1992 Yield on Closing Market Price as of October 31, 2007 ($12.80)* 5.06% Tax Equivalent Yield** 7.78% Current Monthly Distribution per share of Common Stock*** $.054 Current Annualized Distribution per share of Common Stock*** $.648 Leverage as of October 31, 2007**** 35.55% * 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. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. **** As a percentage of managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred Stock that may be outstanding) 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: 10/31/07 10/31/06 Change High Low Market Price $12.80 $14.10 (9.22%) $14.33 $12.06 Net Asset Value $13.94 $14.40 (3.19%) $14.55 $13.48 The following charts show the portfolio composition and credit quality allocations of the Fund's long-term investments: Portfolio Composition Sector 10/31/07 10/31/06 Transportation 38% 38% City, County & State 15 14 Sales Tax 10 8 Water & Sewer 8 9 Power 7 8 Housing 6 6 Education 6 6 Industrial & Pollution Control 4 4 Lease Revenue 3 3 Hospital 2 3 Tobacco 1 1 Credit Quality Allocations* Credit Rating 10/31/07 10/31/06 AAA/Aaa 94% 90% AA/Aa 4 6 A/A 2 3 BBB/Baa -- --** BB/Ba -- 1 * Using the higher of S&P's or Moody's ratings. ** Amount is less than 1%. ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments as of October 31, 2007 BlackRock MuniYield Arizona Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value Arizona--135.0% $ 1,000 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Refunding Bonds, AMT, Junior Sub-Series, 6.30% due 12/01/2008 $ 1,005 Arizona Health Facilities Authority Revenue Bonds, Series A: 1,750 (Banner Health System), 5% due 1/01/2025 1,789 1,435 (Catholic Healthcare West), 6.625% due 7/01/2020 1,561 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT: 3,285 Junior Subordinated Series B-1, 6.15% due 5/01/2029 3,450 1,000 Senior-Series A-1, 5.90% due 5/01/2024 1,048 1,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds (Baseball Training Facilities Project), 5% due 7/01/2016 1,024 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds (c): 1,500 Senior Series A, 5% due 7/01/2036 1,535 1,500 Sub-Series B, 5% due 7/01/2036 1,535 1,000 Flagstaff, Arizona, Aspen Place at the Sawmill Improvement District, Special Assessment Improvement Bonds, 5% due 1/01/2032 996 1,000 Gila County, Arizona, Unified School District Number 10 (Payson), GO (School Improvement Project of 2006), Series A, 1% due 7/01/2027 (a)(n) 993 1,000 Gilbert, Arizona, Water Resource Municipal Property Corporation, Water System Development Fee and Utility Revenue Bonds, Subordinated Lien, 5% due 10/01/2029 (g) 1,045 750 Gladden Farms Community Facilities District, Arizona, GO, 5.50% due 7/15/2031 704 2,500 Glendale, Arizona, IDA, Revenue Refunding Bonds (Midwestern University), 5% due 5/15/2031 2,518 2,000 Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series B, 5% due 8/01/2030 (g) 2,070 900 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.625% due 7/01/2020 882 2,000 Maricopa County, Arizona, IDA, Health Facilities Revenue Refunding Bonds (Catholic Healthcare West Project), Series A, 5.25% due 7/01/2032 2,039 Face Amount Municipal Bonds Value Arizona (continued) $ 2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan Health Services), Series A, 7% due 12/01/2016 (b)(g) $ 2,896 1,984 Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 3-B, 5.25% due 8/01/2038 (d)(e) 2,057 1,000 Maricopa County, Arizona, Peoria Unified School District Number 11, GO, Second Series, 5% due 7/01/2025 (c) 1,045 1,485 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Public Service Company of New Mexico Project), Series A, 6.30% due 12/01/2026 1,501 1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60% due 7/01/2012 2,061 500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO, Refunding, 7.50% due 7/01/2010 (c) 551 1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement, GO (Saddle Mountain), Series A, 5% due 7/01/2014 1,030 1,000 Mesa, Arizona, IDA Revenue Bonds (Discovery Health Systems), Series A, 5.625% due 1/01/2010 (g)(h) 1,053 1,997 Phoenix and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 2007-1, 5.25% due 8/01/2038 (d)(e) 2,026 3,325 Phoenix, Arizona, Civic Improvement Corporation, Excise Tax Revenue Bonds (Civic Plaza Expansion Project), Sub-Series A, 5% due 7/01/2035 (c) 3,427 600 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport Revenue Bonds, AMT, Series B, 5.25% due 7/01/2032 (c) 612 2,500 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding Bonds, Junior Lien, 5.50% due 7/01/2020 (c) 2,681 1,999 Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 2007-2, 5.50% due 8/01/2038 (d)(e) 2,112 Pima County, Arizona, IDA, Education Revenue Bonds: 500 (American Charter Schools Foundation), Series A, 5.625% due 7/01/2038 493 740 (Arizona Charter Schools Project), Series C, 6.70% due 7/01/2021 775 990 (Arizona Charter Schools Project), Series C, 6.75% due 7/01/2031 1,029 Portfolio Abbreviations To simplify the listings of portfolio holdings in the Schedules of Investments, we have abbreviated the names and descriptions of many of the securities according to the list below and at right. AMT Alternative Minimum Tax (subject to) COP Certificates of Participation DRIVERS Derivative Inverse Tax-Exempt Receipts EDA Economic Development Authority GO General Obligation Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds M/F Multi-Family PCR Pollution Control Revenue Bonds PILOT Payment in Lieu of Taxes RIB Residual Interest Bonds S/F Single-Family VRDN Variable Rate Demand Notes ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield Arizona Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value Arizona (continued) Pima County, Arizona, IDA, Education Revenue Refunding Bonds: $ 1,000 (Arizona Charter Schools Project), Series O, 5% due 7/01/2026 $ 937 390 (Arizona Charter Schools Project II), Series A, 6.75% due 7/01/2011 (h) 431 585 (Arizona Charter Schools Project II), Series A, 6.75% due 7/01/2021 614 1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A, 5.625% due 4/01/2014 (g) 1,022 3,050 Pima County, Arizona, Unified School District Number 1 (Tucson), GO Refunding, 7.50% due 7/01/2009 (c) 3,248 1,000 Pima County, Arizona, Unified School District Number 1 (Tucson), GO, Series C, 5% due 7/01/2027 1,050 Pinal County, Arizona, COP: 1,250 5% due 12/01/2026 1,263 1,250 5% due 12/01/2029 1,252 500 Pinal County, Arizona, IDA, Wastewater Revenue Bonds (San Manuel Facilities Project), AMT, 6.25% due 6/01/2026 529 2,000 Queen Creek Improvement District Number 001, Arizona, Special Assessment Bonds, 5% due 1/01/2032 1,948 1,500 Salt River Project, Arizona, Agriculture Improvement and Power District, Electric System Revenue Refunding Bonds, Series A, 5% due 1/01/2035 1,554 2,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2037 1,913 2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due 12/01/2011 (h) 2,459 1,195 Show Low, Arizona, IDA, Hospital Revenue Bonds (Navapache Regional Medical Center), 5% due 12/01/2035 (i) 1,170 1,500 South Campus Group LLC, Arizona Student Housing Revenue Bonds (Arizona State University South Campus Project), Series 2003, 5.625% due 9/01/2035 (g) 1,620 1,500 Surprise Municipal Property Corporation, Arizona, Wastewater Development Impact Fee Revenue Bonds, 4.90% due 4/01/2032 1,446 1,000 Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series B, 5.35% due 6/01/2047 (d)(e) 1,049 1,000 Tucson, Arizona, IDA, Joint S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1, 5.10% due 7/01/2038 (d)(e) 1,023 Face Amount Municipal Bonds Value Arizona (concluded) $ 1,000 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project), Series A, 6.125% due 7/01/2010 (h)(i) $ 1,076 1,105 University of Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a) 1,145 2,000 University of Arizona, COP, Series B, 5% due 6/01/2028 (a) 2,051 Vistancia Community Facilities District, Arizona, GO: 1,275 6.75% due 7/15/2022 1,369 750 5.75% due 7/15/2024 781 2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional Medical Center), Series A, 6% due 8/01/2033 2,080 1,000 Yavapai County, Arizona, IDA, Solid Waste Disposal Revenue Bonds (Waste Management Inc. Project), AMT, Series A-1, 4.90% due 3/01/2028 928 1,775 Yuma County, Arizona, Library District, GO, 5% due 7/01/2026 (j) 1,867 Guam--1.6% 1,000 Guam Government Waterworks Authority, Water and Wastewater System, Revenue Refunding Bonds, 5.875% due 7/01/2035 1,023 Puerto Rico--15.0% 1,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series CC, 5.50% due 7/01/2031 1,097 560 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds, Series G, 5% due 7/01/2033 564 1,000 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25% due 7/01/2039 (c) 1,113 2,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031 2,026 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series TT, 5% due 7/01/2037 1,015 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Revenue Bonds (Cogeneration Facility-AES Puerto Rico Project), AMT, 6.625% due 6/01/2026 1,583 2,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series I, 5.25% due 7/01/2033 (m) 2,058 Total Municipal Bonds (Cost--$94,110)--151.6% 95,847 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (concluded) BlackRock MuniYield Arizona Fund, Inc. (In Thousands) Face Amount Municipal Bonds Held in Trust (l) Value Arizona--14.9% $ 8,670 Arizona State University Revenue Bonds, 5.50% due 7/01/2012 (c)(h) $ 9,395 Puerto Rico--1.7% 1,000 Puerto Rico Commonwealth, Public Improvement, GO, 5.75% due 7/01/2010 (g)(h) 1,057 Total Municipal Bonds Held in Trust (Cost--$10,031)--16.6% 10,452 Shares Held Short-Term Securities Value 651 CMA Arizona Municipal Money Fund, 2.81% (f)(k) $ 651 Total Short-Term Securities (Cost--$651)--1.0% 651 Total Investments (Cost--$104,792*)--169.2% 106,950 Other Assets Less Liabilities--2.3% 1,488 Liability for Trust Certificates, Including Interest Expense Payable--(7.7%) (4,896) Preferred Stock, at Redemption Value--(63.8%) (40,314) ---------- Net Assets Applicable to Common Stock--100.0% $ 63,228 ========== * The cost and unrealized appreciation (depreciation) of investments as of October 31, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 100,165 ============== Gross unrealized appreciation $ 2,744 Gross unrealized depreciation (794) -------------- Net unrealized appreciation $ 1,950 ============== (a) AMBAC Insured. (b) Escrowed to maturity. (c) FGIC Insured. (d) FHLMC Collateralized. (e) FNMA/GNMA Collateralized. (f) 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 CMA Arizona Municipal Money Fund (767) $33 (g) MBIA Insured. (h) Prerefunded. (i) Radian Insured. (j) XL Capital Insured. (k) Represents the current yield as of October 31, 2007. (l) Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1(c) to Financial Statements for details of municipal bonds held in trust. (m) Commonwealth Guaranteed. (n) Represents a step bond. o Forward interest rate swaps outstanding as of October 31, 2007 were as follows: Notional Unrealized Amount Appreciation Pay a fixed rate of 3.846% and receive a floating rate based on 1-week (SIFMA) Municipal Swap Index Rate Broker, Citibank, N.A. Expires January 2023 $2,500 $ 8 See Notes to Financial Statements. ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments as of October 31, 2007 BlackRock MuniYield California Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California--133.2% $ 1,730 ABAG Finance Authority for Nonprofit Corporations, California, Revenue Refunding Bonds (Redwood Senior Homes and Services), 6% due 11/15/2022 $ 1,826 2,075 Antioch Area Public Facilities Financing Agency, California, Special Tax (Community Facilities District Number 1989-1), 5.70% due 8/01/2009 (a)(f) 2,174 2,725 Arcata, California, Joint Powers Financing Authority, Tax Allocation Revenue Refunding Bonds (Community Development Project Loan), Series A, 6% due 8/01/2023 (a) 2,730 10,000 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente), Series A, 5.50% due 6/01/2022 (d)(g) 10,301 1,490 California Health Facilities Financing Authority, Revenue Refunding Bonds (Pomona Valley Hospital Medical Center), Series A, 5.625% due 7/01/2019 (b) 1,522 4,990 California Infrastructure and Economic Development Bank Revenue Bonds (J. David Gladstone Institute Project), 5.50% due 10/01/2022 5,196 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, AMT: 2,700 (Republic Services Inc. Project), Series B, 5.25% due 6/01/2023 2,770 3,000 (Waste Management Inc. Project), Series A-2, 5.40% due 4/01/2025 3,020 2,500 (Waste Management Inc. Project), Series C, 5.125% due 11/01/2023 2,474 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Refunding Bonds, AMT: 2,000 (Republic Services Inc. Project), Series C, 5.25% due 6/01/2023 2,052 4,500 (Waste Management Inc. Project), Series B, 5% due 7/01/2027 4,296 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT: 2,000 Series A, 5.40% due 12/01/2036 (c)(i) 2,112 35 Series B, 6.15% due 6/01/2020 (c) 36 420 Sub-Series FH-1, 5.50% due 8/01/2047 427 2,500 California State Enterprise Authority, Sewer Facility Revenue Bonds (Anheuser-Busch Project), AMT, 5.30% due 9/01/2047 2,507 California State, GO: 200 5.50% due 4/01/2014 (f) 223 5,000 5.125% due 4/01/2025 5,232 5 5.50% due 4/01/2030 5 California State, GO, Refunding: 170 5.75% due 5/01/2010 (f) 181 450 5.75% due 5/01/2030 475 3,000 5% due 6/01/2037 3,039 2,785 California State, GO, Refunding, Veterans, AMT, Series BJ, 5.70% due 12/01/2032 2,813 Face Amount Municipal Bonds Value California (continued) California State Public Works Board, Lease Revenue Bonds: $ 2,000 (California State University), Series C, 5.40% due 10/01/2022 (b) $ 2,042 5,000 (Department of Corrections), Series C, 5.50% due 6/01/2023 5,379 4,000 (Department of Health Services), Series A, 5.75% due 11/01/2009 (b)(f) 4,217 12,000 (Various Community College Projects), Series A, 5.625% due 3/01/2016 (a) 12,212 6,850 California State, Various Purpose, GO, 5.50% due 11/01/2033 7,240 5,250 California Statewide Communities Development Authority, COP (John Muir/Mount Diablo Health System), 5.125% due 8/15/2022 (b) 5,360 California Statewide Communities Development Authority Health Facility Revenue Bonds (Memorial Health Services), Series A: 3,270 6% due 10/01/2023 3,484 3,000 5.50% due 10/01/2033 3,079 California Statewide Communities Development Authority Revenue Bonds: 1,700 (Daughters of Charity National Health System), Series A, 5.25% due 7/01/2030 1,704 7,500 (Kaiser Permanente), Series B, 5.25% due 3/01/2045 7,590 California Statewide Communities Development Authority, Revenue Refunding Bonds: 6,975 (Kaiser Hospital Asset Management, Inc.), Series C, 5.25% due 8/01/2031 7,127 3,500 (Kaiser Permanente), Series A, 5% due 4/01/2031 3,515 2,380 California Statewide Communities Development Authority, Water Revenue Bonds (Pooled Financing Program), Series C, 5.25% due 10/01/2028 (d) 2,488 2,000 Chino Basin, California, Regional Financing Authority Revenue Bonds (Inland Empire Utility Agency Sewer Project), 5.75% due 11/01/2009 (b)(f) 2,110 2,705 Contra Costa County, California, Public Financing Authority, Lease Revenue Refunding Bonds (Various Capital Facilities), Series A, 5.30% due 8/01/2020 (b) 2,761 3,750 Cucamonga, California, County Water District, COP, 5.125% due 9/01/2035 (e) 3,877 7,000 Fontana Unified School District, California, GO, Series A, 5.25% due 8/01/2028 (d) 7,377 4,000 Fremont, California, Unified School District, Alameda County, GO (Election of 2002), Series B, 5% due 8/01/2030 (d) 4,153 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Refunding Bonds, Senior Series A-1: 3,500 5.125% due 6/01/2047 3,072 2,000 5.75% due 6/01/2047 1,916 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield California Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 9,390 Grant Joint Union High School District, California, GO (Election of 2006), 5% due 8/01/2029 (d) $ 9,704 5,195 Long Beach, California, Harbor Revenue Bonds, AMT, Series A, 5.25% due 5/15/2023 (e) 5,381 2,000 Los Angeles, California, COP (Sonnenblick Del Rio West Los Angeles), 6.20% due 11/01/2031 (a) 2,145 10,000 Los Angeles, California, Community College District, GO (Election of 2003), Series E, 5% due 8/01/2031 (d) 10,402 7,000 Los Angeles, California, Wastewater System Revenue Bonds, Series A, 5% due 6/01/2008 (e)(f) 7,134 5,000 Los Angeles, California, Wastewater System Revenue Refunding Bonds, Series A, 4.75% due 6/01/2035 (b) 5,035 4,500 Los Angeles, California, Wastewater System, Revenue Refunding Bonds, Subordinate Series A, 5% due 6/01/2027 (b) 4,677 3,780 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition A, First Tier Senior-Series A, 5% due 7/01/2027 (a) 3,943 5,000 Los Angeles County, California, Public Works Financing Authority, Lease Revenue Bonds (Multiple Capital Facilities Project VI), Series A, 5.625% due 5/01/2010 (a)(f) 5,268 2,550 Los Angeles County, California, Sanitation Districts Financing Authority, Revenue Refunding Bonds (Capital Projects--District Number 14), Sub-Series B, 5% due 10/01/2030 (e) 2,644 5,885 Marin, California, Community College District, GO (Election of 2004), Series A, 5% due 8/01/2028 (b) 6,130 Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series A: 1,000 5% due 7/01/2030 (d) 1,038 1,240 5% due 7/01/2032 1,293 5,000 5% due 7/01/2037 5,194 7,000 Modesto, California, Wastewater Treatment Facilities Revenue Bonds, 5.625% due 11/01/2007 (b)(f) 7,070 7,570 Morgan Hill, California, Unified School District, GO, 5% due 8/01/2026 (e)(g)(k) 3,174 2,000 Mount Diablo, California, Unified School District, GO (Election of 2002), 5% due 6/01/2028 (b) 2,082 6,675 Murrieta Valley, California, Unified School District, Public Financing Authority, Special Tax Revenue Bonds, Series A, 5.125% due 9/01/2026 (h) 7,006 Oakland, California, Alameda County Unified School District, GO (b): 6,240 (Election of 2000), 5% due 8/01/2027 6,512 7,060 Series F, 5.50% due 8/01/2010 (f) 7,451 5,250 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (e) 5,344 Face Amount Municipal Bonds Value California (continued) $ 3,000 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and Headworks Projects), Series A, 5.25% due 6/01/2034 (e) $ 3,143 1,000 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (b) 1,077 2,000 Peralta, California, Community College District, GO (Election of 2000), Series D, 5% due 8/01/2030 (d) 2,077 1,750 Pleasant Valley, California, School District, Ventura County, GO, Series C, 5.75% due 8/01/2025 (b)(g) 1,812 10,600 Port of Oakland, California, Port Revenue Refunding Bonds, Series I, 5.40% due 11/01/2017 (b) 10,828 4,315 Rancho Cucamonga, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Rancho Redevelopment Project), 5.25% due 9/01/2020 (d) 4,464 5,000 Rancho Mirage, California, Joint Powers Financing Authority Revenue Bonds (Eisenhower Medical Center), Series A, 5% due 7/01/2038 4,988 2,345 Richmond, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Harbour Redevelopment Project), Series A, 5.50% due 7/01/2018 (b) 2,419 5,000 Sacramento, California, Municipal Utility District, Electric Revenue Refunding Bonds, Series L, 5.125% due 7/01/2022 (b) 5,101 2,500 Sacramento, California, Municipal Utility District Financing Authority, Revenue Bonds, (Consumers Project), 5.125% due 7/01/2029 (b) 2,637 Sacramento County, California, Sanitation District Financing Authority, Revenue Refunding Bonds: 5,375 (County Sanitation District Number 1), 5% due 8/01/2035 (b) 5,552 3,455 Series A, 5.60% due 12/01/2017 3,461 2,110 Salinas Valley, California, Solid Waste Authority, Revenue Refunding Bonds, AMT, 5.125% due 8/01/2022 (a) 2,162 8,000 San Bernardino, California, City Unified School District, GO, Refunding, Series A, 5.875% due 8/01/2009 (e)(f) 8,413 3,000 San Bernardino, California, Joint Powers Financing Authority, Lease Revenue Bonds (Department of Transportation Lease), Series A, 5.50% due 12/01/2020 (b) 3,005 10,000 San Diego, California, Unified School District, GO (Election of 1998), Refunding, Series F-1, 4.50% due 7/01/2029 (d) 9,890 5,010 San Diego County, California, Water Authority, Water Revenue Bonds, COP, Series A, 5% due 5/01/2031 (d) 5,133 6,000 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds, Series A, 5% due 7/01/2030 (b) 6,228 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield California Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 1,720 San Francisco, California, City and County Educational Facilities, GO (Community College), Series A, 5.75% due 6/15/2008 (f) $ 1,778 1,310 San Francisco, California, City and County Zoo Facilities, GO, Series B, 5.75% due 6/15/2008 (f) 1,354 4,615 San Jose, California, Airport Revenue Bonds, Series D, 5% due 3/01/2028 (b) 4,746 1,855 San Jose, California, Unified School District, Santa Clara County, GO (Election of 2002), Series B, 5% due 8/01/2029 (e) 1,929 10,005 San Jose-Evergreen, California, Community College District, Capital Appreciation, GO (Election of 2004), Refunding, Series A, 5.12% due 9/01/2023 (b)(k) 4,559 5,000 San Juan, California, Unified School District, GO (Election of 2002), 5% due 8/01/2028 (b) 5,170 2,020 Santa Clara, California, Unified School District, GO, 5.50% due 7/01/2021 (e) 2,132 3,500 Santa Clara County, California, Housing Authority, M/F Housing Revenue Bonds (John Burns Gardens Apartments Project), AMT, Series A, 6% due 8/01/2041 3,653 2,170 Santa Clarita, California, Community College District, GO (Election 2001), 5% due 8/01/2028 (d) 2,260 4,000 Santa Monica, California, Redevelopment Agency, Tax Allocation Bonds (Earthquake Recovery Redevelopment Project), 6% due 7/01/2009 (a)(f) 4,207 2,500 Sequoia, California, Unified High School District, GO, Refunding, 5% due 7/01/2028 (d) 2,614 1,675 Shasta-Tehama-Trinity Joint Community College District, California, GO (Election of 2002), Series B, 5.25% due 8/01/2024 (d) 1,803 6,875 Sonoma County, California, Junior College District, GO (Election 2002), Refunding, Series B, 5% due 8/01/2028 (d) 7,161 2,265 South Bayside, California, Waste Management Authority, Waste System Revenue Bonds, 5.75% due 3/01/2020 (a) 2,371 3,000 Southern California HFA, S/F Mortgage Revenue Bonds, AMT, Series A, 5.80% due 12/01/2049 (c)(i) 3,229 6,750 Southern California Public Power Authority, Natural Gas Project Number 1 Revenue Bonds, Series A, 5% due 11/01/2033 6,549 1,600 Stockton, California, Public Financing Authority, Water Revenue Bonds (Water System Capital Improvement Projects), Series A, 5% due 10/01/2031 (b) 1,659 3,235 Taft, California, Public Financing Authority, Lease Revenue Bonds (Community Correctional Facility), Series A, 6.05% due 1/01/2017 (b) 3,450 Face Amount Municipal Bonds Value California (concluded) $ 1,310 Torrance, California, Hospital Revenue Refunding Bonds (Torrance Memorial Medical Center), Series A, 6% due 6/01/2022 $ 1,398 4,745 Vacaville, California, Unified School District, GO (Election of 2001), 5% due 8/01/2030 (b) 4,927 1,000 Ventura, California, Unified School District, GO (Election of 1997), Series H, 5.125% due 8/01/2034 (d) 1,041 3,990 Vernon, California, Electric System Revenue Bonds (Malburg Generating Station Project), 5.50% due 4/01/2008 (f) 4,025 5,000 Vista, California, Joint Powers Financing Authority, Lease Revenue Refunding Bonds, 5.625% due 5/01/2016 (b) 5,109 Puerto Rico--0.9% 2,500 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.25% due 7/01/2030 2,591 U.S. Virgin Islands--1.0% 3,000 Virgin Islands Government Refinery Facilities, Revenue Refunding Bonds (Hovensa Coker Project), AMT, 6.50% due 7/01/2021 3,184 Total Municipal Bonds (Cost--$410,968)--135.1% 420,030 Municipal Bonds Held in Trust (m) California--32.6% 9,000 Anaheim, California, Public Financing Authority, Electric System District Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (d) 9,280 10,210 Contra Costa County, California, Community College District, GO (Election of 2002), 5% due 8/01/2030 (d) 10,558 6,020 La Quinta, California, Financing Authority, Local Agency Revenue Bonds, Series A, 5.125% due 9/01/2034 (a) 6,245 10,460 Palm Desert, California, Financing Authority, Tax Allocation Revenue Refunding Bonds (Project Area Number 2), Series A, 5.125% due 8/01/2036 (a) 10,889 11,615 Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L, 5.375% due 11/01/2027 (e) 12,087 16,000 Sacramento, California, Municipal Utility District Financing Authority, Revenue Bonds (Consumers Project), 5.125% due 7/01/2029 (b) 16,874 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (concluded) BlackRock MuniYield California Fund, Inc. (In Thousands) Face Amount Municipal Bonds Held in Trust (m) Value California (concluded) $ 20,710 San Diego, California, Certificates of Undivided Interest Revenue Bonds (Water Utility Fund), 5.20% due 8/01/2024 (e) $ 21,130 5,430 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds, Series A, 5% due 7/01/2034 (b) 5,611 8,490 University of California, Limited Project Revenue Bonds, Series B, 5% due 5/15/2033 (d) 8,743 Total Municipal Bonds Held in Trust (Cost--$101,184)--32.6% 101,417 Shares Held Short-Term Securities Value 7,845 CMA California Municipal Money Fund, 2.88% (j)(l) $ 7,845 Total Short-Term Securities (Cost--$7,845)--2.5% 7,845 Total Investments (Cost--$519,997*)--170.2% 529,292 Other Assets Less Liabilities--2.1% 6,376 Liability for Trust Certificates, Including Interest Expense Payable--(15.9%) (49,506) Preferred Stock, at Redemption Value--(56.4%) (175,228) ---------- Net Assets Applicable to Common Stock--100.0% $ 310,934 ========== * The cost and unrealized appreciation (depreciation) of investments as of October 31, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 471,770 ============== Gross unrealized appreciation $ 10,479 Gross unrealized depreciation (1,925) -------------- Net unrealized appreciation $ 8,554 ============== (a) AMBAC Insured. (b) MBIA Insured. (c) FNMA/GNMA Collateralized. (d) FSA Insured. (e) FGIC Insured. (f) Prerefunded. (g) Escrowed to maturity. (h) Assured Guaranty Insured. (i) FHLMC Collateralized. (j) 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 CMA California Municipal Money Fund 3,852 $352 (k) Represents a zero coupon bond; the interest rate shown is the effective yield at the time of purchase. (l) Represents the current yield as of October 31, 2007. (m) Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1(c) to Financial Statements for details of municipal bonds held in trust. See Notes to Financial Statements. ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments as of October 31, 2007 BlackRock MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California--136.7% $ 7,000 ABAG Finance Authority for Nonprofit Corporations, California, COP (Children's Hospital Medical Center), 6% due 12/01/2009 (a)(g) $ 7,427 2,350 Alameda, California, GO, 5% due 8/01/2033 (f) 2,422 5,665 Alhambra, California, Unified School District, GO (Election of 2004), Series A, 5% due 8/01/2029 (b) 5,889 3,580 Anaheim, California, Public Financing Authority, Electric System Distribution Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (e) 3,691 2,400 Anaheim, California, Union High School District, GO (Election of 2002), 5% due 8/01/2027 (f) 2,495 255 Bay Area Government Association, California, Tax Allocation Revenue Refunding Bonds (California Redevelopment Agency Pool), Series A, 6% due 12/15/2024 (e) 256 3,980 Brentwood, California, Infrastructure Refinancing Authority, Infrastructure Revenue Refunding Bonds, Series A, 5.20% due 9/02/2029 (e) 4,183 California Community College Financing Authority, Lease Revenue Bonds, Series A (f)(g): 3,215 5.95% due 12/01/2009 3,438 1,100 6% due 12/01/2009 1,177 5,000 California Educational Facilities Authority Revenue Bonds (University of San Diego), Series A, 5.50% due 10/01/2032 5,227 9,115 California Educational Facilities Authority, Student Loan Revenue Bonds (CalEdge Loan Program), AMT, 5.55% due 4/01/2028 (a) 9,260 California HFA, Home Mortgage Revenue Bonds, VRDN, AMT, Series R (a)(m): 400 3.53% due 8/01/2023 400 600 3.53% due 8/01/2032 600 2,750 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente), Series A, 5.50% due 6/01/2022 (e)(i) 2,833 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Series A (d): 295 6.35% due 12/01/2029 (c) 301 130 6.25% due 12/01/2031 133 12,680 California State Department of Veteran Affairs, Home Purchase Revenue Refunding Bonds, Series A, 5.35% due 12/01/2027 (a) 13,284 860 California State, GO, 6.25% due 10/01/2019 (f) 869 California State, GO, Refunding: 3,000 5.25% due 2/01/2029 3,117 3,000 Series BX, 5.50% due 12/01/2031 (e) 3,004 19,865 California State, GO, Refunding, Veterans, AMT, Series B, 5.70% due 12/01/2032 (a) 20,102 Face Amount Municipal Bonds Value California (continued) $ 4,530 California State Public Works Board, Lease Revenue Bonds (Department of Corrections-Ten Administrative Segregation Housing Unites), Series A, 5.25% due 3/01/2020 (a) $ 4,773 2,720 California State University, Systemwide Revenue Refunding Bonds, Series A, 5.125% due 11/01/2026 (a) 2,852 5,950 California State, Various Purpose, GO, 5.50% due 11/01/2033 6,289 4,100 California Statewide Communities Development Authority, COP (Kaiser Permanente), 5.30% due 12/01/2015 (e)(i) 4,252 3,685 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 6% due 10/01/2023 3,926 2,650 California Statewide Communities Development Authority, Revenue Refunding Bonds (Kaiser Permanente), Series A, 5% due 4/01/2031 2,662 7,000 Capistrano, California, Unified School District, Community Facility District, Special Tax Refunding Bonds, 5% due 9/01/2029 (b) 7,256 4,600 Ceres, California, Redevelopment Agency, Tax Allocation Bonds (Ceres Redevelopment Project Area Number 1), 5.75% due 11/01/2010 (f)(g) 4,992 6,000 Chaffey, California, Union High School District, GO, Series C, 5.375% due 5/01/2023 (e) 6,418 3,000 Chino Valley, California, Unified School District, GO (Election of 2002), Series C, 5.25% due 8/01/2030 (f) 3,178 5,910 Chula Vista, California, Elementary School District, COP, 5% due 9/01/2029 (f) 6,061 10,000 Coachella Valley, California, Unified School District, COP, 5% due 9/01/2036 (a) 10,236 3,275 Coachella Valley, California, Unified School District, GO (Election of 2005), Series A, 5% due 8/01/2025 (b) 3,427 2,540 Coalinga, California, Redevelopment Agency Tax Allocation Bonds, 5.90% due 9/15/2025 (f) 2,742 Contra Costa, California, Water District, Water Revenue Refunding Bonds: 4,135 Series L, 5% due 10/01/2032 (e) 4,260 1,735 Series O, 5% due 10/01/2024 (a) 1,838 12,180 Contra Costa County, California, COP, Refunding (Merrithew Memorial Hospital Project), 5.375% due 11/01/2007 (f)(g) 12,424 8,500 Corona, California, COP (Clearwater Cogeneration Project), 5% due 9/01/2028 (f) 8,707 1,485 East Bay, California, Municipal Utility District, Wasterwater System Revenue Refunding Bonds, Sub-Series A, 5% due 6/01/2037 (a) 1,542 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 1,100 El Centro, California, Financing Authority, Water Revenue Bonds, Series A, 5.25% due 10/01/2035 (e) $ 1,162 Fremont, California, Unified School District, Alameda County, GO: 6,000 (Election of 2002), Series B, 5% due 8/01/2030 (e) 6,230 10,755 Series A, 5.50% due 8/01/2026 (b) 11,535 4,295 Fresno, California, Joint Powers Financing Authority, Lease Revenue Bonds, Series A, 5.75% due 6/01/2026 (e) 4,554 6,930 Fullerton, California, Public Financing Authority, Tax Allocation Revenue Bonds, 5% due 9/01/2027 (a) 7,165 4,390 Glendale, California, Electric Revenue Bonds, 5% due 2/01/2032 (f) 4,493 Glendora, California, Unified School District, GO (Election of 2005), Series A (f): 1,350 5% due 8/01/2027 1,412 2,700 5.25% due 8/01/2030 2,871 5,710 Hanford, California, Joint Unified High School District, GO (Election of 2004), Series A, 4.75% due 8/01/2029 (e) 5,812 Hollister, California, Joint Powers Finance Authority, Wastewater Revenue Refunding Bonds (Refining and Improvement Project), Series 1 (e): 5,000 5% due 6/01/2032 5,175 6,000 5% due 6/01/2037 6,190 4,090 Imperial, California, Community College District, GO (Election of 2004), 5% due 8/01/2029 (b) 4,252 2,500 La Quinta, California, Financing Authority, Local Agency Revenue Bonds, Series A, 5.25% due 9/01/2024 (a) 2,677 3,050 Little Lake, California, City School District, GO, Refunding, 5.50% due 7/01/2025 (e) 3,324 10,260 Lodi, California, Unified School District, GO (Election of 2002), 5% due 8/01/2029 (e) 10,591 8,000 Los Angeles, California, Community College District, GO (Election of 2003), Series E, 5% due 8/01/2031 (e) 8,321 10,000 Los Angeles, California, Community Redevelopment Agency, Community Redevelopment Financing Authority Revenue Bonds (Bunker Hill Project), Series A, 5% due 12/01/2027 (e) 10,337 290 Los Angeles, California, Department of Airports, Airport Revenue Bonds (Los Angeles International Airport), AMT, Series D, 5.625% due 5/15/2012 (b) 290 Face Amount Municipal Bonds Value California (continued) Los Angeles, California, Unified School District, GO: $ 2,880 (Election of 2004), Series C, 5% due 7/01/2027 (b) $ 2,982 5,365 (Election of 2004), Series F, 4.75% due 7/01/2027 (b) 5,483 5,000 (Election of 2004), Series F, 5% due 7/01/2030 (b) 5,210 7,000 Series E, 5% due 7/01/2030 (a) 7,266 Los Angeles, California, Unified School District, GO, Refunding: 5,000 Series B, 4.75% due 7/01/2019 (e) 5,257 4,000 Series B, 4.75% due 7/01/2025 (b) 4,108 5,000 Los Angeles, California, Wastewater System Revenue Refunding Bonds, Series A, 4.75% due 6/01/2035 (f) 5,035 5,000 Los Angeles, California, Water and Power Revenue Bonds (Power System), Sub-Series A-1, 5% due 7/01/2031 (e) 5,177 3,165 Los Angeles, California, Water and Power Revenue Refunding Bonds (Power System), Series A-A-2, 5.375% due 7/01/2021 (f) 3,345 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds: 5,240 Proposition A, First Tier Senior-Series A, 5% due 7/01/2027 (a) 5,467 6,500 Proposition A, First Tier Senior-Series A, 5% due 7/01/2035 (a) 6,713 2,000 Proposition C, Second Tier Senior-Series A, 5.25% due 7/01/2010 (b)(g) 2,113 8,735 Los Angeles County, California, Public Works Financing Authority, Lease Revenue Refunding Bonds (Master Refunding Project), Series A, 5% due 12/01/2028 (f) 9,040 3,000 Los Rios, California, Community College District, GO (Election of 2002), Series B, 5% due 8/01/2027 (f) 3,119 2,010 Madera, California, Public Financing Authority, Water and Wastewater Revenue Refunding Bonds, 5% due 3/01/2036 (f) 2,075 6,865 Merced, California, Community College District, GO (School Facilities District Number 1), 5% due 8/01/2031 (f) 7,141 5,370 Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series B-1, 5% due 10/01/2033 (b) 5,528 8,000 Murrieta Valley, California, Unified School District, Public Financing Authority, Special Tax Revenue Bonds, Series A, 5.125% due 9/01/2026 (l) 8,396 9,070 Napa, California, Water Revenue Bonds, 5% due 5/01/2035 (a) 9,425 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 6,015 Natomas Unified School District, California, GO (Election of 2006), 5% due 8/01/2028 (b) $ 6,265 4,245 Nevada County, California, COP, Refunding, 5.25% due 10/01/2019 (f) 4,468 2,000 New Haven, California, Unified School District, GO, Refunding, 5.75% due 8/01/2020 (e) 2,178 4,270 Oakland, California, Sewer Revenue Bonds, Series A, 5% due 6/15/2029 (e) 4,418 2,000 Oakland, California, State Building Authority, Lease Revenue Bonds (Elihu M. Harris State Office Building), Series A, 5.50% due 4/01/2008 (a)(g) 2,037 1,245 Orange County, California, Airport Revenue Refunding Bonds, AMT, 5.625% due 7/01/2012 (f) 1,272 6,360 Orange County, California, Public Financing Authority, Lease Revenue Refunding Bonds (Juvenile Justice Center Facility), 5.375% due 6/01/2018 (a) 6,836 10,000 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and Headworks Projects), Series A, 5.25% due 6/01/2034 (b) 10,476 9,645 Oxnard, California, Unified High School District, GO, Refunding, Series A, 6.20% due 8/01/2030 (f) 11,008 1,275 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (f) 1,373 4,640 Palmdale, California, Water District Public Facility Corporation, COP, 5% due 10/01/2029 (b) 4,760 Placentia-Yorba Linda, California, Unified School District: 5,000 COP, 5% due 10/01/2030 (b) 5,138 5,000 GO (Election of 2002), Series C, 5% due 8/01/2029 (f) 5,198 2 Port of Oakland, California, RIB, AMT, Series 1192, 7.01% due 11/01/2027 (h) 3 7,500 Port of Oakland, California, Revenue Bonds AMT, Series K, 5.75% due 11/01/2029 (b) 7,788 3,000 Riverside, California, COP, 5% due 9/01/2028 (a) 3,073 Riverside, California, Unified School District, GO (Election of 2001): 6,000 Series A, 5.25% due 2/01/2023 (b) 6,378 7,515 Series B, 5% due 8/01/2030 (f) 7,833 4,500 Riverside County, California, Asset Leasing Corporation, Leasehold Revenue Refunding Bonds (Riverside County Hospital Project), Series B, 5.70% due 6/01/2016 (f) 4,934 3,000 Sacramento, California, City Financing Authority, Capital Improvement Revenue Bonds (Community Rein Capital Program), Series A, 5% due 12/01/2036 (a) 3,090 Face Amount Municipal Bonds Value California (continued) $ 6,590 Sacramento, California, City Financing Authority, Tax Allocation Revenue Bonds (Merged Downtown and Oak Park Projects), Series A, 5.03% due 12/01/2032 (b)(n) $ 1,966 2,565 Saddleback Valley, California, Unified School District, GO, 5% due 8/01/2029 (e) 2,655 5,000 San Bernardino, California, City Unified School District, GO, Series A, 5% due 8/01/2028 (e) 5,176 320 San Bernardino County, California, S/F Home Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.25% due 12/01/2031 (d) 327 San Diego, California, Redevelopment Agency, Subordinate Tax Allocation Bonds (Centre City Redevelopment Project), Series A (a): 2,720 5.25% due 9/01/2024 2,908 2,860 5.25% due 9/01/2025 3,047 5,400 San Diego, California, Unified Port District, Revenue Refunding Bonds, AMT, Series A, 5.25% due 9/01/2019 (f) 5,704 San Diego County, California, COP (Salk Institute for Bio Studies) (f): 3,570 5.75% due 7/01/2022 3,812 5,200 5.75% due 7/01/2031 5,531 San Diego County, California, Water Authority, Water Revenue Bonds, COP, Series A (e): 7,350 5% due 5/01/2030 7,544 10,000 5% due 5/01/2031 10,245 5,000 San Francisco, California, Bay Area Rapid Transit District, GO (Election of 2004), Series B, 5% due 8/01/2035 5,199 19,630 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds Series A, 5% due 7/01/2030 (f) 20,375 6,455 San Francisco, California, City and County Airport Commission, International Airport Revenue Refunding Bonds, Second Series 28B, 5.25% due 5/01/2012 (f)(g) 6,935 San Francisco, California, City and County Airport Commission, International Airport, Special Facilities Lease Revenue Bonds (SFO Fuel Company LLC), AMT, Series A (e): 1,000 6.10% due 1/01/2020 1,023 985 6.125% due 1/01/2027 1,008 San Francisco, California, Community College District, GO, Refunding, Series A (b): 1,735 5.375% due 6/15/2019 1,839 1,730 5.375% due 6/15/2020 1,834 1,925 5.375% due 6/15/2021 2,040 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 4,135 San Jose, California, Airport Revenue Bonds, Series D, 5% due 3/01/2028 (f) $ 4,252 1,632 San Jose, California, Financing Authority, Lease Revenue Refunding Bonds, DRIVERS, Series 1280Z, 6.273% due 12/01/2010 (a)(h) 1,698 7,300 San Jose, California, Redevelopment Agency, Tax Allocation Bonds (Housing Set-Aside Merged Area), AMT, Series E, 5.85% due 8/01/2027 (f) 7,477 4,250 San Juan, California, Unified School District, GO (Election of 2002), 5% due 8/01/2028 (f) 4,395 4,350 San Mateo County, California, Transit District, Sales Tax Revenue Refunding Bonds, Series A, 5% due 6/01/2029 (f) 4,519 2,595 Santa Clara, California, Redevelopment Agency, Tax Allocation Bonds (Bayshore North Project), Series A, 5.25% due 6/01/2019 (a) 2,680 5,500 Santa Clara, California, Subordinated Electric Revenue Bonds, Series A, 5% due 7/01/2028 (f) 5,702 1,100 Santa Clara Valley, California, Water District, Water Utility System Revenue, Series A, 5.125% due 6/01/2010 (b)(g) 1,147 Santa Rosa, California, High School District, GO: 2,500 (Election of 2002), 5% due 8/01/2028 (f) 2,585 3,000 5.375% due 8/01/2026 (e) 3,172 6,750 Shasta, California, Joint Powers Financing Authority, Lease Revenue Bonds (County Administration Building Project), Series A, 5% due 4/01/2033 (f) 6,904 1,645 South Tahoe, California, Joint Powers Financing Authority, Revenue Refunding Bonds (South Tahoe Redevelopment Project Area No. 1), Series A, 5% due 10/01/2029 (e) 1,687 5,000 Southern California Public Power Authority, Power Project Revenue Bonds (Magnolia Power Project), Series A-1, 5% due 7/01/2013 (a)(g) 5,389 2,600 Stockton, California, Public Financing Authority, Water Revenue Bonds (Water System Capital Improvement Projects), Series A, 5% due 10/01/2031 (f) 2,696 1,020 Stockton, California, Public Financing Revenue Refunding Bonds, Series A, 5.875% due 9/02/2016 (e) 1,029 1,500 Tehachapi, California, COP, Refunding (Installment Sale), 5.75% due 11/01/2016 (e) 1,629 6,000 Tracy, California, Community Development Agency, Tax Allocation Refunding Bonds, Series A, 5% due 3/01/2034 (a) 6,134 3,000 Turlock, California, Public Finance Authority, Sewer Revenue Bonds, Series A, 5% due 9/15/2033 (b) 3,088 University of California Revenue Bonds (g): 14,830 (Multiple Purpose Projects), Series Q, 5% due 9/01/2011 (e) 15,794 4,790 Series O, 5.125% due 9/01/2010 (b) 5,058 Face Amount Municipal Bonds Value California (concluded) $ 3,395 Ventura County, California, Community College District, GO, Refunding, Series A, 5% due 8/01/2027 (f) $ 3,529 2,550 Vista, California, Unified School District, GO, Series B, 5% due 8/01/2028 (b) 2,637 2,185 Walnut, California, Public Financing Authority, Tax Allocation Revenue Bonds (Walnut Improvement Project), 5.375% due 9/01/2021 (a) 2,316 6,690 West Contra Costa, California, Unified School District, GO (Election of 2002), Series B, 5% due 8/01/2032 (e) 6,844 Puerto Rico--5.9% 5,000 Puerto Rico Commonwealth, GO, 4.875% due 7/01/2008 (f)(g) 5,098 4,335 Puerto Rico Commonwealth, Public Improvement, GO, 5.75% due 7/01/2010 (f)(g) 4,589 7,000 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series UU, 5% due 7/01/2024 (e) 7,435 10,000 Puerto Rico Municipal Finance Agency, GO, RIB, Series 225, 7.75% due 8/01/2012 (e)(h) 10,951 10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds, Series A, 5.04% due 8/01/2045 (f)(n) 1,518 Total Municipal Bonds (Cost--$688,891)--142.6% 706,860 Municipal Bonds Held in Trust (o) California--23.8% 10,000 East Bay Municipal Utility District, California, Water System Revenue Bonds, Sub-Series A, 5% due 6/01/2035 (f) 10,324 15,150 Long Beach, California, Harbor Revenue Bonds, AMT, Series A, 5.375% due 5/15/2024 15,729 16,000 Los Angeles, California, Department of Water and Power, Power System Revenue Refunding Bonds, Series A, Sub-Series A-2, 5% due 7/1/2027 (f) 16,632 9,950 Port of Oakland, California, Port Revenue Bonds, AMT, Series K, 5.75% due 11/01/2012 (b) 10,369 10,820 Port of Oakland, California, Revenue Bonds, AMT, Series K, 5.75% due 11/01/2013 (b) 11,278 19,035 Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L, 5.375% due 11/01/2027 (b) 19,808 16,000 San Diego, California, Certificates of Undivided Interest Revenue Bonds (Water Utility Fund), 5.20% due 8/01/2024 (b) 16,325 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (concluded) BlackRock MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Held in Trust (o) Value California (concluded) $ 10,500 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds, Series A, 5% due 7/01/2034 (f) $ 10,850 8,137 San Jose, California, Financing Authority, Lease Revenue Refunding Bonds (Civic Center Project), Series B, 5% due 6/01/2032 (a) 8,302 Total Municipal Bonds Held in Trust (Cost--$119,279)--23.8% 119,617 Shares Held Short-Term Securities Value 49 CMA California Municipal Money Fund, 2.88% (j)(k) $ 49 Total Short-Term Securities (Cost--$49)--0.0% 49 Total Investments (Cost--$808,219*)--164.4% 826,526 Other Assets Less Liabilities--2.1% 10,624 Liability for Trust Certificates, Including Interest Expense Payable--(11.8%) (59,087) Preferred Stock, at Redemption Value--(54.7%) (275,208) ---------- Net Assets Applicable to Common Stock--100.0% $ 502,855 ========== * The cost and unrealized appreciation (depreciation) of investments as of October 31, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 750,443 ============== Gross unrealized appreciation $ 19,351 Gross unrealized depreciation (1,484) -------------- Net unrealized appreciation $ 17,867 ============== (a) AMBAC Insured. (b) FGIC Insured. (c) FHLMC Collateralized. (d) FNMA/GNMA Collateralized. (e) FSA Insured. (f) MBIA Insured. (g) Prerefunded. (h) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (i) Escrowed to maturity. (j) 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 CMA California Municipal Money Fund (1,075) $125 (k) Represents the current yield as of October 31, 2007. (l) Assured Guaranty Insured. (m) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. (n) Represents a zero coupon bond; the interest rate shown is the effective yield at the time of purchase. (o) Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1(c) to Financial Statements for details of municipal bonds held in trust. See Notes to Financial Statements. ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments as of October 31, 2007 BlackRock MuniYield Florida Fund (In Thousands) Face Amount Municipal Bonds Value Arizona--1.0% $ 2,100 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2037 $ 2,009 District of Columbia--0.5% 1,000 Metropolitan Washington Airports Authority, D.C., Airport System Revenue Bonds, AMT, Series A, 5.25% due 10/01/2032 (f) 1,021 Florida--132.2% 2,100 Alachua County, Florida, School Board, COP, 5.25% due 7/01/2029 (b) 2,186 1,500 Arbor Greene Community Development District, Florida, Special Assessment Revenue Refunding Bonds, 5% due 5/01/2019 1,543 2,420 Bay County, Florida, Sales Tax Revenue Bonds, 5% due 9/01/2027 (b) 2,520 2,000 Beacon Tradeport Community Development District, Florida, Special Assessment Revenue Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (o) 2,068 3,000 Brevard County, Florida, Health Facilities Authority, Healthcare Facilities Revenue Bonds (Health First Inc. Project), 5% due 4/01/2036 2,973 2,870 Broward County, Florida, Airport System Revenue Bonds, AMT, Series I, 5.75% due 10/01/2018 (b) 3,063 Broward County, Florida, Educational Facilities Authority Revenue Bonds (Nova Southeastern University): 2,750 5% due 4/01/2031 (c) 2,828 1,000 Series B, 5.625% due 4/01/2034 1,025 1,470 Broward County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series E, 5.90% due 10/01/2039 (g)(h) 1,559 Cape Coral, Florida, Special Obligation Revenue Bonds (m): 1,750 5% due 10/01/2023 1,835 2,060 5% due 10/01/2026 2,146 Citrus County, Florida, Hospital Board Revenue Refunding Bonds (Citrus Memorial Hospital): 2,240 6.25% due 8/15/2023 2,380 2,850 6.375% due 8/15/2032 3,020 460 Collier County, Florida, IDA, IDR, Refunding (Southern States Utilities), AMT, 6.50% due 10/01/2025 461 2,100 Collier County, Florida, School Board, COP, 5% due 2/15/2027 (j) 2,174 Duval County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT (h): 805 5.40% due 10/01/2021 814 1,575 5.85% due 10/01/2027 (m) 1,623 Face Amount Municipal Bonds Value Florida (continued) $ 1,800 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, AMT, Series 3, 5.15% due 7/01/2038 (g)(h) $ 1,797 430 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series 4, 6.25% due 7/01/2022 (j) 447 Florida Municipal Loan Council Revenue Bonds (m): 1,580 Series A-1, 5.125% due 7/01/2034 1,627 4,250 Series B, 5.375% due 11/01/2030 4,447 2,500 Florida State Board of Education, GO (Public Education Capital Outlay), Series J, 5% due 6/01/2031 2,566 1,000 Florida State Governmental Utility Authority, Utility Revenue Bonds (Lehigh Utility System), 5.125% due 10/01/2033 (b) 1,028 2,750 Fort Myers, Florida, Utility System Revenue Refunding Bonds, 5% due 10/01/2031 (m) 2,840 4,500 Halifax Hospital Medical Center, Florida, Hospital Revenue Refunding and Improvement Bonds, Series A, 5.25% due 6/01/2026 4,581 2,000 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health System), Series C, 5.25% due 11/15/2036 2,040 1,055 Hillsborough County, Florida, Court Facilities Revenue Bonds, 5.40% due 11/01/2012 (b)(n) 1,144 Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum Company), AMT: 2,500 Series A, 7.125% due 4/01/2030 2,619 3,750 Series B, 7.125% due 4/01/2030 3,928 Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee Moffitt Cancer Center Project): 3,200 Series A, 5.25% due 7/01/2037 3,226 1,000 Series C, 5.50% due 7/01/2032 1,018 1,500 Hillsborough County, Florida, School Board, COP, 5% due 7/01/2029 (m) 1,530 1,000 Jacksonville, Florida, Economic Development Commission, Health Care Facilities Revenue Bonds (Mayo Clinic-Jacksonville), Series A, 5.50% due 11/15/2036 (m) 1,062 Jacksonville, Florida, Economic Development Commission, IDR (Metropolitan Parking Solutions Project) AMT (a): 1,140 5.50% due 10/01/2030 1,152 2,800 5.875% due 6/01/2031 2,910 1,500 Jacksonville, Florida, Excise Taxes Revenue Bonds, Series B, 5.125% due 10/01/2032 (f) 1,555 2,315 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and Improvement Bonds, 5.25% due 10/01/2032 (f) 2,434 1,000 Jacksonville, Florida, HFA, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series A-1, 5.625% due 10/01/2039 (g)(h) 1,037 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield Florida Fund (In Thousands) Face Amount Municipal Bonds Value Florida (continued) $ 3,145 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds (Baptist Medical Center Project), 5% due 8/15/2037 (j) $ 3,206 3,800 Jacksonville, Florida, Sales Tax Revenue Bonds, 5% due 10/01/2027 (m) 3,931 3,500 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland Regional Health System), Series A, 5.50% due 11/15/2009 (m)(n) 3,671 3,375 Lee County, Florida, Capital Revenue Bonds, 5.25% due 10/01/2023 (b) 3,606 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT (h): 35 Series A-1, 7.125% due 3/01/2028 35 2,500 Series A-2, 6% due 9/01/2040 (g) 2,717 1,380 Lee County, Florida, IDA, Health Care Facilities, Revenue Refunding Bonds (Shell Point/Alliance Obligor Group), 5% due 11/15/2032 1,281 3,000 Lee Memorial Health System, Florida, Hospital Revenue Bonds, Series A, 5% due 4/01/2032 (b) 3,070 105 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT, Series B, 7.30% due 1/01/2028 (g)(k) 108 1,400 Manatee County, Florida, HFA, Homeowner Revenue Bonds, AMT, Series A, 5.90% due 9/01/2040 (g)(h) 1,487 115 Manatee County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Sub-Series 1, 6.25% due 11/01/2028 (k) 116 1,000 Marco Island, Florida, Utility System Revenue Bonds, 5% due 10/01/2033 (m) 1,024 Martin County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Martin Memorial Medical Center), Series A (n): 1,350 5.75% due 11/15/2012 1,489 3,535 5.875% due 11/15/2012 3,920 3,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due 9/01/2025 (b) 3,173 Miami-Dade County, Florida, Aviation Revenue Bonds, AMT, Series A: 2,435 5% due 10/01/2033 (j) 2,442 4,300 (Miami International Airport), 6% due 10/01/2029 (f) 4,553 8,060 (Miami International Airport), 5% due 10/01/2033 (f) 8,088 1,750 Miami-Dade County, Florida, Educational Facilities Authority Revenue Bonds (University of Miami), Series A, 5.75% due 4/01/2010 (b)(n) 1,859 4,750 Miami-Dade County, Florida, Expressway Authority, Toll System Revenue Bonds, Series B, 5% due 7/01/2033 (f) 4,866 1,800 Miami-Dade County, Florida, HFA, Home Ownership Mortgage Revenue Bonds, AMT, Series A, 5.55% due 10/01/2049 (g)(h) 1,903 Face Amount Municipal Bonds Value Florida (continued) $ 390 Miami-Dade County, Florida, HFA, Home Ownership Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.30% due 10/01/2020 (h) $ 394 2 Miami-Dade County, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds, DRIVERS, Series 208, 7.466% due 8/15/2017 (b)(q) 3 Miami-Dade County, Florida, School Board, COP: 3,200 Series A, 5.50% due 10/01/2009 (j)(n) 3,321 2,500 Series B, 5% due 11/01/2031 (b) 2,568 2,800 Miami-Dade County, Florida, Solid Waste System Revenue Bonds, 5.25% due 10/01/2030 (m) 2,946 1,500 Orange County, Florida, Educational Facilities Authority, Educational Facilities Revenue Bonds (Rollins College Project), 5.25% due 12/01/2032 (b) 1,586 5,140 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), 6% due 12/01/2012 (n) 5,703 Orange County, Florida, School Board, COP, Series A: 10,500 5.25% due 8/01/2009 (m)(n) 10,918 1,600 5% due 8/01/2032 (f) 1,644 3,500 Orange County, Florida, Tourist Development, Tax Revenue Refunding Bonds, 5% due 10/01/2029 (b) 3,613 Orlando and Orange County, Florida, Expressway Authority Revenue Bonds, Series B (b): 3,000 5% due 7/01/2030 3,076 10,185 5% due 7/01/2035 10,421 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding Bonds, Series C: 860 5.25% due 10/01/2012 (n) 926 140 5.25% due 10/01/2023 148 1,760 Osceola County, Florida, Tourist Development Tax Revenue Bonds, Series A, 5.50% due 10/01/2027 (f) 1,870 5,000 Palm Beach County, Florida, Airport System Revenue Bonds, AMT, Series A, 5% due 10/01/2034 (m) 5,019 3,390 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20% due 6/01/2015 (f) 4,131 Palm Beach County, Florida, School Board, COP, Series A: 6,000 6.25% due 8/01/2010 (f)(n) 6,489 1,000 5% due 8/01/2029 (f) 1,024 2,200 5% due 8/01/2031 (j) 2,258 Pinellas County, Florida, HFA, S/F Housing Revenue Refunding Bonds (Multi-County Program), AMT, Series A-1 (h): 310 6.30% due 9/01/2020 313 460 6.35% due 9/01/2025 465 4,385 Polk County, Florida, School Board COP, Master Lease, Series A, 5.50% due 1/01/2025 (j) 4,611 1,105 Port Everglades Authority, Florida, Port Revenue Bonds, 7.125% due 11/01/2016 (e) 1,273 1,215 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25% due 9/01/2025 (m) 1,295 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield Florida Fund (In Thousands) Face Amount Municipal Bonds Value Florida (concluded) $ 2,045 Reedy Creek, Florida, Improvement District, Utilities Revenue Bonds, Series 1, 5% due 10/01/2025 (b) $ 2,129 1,000 Saint Johns County, Florida, Ponte Vedra Utility System Revenue Bonds, 5% due 10/01/2035 (j) 1,027 Saint Johns County, Florida, Sales Tax Revenue Bonds (b): 2,400 Series A, 5.25% due 10/01/2032 2,504 1,200 Series A, 5.25% due 10/01/2034 1,251 1,015 Series B, 5.25% due 10/01/2032 1,059 2,275 South Florida Water Management District, COP, 5% due 10/01/2036 (b) 2,327 South Lake County, Florida, Hospital District Revenue Bonds (South Lake Hospital Inc.): 1,000 5.80% due 10/01/2034 1,024 1,150 6.375% due 10/01/2034 1,207 Sumter County, Florida, Capital Improvement Revenue Bonds (b): 2,190 5% due 6/01/2026 2,278 3,500 5% due 6/01/2030 3,611 5,000 Tampa Bay, Florida, Water Utility System Revenue Bonds, 5.75% due 10/01/2011 (f)(n) 5,406 4,400 University of Central Florida, COP (UCF Convocation Center), Series A, 5% due 10/01/2035 (f) 4,484 3,235 University of Central Florida (UCF) Athletics Association Inc., COP, Series A, 5.25% due 10/01/2034 (f) 3,361 2,400 University of North Florida, Capital Improvement Revenue Bonds (Housing Project), 5% due 11/01/2032 (f) 2,487 Village Center Community Development District, Florida, Recreational Revenue Bonds, Series A (m): 1,995 5.375% due 11/01/2034 2,111 1,000 5.125% due 11/01/2036 1,034 5,040 Village Center Community Development District, Florida, Utility Revenue Bonds, 5.125% due 10/01/2028 (m) 5,216 1,000 Volusia County, Florida, IDA, Student Housing Revenue Bonds (Stetson University Project), Series A, 5% due 6/01/2035 (d) 1,028 5,000 Volusia County, Florida, School Board, COP (Master Lease Program), 5.50% due 8/01/2024 (j) 5,204 Georgia--1.7% 3,270 Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien General Revenue Refunding Bonds, Series C, 5% due 1/01/2033 (j) 3,348 New Jersey--3.6% New Jersey EDA, Cigarette Tax Revenue Bonds: 3,500 5.50% due 6/15/2024 3,586 1,735 5.75% due 6/15/2029 1,817 505 5.50% due 6/15/2031 520 Face Amount Municipal Bonds Value New Jersey (concluded) $ 1,000 Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Bonds, 7% due 6/01/2013 (n) $ 1,169 Puerto Rico--3.4% 1,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.25% due 7/01/2026 1,041 1,800 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series TT, 5% due 7/01/2037 1,827 2,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series I, 5% due 7/01/2036 2,013 1,715 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.70% due 2/01/2010 (n) 1,799 Total Municipal Bonds (Cost--$271,576)--142.4% 280,664 Municipal Bonds Held in Trust (r) Florida--21.3% 5,000 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, Series A, 5%, due 10/01/2040 (i) 5,006 16,000 Miami-Dade County, Florida, Expressway Authority, Toll System Revenue Bonds, 6.375% due 7/01/2010 (f)(n) 17,310 6,595 Miami-Dade County, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Miami Children's Hospital), Series A, 5.625% due 8/15/2011 (b)(n) 7,129 Santa Rosa County, Florida, School Board, COP, Revenue Refunding Bonds, Series 2 (f): 1,180 5.25%, due 2/1/2026 1,239 1,820 5.25% due 2/01/2031 1,911 8,500 South Broward, Florida, Hospital District, Hospital Revenue Bonds, 5.625%, due 5/1/2032 (m) 9,285 Total Municipal Bonds Held in Trust (Cost--$40,712)--21.3% 41,880 Shares Held Short-Term Securities 6,078 CMA Florida Municipal Money Fund, 2.81% (l)(p) 6,078 Total Short-Term Securities (Cost--$6,078)--3.1% 6,078 Total Investments (Cost--$318,366*)--166.8% 328,622 Liabilities in Excess of Other Assets--(0.9%) (1,770) Liability for Trust Certificates, Including Interest Expense Payable--(10.0%) (19,776) Preferred Shares, at Redemption Value--(55.9%) (110,062) ---------- Net Assets Applicable to Common Shares--100.0% $ 197,014 ========== ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (concluded) BlackRock MuniYield Florida Fund (In Thousands) * The cost and unrealized appreciation (depreciation) of investments as of October 31, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 300,202 ============== Gross unrealized appreciation $ 10,276 Gross unrealized depreciation (1,403) -------------- Net unrealized appreciation $ 8,873 ============== (a) ACA Insured. (b) AMBAC Insured. (c) Assured Guaranty Insured. (d) CIFG Insured. (e) Escrowed to maturity. (f) FGIC Insured. (g) FHLMC Collateralized. (h) FNMA/GNMA Collateralized. (i) XL Capital Insured. (j) FSA Insured. (k) GNMA Collateralized. (l) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: Net Dividend Affiliate Activity Income CMA Florida Municipal Money Fund (1,381) $129 (m) MBIA Insured (n) Prerefunded (o) Radian Insured. (p) Represents the current yield as of October 31, 2007. (q) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (r) Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1(c) to Financial Statements for details of municipal bonds held in trust. o Forward interest rate swaps outstanding as of October 31, 2007 were as follows: Notional Unrealized Amount Depreciation Pay a fixed rate of 4.019% and receive a floating rate based on 1-week (SIFMA) Municipal Swap Index Rate Broker, JPMorgan Chase Expires November 2022 $9,450 $ (152) See Notes to Financial Statements. ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments as of October 31, 2007 BlackRock MuniYield Michigan Insured Fund II, Inc. (In Thousands) Face Amount Municipal Bonds Value Michigan--134.2% $ 2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2014 (d)(f) $ 2,589 3,165 Anchor Bay, Michigan, School District, School Building and Site, GO, Series II, 5.75% due 5/01/2010 (c)(f) 3,339 2,275 Bay City, Michigan, School District, School Building and Site, GO, 5% due 5/01/2031 (d) 2,363 2,150 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2010 (e)(f) 2,255 3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2009 (c)(f) 3,958 2,420 Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25% due 4/15/2012 (f) 2,680 Detroit, Michigan, City School District, GO: 2,000 (School Building and Site Improvement), Series A, 5% due 5/01/2013 (c)(f) 2,141 1,480 (School Building and Site Improvement), Series A, 5.375% due 5/01/2013 (c)(f) 1,612 1,900 (School Building and Site Improvement), Series B, 5% due 5/01/2028 (c) 1,952 1,700 Series A, 5.50% due 5/01/2012 (d)(f) 1,837 Detroit, Michigan, Water Supply System Revenue Bonds (e): 1,780 Second Lien, Series B, 5% due 7/01/2013 (f) 1,907 2,620 Second Lien, Series B, 5% due 7/01/2034 2,674 4,600 Senior Lien, Series A, 5% due 7/01/2034 4,695 2,500 Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75% due 6/01/2016 2,609 2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds, 5.80% due 11/01/2024 (h) 2,220 East Grand Rapids, Michigan, Public School District, GO (d)(f): 1,610 5.75% due 5/01/2009 1,664 6,300 6% due 5/01/2009 6,534 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d): 880 5% due 5/01/2014 (f) 949 2,000 5.25% due 5/01/2023 2,141 1,000 5% due 5/01/2026 1,036 370 5% due 5/01/2029 382 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), Series A (h): 385 5.375% due 7/01/2020 389 775 6% due 7/01/2020 817 1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 1,858 Gibraltar, Michigan, School District, GO (School Building and Site) (c): 3,065 5% due 5/01/2014 (f) 3,306 585 5% due 5/01/2028 605 Face Amount Municipal Bonds Value Michigan (continued) Grand Blanc, Michigan, Community Schools, GO (c): $ 1,000 5.625% due 5/01/2017 $ 1,076 1,000 5.625% due 5/01/2018 1,071 1,100 5.625% due 5/01/2019 1,178 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A (a): 665 5.50% due 10/01/2012 (f) 723 805 5.50% due 10/01/2018 868 190 5.50% due 10/01/2019 205 1,500 Grand Rapids, Michigan, Sanitation Sewer System Revenue Refunding and Improvement Bonds, Series A, 5.50% due 1/01/2022 (c) 1,693 Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding (c): 215 5% due 5/01/2014 (f) 232 10 5% due 5/01/2034 10 4,500 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 4,774 1,275 Haslett, Michigan, Public School District, School Building and Site, GO, 5.625% due 11/01/2011 (e)(f) 1,375 2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (d) 2,749 3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,158 3,000 Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health), Series A 5.50% due 7/15/2011 (e)(f) 3,228 1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,537 1,125 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds (Hillsdale College Project), 5% due 3/01/2035 1,127 1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,026 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for Creative Studies): 550 5.85% due 12/01/2022 574 1,000 5.90% due 12/01/2027 1,040 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT (a): 3,000 Series XVII-B, 5.40% due 6/01/2018 3,046 500 Series XVII-Q, 5% due 3/01/2031 504 2,850 Michigan State Building Authority, Facilities Program Revenue Refunding Bonds, Series I, 5.50% due 10/15/2009 (b) 2,960 Michigan State Building Authority Revenue Bonds (Facilities Program), Series II (a)(b)(j): 1,185 4.67% due 10/15/2009 1,104 1,675 4.77% due 10/15/2010 1,503 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program), Series II: 2,000 5% due 10/15/2029 (e) 2,055 2,100 5% due 10/15/2033 (a) 2,164 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield Michigan Insured Fund II, Inc. (In Thousands) Face Amount Municipal Bonds Value Michigan (continued) $ 3,870 Michigan State, COP, 5.50% due 6/01/2010 (a)(f) $ 4,063 1,000 Michigan State, Comprehensive Transportation Revenue Refunding Bonds, 5% due 5/15/2026 (d) 1,046 1,000 Michigan State, HDA, Limited Obligation M/F Housing Revenue Bonds (Deaconess Towers Apartments), AMT, 5.25% due 2/20/2048 (l) 1,001 Michigan State, HDA, Rental Housing Revenue Bonds, AMT: 285 Series A, 5.30% due 10/01/2037 (e) 286 1,500 Series B, 4.85% due 10/01/2037 (d) 1,432 1,500 Series D, 5.125% due 4/01/2031 (d) 1,506 1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan Obligation Group), Series A, 5.50% due 4/15/2018 (a) 1,054 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds: 1,300 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 1,349 5,100 (Oakwood Obligated Group), Series A, 5% due 7/15/2037 5,045 1,250 (Sparrow Obligation Group), 5.625% due 11/15/2011 (f) 1,358 2,495 (Sparrow Obligated Group), 5% due 11/15/2031 2,491 Michigan State Hospital Finance Authority Revenue Bonds (a): 2,000 (Mercy Health Services), Series R, 5.375% due 8/15/2026 (b) 2,012 5,670 (Mid-Michigan Obligor Group), Series A, 5% due 4/15/2036 5,619 1,000 (Trinity Health Credit Group), Series A, 5% due 12/01/2031 1,012 Michigan State Hospital Finance Authority, Revenue Refunding Bonds: 7,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 7,419 3,760 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (e)(f) 3,995 1,345 (Henry Ford Health System), Series A, 5.25% due 11/15/2032 1,369 4,065 (Henry Ford Health System), Series A, 5% due 11/15/2038 4,021 3,215 (Mercy Health Services), Series X, 6% due 8/15/2009 (e)(f) 3,384 2,000 (Mercy-Mount Clemens), Series A, 5.75% due 5/15/2009 (e)(f) 2,086 1,000 (Mercy-Mount Clemens), Series A, 6% due 5/15/2009 (e)(f) 1,047 1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,042 3,450 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 3,575 1,900 (Trinity Health Credit Group), Series D, 5% due 8/15/2034 1,912 5,500 (Trinity Health), Series A, 6% due 12/01/2027 (a) 5,862 Face Amount Municipal Bonds Value Michigan (continued) Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds: $ 9,500 (Detroit Edison Company Pollution Control Project), AMT, Series A, 5.55% due 9/01/2029 (e) $ 9,836 2,000 (Detroit Edison Company Pollution Control Project), Series AA, 6.95% due 5/01/2011 (c) 2,216 1,375 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 1,423 6,500 Monroe County, Michigan, Economic Development Corporation, Limited Obligation Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 8,336 1,200 New Lothrop, Michigan, Area Public Schools, School Building and Site, GO, 5% due 5/01/2035 (d) 1,239 600 Oak Park, Michigan, Street Improvement, GO, 5% due 5/01/2030 (e) 624 1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site, GO, 5.50% due 11/01/2012 (d)(f) 1,088 1,000 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds (Development Area Number 3), 5.375% due 6/01/2017 (h) 1,029 1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due 5/01/2014 (d)(f) 1,079 1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,550 1,050 Roseville, Michigan, School District, School Building and Site, GO, Refunding, 5% due 5/01/2031 (d) 1,090 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c): 1,450 5% due 7/01/2024 1,509 1,000 5% due 7/01/2034 1,028 2,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Company), RIB, Series 282, 9.02% due 8/01/2024 (a)(g) 2,694 2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due 5/01/2010 (e)(f) 2,795 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A(d)(f): 1,000 5% due 5/01/2014 1,079 1,950 5.25% due 5/01/2014 2,131 1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2014 (c)(f) 1,079 1,500 Thornapple Kellogg School District, Michigan, GO, Refunding, 5% due 5/01/2032 (e) 1,561 6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County), AMT, Series A, 5.375% due 12/01/2015 (e) 6,655 1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel, Series A, 5% due 12/01/2030 (e) 1,209 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (concluded) BlackRock MuniYield Michigan Insured Fund II, Inc. (In Thousands) Face Amount Municipal Bonds Value Michigan (concluded) Wayne County, Michigan, Airport Authority Revenue Bonds AMT (e): $ 3 DRIVERS, Series 1081-Z, 6.671% due 6/01/2013 (g) $ 3 5,200 (Detroit Metropolitan Wayne County Airport), 5% due 12/01/2034 5,221 5,300 Wyoming, Michigan, Sewage Disposal System Revenue Bonds, 5% due 6/01/2030 (e) 5,496 1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (e) 1,375 Puerto Rico--6.0% 5,300 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25% due 7/01/2039 (c) 5,900 30,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds, Series A, 4.99% due 8/01/2046 (e)(j) 4,317 Total Municipal Bonds (Cost--$228,274)--140.2% 239,040 Municipal Bonds Held in Trust (m) Michigan--22.7% 2,700 Detroit, Michigan, Water Supply System, Senior Lien Revenue Bonds, Series A, 5.75% due 7/01/2011 (c)(f) 2,927 7,000 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program), Series I, 5.50% due 10/15/2010 (d) 7,453 Face Amount Municipal Bonds Held in Trust (m) Value Michigan (concluded) Michigan State, COP, Refunding (New Center Development Inc.) (b)(e): $ 5,715 5.75% due 9/01/2010 $ 6,115 5,045 5.75% due 9/01/2011 5,398 8,000 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.40% due 8/01/2024 (a) 8,311 Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan Wayne County Airport), AMT (e): 4,475 5.25% due 12/01/2025 4,640 3,700 5.25% due 12/01/2026 3,837 Puerto Rico--2.8% 4,540 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series HH, 5.75% due 7/01/2010 (d)(f) 4,853 Total Municipal Bonds Held in Trust (Cost--$44,095)--25.5% 43,534 Shares Held Short-Term Securities 3,886 CMA Michigan Municipal Money Fund, 2.85% (i)(k) 3,886 Total Short-Term Securities (Cost--$3,886)--2.3% 3,886 Total Investments (Cost--$276,255*)--168.0% 286,460 Other Assets Less Liabilities--2.4% 4,299 Liability for Trust Certificates, Including Interest Expense Payable--(12.4%) (21,179) Preferred Stock, at Redemption Value--(58.0%) (99,021) ---------- Net Assets Applicable to Common Stock--100.0% $ 170,559 ========== * The cost and unrealized appreciation (depreciation) of investments as of October 31, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 255,381 ============== Gross unrealized appreciation $ 11,597 Gross unrealized depreciation (1,514) -------------- Net unrealized appreciation $ 10,083 ============== (a) AMBAC Insured. (b) Escrowed to maturity. (c) FGIC Insured. (d) FSA Insured. (e) MBIA Insured. (f) Prerefunded. (g) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (h) ACA Insured. (i) 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 CMA Michigan Municipal Money Fund (828) $72 (j) Represents a zero coupon bond; the interest rate shown is the effective yield at the time of purchase. (k) Represents the current yield as of October 31, 2007. (l) GNMA Collateralized. (m) Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1(c) to Financial Statements for details of municipal bonds held in trust. See Notes to Financial Statements. ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments as of October 31, 2007 BlackRock MuniYield New York Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value New York--123.5% $ 23,790 Albany County, New York, Airport Authority, Airport Revenue Bonds, AMT, 6% due 12/15/2023 (c)(q) $ 24,320 4,300 Buffalo, New York, Sewer Authority, Revenue Refunding Bonds, Series F, 6% due 7/01/2013 (b) 4,690 Buffalo, New York, School, GO, Series D (b): 1,250 5.50% due 12/15/2014 1,343 1,500 5.50% due 12/15/2016 1,613 1,700 Dutchess County, New York, Resource Recovery Agency Revenue Bonds (Solid Waste System- Forward), Series A, 5.40% due 1/01/2013 (d) 1,797 Erie County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project) (c): 1,900 5.75% due 5/01/2020 2,059 4,250 5.75% due 5/01/2024 4,457 15,075 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series A, 4.50% due 2/15/2047 (d) 14,355 Huntington, New York, GO, Refunding (a): 485 5.50% due 4/15/2011 517 460 5.50% due 4/15/2012 499 455 5.50% due 4/15/2013 497 450 5.50% due 4/15/2014 496 450 5.50% due 4/15/2015 501 1,675 Ilion, New York, Central School District, GO, Series B, 5.50% due 6/15/2010 (b)(e) 1,778 Long Island Power Authority, New York, Electric System Revenue Bonds: 7,000 Series A, 5% due 9/01/2029 (a) 7,241 7,950 Series A, 5% due 9/01/2034 (a) 8,182 4,000 Series B, 5% due 12/01/2035 (c) 4,141 2,970 Series F, 4.25% due 5/01/2033 (d) 2,767 4,250 Madison County, New York, IDA, Civic Facility Revenue Bonds (Colgate University Project), Series A, 5% due 7/01/2035 (a) 4,392 10,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Refunding Bonds, Series B, 4.875% due 7/01/2018 (b)(h) 10,176 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds: 5,000 Series A, 5% due 11/15/2035 (d) 5,184 600 VRDN, Series D-1, 3.39% due 11/01/2034 (a)(f) 600 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue Refunding Bonds, Series A: 10,600 5% due 11/15/2030 (d) 10,889 1,015 5% due 11/15/2032 (c) 1,043 Metropolitan Transportation Authority, New York, Revenue Refunding Bonds: 3,900 RIB, Series 724X, 7.78% due 11/15/2032 (c)(g) 4,517 1,740 Series A, 5.125% due 11/15/2022 (b) 1,837 10,455 Series A, 5% due 11/15/2030 (c) 10,726 2,500 Series A, 5.25% due 11/15/2031 (b) 2,637 1,500 Series B, 5% due 11/15/2028 (d) 1,554 2,000 Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds, Series A, 5% due 7/01/2025 (b) 2,076 Face Amount Municipal Bonds Value New York (continued) Metropolitan Transportation Authority, New York, Transit Facilities Revenue Refunding Bonds, Series C (c)(e): $ 2,025 5.125% due 1/01/2012 $ 2,153 2,500 5.125% due 1/01/2012 2,669 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series A (b): 3,000 5% due 11/15/2032 3,082 4,150 4.75% due 11/15/2037 4,170 Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series F (d): 6,235 5.25% due 11/15/2012 (e) 6,735 5,000 5% due 11/15/2031 5,142 Monroe County, New York, IDA, Revenue Bonds (Southview Towers Project), AMT (u): 1,400 6.125% due 2/01/2020 1,466 1,125 6.25% due 2/01/2031 1,178 10,830 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75% due 8/01/2009 (c)(e) 11,462 New York City, New York, City Housing Development Corporation, M/F Housing Revenue Bonds, AMT: 1,500 Series C, 5% due 11/01/2026 1,498 2,000 Series C, 5.05% due 11/01/2036 2,017 1,340 Series H-1, 4.70% due 11/01/2040 1,256 1,000 Series J-2-A, 4.85% due 11/01/2040 954 1,275 New York City, New York, City IDA, Civic Facility Revenue Refunding Bonds (Nightingale-Bamford School), 5.25% due 1/15/2018 (a) 1,357 6,550 New York City, New York, City IDA, IDR (Japan Airlines Company), AMT, 6% due 11/01/2015 (c) 6,570 7,970 New York City, New York, City IDA, Parking Facility Revenue Bonds (Royal Charter-New York Presbyterian), 5.75% due 12/15/2029 (c) 8,656 New York City, New York, City IDA, PILOT Revenue Bonds: 14,000 (Queens Baseball Stadium Project), 5% due 1/01/2036 (a) 14,456 5,750 (Queens Baseball Stadium Project), 5% due 1/01/2039 (a) 5,937 9,900 (Queens Baseball Stadium Project), 5% due 1/01/2046 (a) 10,133 5,150 (Yankee Stadium Project), 5% due 3/01/2036 (d) 5,313 16,900 (Yankee Stadium Project), 5% due 3/01/2046 (b) 17,287 1,500 New York City, New York, City IDA, Special Facility Revenue Refunding Bonds (Terminal One Group Association Project), AMT, 5.50% due 1/01/2024 1,571 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds: 6,750 5% due 6/15/2036 (d) 6,984 2,850 Series A, 5.75% due 6/15/2009 (b)(e) 2,982 3,000 Series A, 4.25% due 6/15/2039 (c) 2,778 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield New York Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value New York (continued) New York City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds: $ 5,000 5.50% due 6/15/2010 (d)(e) $ 5,307 1,250 Series A, 5.125% due 6/15/2034 (d) 1,297 4,500 Series A, 5% due 6/15/2035 (a) 4,609 1,250 Series C, 5% due 6/15/2035 (d) 1,285 500 Series F, 5% due 6/15/2029 (c) 510 1,020 New York City, New York, City Transit Authority, Metropolitan Transportation Authority, Triborough, COP, Series A, 5.625% due 1/01/2012 (a) 1,074 New York City, New York, City Transitional Finance Authority, Building Aid Revenue Bonds (b): 6,000 Series S-1, 5% due 7/15/2031 6,251 6,280 Series S-2, 4.25% due 1/15/2034 5,878 New York City, New York, City Transitional Finance Authority, Future Tax Secured Revenue Bonds: 800 Series B, 6.25% due 5/15/2010 (e) 863 6,805 Series B, 6.25% due 5/15/2010 (b)(e) 7,335 16,195 Series C, 5% due 2/01/2033 (b) 16,640 2,500 Series E, 5.25% due 2/01/2022 (d) 2,654 3,000 New York City, New York, City Transitional Finance Authority, Future Tax Secured, Revenue Refunding Bonds, Series D, 5.25% due 2/01/2021 (d) 3,195 1,000 New York City, New York, City Transitional Finance Authority, Revenue Refunding Bonds, Series A, 5% due 11/15/2026 (b) 1,040 New York City, New York, GO: 3,000 Series A, 5.75% due 5/15/2010 (b)(e) 3,198 4,000 Series A, 5% due 8/01/2030 4,108 1,220 Series B, 5.75% due 8/01/2010 (d)(e) 1,306 1,280 Series B, 5.75% due 8/01/2013 (d) 1,365 3,750 Series D, 5.25% due 10/15/2013 (e) 4,094 8,000 Series J, 5% due 5/15/2023 8,279 4,000 Series M, 5% due 4/01/2035 4,084 New York City, New York, GO, Refunding: 895 Series A, 6.375% due 5/15/2010 (b)(e) 967 70 Series B, 7% due 2/01/2018 (a) 70 1,150 Sub-Series C-1, 5.25% due 8/15/2026 1,210 3,100 New York City, New York, IDA, Civic Facility Revenue Refunding Bonds (Polytechnic University), 5.25% due 11/01/2037 (n) 3,036 11,200 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5% due 10/15/2032 (a) 11,633 4,250 New York City, New York, Trust for Cultural Resources, Revenue Refunding Bonds (American Museum of Natural History), Series A, 5% due 7/01/2036 (d) 4,368 2,100 New York Convention Center Development Corporation, New York, Revenue Bonds (Hotel Unit Fee Secured), 5% due 11/15/2030 (a) 2,177 1,000 New York State Dormitory Authority, Consolidated Revenue Refunding Bonds (City University System), Series 1, 5.625% due 1/01/2008 (c)(e) 1,023 Face Amount Municipal Bonds Value New York (continued) $ 2,800 New York State Dormitory Authority, Lease Revenue Bonds (State University Dormitory Facilities), 5% due 7/01/2037 $ 2,906 New York State Dormitory Authority, Non-State Supported Debt Revenue Bonds: 1,250 (Health Quest Systems), Series B, 5.125% due 7/01/2037 1,289 850 (School District Financing Program), Series A, 5% due 10/01/2035 (c) 884 2,100 New York State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (Mount Sinai School of Medicine of New York University), 5% due 7/01/2035 2,181 New York State Dormitory Authority Revenue Bonds: 3,330 (Eger Health Care and Rehabilitation Center), 6.10% due 8/01/2037 (i) 3,545 1,500 (Long Island University), Series B, 5.25% due 9/01/2028 (k) 1,526 1,180 (New York State Rehabilitation Association), Series A, 5.25% due 7/01/2019 (j) 1,255 1,000 (New York State Rehabilitation Association), Series A, 5.125% due 7/01/2023 (j) 1,042 1,000 Series B, 6.50% due 2/15/2011 (d)(h) 1,094 6,900 (School Districts Financing Program), Series E, 5.75% due 10/01/2030 (d) 7,434 3,560 (State University Adult Facilities), Series B, 5.75% due 5/15/2010 (c)(e) 3,795 1,780 (Upstate Community Colleges), Series A, 6% due 7/01/2010 (c)(e) 1,913 New York State Dormitory Authority, Revenue Refunding Bonds: 2,465 (City University System), Series C, 7.50% due 7/01/2010 (b) 2,610 1,370 (School District Financing Program), Series I, 5.75% due 10/01/2018 (d) 1,495 New York State Dormitory Authority, Supported Debt Revenue Bonds: 1,570 (Mental Health Facilities), Series B, 5.25% due 2/15/2014 (e) 1,715 270 (Mental Health Facilities), Series B, 5.25% due 2/15/2023 284 3,000 (State University Dormitory Facilities), Series A, 5% due 7/01/2031 (d) 3,120 1,000 New York State Dormitory Authority, Supported Debt Revenue Refunding Bonds (Department of Health), Series A, 5% due 7/01/2025 (j) 1,039 18,750 New York State Energy Research and Development Authority, Gas Facilities Revenue Refunding Bonds (Brooklyn Union Gas Company/Keyspan), AMT, Series A, 4.70% due 2/01/2024 (b) 18,671 3,500 New York State Environmental Facilities Corporation, Special Obligation Revenue Refunding Bonds (Riverbank State Park), 6.25% due 4/01/2012 (a) 3,763 1,675 New York State, GO, Series A, 4.125% due 3/01/2037 (b) 1,507 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield New York Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value New York (continued) $ 3,750 New York State, HFA, M/F Housing Revenue Bonds (Saint Philips Housing), AMT, Series A, 4.65% due 11/15/2038 (r) $ 3,642 800 New York State, HFA, State Personal Income Tax Revenue Bonds (Economic Development and Housing), Series A, 5% due 9/15/2023 (d) 834 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, AMT: 1,915 Series 130, 4.80% due 10/01/2037 1,816 1,000 Series 143, 4.90% due 10/01/2037 963 1,540 New York State Mortgage Agency, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series 133, 4.95% due 10/01/2021 1,544 6,000 New York State Thruway Authority, General Revenue Bonds, Series F, 5% due 1/01/2030 (a) 6,211 New York State Thruway Authority, General Revenue Refunding Bonds (c): 8,000 Series G, 4.75% due 1/01/2029 8,112 17,750 Series G, 4.75% due 1/01/2030 17,954 2,820 New York State Thruway Authority, Highway and Bridge Trust Fund Revenue Bonds, Series A, 6.25% due 4/01/2011 (c) 3,023 New York State Thruway Authority, Local Highway and Bridge Service Contract Revenue Bonds (e): 3,000 5.75% due 4/01/2010 (a) 3,190 1,000 Series A-2, 5.375% due 4/01/2008 (d) 1,018 4,380 New York State Thruway Authority, Second General Highway and Bridge Trust Fund Revenue Bonds, Series A, 5% due 4/01/2026 (a) 4,591 New York State Urban Development Corporation, Personal Income Tax Revenue Bonds: 3,000 Series C-1, 5% due 3/15/2013 (d)(e) 3,215 5,000 (State Facilities), Series A-1, 5% due 3/15/2029 (b) 5,168 3,190 New York State Urban Development Corporation, Revenue Refunding Bonds (Correctional Capital Facilities), Series A, 6.50% due 1/01/2011 (c) 3,472 650 Niagara Falls, New York, City School District, COP, Refunding (High School Facility), 5% due 6/15/2028 (c) 673 1,000 Niagara Falls, New York, GO (Water Treatment Plant), AMT, 7.25% due 11/01/2010 (d) 1,104 2,705 Niagara, New York, Frontier Authority, Airport Revenue Bonds (Buffalo Niagara International Airport), Series B, 5.50% due 4/01/2019 (d) 2,799 1,260 North Country, New York, Development Authority, Solid Waste Management System, Revenue Refunding Bonds, 6% due 5/15/2015 (c) 1,382 North Hempstead, New York, GO, Refunding, Series B (b): 1,745 6.40% due 4/01/2013 1,980 555 6.40% due 4/01/2017 660 1,665 Oneida County, New York, IDA, Civic Facilities Revenue Bonds (Mohawk Valley), Series A, 5.20% due 2/01/2013 (c) 1,704 Face Amount Municipal Bonds Value New York (continued) Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT: $ 2,500 137th Series, 5.125% due 7/15/2030 (c) $ 2,577 1,000 141st Series, 4.50% due 9/01/2035 (j) 932 15,000 Port Authority of New York and New Jersey, Revenue Refunding Bonds, AMT, 120th Series, 6% due 10/15/2032 (d) 15,162 Port Authority of New York and New Jersey, Special Obligation Revenue Bonds, AMT (d): 2 DRIVERS, Series 278, 7.736% due 12/01/2022 (g) 3 14,750 (JFK International Air Terminal), Series 6, 6.25% due 12/01/2010 15,836 7,175 (JFK International Air Terminal LLC), Series 6, 6.25% due 12/01/2011 7,842 3,500 (JFK International Air Terminal LLC), Series 6, 5.75% due 12/01/2025 3,505 4,425 (Special Project-JFK International Air Terminal), Series 6, 6.25% due 12/01/2013 4,963 7,380 (Special Project-JFK International Air Terminal), Series 6, 6.25% due 12/01/2014 8,386 1,255 Rensselaer County, New York, IDA, Civic Facility Revenue Bonds (Rensselaer Polytechnic Institute), Series B, 5.50% due 8/01/2022 (a) 1,304 2,500 Rensselaer, New York, City School District, COP, 5% due 6/01/2036 (l) 2,581 1,500 Rochester, New York, Housing Authority, Mortgage Revenue Bonds (Andrews Terrace Apartments Project), AMT, 4.70% due 12/20/2038 (s) 1,402 1,000 Suffolk County, New York, IDA, Civic Facility Revenue Refunding Bonds (Dowling College), Series A, 5% due 6/01/2036 (n) 945 4,625 Suffolk County, New York, IDA, IDR (Keyspan-Port Jefferson), AMT, 5.25% due 6/01/2027 4,694 Suffolk County, New York, IDA, Solid Waste Disposal Facility, Revenue Refunding Bonds (Ogden Martin System Huntington Project), AMT, (a): 8,530 6% due 10/01/2010 9,065 9,170 6.15% due 10/01/2011 9,946 6,470 6.25% due 10/01/2012 7,142 1,750 Suffolk County, New York, Public Improvement, GO, Series B, 4.50% due 11/01/2024 (d) 1,773 11,500 Syracuse, New York, IDA, PILOT Revenue Bonds (Carousel Center Project), AMT, Series A, 5% due 1/01/2036 (l) 11,609 Tobacco Settlement Financing Corporation of New York Revenue Bonds: 5,000 Series A-1, 5.25% due 6/01/2020 (a) 5,318 2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,121 2,000 Series C-1, 5.50% due 6/01/2021 2,135 1,900 Series C-1, 5.50% due 6/01/2022 2,025 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Refunding Bonds: 2,305 Series Y, 6% due 1/01/2012 (d)(h) 2,449 100 VRDN, Series C, 3.39% due 1/01/2032 (a)(f) 100 ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (continued) BlackRock MuniYield New York Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value New York (concluded) Triborough Bridge and Tunnel Authority, New York, Revenue Refunding Bonds (d): $ 7,000 5.25% due 11/15/2023 $ 7,452 19,675 5% due 11/15/2032 20,215 2,265 Series A, 5% due 1/01/2012 (e) 2,397 1,500 Series B, 5% due 11/15/2032 1,541 Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Bonds: 2,465 5% due 11/15/2028 (a) 2,553 6,000 Series A, 5.25% due 11/15/2030 (d) 6,281 1,050 Western Nassau County, New York, Water Authority, Water System Revenue Refunding Bonds, 5% due 5/01/2035 (a) 1,082 2,010 Yonkers, New York, GO, Series A, 5.75% due 10/01/2010 (b)(e) 2,158 Guam--0.8% A.B. Won Guam International Airport Authority, General Revenue Refunding Bonds, AMT, Series C, (d): 2,240 5.25% due 10/01/2021 2,313 2,050 5.25% due 10/01/2022 2,117 Puerto Rico--10.5% Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds (b): 655 Series G, 5.25% due 7/01/2013 (e) 713 2,265 Series G, 5.25% due 7/01/2019 2,424 345 Series G, 5.25% due 7/01/2021 372 1,250 Trust Receipts, Class R, Series B, 7.934% due 7/01/2035 (d)(g) 1,432 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds: 3,000 Series D, 5.75% due 7/01/2012 (e) 3,285 4,100 Series N, 5.25% due 7/01/2039 (b) 4,564 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A (o): 22,030 4.62% due 7/01/2031 (b) 7,103 3,900 4.67% due 7/01/2035 (a) 1,023 8,000 4.77% due 7/01/2043 (a) 1,375 1,000 Puerto Rico Commonwealth, Public Improvement, GO, Refunding, Series B, 5.25% due 7/01/2032 1,032 1,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.25% due 7/01/2030 1,037 4,000 Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Revenue Bonds, Series A, 5% due 7/01/2031 (a) 4,159 Face Amount Municipal Bonds Value Puerto Rico (concluded) Puerto Rico Electric Power Authority, Power Revenue Bonds (e): $ 975 Series NN, 5.125% due 7/01/2013 $ 1,055 3,775 Series NN, 5.125% due 7/01/2013 4,086 5,000 Series RR, 5% due 7/01/2015 (j) 5,448 7,095 Series RR, 5% due 7/01/2015 (l) 7,730 7,100 Series RR, 5% due 7/01/2015 (b) 7,736 3,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.50% due 2/01/2012 (e) 3,228 Total Municipal Bonds (Cost--$722,629)--134.8% 741,395 Municipal Bonds Held in Trust (t) New York--32.9% 50,000 Metropolitan Transportation Authority, New York, Revenue Refunding Bonds, Series A, 5.75%, due 11/15/2032 (c) 53,956 25,000 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A, 5.75%, due 6/15/2011 (d)(e) 26,897 22,085 New York City, New York, GO, Series C, 5.75%, due 3/15/2027 (c) 24,092 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds (a): 13,000 Series A, 5.25%, due 10/15/2027 13,717 16,000 Series A, 5%, due 10/15/2032 16,883 33,750 New York Convention Center Development Corporation, New York, Revenue Bonds (Hotel Unit Fee Secured), 5%, due 11/15/2035 (a) 34,808 10,155 Port Authority of New York and New Jersey, Special Obligation Revenue Bonds (JFK International Air Terminal), AMT, Series 6, 5.75%, due 12/01/2022 (d) 10,372 Total Municipal Bonds Held in Trust (Cost--$177,064)--32.9% 180,725 Shares Held Short-Term Securities 5,296 CMA New York Municipal Money Fund, 2.88% (m)(p) 5,296 Total Short-Term Securities (Cost--$5,296)--0.9% 5,296 Total Investments (Cost--$904,989*)--168.6% 927,416 Other Assets Less Liabilities--2.3% 12,765 Liability for Trust Certificates, Including Interest Expense Payable--(15.6%) (86,040) Preferred Stock, at Redemption Value--(55.3%) (304,231) ---------- Net Assets Applicable to Common Stock--100.0% $ 549,910 ========== ANNUAL REPORT OCTOBER 31, 2007 Schedule of Investments (concluded) BlackRock MuniYield New York Insured Fund, Inc. (In Thousands) * The cost and unrealized appreciation (depreciation) of investments as of October 31, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost $ 821,655 ============== Gross unrealized appreciation $ 23,892 Gross unrealized depreciation (3,126) -------------- Net unrealized appreciation $ 20,766 ============== (a) AMBAC Insured. (b) FGIC Insured. (c) FSA Insured. (d) MBIA Insured. (e) Prerefunded. (f) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. (g) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (h) Escrowed to maturity. (i) FHA Insured. (j) CIFG Insured. (k) Radian Insured. (l) XL Capital Insured. (m) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: Net Dividend Affiliate Activity Income CMA New York Municipal Money Fund 3,692 $91 (n) ACA Insured. (o) Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase. (p) Represents the current yield as of October 31, 2007. (q) All or a portion of security held as collateral in connection with open financial futures contracts. (r) FNMA Collateralized. (s) GNMA Collateralized. (t) Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1(c) to Financial Statements for details of municipal bonds held in trust. (u) Credit Enhanced-SONYMA Insured. o Financial futures contracts sold as of October 31, 2007 were as follows: Number of Expiration Face Unrealized Contracts Issue Date Value Appreciation 250 30-Year U.S. Treasury Note December 2007 $ 28,454 $ 306 See Notes to Financial Statements. ANNUAL REPORT OCTOBER 31, 2007 Statements of Net Assets
BlackRock BlackRock BlackRock MuniYield MuniYield MuniYield California Arizona California Insured As of October 31, 2007 Fund, Inc. Fund, Inc. Fund, Inc. Assets Investments in unaffiliated securities, at value* $ 106,298,995 $ 521,447,475 $ 826,477,475 Investments in affiliated securities, at value** 651,278 7,844,812 49,050 Cash -- 48,749 865 Unrealized appreciation on forward interest rate swaps 7,767 -- -- Receivable for securities sold 100,000 -- -- Interest receivable 1,809,179 7,821,040 13,012,265 Prepaid expenses 3,702 2,275 3,219 --------------- --------------- --------------- Total assets 108,870,921 537,164,351 839,542,874 --------------- --------------- --------------- Liabilities Trust certificates 4,835,000 48,967,500 58,216,110 Bank overdraft 71,254 -- -- Interest expense payable 60,525 538,465 871,294 Dividends payable to Common Stock shareholders 258,187 1,171,239 1,924,227 Payable to investment adviser 43,803 206,141 331,021 Payable to other affiliates 602 2,804 4,506 Accrued expenses 59,361 116,946 132,650 --------------- --------------- --------------- Total liabilities 5,328,732 51,003,095 61,479,808 --------------- --------------- --------------- Preferred Stock Preferred Stock, at redemption value of AMPS+++ at $25,000 per share liquidation preference*** 40,313,751 175,227,586 275,208,295 --------------- --------------- --------------- Net Assets Applicable to Common Stock Net assets applicable to Common Stock $ 63,228,438 $ 310,933,670 $ 502,854,771 =============== =============== =============== Net Assets Consist of Undistributed investment income--net $ 311,568 $ 1,349,213 $ 1,243,580 Undistributed (accumulated) realized capital gains (losses)--net 529,988 (1,308,890) (14,356,963) Unrealized appreciation--net 2,165,587 9,294,942 18,307,368 --------------- --------------- --------------- Total accumulated earnings--net 3,007,143 9,335,265 5,193,985 Common Stock, par value $.10 per share++ 452,959 2,129,526 3,436,120 Paid-in capital in excess of par 59,768,336 299,468,879 494,224,666 --------------- --------------- --------------- Net Assets $ 63,228,438 $ 310,933,670 $ 502,854,771 =============== =============== =============== Net asset value per share of Common Stock $ 13.96 $ 14.60 $ 14.63 =============== =============== =============== Market price $ 13.66 $ 13.25 $ 13.16 =============== =============== =============== * Identified cost of unaffiliated securities $ 104,141,175 $ 512,152,533 $ 808,170,107 =============== =============== =============== ** Identified cost of affiliated securities $ 651,278 $ 7,844,812 $ 49,050 =============== =============== =============== *** Preferred Stock authorized, issued and outstanding: Series A Shares, par value $.10 per share 518 2,400 1,800 =============== =============== =============== Series B Shares, par value $.10 per share 694 2,400 1,800 =============== =============== =============== Series C Shares, par value $.10 per share 400 800 1,600 =============== =============== =============== Series D Shares, par value $.10 per share -- 1,400 2,000 =============== =============== =============== Series E Shares, par value $.10 per share -- -- 2,000 =============== =============== =============== Series F Shares, par value $.10 per share -- -- 1,800 =============== =============== =============== ++ Common Stock issued and outstanding 4,529,591 21,295,255 34,361,200 =============== =============== =============== +++ Auction Market Preferred Stock. See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Statements of Net Assets (concluded)
BlackRock BlackRock BlackRock MuniYield MuniYield New MuniYield Michigan Insured York Insured As of October 31, 2007 Florida Fund Fund II, Inc. Fund, Inc. Assets Investments in unaffiliated securities, at value* $ 322,544,469 $ 282,573,854 $ 922,120,437 Investments in affiliated securities, at value** 6,077,881 3,885,815 5,295,776 Cash -- 67,650 29,614 Receivable for securities sold 100,000 -- 525,000 Interest receivable 4,043,927 5,111,812 14,640,663 Variation margin receivable -- -- 250,000 Prepaid expenses 4,120 1,641 3,138 --------------- --------------- --------------- Total assets 332,770,397 291,640,772 942,864,628 --------------- --------------- --------------- Liabilities Trust certificates 19,547,500 20,996,125 84,995,000 Unrealized depreciation on forward interest rate swaps 152,476 -- -- Bank overdraft 41,781 -- -- Payable for securities purchased 4,720,220 -- -- Interest expense payable 228,430 182,439 1,044,533 Dividends payable to Common Stock shareholders/Common Shareholders 786,365 675,904 2,130,082 Payable to investment adviser 127,070 113,557 362,802 Payable to other affiliates 1,784 1,560 5,395 Accrued expenses 88,612 91,164 185,962 --------------- --------------- --------------- Total liabilities 25,694,238 22,060,749 88,723,774 --------------- --------------- --------------- Preferred Stock/Shares Preferred Stock/Shares, at redemption value of AMPS+++ at $25,000 per share liquidation preference*** 110,062,222 99,020,643 304,230,832 --------------- --------------- --------------- Net Assets Applicable to Common Stock/Shares Net assets applicable to Common Stock/Shares $ 197,013,937 $ 170,559,380 $ 549,910,022 =============== =============== =============== Net Assets Consist of Undistributed (accumulated distributions in excess of) investment income--net $ 975,376 $ 906,118 $ (51,182) Accumulated realized capital losses--net (9,950,926) (5,923,487) (33,784,465) Unrealized appreciation--net 10,103,686 10,205,066 22,733,014 --------------- --------------- --------------- Total accumulated earnings (losses)--net 1,128,136 5,187,697 (11,102,633) Common Stock/Shares, par value $.10 per share++ 1,355,802 1,206,972 3,944,596 Paid-in capital in excess of par 194,529,999 164,164,711 557,068,059 --------------- --------------- --------------- Net Assets $ 197,013,937 $ 170,559,380 $ 549,910,022 =============== =============== =============== Net asset value per share of Common Stock/Shares $ 14.53 $ 14.13 $ 13.94 =============== =============== =============== Market price $ 12.86 $ 12.61 $ 12.80 =============== =============== =============== * Identified cost of unaffiliated securities $ 312,288,307 $ 272,368,788 $ 899,693,513 =============== =============== =============== ** Identified cost of affiliated securities $ 6,077,881 $ 3,885,815 $ 5,295,776 =============== =============== =============== *** Preferred Stock authorized, issued and outstanding: Series A Shares, par value $.05 per share 2,200 2,200 1,700 =============== =============== =============== Series B Shares, par value $.05 per share 1,600 -- 1,700 =============== =============== =============== Series B Shares, par value $.10 per share -- 1,360 -- =============== =============== =============== Series C Shares, par value $.05 per share 600 -- 2,800 =============== =============== =============== Series C Shares, par value $.10 per share -- 400 -- =============== =============== =============== Series D Shares, par value $.05 per share -- -- 1,960 =============== =============== =============== Series E Shares, par value $.05 per share -- -- 2,200 =============== =============== =============== Series F Shares, par value $.05 per share -- -- 1,800 =============== =============== =============== ++ Common Stock issued and outstanding 13,558,024 12,069,721 39,445,962 =============== =============== =============== +++ Auction Market Preferred Stock. See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Statements of Operations
BlackRock BlackRock BlackRock MuniYield MuniYield MuniYield California Arizona California Insured For the Year Ended October 31, 2007 Fund, Inc. Fund, Inc. Fund, Inc. Investment Income Interest and amortization of premium and discount earned $ 5,372,019 $ 25,098,876 $ 39,331,087 Dividends from affiliates 32,669 351,958 124,571 --------------- --------------- --------------- Total income 5,404,688 25,450,834 39,455,658 --------------- --------------- --------------- Expenses Investment advisory fees 523,125 2,456,767 3,922,898 Interest expense and fees 244,785 2,197,543 2,542,583 Commission fees 102,236 443,224 698,626 Accounting services 65,409 162,793 222,041 Transfer agent fees 46,315 68,407 86,962 Professional fees 75,364 83,693 96,071 Printing and shareholder reports 6,422 33,031 51,212 Listing fees 1,079 9,436 12,046 Custodian fees 9,771 26,014 41,459 Pricing fees 9,529 18,297 25,298 Directors'/Trustees' fees and expenses 13,956 23,917 31,467 Other 35,888 67,643 69,149 --------------- --------------- --------------- Total expenses before reimbursement 1,133,879 5,590,765 7,799,812 Reimbursement of expenses (5,212) (45,449) (15,889) --------------- --------------- --------------- Total expenses after reimbursement 1,128,667 5,545,316 7,783,923 --------------- --------------- --------------- Investment income--net 4,276,021 19,905,518 31,671,735 --------------- --------------- --------------- Realized and Unrealized Gain (Loss)--Net Realized gain (loss): Investments 857,597 347,077 (539,776) Future contracts and/or forward interest rate swaps--net (44,433) -- (151,448) --------------- --------------- --------------- Total realized gain (loss)--net 813,164 347,077 (691,224) Change in unrealized appreciation/depreciation on: Investments--net (2,879,937) (10,806,382) (14,047,467) Future contracts and/or forward interest rate swaps--net 22,065 -- -- --------------- --------------- --------------- Total change in unrealized appreciation/depreciation--net (2,857,872) (10,806,382) (14,047,467) --------------- --------------- --------------- Total realized and unrealized gain (loss)--net (2,044,708) (10,459,305) (14,738,691) --------------- --------------- --------------- Dividends and Distributions to Preferred Stock Shareholders Dividends and distributions to Preferred Stock shareholders from: Investment income--net (1,310,529) (6,115,916) (9,517,264) Realized gain--net (102,456) -- -- --------------- --------------- --------------- Total dividends and distributions to Preferred Stock shareholders (1,412,985) (6,115,916) (9,517,264) --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 818,328 $ 3,330,297 $ 7,415,780 =============== =============== =============== See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Statements of Operations (concluded)
BlackRock BlackRock BlackRock MuniYield MuniYield New MuniYield Michigan Insured York Insured For the Year Ended October 31, 2007 Florida Fund Fund II, Inc. Fund, Inc. Investment Income Interest and amortization of premium and discount earned $ 16,269,310 $ 14,533,901 $ 42,243,736 Dividends from affiliates 129,498 71,515 90,593 --------------- --------------- --------------- Total income 16,398,808 14,605,416 42,334,329 --------------- --------------- --------------- Expenses Investment advisory fees 1,552,619 1,358,693 4,306,763 Interest expense and fees 715,979 933,860 3,308,124 Commission fees 279,818 252,851 773,082 Accounting services 118,326 108,277 252,474 Transfer agent fees 60,441 58,198 108,905 Professional fees 82,833 77,734 101,931 Printing and shareholder reports 21,655 19,152 61,463 Listing fees 9,436 9,479 13,819 Custodian fees 18,672 16,046 43,553 Pricing fees 17,008 16,829 30,603 Directors'/Trustees' fees and expenses 19,267 18,258 33,499 Other 51,430 46,579 83,896 --------------- --------------- --------------- Total expenses before reimbursement 2,947,484 2,915,956 9,118,112 Reimbursement of expenses (21,161) (11,761) (11,291) --------------- --------------- --------------- Total expenses after reimbursement 2,926,323 2,904,195 9,106,821 --------------- --------------- --------------- Investment income--net 13,472,485 11,701,221 33,227,508 --------------- --------------- --------------- Realized and Unrealized Gain (Loss)--Net Realized gain (loss): Investments 614,604 1,293,712 2,402,513 Future contracts and/or forward interest rate swaps--net (248,611) -- (754,681) --------------- --------------- --------------- Total realized gain (loss)--net 365,993 1,293,712 1,647,832 --------------- --------------- --------------- Change in unrealized appreciation/depreciation on: Investments--net (8,425,318) (6,941,533) (17,316,829) Future contracts and/or forward interest rate swaps--net 278,799 -- 656,387 --------------- --------------- --------------- Total change in unrealized appreciation/depreciation--net (8,146,519) (6,941,533) (16,660,442) --------------- --------------- --------------- Total realized and unrealized gain (loss)--net (7,780,526) (5,647,821) (15,012,610) --------------- --------------- --------------- Dividends to Preferred Stock Shareholders/Preferred Shareholders Investment income--net (4,025,743) (3,550,430) (10,460,763) --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 1,666,216 $ 2,502,970 $ 7,754,135 =============== =============== =============== See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Statements of Changes in Net Assets
BlackRock MuniYield BlackRock MuniYield Arizona Fund, Inc. California Fund, Inc. For the Year Ended October 31, For the Year Ended October 31, Increase (Decrease) in Net Assets: 2007 2006 2007 2006 Operations Investment income--net $ 4,276,021 $ 4,436,717 $ 19,905,518 $ 20,510,282 Realized gain--net 813,164 426,255 347,077 3,468,346 Change in unrealized appreciation--net (2,857,872) 1,122,350 (10,806,382) 4,191,570 Dividends and distributions to Preferred Stock shareholders (1,412,985) (1,259,966) (6,115,916) (5,371,492) ------------------------------ ------------------------------ Net increase in net assets resulting from operations 818,328 4,725,356 3,330,297 22,798,706 ------------------------------ ------------------------------ Dividends and Distributions to Common Stock Shareholders Investment income--net (3,117,045) (3,599,489) (14,097,459) (14,821,497) Realized gain--net (285,146) (523,554) -- -- ------------------------------ ------------------------------ Net decrease in net assets resulting from dividends and distributions to Common Stock shareholders (3,402,191) (4,123,043) (14,097,459) (14,821,497) ------------------------------ ------------------------------ Stock Transactions Value of shares issued to Common Stock shareholders in reinvestment of dividends 201,509 335,820 -- -- Offering and underwriting costs, including adjustments, resulting from the issuance of Preferred Stock -- 42,343 -- 15,461 ------------------------------ ------------------------------ Net increase in net assets derived from stock/share transactions 201,509 378,163 -- 15,461 ------------------------------ ------------------------------ Net Assets Applicable to Common Stock Total increase (decrease) in net assets applicable to Common Stock (2,382,354) 980,476 (10,767,162) 7,992,670 Beginning of year 65,610,792 64,630,316 321,700,832 313,708,162 ------------------------------ ------------------------------ End of year* $ 63,228,438 $ 65,610,792 $ 310,933,670 $ 321,700,832 ============================== ============================== * Undistributed investment income--net $ 311,568 $ 463,121 $ 1,349,213 $ 1,657,437 ============================== ============================== See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Statements of Changes in Net Assets (continued)
BlackRock MuniYield BlackRock MuniYield California Insured Fund, Inc. Florida Fund For the Year Ended October 31, For the Year Ended October 31, Increase (Decrease) in Net Assets: 2007 2006 2007 2006 Operations Investment income--net $ 31,671,735 $ 32,879,584 $ 13,472,485 $ 13,366,198 Realized gain (loss)--net (691,224) 4,037,090 365,993 1,571,029 Change in unrealized appreciation/depreciation--net (14,047,467) 8,293,148 (8,146,519) 2,303,608 Dividends to Preferred Stock shareholders/Preferred Shareholders (9,517,264) (8,252,857) (4,025,743) (3,537,371) ------------------------------ ------------------------------ Net increase in net assets resulting from operations 7,415,780 36,956,965 1,666,216 13,703,464 ------------------------------ ------------------------------ Dividends to Common Stock Shareholders/Common Shareholders Investment income--net (23,228,171) (27,351,515) (9,517,733) (10,968,155) ------------------------------ ------------------------------ Net decrease in net assets resulting from dividends to Common Stock shareholders/Common Shareholders (23,228,171) (27,351,515) (9,517,733) (10,968,155) ------------------------------ ------------------------------ Common Stock/Share Transactions Value of shares issued to Common Shareholders in reinvestment of dividends -- -- -- 91,289 Offering and underwriting costs resulting from the issuance of Preferred Stock/Shares -- (4,270) -- (3,184) ------------------------------ ------------------------------ Net increase (decrease) in net assets derived from stock/share transactions -- (4,270) -- 88,105 ------------------------------ ------------------------------ Net Assets Applicable to Common Stock/Shares Total increase (decrease) in net assets applicable to Common Stock/Shares (15,812,391) 9,601,180 (7,851,517) 2,823,414 Beginning of year 518,667,162 509,065,982 204,865,454 202,042,040 ------------------------------ ------------------------------ End of year* $ 502,854,771 $ 518,667,162 $ 197,013,937 $ 204,865,454 ============================== ============================== * Undistributed investment income--net $ 1,243,580 $ 2,317,280 $ 975,376 $ 1,046,367 ============================== ============================== See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Statements of Changes in Net Assets (concluded)
BlackRock MuniYield BlackRock MuniYield Michigan Insured Fund II, Inc. New York Insured Fund, Inc For the Year Ended October 31, For the Year Ended October 31, Increase (Decrease) in Net Assets: 2007 2006 2007 2006 Operations Investment income--net $ 11,701,221 $ 11,701,357 $ 33,227,508 $ 36,304,822 Realized gain (loss)--net 1,293,712 488,405 1,647,832 (243,082) Change in unrealized appreciation/depreciation--net (6,941,533) 956,523 (16,660,442) 8,987,101 Dividends to Preferred Stock shareholders (3,550,430) (3,095,027) (10,460,763) (9,387,734) ------------------------------ ------------------------------ Net increase in net assets resulting from operations 2,502,970 10,051,258 7,754,135 35,661,107 ------------------------------ ------------------------------ Dividends to Common Stock Shareholders Investment income--net (8,159,131) (9,351,799) (25,797,659) (30,176,161) ------------------------------ ------------------------------ Net decrease in net assets resulting from dividends to Common Stock shareholders (8,159,131) (9,351,799) (25,797,659) (30,176,161) ------------------------------ ------------------------------ Stock Transactions Value of shares issued to Common Stock shareholders in reinvestment of dividends -- 227,419 -- -- Offering and underwriting costs, including adjustments, resulting from the issuance of Preferred Stock -- 24,274 -- (5,720) ------------------------------ ------------------------------ Net increase (decrease) in net assets derived from stock transactions -- 251,693 -- (5,720) ------------------------------ ------------------------------ Net Assets Applicable to Common Stock Total increase (decrease) in net assets applicable to Common Stock (5,656,161) 951,152 (18,043,524) 5,479,226 Beginning of year 176,215,541 175,264,389 567,953,546 562,474,320 ------------------------------ ------------------------------ End of year* $ 170,559,380 $ 176,215,541 $ 549,910,022 $ 567,953,546 ============================== ============================== * Undistributed (accumulated distributions in excess of) investment income--net $ 906,118 $ 914,458 $ (51,182) $ 2,979,732 ============================== ============================== See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Financial Highlights BlackRock MuniYield Arizona Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31, from information provided in the financial statements. 2007 2006 2005 2004 2003 Per Share Operating Performance Net asset value, beginning of year $ 14.53 $ 14.39 $ 15.04 $ 14.64 $ 14.53 ---------- ---------- ---------- ---------- ---------- Investment income--net++ .95 .98 .97 .98 1.00 Realized and unrealized gain (loss)--net (.46) .36 (.49) .40 .05 Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.29) (.26) (.14) (.06) (.06) Realized gain--net (.02) (.02) --++++ -- -- ---------- ---------- ---------- ---------- ---------- Total from investment operations .18 1.06 .34 1.32 .99 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.69) (.80) (.92) (.92) (.88) Realized gain--net (.06) (.12) (.02) -- -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.75) (.92) (.94) (.92) (.88) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs, including adjustments, resulting from the issuance of Preferred Stock -- --*** (.05) -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 13.96 $ 14.53 $ 14.39 $ 15.04 $ 14.64 ========== ========== ========== ========== ========== Market price per share, end of year $ 13.66 $ 14.79 $ 16.03 $ 15.10 $ 14.13 ========== ========== ========== ========== ========== Total Investment Return* Based on net asset value per share 1.29% 7.47% 1.91% 9.40% 7.19% ========== ========== ========== ========== ========== Based on market price per share (2.63%) (1.80%) 13.07% 13.80% 13.45% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets Applicable to Common Stock Total expenses, net of reimbursement and excluding interest expense and fees** 1.37% 1.33% 1.20% 1.19% 1.18% ========== ========== ========== ========== ========== Total expenses, net of reimbursement** 1.75% 1.70% 1.51% 1.39% 1.37% ========== ========== ========== ========== ========== Total expenses** 1.76% 1.71% 1.52% 1.40% 1.38% ========== ========== ========== ========== ========== Total investment income--net** 6.65% 6.90% 6.54% 6.65% 6.79% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 2.04% 1.83% .91% .42% .42% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 4.61% 5.07% 5.63% 6.23% 6.37% ========== ========== ========== ========== ========== Supplemental Data Net assets applicable to Common Stock, end of year (in thousands) $ 63,228 $ 65,611 $ 64,630 $ 67,217 $ 65,234 ========== ========== ========== ========== ========== Preferred Stock outstanding at liquidation preference, end of year (in thousands) $ 40,300 $ 40,300 $ 40,300 $ 30,300 $ 30,300 ========== ========== ========== ========== ========== Portfolio turnover 31% 31% 28% 21% 24% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,569 $ 2,628 $ 2,604 $ 3,218 $ 3,153 ========== ========== ========== ========== ========== * Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. ** Do not reflect the effect of dividends to Preferred Stock shareholders. *** Amount is less than $.01 per share. ++ Based on average shares outstanding. ++++ Amount is less than $(.01) per share. See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Financial Highlights BlackRock MuniYield California Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31, from information provided in the financial statements. 2007 2006 2005 2004 2003 Per Share Operating Performance Net asset value, beginning of year $ 15.11 $ 14.73 $ 15.27 $ 15.17 $ 15.14 ---------- ---------- ---------- ---------- ---------- Investment income--net* .93 .96 .93 1.02 1.06 Realized and unrealized gain (loss)--net (.49) .37 (.46) .12 .04 Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.29) (.25) (.13) (.07) (.10) Realized gain--net -- -- -- -- --++ ---------- ---------- ---------- ---------- ---------- Total from investment operations .15 1.08 .34 1.07 1.00 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.66) (.70) (.86) (.97) (.97) Realized gain--net -- -- -- -- --++ ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.66) (.70) (.86) (.97) (.97) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs, including adjustments, resulting from the issuance of Preferred Stock -- --++++ (.02) -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 14.60 $ 15.11 $ 14.73 $ 15.27 $ 15.17 ========== ========== ========== ========== ========== Market price per share, end of year $ 13.25 $ 14.00 $ 13.37 $ 14.43 $ 14.15 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 1.36% 8.03% 2.59% 7.74% 7.14% ========== ========== ========== ========== ========== Based on market price per share (.72%) 10.28% (1.46%) 9.16% 4.64% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets Applicable to Common Stock Total expenses, net of reimbursement and excluding interest expense and fees*** 1.06% 1.06% .98% .96% .95% ========== ========== ========== ========== ========== Expenses, net of reimbursement*** 1.75% 1.51% 1.13% 1.12% 1.16% ========== ========== ========== ========== ========== Total expenses*** 1.77% 1.52% 1.13% 1.12% 1.17% ========== ========== ========== ========== ========== Total investment income--net*** 6.29% 6.51% 6.16% 6.79% 6.93% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 1.93% 1.70% 0.84% 0.44% 0.63% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 4.36% 4.81% 5.32% 6.35% 6.30% ========== ========== ========== ========== ========== Supplemental Data Net assets applicable to Common Stock, end of year (in thousands) $ 310,934 $ 321,701 $ 313,708 $ 325,204 $ 323,155 ========== ========== ========== ========== ========== Preferred Stock outstanding at liquidation preference, end of year (in thousands) $ 175,000 $ 175,000 $ 175,000 $ 140,000 $ 140,000 ========== ========== ========== ========== ========== Portfolio turnover 41% 39% 53% 29% 18% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,777 $ 2,838 $ 2,793 $ 3,323 $ 3,308 ========== ========== ========== ========== ========== * Based on average shares outstanding. ** Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. *** Do not reflect the effect of dividends to Preferred Stock shareholders. ++ Amount is less than $(.01) per share. ++++ Amount is less than $.01 per share. See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Financial Highlights BlackRock MuniYield California Insured Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31, from information provided in the financial statements. 2007 2006 2005 2004 2003 Per Share Operating Performance Net asset value, beginning of year $ 15.09 $ 14.82 $ 15.23 $ 15.10 $ 15.26 ---------- ---------- ---------- ---------- ---------- Investment income--net++++ .92 .96 .95 .94 .95 Realized and unrealized gain (loss)--net (.42) .35 (.33) .13 (.18) Less dividends to Preferred Stock shareholders from investment income--net (.28) (.24) (.13) (.06) (.06) ---------- ---------- ---------- ---------- ---------- Total from investment operations .22 1.07 .49 1.01 .71 ---------- ---------- ---------- ---------- ---------- Less dividends to Common Stock shareholders from investment income--net (.68) (.80) (.88) (.88) (.87) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs, including adjustments, resulting from the issuance of Preferred Stock -- --++ (.02) -- -- ---------- ---------- ---------- ---------- ---------- Adjustment of offering costs resulting from the issuance of Preferred Stock -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 14.63 $ 15.09 $ 14.82 $ 15.23 $ 15.10 ========== ========== ========== ========== ========== Market price per share, end of year $ 13.16 $ 14.64 $ 14.16 $ 13.73 $ 13.82 ========== ========== ========== ========== ========== Total Investment Return* Based on net asset value per share 1.76% 7.57% 3.55% 7.54% 5.29% ========== ========== ========== ========== ========== Based on market price per share (5.65%) 9.22% 9.75% 5.93% 7.50% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets Applicable to Common Stock Total expenses, net of reimbursement and excluding interest expense and fees** 1.03% 1.03% .96% .95% .94% ========== ========== ========== ========== ========== Total expenses, net of reimbursement** 1.53% 1.59% 1.27% 1.08% 1.08% ========== ========== ========== ========== ========== Total expenses** 1.53% 1.60% 1.27% 1.08% 1.08% ========== ========== ========== ========== ========== Total investment income--net** 6.22% 6.46% 6.29% 6.29% 6.20% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 1.87% 1.62% .84% .43% .37% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 4.35% 4.84% 5.45% 5.86% 5.83% ========== ========== ========== ========== ========== Supplemental Data Net assets applicable to Common Stock, end of year (in thousands) $ 502,855 $ 518,667 $ 509,066 $ 523,206 $ 518,786 ========== ========== ========== ========== ========== Preferred Stock outstanding at liquidation preference, end of year (in thousands) $ 275,000 $ 275,000 $ 275,000 $ 230,000 $ 230,000 ========== ========== ========== ========== ========== Portfolio turnover 25% 27% 39% 63% 47% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,829 $ 2,886 $ 2,851 $ 3,275 $ 3,256 ========== ========== ========== ========== ========== * Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. ** Do not reflect the effect of dividends to Preferred Stock shareholders. ++ Amount is less than $(.01) per share. ++++ Based on average shares outstanding. See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Financial Highlights BlackRock MuniYield Florida Fund
The following per share data and ratios have been derived For the Year Ended October 31, from information provided in the financial statements. 2007 2006 2005 2004 2003 Per Share Operating Performance Net asset value, beginning of year $ 15.11 $ 14.91 $ 15.27 $ 14.97 $ 14.97 ---------- ---------- ---------- ---------- ---------- Investment income--net++++ .99 .99 .98 1.00 1.06 Realized and unrealized gain (loss)--net (.57) .28 (.26) .29 (.07) Less dividends to Preferred Shareholders from investment income--net (.30) (.26) (.14) (.07) (.07) ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.12 1.01 .58 1.22 .92 ---------- ---------- ---------- ---------- ---------- Less dividends to Common Shareholders from investment income--net (.70) (.81) (.92) (.92) (.92) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs, including adjustments, resulting from the issuance of Preferred Shares -- --++ (.02) -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 14.53 $ 15.11 $ 14.91 $ 15.27 $ 14.97 ========== ========== ========== ========== ========== Market price per share, end of year $ 12.86 $ 14.35 $ 14.93 $ 14.28 $ 13.80 ========== ========== ========== ========== ========== Total Investment Return* Based on net asset value per share 1.21% 7.24% 3.98% 8.99% 6.76% ========== ========== ========== ========== ========== Based on market price per share (5.68%) 1.71% 11.34% 10.57% 10.44% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets Applicable to Common Shares Total expenses, net of reimbursement and excluding interest expense and fees** 1.10% 1.09% 1.05% 1.03% 1.04% ========== ========== ========== ========== ========== Total expenses, net of reimbursement** 1.46% 1.42% 1.25% 1.18% 1.18% ========== ========== ========== ========== ========== Total expenses** 1.47% 1.44% 1.25% 1.19% 1.19% ========== ========== ========== ========== ========== Total investment income--net** 6.72% 6.63% 6.46% 6.67% 7.01% ========== ========== ========== ========== ========== Amount of dividends to Preferred Shareholders 2.01% 1.75% .95% .48% .45% ========== ========== ========== ========== ========== Investment income--net, to Common Shareholders 4.71% 4.88% 5.51% 6.19% 6.56% ========== ========== ========== ========== ========== Supplemental Data Net assets applicable to Common Shares, end of year (in thousands) $ 197,014 $ 204,865 $ 202,042 $ 206,895 $ 202,890 ========== ========== ========== ========== ========== Preferred Shares outstanding at liquidation preference, end of year (in thousands) $ 110,000 $ 110,000 $ 110,000 $ 95,000 $ 95,000 ========== ========== ========== ========== ========== Portfolio turnover 25% 46% 42% 33% 35% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,791 $ 2,862 $ 2,837 $ 3,178 $ 3,136 ========== ========== ========== ========== ========== * Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. ** Do not reflect the effect of dividends to Preferred Shareholders. ++ Amount is less than $(.01) per share. ++++ Based on average shares outstanding. See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Financial Highlights BlackRock MuniYield Michigan Insured Fund II, Inc.
The following per share data and ratios have been derived For the Year Ended October 31, from information provided in the financial statements. 2007 2006 2005 2004 2003 Per Share Operating Performance Net asset value, beginning of year $ 14.60 $ 14.54 $ 15.21 $ 15.21 $ 14.91 ---------- ---------- ---------- ---------- ---------- Investment income--net+++ .97 .97 .99 1.00 1.02 Realized and unrealized gain (loss)--net (.47) .13 (.58) --++++ .24 Less dividends to Preferred Stock shareholders from investment income (.29) (.26) (.15) (.07) (.07) ---------- ---------- ---------- ---------- ---------- Total from investment operations .21 .84 .26 .93 1.19 ---------- ---------- ---------- ---------- ---------- Less dividends to Common Stock shareholders from investment income (.68) (.78) (.91) (.93) (.89) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs, including adjustments, resulting from the issuance of Preferred Stock -- --++ (.02) -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 14.13 $ 14.60 $ 14.54 $ 15.21 $ 15.21 ========== ========== ========== ========== ========== Market price per share, end of year $ 12.61 $ 13.97 $ 14.41 $ 14.54 $ 13.75 ========== ========== ========== ========== ========== Total Investment Return* Based on net asset value per share 1.78% 6.09% 1.73% 6.78% 8.82% ========== ========== ========== ========== ========== Based on market price per share (5.07%) 2.42% 5.47% 12.91% 9.06% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets Applicable to Common Stock Total expenses, net of reimbursement and excluding interest expense and fees** 1.14% 1.13% 1.07% 1.05% 1.01% ========== ========== ========== ========== ========== Total expenses, net of reimbursement** 1.68% 1.64% 1.46% 1.26% 1.20% ========== ========== ========== ========== ========== Total expenses** 1.69% 1.65% 1.47% 1.28% 1.22% ========== ========== ========== ========== ========== Total investment income--net** 6.77% 6.72% 6.57% 6.61% 6.73% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 2.05% 1.78% .97% .47% .47% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 4.72% 4.94% 5.60% 6.14% 6.26% ========== ========== ========== ========== ========== Supplemental Data Net assets applicable to Common Stock, end of year (in thousands) $ 170,559 $ 176,216 $ 175,264 $ 183,224 $ 183,237 ========== ========== ========== ========== ========== Preferred Stock outstanding at liquidation preference, end of year (in thousands) $ 99,000 $ 99,000 $ 99,000 $ 89,000 $ 89,000 ========== ========== ========== ========== ========== Portfolio turnover 10% 14% 19% 35% 27% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,723 $ 2,780 $ 2,770 $ 3,059 $ 3,059 ========== ========== ========== ========== ========== * Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. ** Do not reflect the effect of dividends to Preferred Stock shareholders. ++ Amount is less than $.01 per share. ++++ Amount is less than $(.01) per share. +++ Based on average shares outstanding. See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Financial Highlights BlackRock MuniYield New York Insured Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31, from information provided in the financial statements. 2007 2006 2005 2004 2003 Per Share Operating Performance Net asset value, beginning of year $ 14.40 $ 14.26 $ 14.81 $ 14.81 $ 14.83 ---------- ---------- ---------- ---------- ---------- Investment income--net++++ .84 .92 .94 .91 .97 Realized and unrealized gain (loss)--net (.38) .23 (.50) (.01) (.09) Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.27) (.24) (.13) (.06) (.07) Realized gain--net -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total from investment operations .19 .91 .31 .84 .81 ---------- ---------- ---------- ---------- ---------- Less dividends to Common Stock shareholders from investment income--net (.65) (.77) (.84) (.84) (.83) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs, including adjustments, resulting from the issuance of Preferred Stock -- --++ (.02) -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 13.94 $ 14.40 $ 14.26 $ 14.81 $ 14.81 ========== ========== ========== ========== ========== Market price per share, end of year $ 12.80 $ 14.10 $ 13.17 $ 13.20 $ 13.25 ========== ========== ========== ========== ========== Total Investment Return* Based on net asset value per share 1.66% 6.71% 2.53% 6.53% 6.19% ========== ========== ========== ========== ========== Based on market price per share (4.67%) 13.13% 6.24% 6.13% 5.45% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets Applicable to Common Stock Total expenses, net of reimbursement and excluding interest expense and fees** 1.04% 1.03% .96% .94% .94% ========== ========== ========== ========== ========== Total expenses, net of reimbursement** 1.63% 1.56% 1.31% 1.13% 1.15% ========== ========== ========== ========== ========== Total expenses** 1.64% 1.56% 1.31% 1.13% 1.16% ========== ========== ========== ========== ========== Total investment income--net** 5.96% 6.50% 6.37% 6.23% 6.49% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 1.88% 1.68% .87% .42% .50% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 4.08% 4.82% 5.50% 5.81% 5.99% ========== ========== ========== ========== ========== Supplemental Data Net assets applicable to Common Stock, end of year (in thousands) $ 549,910 $ 567,954 $ 562,474 $ 584,248 $ 584,025 ========== ========== ========== ========== ========== Preferred Stock outstanding at liquidation preference, end of year (in thousands) $ 304,000 $ 304,000 $ 304,000 $ 259,000 $ 259,000 ========== ========== ========== ========== ========== Portfolio turnover 25% 43% 35% 18% 45% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,809 $ 2,868 $ 2,850 $ 3,256 $ 3,255 ========== ========== ========== ========== ========== * Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. ** Do not reflect the effect of dividends to Preferred Stock shareholders. ++ Amount is less than $(.01) per share. ++++ Based on average shares outstanding. See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007 Notes to Financial Statements 1. Significant Accounting Policies: BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. (the "Funds" or individually as the "Fund") are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. The Funds' financial statements are prepared in conformity with U.S. generally accepted accounting principles, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Funds determine, and make available for publication, the net asset values of their Common Stock/ Shares on a daily basis. Common Stock shares and Common Shares are listed on the New York Stock Exchange under the symbol MYC for BlackRock MuniYield California Fund, Inc., MCA for BlackRock MuniYield California Insured Fund, Inc., MYF for BlackRock MuniYield Florida Fund, MYM for BlackRock MuniYield Michigan Insured Fund II, Inc. and MYN for BlackRock MuniYield New York Insured Fund, Inc. Common Stock is listed on the American Stock Exchange under the symbol MZA for BlackRock MuniYield Arizona Fund, Inc. The following is a summary of significant accounting policies followed by the Funds. (a) Valuation of Investments--Municipal bonds are traded primarily in the over- the-counter ("OTC") markets and are valued at the last available bid price in the OTC market or on the basis of values as obtained by a pricing service. Pricing services use valuation matrixes that incorporate both dealer-supplied valuations and valuation models. The procedures of the pricing service and its valuations are reviewed by the officers of each of the Funds under the general direction of the respective Board of Directors or Trustees. Such valuations and procedures are reviewed periodically by each Fund's Board of Directors or Trustees. Financial futures contracts and options thereon, which are traded on exchanges, are valued at their closing prices as of the close of such exchanges. Effective September 4, 2007, exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade and previously were valued at the last sales price as of the close of options trading on applicable exchanges. In the case of options traded in the OTC market, valuation is the last asked price (options written) or the last bid price (options purchased). Swap agreements are valued by quoted fair values received daily by the Funds' pricing service. Investments in open-end investment companies are valued at their net asset value each business day. Securities and other assets for which market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of each Fund's Board of Directors or Trustees. Such valuations and procedures will be reviewed periodically by each Fund's Board of Directors or Trustees. (b) Derivative financial instruments--Each Fund may engage in various portfolio investment strategies both to increase the return of the Fund and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. Losses may arise due to changes in the value of the contract due to an unfavorable change in the price of the underlying security or if the counterparty does not perform under the contract. The counterparty for certain instruments may pledge cash or securities as collateral. * Financial futures contracts--Each Fund may purchase or sell financial futures contracts and options on such financial futures contracts. Financial futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, the Fund deposits, and maintains as collateral, such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. * Options--Each Fund may purchase and write call and put options. When the Fund writes an option, an amount equal to the premium received by the Fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Fund enters into a closing transaction), the Fund realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). * Forward interest rate swaps--Each Fund may enter into forward interest rate swaps. In a forward interest rate swap, the Fund and the counterparty agree to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. When the agreement is closed, the Fund records a realized gain or loss in an amount equal to the value of the agreement. ANNUAL REPORT OCTOBER 31, 2007 Notes to Financial Statements (continued) * Swaps--Each Fund may enter into swap agreements, which are OTC contracts in which each Fund and a counterparty agree to make periodic net payments on a specified notional amount. The net payments can be made for a set period of time or may be triggered by a predetermined credit event. The net periodic payments may be based on a fixed or variable interest rate; the change in market value of a specified security, basket of securities or index; or the return generated by a security. These periodic payments received or made by each Fund are recorded in the accompanying Statements of Operations as realized gains or losses, respectively. Gains or losses are also realized upon termination of the swap agreements. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). Risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. (c) Municipal bonds held in trust--The Funds invest in leveraged residual certificates ("TOB Residuals") issued by tender option bond trusts ("TOBs"). A TOB is established by a third party sponsor forming a special purpose entity, into which a Fund, or an agent on behalf of the Fund, transfers municipal securities. A TOB typically issues two classes of beneficial interests: short- term floating rate certificates, which are sold to third party investors, and residual certificates, which are generally issued to the Fund which made the transfer or to affiliates of the Fund. Each Fund's transfers of the municipal securities to a TOB do not qualify for sale treatment under Statement of Financial Accounting Standards No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities," therefore the municipal securities deposited into a TOB are presented in the Funds' schedules of investments and the proceeds from the transactions are reported as a liability for trust certificates. Similarly, proceeds from residual certificates issued to affiliates, if any, from the transaction are included in the liability for trust certificates. Interest income from the underlying security is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of a Fund. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. The residual interests held by the Funds include the right of the Funds (1) to cause the holders of a proportional share of floating rate certificates to tender their certificates at par, and (2) to transfer a corresponding share of the municipal securities from the TOB to the Funds. At October 31, 2007, the aggregate value of the underlying municipal securities transferred to TOBs and the liability for trust certificates were: Underlying Municipal Liability for Range of Bonds Trust Interest Transferred Certificates Rates to TOBs BlackRock MuniYield 3.687% - Arizona Fund, Inc. $ 4,835,000 3.728% $ 10,452,264 Blackrock MuniYield 3.676% - California Fund, Inc. $48,967,500 3.708% $101,416,713 BlackRock MuniYield California Insured 3.676% - Fund, Inc. $58,216,110 3.708% $119,617,158 BlackRock MuniYield 3.722% - Florida Fund $19,547,500 3.763% $ 41,880,266 BlackRock MuniYield Michigan Insured 3.658% - Fund II, Inc. $20,996,125 3.758% $ 43,534,070 BlackRock MuniYield New York Insured 3.631% - Fund, Inc. $84,995,000 3.707% $180,725,191 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 municipal bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, the Funds' investment in TOB Residuals likely will adversely affect the Funds' investment income--net and distributions to shareholders. Fluctuations in the market value of municipal securities deposited into the TOB may adversely affect the Funds' net asset values per share. While the Funds' investment policies and restrictions expressly permit investments in inverse floating rate securities such as TOB Residuals, they generally do not allow the Funds to borrow money for purposes of making investments. The Funds' management believes that the Funds' restrictions on borrowings do not apply to the secured borrowings deemed to have occurred for accounting purposes. (d) Income taxes--It is each Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. (e) Security transactions and investment income--Security transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual basis. The Funds amortize all premiums and discounts on debt securities. (f) Dividends and distributions--Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. ANNUAL REPORT OCTOBER 31, 2007 Notes to Financial Statements (continued) (g) Offering costs--Direct expenses relating to the public offering of each Fund's Preferred Stock/Shares were charged to Common Stock/Shares capital at the time of issuance of the shares. Any adjustments to estimates of offering costs were recorded to capital. (h) Bank overdraft--BlackRock MuniYield Arizona Fund, Inc. recorded a bank overdraft, which resulted from a failed trade. MuniYield Florida Fund, Inc. recorded a bank overdraft, which resulted from management estimates of available cash. (i) Recent accounting pronouncements--In July 2006, the Financial Accounting Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes--an interpretation of FASB Statement No. 109." FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including mutual funds, before being measured and recognized in the financial statements. Adoption of FIN 48 is required for the last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. The impact on each of the Fund's financial statements, if any, is currently being assessed. In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications of FAS 157 and its impact on each of the Fund's financial statements, if any, has not been determined. In addition, in February 2007, FASB issued Statement of Financial Accounting Standards No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities" ("FAS 159"), which is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on each of the Fund's financial statements, if any, has not been determined. (j) Reclassification for BlackRock MuniYield California Fund, Inc.--U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, during the current year, $367 has been reclassified between undistributed net investment income and accumulated net realized capital losses as a result of permanent differences attributable to the tax classification of distributions received from a regulated investment company. This reclassification has no effect on net assets or net asset values per share. 2. Investment Advisory Agreement and Transactions with Affiliates: Each Fund has entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary of BlackRock, Inc. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. are the principal owners of BlackRock, Inc. The Manager is responsible for the management of each Fund's portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. For such services, each Fund pays a monthly fee at an annual rate of .50% of the Fund's average daily net assets, including proceeds from the issuance of Preferred Stock/Shares. The Manager has agreed to reimburse its management fee by the amount of management fees each Fund pays to the Manager indirectly through its investments described below. The reimbursements for the year ended October 31, 2007 were as follows: Reimbursement Investment by Manager BlackRock MuniYield CMA Arizona Arizona Fund, Inc. Municipal Money Fund $ 5,212 BlackRock MuniYield CMA California California Fund, Inc. Municipal Money Fund $45,449 BlackRock MuniYield CMA California California Insured Municipal Money Fund, Inc. Fund $15,889 BlackRock MuniYield CMA Florida Money Florida Fund Fund $21,161 BlackRock MuniYield CMA Michigan Michigan Insured Municipal Money Fund II, Inc. Fund $11,761 BlackRock MuniYield CMA New York New York Insured Municipal Money Fund, Inc. Fund $11,291 In addition, the Manager has entered into sub-advisory agreements with BlackRock Investment Management, LLC, an affiliate of the Manager, with respect to each Fund, under which the Manager pays the sub-adviser for services it provides, a monthly fee that is a percentage of the management fee paid by each Fund to the Manager. The Funds reimbursed the Manager for certain accounting services. The reimbursements for the year ended October 31, 2007 were as follows: ANNUAL REPORT OCTOBER 31, 2007 Notes to Financial Statements (continued) Reimbursement to the Manager BlackRock MuniYield Arizona Fund, Inc. $ 1,954 BlackRock MuniYield California Fund, Inc. $ 9,162 BlackRock MuniYield California Insured Fund, Inc. $14,652 BlackRock MuniYield Florida Fund $ 5,795 BlackRock MuniYield Michigan Insured Fund II, Inc. $ 5,063 BlackRock MuniYield New York Insured Fund, Inc. $17,123 Certain officers and/or directors or trustees 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 year ended October 31, 2007 were as follows: Total Total Purchases Sales BlackRock MuniYield Arizona Fund, Inc. $ 34,927,314 $ 34,642,002 BlackRock MuniYield California Fund, Inc. $240,004,391 $221,007,188 BlackRock MuniYield California Insured Fund, Inc. $214,255,226 $227,304,078 BlackRock MuniYield Florida Fund $ 86,640,152 $ 80,206,728 BlackRock MuniYield Michigan Insured Fund II, Inc. $ 29,164,960 $ 33,328,112 BlackRock MuniYield New York Insured Fund, Inc. $243,038,011 $232,500,320 4. Stock/Share Transactions: BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. are authorized to issue 200,000,000 shares of stock, including Preferred Stock, par value $.10 per share, except BlackRock MuniYield Michigan Insured Fund II, Inc. Preferred Stock, Series A and all series of BlackRock MuniYield New York Insured Fund, Inc. Preferred Stock, which have a par value of $.05 per share, and all of which were initially classified as Common Stock. The respective Board of Directors is authorized, however, to reclassify any unissued shares of stock without approval of holders of Common Stock. BlackRock MuniYield Florida Fund is authorized to issue an unlimited number of common shares of beneficial interest, including Preferred Shares, par value $.05 per share, all of which were initially classified as Common Shares. The Board of Trustees is authorized, however, to reclassify any unissued shares of beneficial interest without approval of holders of Common Shares. Common Stock/Shares BlackRock MuniYield Arizona Fund, Inc. Shares issued and outstanding during the year ended October 31, 2007 and for the year ended October 31, 2006 increased by 13,972 and 22,850, respectively, as a result of dividend reinvestments. BlackRock MuniYield California Fund, Inc. Shares issued and outstanding during the years ended October 31, 2007 and October 31, 2006 remained constant. BlackRock MuniYield California Insured Fund, Inc. Shares issued and outstanding during the years ended October 31, 2007 and October 31, 2006 remained constant. BlackRock MuniYield Florida Fund Shares issued and outstanding during the year ended October 31, 2007 remained constant. Shares issued and outstanding during the year ended October 31, 2006 increased by 6,144 as a result of dividend reinvestments. BlackRock MuniYield Michigan Insured Fund II, Inc. Shares issued and outstanding during the year ended October 31, 2007 remained constant. Shares issued and outstanding during the year ended October 31, 2006 increased by 15,590 as a result of dividend reinvestments. BlackRock MuniYield New York Insured Fund, Inc. Shares issued and outstanding during the years ended October 31, 2007 and October 31, 2006 remained constant. Preferred Stock/Shares Auction Market Preferred Stock/Shares are redeemable Stock/Shares of the Funds, with a liquidation preference of $25,000 per share plus accrued and unpaid dividends that entitle their holders to receive cash dividends at an annual rate that may vary for the successive dividend periods. The yields in effect at October 31, 2007 were as follows: BlackRock BlackRock BlackRock MuniYield MuniYield MuniYield California Arizona California Insured Fund, Inc. Fund, Inc. Fund, Inc. Series A 3.30% 3.70% 2.84% Series B 2.818% 3.50% 2.95% Series C 3.50% 2.99% 3.40% Series D -- 2.89% 3.60% Series E -- -- 3.03% Series F -- -- 2.91% BlackRock BlackRock MuniYield MuniYield BlackRock Michigan New York MuniYield Insured II Insured Florida Fund Fund, Inc. Fund, Inc. Series A 3.55% 3.54% 3.55% Series B 3.55% 3.50% 2.89% Series C 3.49% 3.50% 3.00% Series D -- -- 3.30% Series E -- -- 3.57% Series F -- -- 3.15% ANNUAL REPORT OCTOBER 31, 2007 Notes to Financial Statements (continued) Shares issued and outstanding for each of the Funds during the years ended October 31, 2007 and October 31, 2006 remained constant. Each Fund pays commissions to certain broker-dealers at the end of each auction at an annual rate ranging from .25% to .375%, calculated on the proceeds of each auction. For the year ended October 31, 2007, Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions as follows: Commissions BlackRock Arizona Fund, Inc. $ 55,729 BlackRock California Fund, Inc. $ 145,469 BlackRock California Insured Fund, Inc. $ 233,170 BlackRock MuniYield Florida Fund $ 146,733 BlackRock MuniYield Michigan Insured Fund II, Inc. $ 127,716 BlackRock MuniYield New York Insured Fund, Inc. $ 359,665 5. Distributions to Shareholders: BlackRock MuniYield Arizona Fund, Inc. The Fund paid a tax-exempt income dividend to holders of Common Stock in the amount of $.057000 per share on December 3, 2007 to shareholders of record on November 15, 2007. The tax character of distributions paid during the fiscal years ended October 31, 2007 and October 31, 2006 was as follows: 10/31/2007 10/31/2006 Distributions paid from: Tax-exempt income $ 4,427,574 $ 4,774,990 Net long-term capital gain 387,602 608,019 --------------- --------------- Total distributions $ 4,815,176 $ 5,383,009 =============== =============== As of October 31, 2007, the components of accumulated earnings on a tax basis were as follows: Undistributed tax-exempt income - net $ 390,633 Undistributed long-term capital gains - net 762,810 --------------- Total undistributed earnings - net 1,153,443 Capital loss carryforward -- Unrealized gains - net 1,853,700* --------------- Total accumulated earnings - net $ 3,007,143 =============== * The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the difference between the book and tax treatment of residual interest in tender option bonds. BlackRock MuniYield California Fund, Inc. The Fund paid a tax-exempt income dividend to holders of Common Stock in the amount of $.055000 per share on December 3, 2007 to shareholders of record on November 15, 2007. The tax character of distributions paid during the fiscal years ended October 31, 2007 and October 31, 2006 was as follows: 10/31/2007 10/31/2006 Distributions paid from: Tax-exempt income $ 20,213,375 $ 20,192,989 --------------- --------------- Total distributions $ 20,213,375 $ 20,192,989 =============== =============== As of October 31, 2007, the components of accumulated earnings on a tax basis were as follows: Undistributed tax-exempt income - net $ 1,476,067 Undistributed long-term capital gains - net -- --------------- Total undistributed earnings - net 1,476,067 Capital loss carryforward (217,588)* Unrealized gains - net 8,076,786** --------------- Total accumulated earnings - net $ 9,335,265 =============== * On October 31, 2007, the Fund had a net capital loss carryforward of $217,588, all of which expires in 2011. This amount will be available to offset like amounts of any future taxable gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the difference between the book and tax treatment of residual interest in tender option bonds. BlackRock MuniYield California Insured Fund, Inc. The Fund paid a tax-exempt income dividend to holders of Common Stock in the amount of $.056000 per share on December 3, 2007 to shareholders of record on November 15, 2007. The tax character of distributions paid during the fiscal years ended October 31, 2007 and October 31, 2006 was as follows: 10/31/2007 10/31/2006 Distributions paid from: Tax-exempt income $ 32,745,435 $ 35,604,372 --------------- --------------- Total distributions $ 32,745,435 $ 35,604,372 =============== =============== As of October 31, 2007, the components of accumulated earnings on a tax basis were as follows: Undistributed tax-exempt income - net $ 1,519,548 Undistributed long-term capital gains - net -- --------------- Total undistributed earnings - net 1,519,548 Capital loss carryforward (11,966,371)* Unrealized gains - net 15,640,808** --------------- Total accumulated earnings - net $ 5,193,985 =============== * On October 31, 2007, the Fund had a net capital loss carryforward of $11,966,371, of which $3,017,271 expires in 2008, $9,668 expires in 2009, $4,901,089 expires in 2011, $2,675,948 expires in 2012 and $1,362,395 expires in 2015. This amount will be available to offset like amounts of any future taxable gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the difference between the book and tax treatment of residual interest in tender option bonds. ANNUAL REPORT OCTOBER 31, 2007 Notes to Financial Statements (concluded) BlackRock MuniYield Florida Fund The Fund paid a tax-exempt income dividend to holders of Common Shares in the amount of $.058000 per share on December 3, 2007 to shareholders of record on November 15, 2007. The tax character of distributions paid during the fiscal years ended October 31, 2007 and October 31, 2006 was as follows: 10/31/2007 10/31/2006 Distributions paid from: Tax-exempt income $ 13,543,476 $ 14,505,526 --------------- --------------- Total distributions $ 13,543,476 $ 14,505,526 =============== =============== As of October 31, 2007, the components of accumulated earnings on a tax basis were as follows: Undistributed tax-exempt income - net $ 493,097 Undistributed long-term capital gains - net -- --------------- Total undistributed earnings - net 493,097 Capital loss carryforward (7,545,418)* Unrealized gains - net 8,180,457** --------------- Total accumulated earnings - net $ 1,128,136 =============== * On October 31, 2007, the Fund had a net capital loss carryforward of $7,545,418, of which $6,070,481 expires in 2008 and $1,474,937 expires in 2012. This amount will be available to offset like amounts of any future taxable gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the difference between the book and tax treatment of residual interest in tender option bonds. BlackRock MuniYield Michigan Insured Fund II, Inc. The Fund paid a tax-exempt income dividend to holders of Common Stock in the amount of $.056000 per share on December 3, 2007 to shareholders of record on November 15, 2007. The tax character of distributions paid during the fiscal years ended October 31, 2007 and October 31, 2006 was as follows: 10/31/2007 10/31/2006 Distributions paid from: Tax-exempt income $ 11,709,561 $ 12,446,826 --------------- --------------- Total distributions $ 11,709,561 $ 12,446,826 =============== =============== As of October 31, 2007, the components of accumulated earnings on a tax basis were as follows: Undistributed tax-exempt income - net $ 648,996 Undistributed long-term capital gains - net -- --------------- Total undistributed earnings - net 648,996 Capital loss carryforward (3,682,435)* Unrealized gains - net 8,221,136** --------------- Total accumulated earnings - net $ 5,187,697 =============== * On October 31, 2007, the Fund had a net capital loss carryforward of $3,682,435 of which $1,343,331 expires in 2008, $1,050,253 expires in 2010 and $1,288,851 expires in 2012. This amount will be available to offset like amounts of any future taxable gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the difference between the book and tax treatment of residual interest in tender option bonds. BlackRock MuniYield New York Insured Fund, Inc. The Fund paid a tax-exempt income dividend to holders of Common Stock in the amount of $.054000 per share on December 3, 2007 to shareholders of record on November 15, 2007. The tax character of distributions paid during the fiscal years ended October 31, 2007 and October 31, 2006 was as follows: 10/31/2007 10/31/2006 Distributions paid from: Tax-exempt income $ 36,258,422 $ 39,563,895 --------------- --------------- Total distributions $ 36,258,422 $ 39,563,895 =============== =============== As of October 31, 2007, the components of accumulated earnings on a tax basis were as follows: Undistributed tax-exempt income - net $ 1,806,373 Undistributed long-term capital gains - net -- --------------- Total undistributed earnings - net 1,806,373 Capital loss carryforward (30,088,597)* Unrealized gains - net 17,179,591** --------------- Total accumulated losses - net $ (11,102,633) =============== * On October 31, 2007, the Fund had a net capital loss carryforward of $30,088,597, of which $7,390,734 expires in 2008, $3,007,157 expires in 2010, $16,583,200 expires in 2012 and $3,107,506 expires in 2014. This amount will be available to offset like amounts of any future taxable gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities, the realization for tax purposes of unrealized gains on certain futures contracts, other book/tax temporary differences and the difference between the book and tax treatment of residual interest in tender option bonds. ANNUAL REPORT OCTOBER 31, 2007 Report of Independent Registered Public Accounting Firm To the Shareholders and Boards of Directors or Trustees of BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc.: We have audited the accompanying statements of net assets, including the schedules of investments, of BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. (the "Funds"), as of October 31, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, audits of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2007 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the respective financial position of BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. as of October 31, 2007, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Princeton, New Jersey December 24, 2007 ANNUAL REPORT OCTOBER 31, 2007 The Benefits and Risks of Leveraging The Funds utilize leverage to seek to enhance the yield and net asset value of their Common Stock/Shares. However, these objectives cannot be achieved in all interest rate environments. To leverage, the Funds issue Preferred Stock/ Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. The interest earned on these investments, net of dividends to Preferred Stock/Shares, is paid to Common Stock Shareholders/Common Shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share net asset value of the Funds' Common Stock/Shares. However, in order to benefit Common Stock Shareholders/Common 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/Common 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/Shares capitalization of $100 million and the issuance of Preferred Stock/Shares 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/Shares 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/Preferred Shareholders are significantly lower than the income earned on the fund's long-term investments, and therefore the Common Stock Shareholders/Common 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/ Shares will be reduced or eliminated completely. At the same time, the market value of the fund's Common Stock/Shares (that is, its price as listed on the New York Stock Exchange or the American Stock Exchange) may, as a result, decline. Furthermore, if long-term interest rates rise, the Common Stocks'/ Shares' net asset value will reflect the full decline in the price of the portfolio's investments, since the value of the fund's Preferred Stock/Shares does not fluctuate. In addition to the decline in net asset value, the market value of the fund's Common Stock/Shares may also decline. As of October 31, 2007, BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. had leverage amounts, due to Auction Market Preferred Stock/Shares, of 38.88%, 35.97%, 39.49%, 35.79%, 36.67% and 35.55% of total net assets, respectively, before the deduction of Preferred Stock/Shares. As a part of their investment strategy, the Funds may invest in certain securities whose potential income return is inversely related to changes in a floating interest rate ("inverse floaters"). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Investments in inverse floaters may be characterized as derivative securities and may subject the Funds to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and, as a result, the market value of such securities will generally be more volatile than that of fixed rate, tax-exempt securities. To the extent the Funds invest in inverse floaters, the market value of each Fund's portfolio and the net asset value of each Fund's shares may also be more volatile than if the Funds did not invest in these securities. (See Note 1(c) to Financial Statements for details of municipal bonds held in trust). 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 obligation to pay the other party to the agreement. ANNUAL REPORT OCTOBER 31, 2007 Automatic Dividend Reinvestment Plan How the Plan Works--The Funds offer a Dividend Reinvestment Plan (the "Plan") under which income and capital gains dividends paid by each Fund are automatically reinvested in additional shares of Common Stock or Shares of each Fund. The Plan is administered on behalf of the shareholders by The Bank of New York Mellon for BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. and Computer-share Trust Company, N.A. for BlackRock MuniYield California Insured Fund, Inc. (individually, the "Plan Agent" or together, the "Plan Agents"). Under the Plan, whenever the Funds declare a dividend, participants in the Plan will receive the equivalent in shares of Common Stock or Shares of each Fund. The Plan Agents will acquire the shares for the participant's account either (i) through receipt of additional unissued but authorized shares of each Fund ("newly issued shares") or (ii) by purchase of outstanding shares of Common Stock or Shares on the open market on the New York Stock Exchange or American Stock Exchange, as applicable or elsewhere. If, on the dividend payment date, each Fund's net asset value per share is equal to or less than the market price per share plus estimated brokerage commissions (a condition often referred to as a "market premium"), the Plan Agents will invest the dividend amount in newly issued shares. If the Funds' net asset value per share is greater than the market price per share (a condition often referred to as a "market discount"), the Plan Agents will invest the dividend amount by purchasing on the open market additional shares. If the Plan Agents are unable to invest the full dividend amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agents will invest any uninvested portion in newly issued shares. The shares acquired are credited to each shareholder's account. The amount credited is determined by dividing the dollar amount of the dividend by either (i) when the shares are newly issued, the net asset value per share on the date the shares are issued or (ii) when shares are purchased in the open market, the average purchase price per share. Participation in the Plan--Participation in the Plan is automatic, that is, a shareholder is automatically enrolled in the Plan when he or she purchases shares of Common Stock or Shares of the Funds unless the shareholder specifically elects not to participate in the Plan. Shareholders who elect not to participate will receive all dividend distributions in cash. Shareholders who do not wish to participate in the Plan must advise their Plan Agent in writing (at the address set forth below) that they elect not to participate in the Plan. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by writing to the Plan Agent. Benefits of the Plan--The Plan provides an easy, convenient way for shareholders to make additional, regular investments in the Funds. The Plan promotes a long-term strategy of investing at a lower cost. All shares acquired pursuant to the Plan receive voting rights. In addition, if the market price plus commissions of each Fund's shares is above the net asset value, participants in the Plan will receive shares of the Funds for less than they could otherwise purchase them and with a cash value greater than the value of any cash distribution they would have received. However, there may not be enough shares available in the market to make distributions in shares at prices below the net asset value. Also, since each Fund does not redeem shares, the price on resale may be more or less than the net asset value. Plan Fees--There are no enrollment fees or brokerage fees for participating in the Plan. The Plan Agents' service fees for handling the reinvestment of distributions are paid for by the Funds. However, brokerage commissions may be incurred when the Funds purchase shares on the open market and shareholders will pay a pro rata share of any such commissions. Tax Implications--The automatic reinvestment of dividends and distributions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. Therefore, income and capital gains may still be realized even though shareholders do not receive cash. The value of shares acquired pursuant to the Plan will generally be excluded from gross income to the extent that the cash amount reinvested would be excluded from gross income. If, when the Funds' shares are trading at a market premium, the Funds issue shares pursuant to the Plan that have a greater fair market value than the amount of cash reinvested, it is possible that all or a portion of the discount from the market value (which may not exceed 5% of the fair market value of each Fund's shares) could be viewed as a taxable distribution. If the discount is viewed as a taxable distribution, it is also possible that the taxable character of this discount would be allocable to all the shareholders, including shareholders who do not participate in the Plan. Thus, shareholders who do not participate in the Plan might be required to report as ordinary income a portion of their distributions equal to their allocable share of the discount. Contact Information--All correspondence concerning the Plan, including any questions about the Plan, should be directed to the Plan Agent at The Bank of New York Mellon, Church Street Station, P.O. Box 11258, New York, NY 10286-1258, Telephone: 800-432-8224 for BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. and Computershare Trust Company, N.A., P.O. Box 43010, Providence, RI 02940-3010, Telephone: 800-426-5523 for BlackRock MuniYield California Insured Fund, Inc. ANNUAL REPORT OCTOBER 31, 2007 Important Tax Information All of the net investment income distributions paid by BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. during the taxable year ended October 31, 2007 qualify as tax-exempt interest dividends for federal income tax purposes. Additionally, the following table summarizes the taxable per share distributions paid by BlackRock MuniYield Arizona Fund, Inc. during the year: Payable Long-Term Date Capital Gains Common Stock Shareholders 12/28/2006 $.063115 Preferred Stock Shareholders: Series A 11/30/2006 $23.78 12/07/2006 $28.15 12/14/2006 $ 9.47 Series B 11/28/2006 $27.35 12/05/2006 $28.38 12/12/2006 $ 7.53 Series C 12/04/2006 $28.15 12/11/2006 $25.22 12/18/2006 $13.50 ANNUAL REPORT OCTOBER 31, 2007 Officers and Directors or Trustees as of October 31, 2007
Number of Funds and Portfolios in Other Public Fund Complex Directorships Position(s) Length of Overseen by Held by Name, Address Held with Time Director or Director or and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Trustee Trustee Interested Director or Trustee Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, Inc., 120 Funds None P.O. Box 9011 President 2007 Global Chief Investment Officer for Equities, 161 Portfolios Princeton, NJ and Director Chairman of the BlackRock Retail Operating 08543-9011 or Trustee Committee, and member of the BlackRock Executive 1954 Committee since 2006; President of the funds advised by Merrill Lynch Investment Managers, L.P. ("MLIM") and its affiliates ("MLIM/FAM-advised funds") from 2005 to 2006 and Chief Investment Officer thereof from 2001 to 2006; President of MLIM and Fund Asset Management, L.P. ("FAM") from 2001 to 2006; Co-Head (Americas Region) thereof from 2000 to 2001 and Senior Vice President from 1999 to 2001; President and Director of Princeton Services, Inc. ("Princeton Services") and President of Princeton Administrators, L.P. ("Princeton Administrators") from 2001 to 2006; Chief Investment Officer of OppenheimerFunds, Inc. in 1999 and Executive Vice President thereof from 1991 to 1999. * Mr. Doll is a director, trustee or member of an advisory board of certain other investment companies for which BlackRock acts as investment adviser. Mr. Doll is an "interested person," as described in the Investment Company Act, of the Fund based on his positions with BlackRock, Inc. and its affiliates. Directors or Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. As Fund President, Mr. Doll serves at the pleasure of the Boards of Directors or Trustees. Independent Directors or Trustees* James H. Bodurtha** Director 1995 to Director, The China Business Group, Inc. since 37 Funds None P.O. Box 9095 or Trustee 2007 1996 and Executive Vice President thereof from 57 Portfolios Princeton, NJ 1996 to 2003; Chairman of the Board, Berkshire 08543-9095 Holding Corporation since 1980; Partner, Squire, 1944 Sanders & Dempsey (a law firm) from 1980 to 1993. Kenneth A. Froot Director 2005 to Professor, Harvard University since 1992; 37 Funds None P.O. Box 9095 or Trustee 2007 Professor, Massachusetts Institute of 57 Portfolios Princeton, NJ Technology from 1986 to 1992. 08543-9095 1957 Joe Grills** Director 2002 to Member of the Committee of Investment of 37 Funds Kimco Realty P.O. Box 9095 or Trustee 2007 Employee Benefit Assets of the Association of 57 Portfolios Corporation Princeton, NJ Financial Professionals ("CIEBA") since 1986; 08543-9095 Member of CIEBA's Executive Committee since 1988 1935 and its Chairman from 1991 to 1992; Assistant Treasurer of International Business Machines Corporation ("IBM") and Chief Investment Officer of IBM Retirement Funds from 1986 to 1993; Member of the Investment Advisory Committee of the State of New York Common Retirement Fund from 1989 to 2006; Member of the Investment Advisory Committee of the Howard Hughes Medical Institute from 1997 to 2000; Director, Duke University Management Company from 1992 to 2004, Vice Chairman thereof from 1998 to 2004, and Director Emeritus thereof since 2004; Director, LaSalle Street Fund from 1995 to 2001; Director, Kimco Realty Corporation since 1997; Member of the Investment Advisory Committee of the Virginia Retirement System since 1998, Vice Chairman thereof from 2002 to 2005, and Chairman thereof since 2005; Director, Montpelier Foundation since 1998, its Vice Chairman from 2000 to 2006, and Chairman, thereof, since 2006; Member of the Investment Committee of the Woodberry Forest School since 2000; Member of the Investment Committee of the National Trust for Historic Preservation since 2000.
ANNUAL REPORT OCTOBER 31, 2007 Officers and Directors or Trustees (continued)
Number of Funds and Portfolios in Other Public Fund Complex Directorships Position(s) Length of Overseen by Held by Name, Address Held with Time Director or Director or and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Trustee Trustee Independent Directors or Trustees*(concluded) Herbert I. London Director 1992 Professor Emeritus, New York University since 37 Funds AIMS Worldwide, P.O. Box 9095 or Trustee (MYC, 2005; John M. Olin Professor of Humanities, 57 Portfolios Inc. Princeton, NJ MCA, New York University from 1993 to 2005; and 08543-9095 MYF, Professor thereof from 1980 to 2005; President, 1939 MYM & Hudson Institute since 1997 and Trustee thereof MYN) since 1980; Dean, Gallatin Division of New York and 1993 University from 1976 to 1993; Distinguished Fellow, (MZA) Herman Kahn Chair, Hudson Institute from 1984 to to 2007 1985; Chairman of the Board of Directors of Vigilant Research, Inc. since 2006; Member of the Board of Directors for Grantham University since 2006; Director of AIMS Worldwide, Inc., since 2006; Director of Reflex Security since 2006; Director of InnoCentive, Inc. since 2006; Director of Cerego, LLC since 2005; Director, Damon Corp. from 1991 to 1995; Overseer, Center for Naval Analyses from 1983 to 1993. Roberta Cooper Ramo Director 2000 to Shareholder, Modrall, Sperling, Roehl, Harris & 37 Funds None P.O. Box 9095 or Trustee 2007 Sisk, P.A. since 1993; President, American Bar 57 Portfolios Princeton, NJ Association from 1995 to 1996 and Member of the 08543-9095 Board of Governors thereof from 1994 to 1997; 1939 Shareholder, Poole, Kelly and Ramo, Attorneys at Law P.C. from 1977 to 1993; Director of ECMC Group (service provider to students, schools and lenders) since 2001; Director, United New Mexico Bank (now Wells Fargo) from 1983 to 1988; Director, First National Bank of New Mexico (now Wells Fargo) from 1975 to 1976; Vice President, American Law Institute from 2004 to 2007 and President elect thereof since 2007. Robert S. Salomon, Jr. Director 2002 to Principal of STI Management (investment adviser) 37 Funds None P.O. Box 9095 or Trustee 2007 from 1994 to 2005; Chairman and CEO of Salomon 57 Portfolios Princeton, NJ Brothers Asset Management Inc. from 1992 to 1995; 08543-9095 Chairman of Salomon Brothers Equity Mutual Funds 1936 from 1992 to 1995; regular columnist with Forbes Magazine from 1992 to 2002; Director of Stock Research and U.S. Equity Strategist at Salomon Brothers Inc. from 1975 to 1991; Trustee, Commonfund from 1980 to 2001. * Directors or Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. ** Co-Chairman of each Board of Directors or Trustees and Audit Committee.
ANNUAL REPORT OCTOBER 31, 2007 Officers and Directors or Trustees (concluded)
Position(s) Length of Name, Address Held with Time and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Fund Officers* Donald C. Burke Vice 1993 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill P.O. Box 9011 President 2007 Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. Princeton, NJ and and ("FAM") in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and 08543-9011 Treasurer 1999 to Treasurer thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 1960 2007 to 1997. Karen Clark Chief 2007 Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain P.O. Box 9011 Compliance BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to Princeton, NJ Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors, 08543-9011 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998 1965 to 2001; and Branch Chief, Division of Investment Management and Office of Compliance Inspections and Examinations, U.S. Securities and Exchange Commission, from 1993 to 1998. Howard Surloff Secretary 2007 Managing Director, of BlackRock Inc. and General Counsel of U.S. Funds at P.O. Box 9011 BlackRock, Inc. since 2006; General Counsel (U.S.) of Goldman Sachs Asset Princeton, NJ Management from 1993 to 2006. 08543-9011 1965 * Officers of the Funds serve at the pleasure of the Boards of Directors or Trustees.
Custodians and Transfer Agents For All Funds: Accounting Agent State Street Bank and Trust Company Princeton, NJ 08540 Fund Address P.O. Box 9011 Princeton, NJ 08543-9011 Independent Registered Public Accounting Firm Deloitte & Touche LLP Princeton, NJ 08540 Legal Counsel Sidley Austin LLP New York, NY 10019 BlackRock MuniYield California Insured Fund, Inc. Custodian State Street Bank and Trust Company P.O. Box 351 Boston, MA 02101 Transfer Agents Common Stock: Computershare Trust Company, N.A. P.O. Box 43010 Providence, RI 02940-3010 Preferred Stock: The Bank of New York Mellon 101 Barclay Street--7 West New York, NY 10286 BlackRock MuniYield Arizona Fund, Inc. BlackRock MuniYield California Fund, Inc. BlackRock MuniYield Florida Fund BlackRock MuniYield Michigan Insured Fund II, Inc. BlackRock MuniYield New York Insured Fund, Inc. Custodian The Bank of New York Mellon One Wall Street New York, NY 10286 Transfer Agents Common Stock/Shares: The Bank of New York Mellon 101 Barclay Street--11 East New York, NY 10286 Preferred Stock/Shares: The Bank of New York Mellon 101 Barclay Street--7 West New York, NY 10286 ANNUAL REPORT OCTOBER 31, 2007 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 Net Assets, which comprises part of the financial information included in these reports. ANNUAL REPORT OCTOBER 31, 2007 Additional Information (continued) Proxy Results BlackRock MuniYield Arizona Fund, Inc. During the six-month period ended October 31, 2007, the Common Stock and Auction Market Preferred Stock (Series A-C) shareholders of BlackRock MuniYield Arizona Fund, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: G. Nicholas Beckwith, III 4,353,156 44,992 Richard E. Cavanagh 4,353,156 44,992 Richard S. Davis 4,353,156 44,992 Kent Dixon 4,353,156 44,992 Kathleen F. Feldstein 4,355,080 43,068 James T. Flynn 4,353,156 44,992 Henry Gabbay 4,353,156 44,992 Jerrold B. Harris 4,353,156 44,992 R. Glenn Hubbard 4,353,156 44,992 Karen P. Robards 4,353,156 44,992 Robert S. Salomon, Jr. 4,353,156 44,992
During the six-month period ended October 31, 2007, the Auction Market Preferred Stock shareholders (Series A-C) of BlackRock MuniYield Arizona Fund, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted for each Director are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 1,361 46
ANNUAL REPORT OCTOBER 31, 2007 Additional Information (continued) Proxy Results BlackRock MuniYield California Fund, Inc. During the six-month period ended October 31, 2007, the Common Stock and Auction Market Preferred Stock (Series A-D) shareholders of BlackRock MuniYield California Fund, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: G. Nicholas Beckwith, III 19,099,248 384,706 Richard E. Cavanagh 19,114,533 369,421 Richard S. Davis 19,110,948 373,006 Kent Dixon 19,113,370 370,584 Kathleen F. Feldstein 19,111,272 372,682 James T. Flynn 19,113,200 370,754 Henry Gabbay 19,119,861 364,093 Jerrold B. Harris 19,107,298 376,656 R. Glenn Hubbard 19,114,397 369,557 Karen P. Robards 19,115,501 368,453 Robert S. Salomon, Jr. 19,108,937 375,017
During the six-month period ended October 31, 2007, the Auction Market Preferred Stock shareholders (Series A-D) of BlackRock MuniYield California Fund, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted for each Director are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 6,076 0
ANNUAL REPORT OCTOBER 31, 2007 Additional Information (continued) Proxy Results BlackRock MuniYield California Insured Fund, Inc. During the six-month period ended October 31, 2007, the Common Stock and Auction Market Preferred Stock (Series A-F) shareholders of BlackRock MuniYield California Insured Fund, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: G. Nicholas Beckwith, III 31,592,518 490,474 Richard E. Cavanagh 31,644,523 438,469 Richard S. Davis 31,646,609 436,383 Kent Dixon 31,644,249 438,743 Kathleen F. Feldstein 31,640,971 442,021 James T. Flynn 31,644,051 438,941 Henry Gabbay 31,679,842 403,150 Jerrold B. Harris 31,591,318 491,674 R. Glenn Hubbard 31,644,320 438,672 Karen P. Robards 31,646,218 436,774 Robert S. Salomon, Jr. 31,643,467 439,525
During the six-month period ended October 31, 2007, the Auction Market Preferred Stock shareholders (Series A-F) of BlackRock MuniYield California Insured Fund, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted for each Director are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 8,504 0
ANNUAL REPORT OCTOBER 31, 2007 Additional Information (continued) Proxy Results BlackRock MuniYield Florida Fund During the six-month period ended October 31, 2007, the Common Shareholders and Auction Market Preferred Shareholders (Series A-C) of BlackRock MuniYield Florida Fund voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Trustees to take effect on or about November 1, 2007. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Trustees: G. Nicholas Beckwith, III 12,264,155 355,067 Richard E. Cavanagh 12,264,691 354,531 Richard S. Davis 12,266,016 353,206 Kent Dixon 12,266,000 353,222 Kathleen F. Feldstein 12,262,105 357,117 James T. Flynn 12,264,691 354,531 Henry Gabbay 12,371,138 248,084 Jerrold B. Harris 12,264,766 354,456 R. Glenn Hubbard 12,262,846 356,376 Karen P. Robards 12,266,016 353,206 Robert S. Salomon, Jr. 12,262,950 356,272
During the six-month period ended October 31, 2007, the Auction Market Preferred Shareholders (Series A-C) of BlackRock MuniYield Florida Fund voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Trustees to take effect on or about November 1, 2007. A description of the proposal and number of shares voted for each Trustee are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Trustees: Frank J. Fabozzi and W. Carl Kester 3,974 10
ANNUAL REPORT OCTOBER 31, 2007 Additional Information (continued) Proxy Results BlackRock MuniYield Michigan Insured Fund II, Inc. During the six-month period ended October 31, 2007, the Common Stock and Auction Market Preferred Stock (Series A-C) shareholders of BlackRock MuniYield Michigan Insured Fund II, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: G. Nicholas Beckwith, III 11,262,086 198,777 Richard E. Cavanagh 11,261,343 199,520 Richard S. Davis 11,263,943 196,920 Kent Dixon 11,253,312 207,551 Kathleen F. Feldstein 11,250,692 210,171 James T. Flynn 11,252,442 208,421 Henry Gabbay 11,290,698 170,165 Jerrold B. Harris 11,260,316 200,547 R. Glenn Hubbard 11,256,121 204,742 Karen P. Robards 11,260,473 200,390 Robert S. Salomon, Jr. 11,259,943 200,920
During the six-month period ended October 31, 2007, the Auction Market Preferred Stock shareholders (Series A-C) of BlackRock MuniYield Michigan Insured Fund II, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted for each Director are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 3,886 0
ANNUAL REPORT OCTOBER 31, 2007 Additional Information (continued) Proxy Results BlackRock MuniYield New York Insured Fund, Inc. During the six-month period ended October 31, 2007, the Common Stock and Auction Market Preferred Stock (Series A-F) shareholders of BlackRock MuniYield New York Insured Fund, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: G. Nicholas Beckwith, III 34,305,251 2,212,494 Richard E. Cavanagh 34,311,967 2,205,778 Richard S. Davis 34,307,825 2,209,920 Kent Dixon 34,289,997 2,227,748 Kathleen F. Feldstein 34,304,393 2,213,352 James T. Flynn 34,302,884 2,214,861 Henry Gabbay 34,326,513 2,191,232 Jerrold B. Harris 34,301,487 2,216,258 R. Glenn Hubbard 34,299,259 2,218,486 Karen P. Robards 34,306,168 2,211,577 Robert S. Salomon, Jr. 34,300,983 2,216,762
During the six-month period ended October 31, 2007, the Auction Market Preferred Stock shareholders (Series A-F) of BlackRock MuniYield New York Insured Fund, Inc. voted on the following proposal, which was approved at an annual shareholders' meeting on August 16, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted for each Director are as follows:
Shares Voted Shares Withheld For From Voting To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 11,694 150
Fund Certifications In May 2007, BlackRock MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. filed their Chief Executive Officer Certification for the prior year with the New York Stock Exchange pursuant to Section 303A.12(a) of the New York Stock Exchange Corporate Governance Listing Standards. The Funds' Chief Executive Officer and Chief Financial Officer Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with each Fund's Form N-CSR and are available on the Securities and Exchange Commission's Web site at http://www.sec.gov. ANNUAL REPORT OCTOBER 31, 2007 Additional Information (concluded) 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 nonpublic 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 nonpublic information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our Web sites. BlackRock does not sell or disclose to nonaffiliated 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 nonaffiliated 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 nonpublic 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 nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information. Availability of Quarterly Schedule of Investments The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Electronic Delivery Electronic copies of most financial reports and prospectuses are available on the Funds' Web sites. Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Funds' electronic delivery program. Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages: Please contact your financial advisor to enroll. Please note that not all investment advisers, banks or brokerages may offer this service. ANNUAL REPORT OCTOBER 31, 2007 Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant's principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com. Item 3 - Audit Committee Financial Expert - The registrant's board of directors or trustees, as applicable (the "board of directors") has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: Joe Grills (term ended effective November 1, 2007) Robert S. Salomon, Jr. Kent Dixon (term began effective November 1, 2007) Frank J. Fabozzi (term began effective November 1, 2007) W. Carl Kester (term began effective November 1, 2007) James T. Flynn (term began effective November 1, 2007) Karen P. Robards (term began effective November 1, 2007) The registrant's board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR. Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester's financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant's financial statements. Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is the member of the Audit Committees of one publicly held company and a non- profit organization. Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. Item 4 - Principal Accountant Fees and Services
(a) Audit Fees (b) Audit-Related Fees (1) (c) Tax Fees (2) (d) All Other Fees (3) Current Previous Current Previous Current Previous Current Previous Entity Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Name End End End End End End End End BlackRock MuniYield New York $55,450 $30,600 $3,500 $3,500 $6,100 $6,000 $1,042 $0 Insured Fund, Inc. (1) The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. (2) The nature of the services include tax compliance, tax advice and tax planning. (3) The nature of the services include a review of compliance procedures and attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures: The registrant's audit committee (the "Committee") has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre- approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant's affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC's auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case- by-case basis ("general pre-approval"). However, such services will only be deemed pre-approved provided that any individual project does not exceed $5,000 attributable to the registrant or $50,000 for all of the registrants the Committee oversees. Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. (e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not Applicable (g) Affiliates' Aggregate Non-Audit Fees: Current Previous Fiscal Year Fiscal Year Entity Name End End BlackRock MuniYield New York Insured Fund, Inc. $295,142 $2,928,083 (h) The registrant's audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant's investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant's investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. Regulation S-X Rule 2-01(c)(7)(ii) - $284,500, 0% Item 5 - Audit Committee of Listed Registrants - The following individuals are members of the registrant's separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)): James H. Bodurtha (term ended effective November 1, 2007) Kenneth A. Froot (term ended effective November 1, 2007) Joe Grills (term ended effective November 1, 2007) Herbert I. London (term ended effective November 1, 2007) Roberta Cooper Ramo (term ended effective November 1, 2007) Robert S. Salomon, Jr. Kent Dixon (term began effective November 1, 2007) Frank J. Fabozzi (term began effective November 1, 2007) W. Carl Kester (term began effective November 1, 2007) James T. Flynn (term began effective November 1, 2007) Karen P. Robards (term began effective November 1, 2007) Item 6 - Schedule of Investments - The registrant's Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form. Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - The registrant has delegated the voting of proxies relating to Fund portfolio securities to its investment adviser, BlackRock Advisors, LLC and its sub-adviser, as applicable. The Proxy Voting Policies and Procedures of the adviser and sub-adviser are attached hereto as Exhibit 99.PROXYPOL. Proxy Voting Policies and Procedures For BlackRock Advisors, LLC And Its Affiliated SEC Registered Investment Advisers September 30, 2006 Table of Contents Page Introduction Scope of Committee Responsibilities Special Circumstances Voting Guidelines Boards of Directors Auditors Compensation and Benefits Capital Structure Corporate Charter and By-Laws Corporate Meetings Investment Companies Environmental and Social Issues Notice to Clients Proxy Voting Policies and Procedures These Proxy Voting Policies and Procedures ("Policy") for BlackRock Advisors, LLC and its affiliated U.S. registered investment advisers (1) ("BlackRock") reflect our duty as a fiduciary under the Investment Advisers Act of 1940 (the "Advisers Act") to vote proxies in the best interests of our clients. BlackRock serves as the investment manager for investment companies, other commingled investment vehicles and/or separate accounts of institutional and other clients. The right to vote proxies for securities held in such accounts belongs to BlackRock's clients. Certain clients of BlackRock have retained the right to vote such proxies in general or in specific circumstances. (2) Other clients, however, have delegated to BlackRock the right to vote proxies for securities held in their accounts as part of BlackRock's authority to manage, acquire and dispose of account assets. When BlackRock votes proxies for a client that has delegated to BlackRock proxy voting authority, BlackRock acts as the client's agent. Under the Advisers Act, an investment adviser is a fiduciary that owes each of its clients a duty of care and loyalty with respect to all services the adviser undertakes on the client's behalf, including proxy voting. BlackRock is therefore subject to a fiduciary duty to vote proxies in a manner BlackRock believes is consistent with the client's best interests, (3) whether or not the client's proxy voting is subject to the fiduciary standards of the Employee Retirement Income Security Act of 1974 ("ERISA"). (4) When voting proxies for client accounts (including investment companies), BlackRock's primary objective is to make voting decisions solely in the best interests of clients and ERISA clients' plan beneficiaries and participants. In fulfilling its obligations to clients, BlackRock will seek to act in a manner that it believes is most likely to enhance the economic value of the underlying securities held in client accounts. (5) It is imperative that BlackRock considers the interests of its clients, and not the interests of BlackRock, when voting proxies and that real (or perceived) material conflicts that may arise between BlackRock's interest and those of BlackRock's clients are properly addressed and resolved. (1) The Policy does not apply to BlackRock Asset Management U.K. Limited and BlackRock Investment Managers International Limited, which are U.S. registered investment advisers based in the United Kingdom. (2) In certain situations, a client may direct BlackRock to vote in accordance with the client's proxy voting policies. In these situations, BlackRock will seek to comply with such policies to the extent it would not be inconsistent with other BlackRock legal responsibilities. (3) Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins, President, Ram Trust Services (February 12, 2002) (Section 206 of the Investment Advisers Act imposes a fiduciary responsibility to vote proxies fairly and in the best interests of clients); SEC Release No. IA-2106 (February 3, 2003). (4) DOL Interpretative Bulletin of Sections 402, 403 and 404 of ERISA at 29 C.F.R. 2509.94-2 (5) Other considerations, such as social, labor, environmental or other policies, may be of interest to particular clients. While BlackRock is cognizant of the importance of such considerations, when voting proxies it will generally take such matters into account only to the extent that they have a direct bearing on the economic value of the underlying securities. To the extent that a BlackRock client desires to pursue a particular social, labor, environmental or other agenda through the proxy votes made for its securities held through BlackRock as investment adviser, BlackRock encourages the client to consider retaining direct proxy voting authority or to appoint independently a special proxy voting fiduciary other than BlackRock. Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires, among other things, that an investment adviser that exercises voting authority over clients' proxy voting adopt policies and procedures reasonably designed to ensure that the adviser votes proxies in the best interests of clients, discloses to its clients information about those policies and procedures and also discloses to clients how they may obtain information on how the adviser has voted their proxies. In light of such fiduciary duties, the requirements of Rule 206(4)-6, and given the complexity of the issues that may be raised in connection with proxy votes, BlackRock has adopted these policies and procedures. BlackRock's Equity Investment Policy Oversight Committee, or a sub-committee thereof (the "Committee"), addresses proxy voting issues on behalf of BlackRock and its clients. (6) The Committee is comprised of senior members of BlackRock's Portfolio Management Group and advised by BlackRock's Legal and Compliance Department. (6) Subject to the Proxy Voting Policies of Merrill Lynch Bank & Trust Company FSB, the Committee may also function jointly as the Proxy Voting Committee for Merrill Lynch Bank & Trust Company FSB trust accounts managed by personnel dually-employed by BlackRock. I. Scope of Committee Responsibilities The Committee shall have the responsibility for determining how to address proxy votes made on behalf of all BlackRock clients, except for clients who have retained the right to vote their own proxies, either generally or on any specific matter. In so doing, the Committee shall seek to ensure that proxy votes are made in the best interests of clients, and that proxy votes are determined in a manner free from unwarranted or inappropriate influences. The Committee shall also oversee the overall administration of proxy voting for BlackRock accounts. (7) The Committee shall establish BlackRock's proxy voting guidelines, with such advice, participation and research as the Committee deems appropriate from portfolio managers, proxy voting services or other knowledgeable interested parties. As it is anticipated that there will not necessarily be a "right" way to vote proxies on any given issue applicable to all facts and circumstances, the Committee shall also be responsible for determining how the proxy voting guidelines will be applied to specific proxy votes, in light of each issuer's unique structure, management, strategic options and, in certain circumstances, probable economic and other anticipated consequences of alternative actions. In so doing, the Committee may determine to vote a particular proxy in a manner contrary to its generally stated guidelines. The Committee may determine that the subject matter of certain proxy issues are not suitable for general voting guidelines and requires a case-by- case determination, in which case the Committee may elect not to adopt a specific voting guideline applicable to such issues. BlackRock believes that certain proxy voting issues - such as approval of mergers and other significant corporate transactions - require investment analysis akin to investment decisions, and are therefore not suitable for general guidelines. The Committee may elect to adopt a common BlackRock position on certain proxy votes that are akin to investment decisions, or determine to permit portfolio managers to make individual decisions on how best to maximize economic value for the accounts for which they are responsible (similar to normal buy/sell investment decisions made by such portfolio managers). (8) While it is expected that BlackRock, as a fiduciary, will generally seek to vote proxies over which BlackRock exercises voting authority in a uniform manner for all BlackRock clients, the Committee, in conjunction with the portfolio manager of an account, may determine that the specific circumstances of such account require that such account's proxies be voted differently due to such account's investment objective or other factors that differentiate it from other accounts. In addition, on proxy votes that are akin to investment decisions, BlackRock believes portfolio managers may from time to time legitimately reach differing but equally valid views, as fiduciaries for BlackRock's clients, on how best to maximize economic value in respect of a particular investment. (7) The Committee may delegate day-to-day administrative responsibilities to other BlackRock personnel and/or outside service providers, as appropriate. (8) The Committee will normally defer to portfolio managers on proxy votes that are akin to investment decisions except for proxy votes that involve a material conflict of interest, in which case it will determine, in its discretion, the appropriate voting process so as to address such conflict. The Committee will also be responsible for ensuring the maintenance of records of each proxy vote, as required by Advisers Act Rule 204-2. (9) All records will be maintained in accordance with applicable law. Except as may be required by applicable legal requirements, or as otherwise set forth herein, the Committee's determinations and records shall be treated as proprietary, nonpublic and confidential. The Committee shall be assisted by other BlackRock personnel, as may be appropriate. In particular, the Committee has delegated to the BlackRock Operations Department responsibility for monitoring corporate actions and ensuring that proxy votes are submitted in a timely fashion. The Operations Department shall ensure that proxy voting issues are promptly brought to the Committee's attention and that the Committee's proxy voting decisions are appropriately disseminated and implemented. To assist BlackRock in voting proxies, the Committee may retain the services of a firm providing such services. BlackRock has currently retained Institutional Shareholder Services ("ISS") in that role. ISS is an independent adviser that specializes in providing a variety of fiduciary-level proxy-related services to institutional investment managers, plan sponsors, custodians, consultants, and other institutional investors. The services provided to BlackRock may include, but are not limited to, in-depth research, voting recommendations (which the Committee is not obligated to follow), vote execution, and recordkeeping. (9) The Committee may delegate the actual maintenance of such records to an outside service provider. Currently, the Committee has delegated the maintenance of such records to Institutional Shareholder Services. II Special Circumstances Routine Consents. BlackRock may be asked from time to time to consent to an amendment to, or grant a waiver under, a loan agreement, partnership agreement, indenture or other governing document of a specific financial instrument held by BlackRock clients. BlackRock will generally treat such requests for consents not as "proxies" subject to these Proxy Voting Policies and Procedures but as investment matters to be dealt with by the responsible BlackRock investment professionals would, provided that such consents (i) do not relate to the election of a board of directors or appointment of auditors of a public company, and (ii) either (A) would not otherwise materially affect the structure, management or control of a public company, or (B) relate to a company in which BlackRock clients hold only interests in bank loans or debt securities and are consistent with customary standards and practices for such instruments. Securities on Loan. Registered investment companies that are advised by BlackRock as well as certain of our advisory clients may participate in securities lending programs. Under most securities lending arrangements, securities on loan may not be voted by the lender (unless the loan is recalled). BlackRock believes that each client has the right to determine whether participating in a securities lending program enhances returns, to contract with the securities lending agent of its choice and to structure a securities lending program, through its lending agent, that balances any tension between loaning and voting securities in a matter that satisfies such client. If client has decided to participate in a securities lending program, BlackRock will therefore defer to the client's determination and not attempt to seek recalls solely for the purpose of voting routine proxies as this could impact the returns received from securities lending and make the client a less desirable lender in a marketplace. Where a client retains a lending agent that is unaffiliated with BlackRock, BlackRock will generally not seek to vote proxies relating to securities on loan because BlackRock does not have a contractual right to recall such loaned securities for the purpose of voting proxies. Where BlackRock or an affiliate acts as the lending agent, BlackRock will also generally not seek to recall loaned securities for proxy voting purposes, unless the portfolio manager responsible for the account or the Committee determines that voting the proxy is in the client's best interest and requests that the security be recalled. Voting Proxies for Non-US Companies. While the proxy voting process is well established in the United States, voting proxies of non-US companies frequently involves logistical issues which can affect BlackRock's ability to vote such proxies, as well as the desirability of voting such proxies. These issues include (but are not limited to): (i) untimely notice of shareholder meetings, (ii) restrictions on a foreigner's ability to exercise votes, (iii) requirements to vote proxies in person, (iv) "shareblocking" (requirements that investors who exercise their voting rights surrender the right to dispose of their holdings for some specified period in proximity to the shareholder meeting), (v) potential difficulties in translating the proxy, and (vi) requirements to provide local agents with unrestricted powers of attorney to facilitate voting instructions. As a consequence, BlackRock votes proxies of non-US companies only on a "best-efforts" basis. In addition, the Committee may determine that it is generally in the best interests of BlackRock clients not to vote proxies of companies in certain countries if the Committee determines that the costs (including but not limited to opportunity costs associated with shareblocking constraints) associated with exercising a vote generally are expected to outweigh the benefit the client will derive by voting on the issuer's proposal. If the Committee so determines in the case of a particular country, the Committee (upon advice from BlackRock portfolio managers) may override such determination with respect to a particular issuer's shareholder meeting if the Committee believes the benefits of seeking to exercise a vote at such meeting outweighs the costs, in which case BlackRock will seek to vote on a best-efforts basis. Securities Sold After Record Date. With respect to votes in connection with securities held on a particular record date but sold from a client account prior to the holding of the related meeting, BlackRock may take no action on proposals to be voted on in such meeting. Conflicts of Interest. From time to time, BlackRock may be required to vote proxies in respect of an issuer that is an affiliate of BlackRock (a "BlackRock Affiliate"), or a money management or other client of BlackRock (a "BlackRock Client").(10) In such event, provided that the Committee is aware of the real or potential conflict, the following procedures apply: * The Committee intends to adhere to the voting guidelines set forth herein for all proxy issues including matters involving BlackRock Affiliates and BlackRock Clients. The Committee may, in its discretion for the purposes of ensuring that an independent determination is reached, retain an independent fiduciary to advise the Committee on how to vote or to cast votes on behalf of BlackRock's clients; and * if the Committee determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Committee shall determine how to vote the proxy after consulting with the BlackRock Legal and Compliance Department and concluding that the vote cast is in the client's best interest notwithstanding the conflict. (10) Such issuers may include investment companies for which BlackRock provides investment advisory, administrative and/or other services. III. Voting Guidelines The Committee has determined that it is appropriate and in the best interests of BlackRock's clients to adopt the following voting guidelines, which represent the Committee's usual voting position on certain recurring proxy issues that are not expected to involve unusual circumstances. With respect to any particular proxy issue, however, the Committee may elect to vote differently than a voting guideline if the Committee determines that doing so is, in the Committee's judgment, in the best interest of its clients. The guidelines may be reviewed at any time upon the request of any Committee member and may be amended or deleted upon the vote of a majority of voting Committee members present at a Committee meeting for which there is a quorum. A. Boards of Directors These proposals concern those issues submitted to shareholders relating to the composition of the Board of Directors of companies other than investment companies. As a general matter, the Committee believes that a company's Board of Directors (rather than shareholders) is most likely to have access to important, nonpublic information regarding a company's business and prospects, and is therefore best-positioned to set corporate policy and oversee management. The Committee therefore believes that the foundation of good corporate governance is the election of qualified, independent corporate directors who are likely to diligently represent the interests of shareholders and oversee management of the corporation in a manner that will seek to maximize shareholder value over time. In individual cases, the Committee may look at a Director nominee's history of representing shareholder interests as a director of other companies, or other factors to the extent the Committee deems relevant. The Committee's general policy is to vote: # VOTE and DESCRIPTION A.1 FOR nominees for director of United States companies in uncontested elections, except for nominees who * have missed at least two meetings and, as a result, attended less than 75% of meetings of the Board of Directors and its committees the previous year, unless the nominee missed the meeting(s) due to illness or company business * voted to implement or renew a "dead-hand" poison pill * ignored a shareholder proposal that was approved by either a majority of the shares outstanding in any year or by the majority of votes cast for two consecutive years * failed to act on takeover offers where the majority of the shareholders have tendered their shares * are corporate insiders who serve on the audit, compensation or nominating committees or on a full Board that does not have such committees composed exclusively of independent directors * on a case-by-case basis, have served as directors of other companies with allegedly poor corporate governance * sit on more than six boards of public companies A.2 FOR nominees for directors of non-U.S. companies in uncontested elections, except for nominees from whom the Committee determines to withhold votes due to the nominees' poor records of representing shareholder interests, on a case-by-case basis A.3 FOR proposals to declassify Boards of Directors, except where there exists a legitimate purpose for classifying boards A.4 AGAINST proposals to classify Boards of Directors, except where there exists a legitimate purpose for classifying boards A.5 AGAINST proposals supporting cumulative voting A.6 FOR proposals eliminating cumulative voting A.7 FOR proposals supporting confidential voting A.8 FOR proposals seeking election of supervisory board members A.9 AGAINST shareholder proposals seeking additional representation of women and/or minorities generally (i.e., not specific individuals) to a Board of Directors A.10 AGAINST shareholder proposals for term limits for directors A.11 FOR shareholder proposals to establish a mandatory retirement age for directors who attain the age of 72 or older A.12 AGAINST shareholder proposals requiring directors to own a minimum amount of company stock A.13 FOR proposals requiring a majority of independent directors on a Board of Directors A.14 FOR proposals to allow a Board of Directors to delegate powers to a committee or committees A.15 FOR proposals to require audit, compensation and/or nominating committees of a Board of Directors to consist exclusively of independent directors A.16 AGAINST shareholder proposals seeking to prohibit a single person from occupying the roles of chairman and chief executive officer A.17 FOR proposals to elect account inspectors A.18 FOR proposals to fix the membership of a Board of Directors at a specified size A.19 FOR proposals permitting shareholder ability to nominate directors directly A.20 AGAINST proposals to eliminate shareholder ability to nominate directors directly A.21 FOR proposals permitting shareholder ability to remove directors directly A.22 AGAINST proposals to eliminate shareholder ability to remove directors directly B. Auditors These proposals concern those issues submitted to shareholders related to the selection of auditors. As a general matter, the Committee believes that corporate auditors have a responsibility to represent the interests of shareholders and provide an independent view on the propriety of financial reporting decisions of corporate management. While the Committee will generally defer to a corporation's choice of auditor, in individual cases, the Committee may look at an auditors' history of representing shareholder interests as auditor of other companies, to the extent the Committee deems relevant. The Committee's general policy is to vote: B.1 FOR approval of independent auditors, except for * auditors that have a financial interest in, or material association with, the company they are auditing, and are therefore believed by the Committee not to be independent * auditors who have rendered an opinion to any company which in the Committee's opinion is either not consistent with best accounting practices or not indicative of the company's financial situation * on a case-by-case basis, auditors who in the Committee's opinion provide a significant amount of non-audit services to the company B.2 FOR proposals seeking authorization to fix the remuneration of auditors B.3 FOR approving internal statutory auditors B.4 FOR proposals for audit firm rotation, except for proposals that would require rotation after a period of less than 5 years C. Compensation and Benefits These proposals concern those issues submitted to shareholders related to management compensation and employee benefits. As a general matter, the Committee favors disclosure of a company's compensation and benefit policies and opposes excessive compensation, but believes that compensation matters are normally best determined by a corporation's board of directors, rather than shareholders. Proposals to "micro-manage" a company's compensation practices or to set arbitrary restrictions on compensation or benefits will therefore generally not be supported. The Committee's general policy is to vote: C.1 IN ACCORDANCE WITH THE RECOMMENDATION OF ISS on compensation plans if the ISS recommendation is based solely on whether or not the company's plan satisfies the allowable cap as calculated by ISS. If the recommendation of ISS is based on factors other than whether the plan satisfies the allowable cap the Committee will analyze the particular proposed plan. This policy applies to amendments of plans as well as to initial approvals. C.2 FOR proposals to eliminate retirement benefits for outside directors C.3 AGAINST proposals to establish retirement benefits for outside directors C.4 FOR proposals approving the remuneration of directors or of supervisory board members C.5 AGAINST proposals to reprice stock options C.6 FOR proposals to approve employee stock purchase plans that apply to all employees. This policy applies to proposals to amend ESPPs if the plan as amended applies to all employees. C.7 FOR proposals to pay retirement bonuses to directors of Japanese companies unless the directors have served less than three years C.8 AGAINST proposals seeking to pay outside directors only in stock C.9 FOR proposals seeking further disclosure of executive pay or requiring companies to report on their supplemental executive retirement benefits C.10 AGAINST proposals to ban all future stock or stock option grants to executives C.11 AGAINST option plans or grants that apply to directors or employees of "related companies" without adequate disclosure of the corporate relationship and justification of the option policy C.12 FOR proposals to exclude pension plan income in the calculation of earnings used in determining executive bonuses/compensation D. Capital Structure These proposals relate to various requests, principally from management, for approval of amendments that would alter the capital structure of a company, such as an increase in authorized shares. As a general matter, the Committee will support requests that it believes enhance the rights of common shareholders and oppose requests that appear to be unreasonably dilutive. The Committee's general policy is to vote: D.1 AGAINST proposals seeking authorization to issue shares without preemptive rights except for issuances up to 10% of a non-US company's total outstanding capital D.2 FOR management proposals seeking preemptive rights or seeking authorization to issue shares with preemptive rights D.3 FOR management proposals approving share repurchase programs D.4 FOR management proposals to split a company's stock D.5 FOR management proposals to denominate or authorize denomination of securities or other obligations or assets in Euros D.6 FOR proposals requiring a company to expense stock options (unless the company has already publicly committed to do so by a certain date). E. Corporate Charter and By-Laws These proposals relate to various requests for approval of amendments to a corporation's charter or by-laws, principally for the purpose of adopting or redeeming "poison pills". As a general matter, the Committee opposes poison pill provisions. The Committee's general policy is to vote: E.1 AGAINST proposals seeking to adopt a poison pill E.2 FOR proposals seeking to redeem a poison pill E.3 FOR proposals seeking to have poison pills submitted to shareholders for ratification E.4 FOR management proposals to change the company's name F. Corporate Meetings These are routine proposals relating to various requests regarding the formalities of corporate meetings. The Committee's general policy is to vote: F.1 AGAINST proposals that seek authority to act on "any other business that may arise" F.2 FOR proposals designating two shareholders to keep minutes of the meeting F.3 FOR proposals concerning accepting or approving financial statements and statutory reports F.4 FOR proposals approving the discharge of management and the supervisory board F.5 FOR proposals approving the allocation of income and the dividend F.6 FOR proposals seeking authorization to file required documents/other formalities F.7 FOR proposals to authorize the corporate board to ratify and execute approved resolutions F.8 FOR proposals appointing inspectors of elections F.9 FOR proposals electing a chair of the meeting F.10 FOR proposals to permit "virtual" shareholder meetings over the Internet F.11 AGAINST proposals to require rotating sites for shareholder meetings G. Investment Companies These proposals relate to proxy issues that are associated solely with holdings of shares of investment companies, including, but not limited to, investment companies for which BlackRock provides investment advisory, administrative and/or other services. As with other types of companies, the Committee believes that a fund's Board of Directors (rather than its shareholders) is best-positioned to set fund policy and oversee management. However, the Committee opposes granting Boards of Directors authority over certain matters, such as changes to a fund's investment objective, that the Investment Company Act of 1940 envisions will be approved directly by shareholders. The Committee's general policy is to vote: G.1 FOR nominees for director of mutual funds in uncontested elections, except for nominees who * have missed at least two meetings and, as a result, attended less than 75% of meetings of the Board of Directors and its committees the previous year, unless the nominee missed the meeting due to illness or fund business * ignore a shareholder proposal that was approved by either a majority of the shares outstanding in any year or by the majority of votes cast for two consecutive years * are interested directors who serve on the audit or nominating committees or on a full Board that does not have such committees composed exclusively of independent directors * on a case-by-case basis, have served as directors of companies with allegedly poor corporate governance G.2 FOR the establishment of new series or classes of shares G.3 AGAINST proposals to change a fund's investment objective to nonfundamental G.4 FOR proposals to establish a master-feeder structure or authorizing the Board to approve a master-feeder structure without a further shareholder vote G.5 AGAINST a shareholder proposal for the establishment of a director ownership requirement G.6 FOR classified boards of closed-end investment companies H. Environmental and Social Issues These are shareholder proposals to limit corporate conduct in some manner that relates to the shareholder's environmental or social concerns. The Committee generally believes that annual shareholder meetings are inappropriate forums for the discussion of larger social issues, and opposes shareholder resolutions "micromanaging" corporate conduct or requesting release of information that would not help a shareholder evaluate an investment in the corporation as an economic matter. While the Committee is generally supportive of proposals to require corporate disclosure of matters that seem relevant and material to the economic interests of shareholders, the Committee is generally not supportive of proposals to require disclosure of corporate matters for other purposes. The Committee's general policy is to vote: H.1 AGAINST proposals seeking to have companies adopt international codes of conduct H.2 AGAINST proposals seeking to have companies provide non-required reports on: * environmental liabilities; * bank lending policies; * corporate political contributions or activities; * alcohol advertising and efforts to discourage drinking by minors; * costs and risk of doing business in any individual country; * involvement in nuclear defense systems H.3 AGAINST proposals requesting reports on Maquiladora operations or on CERES principles H.4 AGAINST proposals seeking implementation of the CERES principles Notice to Clients BlackRock will make records of any proxy vote it has made on behalf of a client available to such client upon request.(11) BlackRock will use its best efforts to treat proxy votes of clients as confidential, except as it may decide to best serve its clients' interests or as may be necessary to effect such votes or as may be required by law. BlackRock encourage clients with an interest in particular proxy voting issues to make their views known to BlackRock, provided that, in the absence of specific written direction from a client on how to vote that client's proxies, BlackRock reserves the right to vote any proxy in a manner it deems in the best interests of its clients, as it determines in its sole discretion. These policies are as of the date indicated on the cover hereof. The Committee may subsequently amend these policies at any time, without notice. (11) Such request may be made to the client's portfolio or relationship manager or addressed in writing to Secretary, BlackRock Equity Investment Policy Oversight Committee, Legal and Compliance Department, BlackRock Inc., 40 East 52nd Street, New York, New York 10022. Information about how the Fund voted proxies relating to securities held in the Fund's portfolio during the most recent 12 month period ended June 30 is available without charge (1) at www.blackrock.com and (2) on the Commission's web site at http://www.sec.gov. Item 8 - Portfolio Managers of Closed-End Management Investment Companies - as of October 31, 2007. (a)(1) BlackRock MuniYield New York Insured Fund, Inc. is managed by a team of investment professionals comprised of Timothy T. Browse, Vice President at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, and Walter O'Connor, Managing Director at BlackRock. Each is a member of BlackRock's municipal tax-exempt management group. Mr. Jaeckel and Mr. O'Connor are responsible for setting the Fund's overall investment strategy and overseeing the management of the Fund. Mr. Browse is the Fund's lead portfolio manager and is responsible for the day-to-day management of the Fund's portfolio and the selection of its investments. Messrs. Jaeckel and O'Connor have been members of the Fund's management team since 2006 and Mr. Browse has been the Fund's portfolio manager since 2004. Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of Merrill Lynch Investment Managers, L.P. ("MLIM") from 2005 to 2006 and a Director of MLIM from 1997 to 2005. He has been a portfolio manager with BlackRock or MLIM since 1991. Mr. O'Connor joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to 2002. He has been a portfolio manager with BlackRock or MLIM since 1991. Mr. Browse joined BlackRock in 2006. Prior to joining BlackRock, he was a Vice President (Municipal Tax-Exempt Fund Management) of MLIM from 2004 to 2006. He has been a portfolio manager with BlackRock or MLIM since 2004. From 2000 to 2003, he was a Vice President, portfolio manager and team leader of the Municipal Investment Team with Lord Abbott & Co. (a)(2) As of October 31, 2007:
(iii) Number of Other Accounts and (ii) Number of Other Accounts Managed Assets for Which Advisory Fee is and Assets by Account Type Performance-Based Other Other (i) Name of Registered Other Pooled Registered Other Pooled Portfolio Investment Investment Other Investment Investment Other Manager Companies Vehicles Accounts Companies Vehicles Accounts Timothy T. Browse 15 0 0 0 0 0 $ 3,409,324,018 $ 0 $0 $0 $ 0 $0 Walter O'Connor 80 0 0 0 0 0 $28,076,054,297 $ 0 $0 $0 $ 0 $0 Theodore R. Jaeckel, Jr. 80 1 0 0 1 0 $28,076,054,297 $26,763,472 $0 $0 $26,763,472 $0 (iv) Potential Material Conflicts of Interest
BlackRock, Inc. and its affiliates (collectively, herein "BlackRock") has built a professional working environment, firm- wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, its affiliates and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or any of its affiliates, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock's (or its affiliates') officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or the officers, directors and employees of any of them has any substantial economic interest or possesses material non- public information. Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for the Fund. In this connection, it should be noted that certain portfolio managers currently manage certain accounts that are subject to performance fees. In addition, certain portfolio managers assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees. As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base. (a)(3) As of October 31, 2007: Portfolio Manager Compensation The portfolio manager compensation program of BlackRock is critical to BlackRock's ability to attract and retain the most talented asset management professionals. This program ensures that compensation is aligned with maximizing investment returns and it provides a competitive pay opportunity for competitive performance. Compensation Program The elements of total compensation for BlackRock portfolio managers are: fixed base salary, annual performance-based cash and stock compensation (cash and stock bonus) and other benefits. BlackRock has balanced these components of pay to provide portfolio managers with a powerful incentive to achieve consistently superior investment performance. By design, portfolio manager compensation levels fluctuate--both up and down--with the relative investment performance of the portfolios that they manage. Base Salary Under the BlackRock approach, like that of many asset management firms, fixed base salaries represent a relatively small portion of a portfolio manager's total compensation. This approach serves to enhance the motivational value of the performance-based (and therefore variable) compensation elements of the compensation program. Performance-Based Compensation BlackRock believes that the best interests of investors are served by recruiting and retaining exceptional asset management talent and managing their compensation within a consistent and disciplined framework that emphasizes pay for performance in the context of an intensely competitive market for talent. To that end, the portfolio manager incentive compensation is based on a formulaic compensation program. BlackRock's formulaic portfolio manager compensation program includes: pre-tax investment performance relative to the appropriate competitors or benchmarks over 1-, 3- and 5-year performance periods and a measure of operational efficiency. If a portfolio manager's tenure is less than 5 years, performance periods will reflect time in position. Portfolio managers are compensated based on products they manage. For these purposes, the performance of the Fund is compared to the Lipper Closed-end New York Insured Municipal Debt Funds classification. A smaller discretionary element of portfolio manager compensation may include consideration of: financial results, expense control, profit margins, strategic planning and implementation, quality of client service, market share, corporate reputation, capital allocation, compliance and risk control, leadership, workforce diversity, supervision, technology and innovation. All factors are considered collectively by BlackRock management. Cash Bonus Performance-based compensation is distributed to portfolio managers in a combination of cash and stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Stock Bonus A portion of the dollar value of the total annual performance- based bonus is paid in restricted shares of stock of BlackRock, Inc. (the "Company"). Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year "at risk" based on the Company's ability to sustain and improve its performance over future periods. The ultimate value of stock bonuses is dependent on future Company stock price performance. As such, the stock bonus aligns each portfolio manager's financial interests with those of the Company's shareholders and encourages a balance between short-term goals and long-term strategic objectives. Management strongly believes that providing a significant portion of competitive performance-based compensation in stock is in the best interests of investors and shareholders. This approach ensures that portfolio managers participate as shareholders in both the "downside risk" and "upside opportunity" of the Company's performance. Portfolio managers, therefore, have a direct incentive to protect the Company's reputation for integrity. Other Benefits Portfolio managers are also eligible to participate in broad- based plans offered generally to BlackRock employees, including broad-based retirement, 401(k), health, and other employee benefit plans. For example, BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3% of eligible compensation, plus an additional contribution of 2% for any year in which BlackRock has positive net operating income. The RSP offers a range of investment options, including registered investment companies managed by the firm. Company contributions follow the investment direction set by participants for their own contributions or absent, employee investment direction, are invested into a stable value fund. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000. Each portfolio manager is eligible to participate in these plans. (a)(4) Beneficial Ownership of Securities. As of October 31, 2007, none of Messrs. Browse, Jaeckel or O'Connor beneficially owned any stock issued by the Fund. Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers - Not Applicable due to no such purchases during the period covered by this report. 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 and Exchange Act of 1934, as amended. 11(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 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 - See Item 2 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 New York Insured Fund, Inc. By: /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Executive Officer (principal executive officer) of BlackRock MuniYield New York Insured Fund, Inc. Date: December 19, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Executive Officer (principal executive officer) of BlackRock MuniYield New York Insured Fund, Inc. Date: December 19, 2007 By: /s/ Neal J. Andrews ------------------- Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock MuniYield New York Insured Fund, Inc. Date: December 19, 2007