N-CSRS 1 ca.txt MUNIYIELD CALIFORNIA FUND UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSRS CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-06499 Name of Fund: MuniYield California Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., Chief Executive Officer, MuniYield California 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: (609) 282-2800 Date of fiscal year end: 10/31/06 Date of reporting period: 11/01/05 - 04/30/06 Item 1 - Report to Stockholders Semi-Annual Reports April 30, 2006 MuniYield Arizona Fund, Inc. MuniYield California Fund, Inc. MuniYield California Insured Fund, Inc. MuniYield Florida Fund MuniYield Michigan Insured Fund II, Inc. MuniYield New York Insured Fund, Inc. (BULL LOGO) Merrill Lynch Investment Managers www.mlim.ml.com Mercury Advisors A Division of Merrill Lynch Investment Managers www.mercury.ml.com These reports, including the financial information herein, are transmitted to shareholders of MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield California Insured Fund, Inc., MuniYield Florida Fund, MuniYield Michigan Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc. for their information. This is not a prospectus. Past performance results shown in these reports should not be considered a representation of future performance. The Funds have leveraged their Common Shares/Stock and intend to remain leveraged by issuing Preferred Shares/Stock to provide the Common Shareholders/ Common Stock shareholders with potentially higher rates of return. Leverage creates risks for Common Shareholders/Common Stock shareholders, including the likelihood of greater volatility of net asset value and market price of shares of the Common Shares/Stock, and the risk that fluctuations in the short-term dividend rates of the Preferred Shares/Stock may affect the yield to Common Shareholders/Common Stock shareholders. Statements and other information herein are as dated and are subject to change. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free 1-800-637-3863; (2) at www.mutualfunds.ml.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.mutualfunds.ml.com; and (2) on the Securities and Exchange Commission's Web site at http://www.sec.gov. MuniYield Arizona Fund, Inc. MuniYield California Fund, Inc. MuniYield California Insured Fund, Inc. MuniYield Florida Fund MuniYield Michigan Insured Fund II, Inc. MuniYield New York Insured Fund, Inc. Box 9011 Princeton, NJ 08543-9011 (GO PAPERLESS LOGO) It's Fast, Convenient, & Timely! To sign up today, go to www.icsdelivery.com/live. MuniYield Arizona Fund, Inc. MuniYield California Fund, Inc. MuniYield California Insured Fund, Inc. MuniYield Florida Fund MuniYield Michigan Insured Fund II, Inc. MuniYield New York Insured Fund, Inc. Announcement to Shareholders On February 15, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch & Co., Inc. ("Merrill Lynch") entered into an agreement to contribute Merrill Lynch's investment management business, Merrill Lynch Investment Managers, L.P. and certain affiliates (including Fund Asset Management, L.P. and Merrill Lynch Investment Managers International Limited), to BlackRock to create a new independent company that will be one of the world's largest asset management firms with over $1 trillion in assets under management (based on combined assets under management as of March 31, 2006). The transaction is expected to close in the third quarter of 2006, at which time the new company will operate under the BlackRock name. The Funds' Board of Directors/Trustees has approved a new investment advisory agreement with BlackRock Advisors, Inc. or its successor ("BlackRock Advisors") on substantially the same terms and for the same advisory fee as the current investment advisory agreement with the Investment Advisor. If the agreement is approved by the Funds' shareholders, BlackRock Advisors is expected to become the Funds' investment adviser upon the closing of the transaction between Merrill Lynch and BlackRock. 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 Statement of Net Assets, which comprises part of the financial information included in these reports. Swap Agreements The Funds may invest in swap agreements, which are over-the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified bond, basket of bonds, or index in return for periodic payments based on a fixed or variable interest rate or the change in market value of a different bond, basket of bonds or index. Swap agreements may be used to obtain exposure to a bond or market without owning or taking physical custody of securities. Swap agreements involve the risk that the party with whom each Fund has entered into a swap will default on its obligation to pay the Fund and the risk that the Fund will not be able to meet its obligations to pay the other party to the agreement. SEMI-ANNUAL REPORTS APRIL 30, 2006 A Letter From the President Dear Shareholder You may be aware that changes are on the horizon at Merrill Lynch Investment Managers ("MLIM"). On February 15, 2006, Merrill Lynch announced plans to combine the firm's investment advisory business, including MLIM, with another highly regarded investment manager - BlackRock, Inc. ("BlackRock"). We believe this merger of asset management strength will benefit our investors. MLIM is a leading investment management organization with over $576 billion in assets under management globally and 2,757 employees in 17 countries. It offers over 100 investment strategies in vehicles ranging from mutual funds to institutional portfolios. BlackRock is one of the largest publicly traded investment management firms in the United States with $463.1 billion in assets under management and 1,839 employees. It manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, liquidity and alternative investment products. At the completion of the transaction, which is expected in the third quarter of this year, the resultant firm will be a top-10 investment manager worldwide with over $1 trillion in assets under management.* The combined company will provide a wider selection of high-quality investment solutions across a range of asset classes and investment styles. MLIM and BlackRock possess complementary capabilities that together create a well-rounded organization uniting some of the finest money managers in the industry. At the same time, the firms share similar values and beliefs - they are focused on delivering excellence on behalf of clients, and both make investment performance their single most important mission. In short, the merger only reinforces our commitment to shareholders. Most of MLIM's investment products - including mutual funds, separately managed accounts, annuities and variable insurance funds - eventually will carry the "BlackRock" name. As a shareholder in one or more MLIM-advised mutual funds, you will receive a proxy package in the coming weeks in connection with this transaction. After you receive this information, should you have any questions or concerns, do not hesitate to contact your financial advisor. As always, we thank you for entrusting us with your investment assets, and we look forward to continuing to serve your investment needs with even greater strength and scale as the new BlackRock. Sincerely, (Robert C. Doll, Jr.) Robert C. Doll, Jr. President and Chief Investment Officer Merrill Lynch Investment Managers * $1.039 trillion in assets under management as of March 31, 2006. Data, including assets under management, are as of March 31, 2006. SEMI-ANNUAL REPORTS APRIL 30, 2006 A Discussion With Your Funds' Portfolio Managers New municipal issuance declined during the six-month period, helping tax- exempt bonds to outperform their taxable counterparts but also limiting opportunities to restructure the portfolios. Describe the recent market environment relative to municipal bonds. Long-term bond yields rose sharply during the six-month period, with much of the increase occurring in March and April 2006. Bond prices, which move opposite of yields, declined. Bond prices were pressured as investors focused on solid economic growth, both globally and in the United States, and renewed inflationary pressures deriving from rising commodity prices. First quarter 2006 gross domestic product growth was recently estimated at 4.8%, well above the 1.7% rate recorded in the fourth quarter of 2005. The Federal Reserve Board (the Fed) continued to raise short-term interest rates at each of its meetings during the period, bringing the federal funds target rate to 4.75% at period-end, and to 5% with another increase on May 10. In response, the Treasury curve continued to flatten, with short-term interest rates rising more than longer-term interest rates. Over the past six months, 30-year U.S. Treasury bond yields rose 41 basis points (.41%) to 5.17% and 10-year U.S. Treasury note yields rose 50 basis points to 5.07%, the highest level since May 2002. While the municipal yield curve also flattened during the period, the market's strong technical position provided significant price support. This allowed municipal bond prices to improve slightly or decline much less than those of their taxable counterparts. As measured by Municipal Market Data, yields on AAA-rated issues maturing in 30 years fell six basis points to 4.53% while yields on AAA-rated issues maturing in 10 years rose 16 basis points to 4.08%. For the most part, the recent outperformance of the tax-exempt market has been fostered by a dramatic decline in new bond issuance so far in 2006. In 2005, more than $408 billion in new long-term tax-exempt bonds was underwritten, a new annual record and an increase of more than 13% compared to 2004. Over the past six months, $170 billion in long-term municipal bonds was issued, a decline of 8.6% versus the same period a year earlier. The record new issuance in 2005 was largely triggered by a 47% increase in refunding activity as issuers took advantage of historically low bond yields and a flattening yield curve to refinance outstanding higher-couponed debt. Year-to-date through April 2006, refunding issuance declined more than 55% relative to the first four months of 2005. This decline has led some analysts to reduce their forecasts for 2006 new issuance from the $350 billion - $370 billion range to the $300 billion - $325 billion range. Lower annual issuance would further solidify the tax-exempt market's already positive technical position. The tax-exempt market has continued to enjoy strong investor demand. As reported by the Investment Company Institute, long-term municipal bond funds received net new monies of $5.0 billion in 2005 - a sharp reversal from the $3.7 billion outflow in 2004. During the first quarter of 2006, tax-exempt mutual funds received over $9.3 billion, slightly higher than the $8.9 billion inflow during the same period in 2005. Recent statistics from AMG Data Services indicate that, thus far in 2006, weekly cash flows into long-term municipal bond funds averaged over $300 million, a significant improvement from the weekly average of $65 million in December 2005. Looking ahead, the fundamentals for the tax-exempt bond market appear favorable, and continued positive cash flows are anticipated. Given their attractive yields relative to comparable U.S. Treasury bonds, and the prospects for reduced issuance in 2006, we believe municipal bonds could enjoy solid results in the coming months. MuniYield Arizona Fund, Inc. Describe conditions in the State of Arizona. Credit fundamentals for the State of Arizona remain firm, with accelerating job growth, strong population gains and a state budget surplus that has lawmakers contemplating what to do with the excess revenue. With the surplus currently exceeding the legal rainy day limit of 7% of total budget, the government is debating plans for trimming the excess cash. Proposals have ranged from increasing government spending to cutting income and/or property taxes. One potential area of concern on the economic front is the state's housing market, which has appreciated rapidly but could be affected by higher interest rates and affordability issues, potentially leading to some economic volatility down the road. SEMI-ANNUAL REPORTS APRIL 30, 2006 In March, voters in Phoenix approved the city's most significant general obligation bond authorization package in almost 20 years. The largest portion of the nearly $900 million package is dedicated to developing a new campus for Arizona State University in downtown Phoenix. The city, which is the fifth largest in the United States and one of the country's fastest-growing metropolitan areas, expects this commitment to attract more ancillary development. The remaining bond proposals included money for higher education and health facilities, public safety, water and sewer upgrades, libraries and community centers, parks and recreation, and affordable housing. How did the Fund perform during the period? For the six-month period ended April 30, 2006, the Common Stock of MuniYield Arizona Fund, Inc. had net annualized yields of 5.88% and 5.34%, based on a period-end per share net asset value of $14.12 and a per share market price of $15.55, respectively, and $.412 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +1.75%, based on a change in per share net asset value from $14.39 to $14.12, and assuming reinvestment of all distributions. Overall, the municipal market performed fairly well in a period of rising interest rates. The yield curve continued to flatten, with the long end rallying slightly while the short end underperformed. Against this backdrop, Fund performance benefited from our strategy of moving further out on the curve as opportunities presented themselves. Also contributing to Fund results was our focus on maintaining an above-average yield and, consistent with that goal, remaining fully invested. For a description of the Fund's total investment return based on a change in the per share market value of the Fund's Common Stock (as measured by the trading price of the Fund's shares on the American Stock Exchange), and assuming reinvestment of dividends, please refer to the Financial Highlights section of this report. As a closed-end fund, the Fund's shares may trade in the secondary market at a premium or discount to the Fund's net asset value. As a result, total investment returns based on changes in the market value of the Fund's Common Stock can vary significantly from total investment returns based on changes in the Fund's net asset value. What changes were made to the portfolio during the period? We entered the period with a neutral posture as the Fed appeared to be approaching a pause in its interest rate-hiking campaign. Although both the Treasury and the municipal yield curves continued to flatten during the past six months, the move was not nearly as dramatic as we have seen in prior periods. Notably, the municipal curve retained a positive slope - particularly relative to the Treasury curve, which actually inverted early in 2006 - and this contributed to the market's and the Fund's positive performance. The other important dynamic in the municipal market during the six-month period was the drop in new issuance, especially fixed rate, longer-term issuance. This decline in supply supported the performance of the municipal market, but also meant there were fewer options for restructuring the portfolio. Supply was particularly lacking in Arizona, where new issuance declined roughly 13% compared to the same six-month period a year ago. Although the lack of issuance and issuer diversity prevented us from altering the portfolio's structure significantly, we were still able to take advantage of inter-period volatility, using backups in market yields to selectively book tax losses (that is, taking losses to offset any gains) and swap into other bonds in instances where we thought it would be beneficial to the Fund. We also identified some longer-dated, higher-yielding credits that were suitable for investment. Finally, we sold some of the portfolio's premium-coupon, short- call bonds into a strong market inquiry. Given that there was an interested buyer in the market, we were able to sell the bonds at very favorable prices. Generally speaking, we redeployed the proceeds from the sale into bonds with maturities in the 25-year range and with coupons of approximately 5%. We maintained ample exposure to uninsured Puerto Rico bonds despite some substantial volatility during the period as the commonwealth wrestled with budget concerns. Puerto Rico issues are tax-exempt in all 50 states, and we are interested in them for their relatively attractive yields, liquidity and diversification benefits - a particularly important consideration in a single state portfolio. SEMI-ANNUAL REPORTS APRIL 30, 2006 A Discussion With Your Funds' Portfolio Managers (continued) For the six-month period ended April 30, 2006, the Fund's Auction Market Preferred Stock (AMPS) had an average yield of 2.52% for Series A, 2.50% for Series B and 2.87% for Series C. The Fed raised the short-term interest rate target 100 basis points during the six-month period, and this continued to affect the Fund's borrowing costs. We would expect additional increases in the cost of funds to be more limited as the Fed nears a pause in its monetary tightening campaign. Despite the interest rate increases during the period, the tax-exempt yield curve maintained a positive slope, allowing us to borrow at a lower rate than where we invest. This continued to generate an income benefit to the holders of Common Stock from the leveraging of Preferred Stock. However, should the spread between short-term and long-term interest rates narrow, the benefits of leveraging will decline and, as a result, reduce the yield on the Fund's Common Stock. At the end of the period, the Fund's leverage amount, due to AMPS, was 38.77% of total net assets, before the deduction of Preferred Stock. (For a more complete explanation of the benefits and risks of leveraging, see page 70 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? We remain focused on generating an attractive level of tax-exempt income for our shareholders. The Fund ended the period fully invested and with an overall neutral market posture, in keeping with our Municipal Investment Committee's recommendation. After 16 consecutive interest rate hikes, the Fed may be near a pause in its monetary tightening program. However, global economies and certain pockets of the U.S. economy continue to show solid growth, leading us to believe that it still may be early to become too aggressive. We believe a neutral posture is prudent in the current environment and should provide for competitive performance. On a tactical basis, we have recently started to look at opportunities back down the yield curve in the 15-year - 20-year area, as opposed to the previously favored 25-year - 30-year range. We have found that we can move five years - 10 years down the yield curve without sacrificing a significant amount of yield. Given the degree of yield-curve flattening that has occurred over the course of the Fed's interest rate-hiking campaign, we believe this maturity range could be ready to outperform. As always, we will continue to monitor the economy, the Fed and the municipal market, and stand ready to adjust our approach as needed. MuniYield California Fund, Inc. Describe conditions in the State of California. California's financial position continues to improve. Revenues for the first eight months of fiscal year 2006 were 7.2% higher than the corresponding period in fiscal year 2005, and estimates for revenue growth in fiscal year 2007 centered on 5.5%. Despite this favorable revenue trend, state spending has risen at a faster rate, with expenditures 10.2% higher through the first eight months of fiscal year 2006 than during the same period in the previous year. In addition, Governor Arnold Schwarzenegger's proposed 2007 budget is expected to increase by 11.4%. The overall budget retains a structural deficit of approximately $4.7 billion, which limits further upward rating actions by the major credit-rating agencies. We would like to see efforts to reduce the structural imbalance in the revised 2007 budget. Bolstered by an anticipated $7.5 billion of "unanticipated" tax revenues, the governor's May 2006-2007 budget revision totaled $131.1 billion with spending approximately 8.4% higher than the previous year. These funds provide an opportunity to increase funding for K-12 schools, fund the early retirement of economic recovery bonds, increase reserve levels and fund several one-time projects. The overall budget remains unbalanced by approximately $3.5 billion, however, sizably smaller than the $12.5 billion imbalance confronted several years ago. Despite retaining the structural imbalance, the improved revenue performance provided a catalyst for the rating agencies to increase the state's long-term general obligation ratings by Moody's (A2 to A1) and Standard & Poor's (A to A+). Both rating agencies highlight the structural deficit limiting further rating improvement to the AA rating category. It should be noted that the governor and Legislature have reached an agreement on a capital improvement plan that will call for the placement of general obligation bond measures totaling $37 billion on the November ballot. As expected, the governor's sizable capital improvement plan, which initially relied on the issuance of $68 billion in debt obligations, was challenged by the state legislature and will likely be significantly revised in the coming months. However, due to the gubernatorial election scheduled for this November, we do not believe a final revision of this plan will be achieved during calendar year 2006. SEMI-ANNUAL REPORTS APRIL 30, 2006 How did the Fund perform during the period? For the six-month period ended April 30, 2006, the Common Stock of MuniYield California Fund, Inc. had net annualized yields of 4.79% and 5.28%, based on a period-end per share net asset value of $14.65 and a per share market price of $13.30, respectively, and $.348 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +2.13%, based on a change in per share net asset value from $14.73 to $14.65, and assuming reinvestment of all distributions. The Fund's total return, based on net asset value, lagged the +2.49% average return of its comparable Lipper category of California Municipal Debt Funds for the six-month period. (Funds in this Lipper category invest primarily in municipal debt issues exempt from taxation in the State of California.) The underperformance was partially attributable to the Fund's relatively short duration. Because bond prices fall as their yields rise, we assumed this posture in an effort to achieve some price stability for the portfolio in the face of rising interest rates. In addition, we maintained an underweight exposure to lower-rated credits. This sector outperformed the broader market during the period as investors sought out higher yields, and the under- representation in the portfolio detracted from relative results. For a description of the Fund's total investment return based on a change in the per share market value of the Fund's Common Stock (as measured by the trading price of the Fund's shares on the New York Stock Exchange), and assuming reinvestment of dividends, please refer to the Financial Highlights section of this report. As a closed-end fund, the Fund's shares may trade in the secondary market at a premium or discount to the Fund's net asset value. As a result, total investment returns based on changes in the market value of the Fund's Common Stock can vary significantly from total investment returns based on changes in the Fund's net asset value. What changes were made to the portfolio during the period? Municipal issuance was uncharacteristically light during the period, particularly after a record-setting level of new issuance in calendar year 2005. The dearth in supply limited our ability to significantly restructure the portfolio. Instead, our efforts were concentrated on moving the Fund closer to a more neutral posture with respect to relative interest rate exposure. This was consistent with the recommendation of our internal Municipal Investment Committee. In an effort to bolster the yield distribution to shareholders, we increased the portion of Fund assets committed to inverse floating-rate product (a bond or other type of debt instrument whose coupon rate has an inverse relationship to short-term interest rates) as appropriately structured securities became available. We favored this method of yield enhancement over the purchase of lower-rated credits, where yield spreads versus higher-quality issues of comparable maturity were already at historically tight levels. The Fund's exposure to inverse floaters increased from 4% at the start of the period to 8% at the close of the period, still below the Fund's maximum allowable limit of 15%. We sought to take advantage of the tight relationship between yields on lower- rated credits compared to AAA-rated issues by locking in profits in some of our lower-rated holdings. Specifically, we sold the Fund's exposure to the securities of Waste Management. These bonds (which are subject to the alternative minimum tax) were purchased at a spread of 90 basis points above the AAA scale and were sold during the period at a spread of 45 basis points above that scale. Similar outperformance was realized in the zero coupon sector. We sold dollar-denominated zero coupon bonds issued by Napa Valley at a spread of 40 basis points above the AAA scale. These particular bonds had been purchased at the end of 2005 at a spread of 80 basis points above comparable maturity AAA-rated bonds. For the six-month period ended April 30, 2006, the Fund's Auction Market Preferred Stock (AMPS) had average yields of 3.19% for Series A, 2.76% for Series B, 2.75% for Series C and 2.82% for Series D. The Fed raised the short- term interest rate target 100 basis points during the six-month period, and this continued to affect the Fund's borrowing costs. We would expect additional increases in the cost of funds to be more limited as the Fed nears a pause in its monetary tightening campaign. Despite the interest rate increases during the period, the tax-exempt yield curve maintained a positive slope, allowing us to borrow at a lower rate than where we invest. This continued to generate an income benefit to the holders of Common Stock from the leveraging of Preferred Stock. However, should the spread between short- term and long-term interest rates narrow, the benefits of leveraging will decline and, as a result, reduce the yield on the Fund's Common Stock. At the end of the period, the Fund's leverage amount, due to AMPS, was 35.94% of total net assets, before the deduction of Preferred Stock. (For a more complete explanation of the benefits and risks of leveraging, see page 70 of this report to shareholders.) SEMI-ANNUAL REPORTS APRIL 30, 2006 A Discussion With Your Funds' Portfolio Managers (continued) How would you characterize the Fund's position at the close of the period? The Fund ended the period with a neutral duration posture relative to its California municipal bond fund peers. We remain committed to protecting the Fund's net asset value and will continue to address the income distribution potential of the portfolio through the use of inverse floating-rate product. In fact, the Fund recently has been able to add to its dividend reserves (the net income earned but not required to be distributed monthly), despite the aforementioned rise in short-term borrowing costs. Tight credit spreads discourage us from participating actively in the lower- quality portion of the market, as we see little relative value from a risk/ reward standpoint at this time. Consequently, we ended the period with a very high-quality portfolio with more than 84% of the Fund's net assets rated AA or higher and 78.6% rated AAA. MuniYield California Insured Fund, Inc. Describe conditions in the State of California. California's financial position continues to improve. Revenues for the first eight months of fiscal year 2006 were 7.2% higher than the corresponding period in fiscal year 2005, and estimates for revenue growth in fiscal year 2007 centered on 5.5%. Despite this favorable revenue trend, state spending has risen at a faster rate, with expenditures 10.2% higher through the first eight months of fiscal year 2006 than during the same period in the previous year. In addition, Governor Arnold Schwarzenegger's proposed 2007 budget is expected to increase by 11.4%. The overall budget retains a structural deficit of approximately $4.7 billion, which limits further upward rating actions by the major credit-rating agencies. We would like to see efforts to reduce the structural imbalance in the revised 2007 budget. Bolstered by an anticipated $7.5 billion of "unanticipated" tax revenues, the governor's May 2006-2007 budget revision totaled $131.1 billion with spending approximately 8.4% higher than the previous year. These funds provide an opportunity to increase funding for K-12 schools, fund the early retirement of economic recovery bonds, increase reserve levels and fund several one-time projects. The overall budget remains unbalanced by approximately $3.5 billion, however, sizably smaller than the $12.5 billion imbalance confronted several years ago. Despite retaining the structural imbalance, the improved revenue performance provided a catalyst for the rating agencies to increase the state's long-term general obligation ratings by Moody's (A2 to A1) and Standard & Poor's (A to A+). Both rating agencies highlight the structural deficit limiting further rating improvement to the AA rating category. It should be noted that the governor and Legislature have reached an agreement on a capital improvement plan that will call for the placement of general obligation bond measures totaling $37 billion on the November ballot. As expected, the governor's sizable capital improvement plan, which initially relied on the issuance of $68 billion in debt obligations, was challenged by the state legislature and will likely be significantly revised in the coming months. However, due to the gubernatorial election scheduled for this November, we do not believe a final revision of this plan will be achieved during calendar year 2006. How did the Fund perform during the period? For the six-month period ended April 30, 2006, the Common Stock of MuniYield California Insured Fund, Inc. had net annualized yields of 5.82% and 5.83%, based on a period-end per share net asset value of $14.66 and a per share market price of $14.64, respectively, and $.423 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +1.84%, based on a change in per share net asset value from $14.82 to $14.66, and assuming reinvestment of all distributions. The Fund's total return, based on net asset value, lagged the +2.17% average return of its comparable Lipper category of California Insured Municipal Debt Funds for the six-month period. (Funds in this Lipper category invest primarily in municipal debt issues exempt from taxation in the State of California and insured as to timely payment.) For some time, our investment strategy has been focused on achieving a high level of current income for our shareholders. This has been achieved through maintaining an above-average coupon accrual, which has allowed the Fund to provide a highly competitive yield. On a total return basis, the underperformance for the period was partially attributable to the Fund's relatively short duration. Because bond prices fall as their yields rise, we assumed this short duration posture in an effort to achieve some price stability for the portfolio in the face of rising interest rates. In addition, we maintained an underweight exposure to lower- rated credits. This sector outperformed the broader market during the period as investors sought out higher yields, and the under-representation in the portfolio detracted from relative results. SEMI-ANNUAL REPORTS APRIL 30, 2006 For a description of the Fund's total investment return based on a change in the per share market value of the Fund's Common Stock (as measured by the trading price of the Fund's shares on the New York Stock Exchange), and assuming reinvestment of dividends, please refer to the Financial Highlights section of this report. As a closed-end fund, the Fund's shares may trade in the secondary market at a premium or discount to the Fund's net asset value. As a result, total investment returns based on changes in the market value of the Fund's Common Stock can vary significantly from total investment returns based on changes in the Fund's net asset value. What changes were made to the portfolio during the period? Municipal issuance was uncharacteristically light during the period, particularly after a record-setting level of new issuance in calendar year 2005. The dearth in supply limited our ability to significantly restructure the portfolio. Instead, our efforts were concentrated on moving the Fund closer to a more neutral posture with respect to relative interest rate exposure, consistent with the recommendation of our internal Municipal Investment Committee. To that end, we purchased a limited amount of longer- maturity bonds as interest rates increased, effectively extending the Fund's duration. These purchases were financed through the sale of prerefunded bonds with shorter maturities. Our efforts during the period also centered on enhancing the yield distribution to shareholders. To accomplish this, we increased the portion of Fund assets committed to inverse floating-rate product (a bond or other type of debt instrument whose coupon rate has an inverse relationship to short-term interest rates) as appropriately structured securities became available. The Fund's exposure to inverse floaters increased from 9% at the start of the period to 12% at the close of the period, still below the Fund's maximum allowable limit of 15%. We favored this method of yield enhancement over the purchase of lower-rated credits. In fact, we intentionally underutilized the portion of net assets that we are permitted to invest in lower-rated securities given that yield spreads versus higher-quality issues of comparable maturity were already at historically tight levels. We prefer a higher-quality asset mix in such an environment, and ended the period with 94.6% of Fund assets rated AAA. For the six-month period ended April 30, 2006, the Fund's Auction Market Preferred Stock (AMPS) had average yields of 2.76% for Series A, 2.71% for Series B, 2.73% for Series C, 3.14% for Series D, 2.73% for Series E and 2.94% for Series F. The Fed raised the short-term interest rate target 100 basis points during the six-month period, and this continued to affect the Fund's borrowing costs. We would expect additional increases in the cost of funds to be more limited as the Fed nears a pause in its monetary tightening campaign. Despite the interest rate increases during the period, the tax-exempt yield curve maintained a positive slope, allowing us to borrow at a lower rate than where we invest. This continued to generate an income benefit to the holders of Common Stock from the leveraging of Preferred Stock. However, should the spread between short-term and long-term interest rates narrow, the benefits of leveraging will decline and, as a result, reduce the yield of the Fund's Common Stock. At the end of the period, the Fund's leverage amount, due to AMPS, was 35.32% of total net assets, before the deduction of Preferred Stock. (For a more complete explanation of the benefits and risks of leveraging, see page 70 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? The Fund ended the period with a neutral duration posture relative to its California insured municipal bond fund peers. We remain committed to protecting the Fund's net asset value and will continue to address the income distribution potential of the portfolio through the use of inverse floating- rate product. Tight credit spreads discourage us from participating actively in the lower-quality portion of the market, as we see little relative value from a risk/ reward standpoint at this time. Consequently, we ended the period with a very high-quality portfolio. We are focused on enhancing the Fund's yield through investment in AAA-rated leveraged product, effectively seizing the opportunity presented by the relatively steep tax-exempt yield curve. We find this strategy to be more prudent than purchasing lower-rated credits at current unattractive spreads. SEMI-ANNUAL REPORTS APRIL 30, 2006 A Discussion With Your Funds' Portfolio Managers (continued) MuniYield Florida Fund Describe conditions in the State of Florida. Florida's economy has outperformed that of both the nation and other southern states, and appears likely to continue this trend in the foreseeable future. The state's mix of solid demographics and increasing job growth among diversified industries is expected to continue to encourage migration into the state. Although national economic trends have put pressure on Florida, we believe the state is well positioned given its record of proactive management and financial flexibility. Florida's enacted fiscal year 2005-2006 budget is $64.7 billion, an increase of 12% from the prior year. The budget reflects a combination of spending constraints, with spending below anticipated personal income growth, and increased revenue growth. Of the increased revenue, not all is expected to be permanent, as some stems primarily from the reconstruction and replacement of property destroyed by hurricanes and, therefore, is not recurring. Fiscal discipline has afforded the state the opportunity to provide tax relief in the form of tax-free shopping days, reduced sales tax on equipment, tax credits and a phaseout of the intangible tax. Three areas of the budget account for 93% of the total expenditures - education at 52%, health and human services at 26% and public safety at 15%. Revenues for the first four months of the fiscal year were $602 million, 14% higher than the same period in the prior fiscal year. How did the Fund perform during the period? For the six-month period ended April 30, 2006, the Common Shares of MuniYield Florida Fund had net annualized yields of 5.62% and 5.99%, based on a period- end per share net asset value of $14.79 and a per share market price of $13.86, respectively, and $.412 per share income dividends. Over the same period, the total investment return on the Fund's Common Shares was +2.11%, based on a change in per share net asset value from $14.91 to $14.79, and assuming reinvestment of all distributions. The Fund's total return, based on net asset value, was generally competitive with the +2.16% average return of the Lipper Florida Municipal Debt Funds category for the six-month period. (Funds in this Lipper category limit their investment to those securities exempt from taxation in the State of Florida.) Performance benefited from our yield-curve strategy, specifically our emphasis on longer-dated issues, which continued to outperform as the curve flattened. Also contributing positively was our exposure to higher-yielding uninsured credits, which outperformed the broader market as investors searched for yield in the low interest rate environment. Our uninsured credits in the airline sector performed particularly well. Of final note, the portfolio held some bonds that had been advance refunded, which leads to strong price appreciation for these credits and has benefited the Fund's total return. These positives were offset somewhat by our exposure, in the form of prerefunded bonds, to the intermediate part of the yield curve. This sector continued to underperform as the curve flattened, although we retained many of these bonds given their high acquisition yields and corresponding contribution to the Fund's income stream. In addition, the Fund is precluded from investing in non-investment grade municipal credits, which was somewhat of a disadvantage relative to our Lipper peers as the lowest-quality bonds outperformed. For a description of the Fund's total investment return based on a change in the per share market value of the Fund's Common Shares (as measured by the trading price of the Fund's shares on the New York Stock Exchange), and assuming reinvestment of dividends, please refer to the Financial Highlights section of this report. As a closed-end fund, the Fund's shares may trade in the secondary market at a premium or discount to the Fund's net asset value. As a result, total investment returns based on changes in the market value of the Fund's Common Shares can vary significantly from total investment returns based on changes in the Fund's net asset value. What changes were made to the portfolio during the period? We did not alter our strategy or make meaningful changes to the portfolio's composition during the six-month period. We continued to focus on increasing the income provided to shareholders and muting the Fund's net asset value volatility. To that end, we remained fully invested throughout the period in order to augment yield. In making new purchases, we generally focused on premium-coupon bonds in the 20-year - 25-year maturity range whenever they became available, although we did begin to see value in the 15-year area of the curve and continue to explore opportunities there. Given the extent of the curve flattening, spreads are appearing wider now in the 20-year sector of the curve, so we are able to capture some of the most attractive yields on the curve without having to extend to the longest maturities. SEMI-ANNUAL REPORTS APRIL 30, 2006 Issuance of Florida municipal bonds increased less than 3% during the period versus the same six months a year ago. However, new issuance in the latter three months was down 32% compared to the same three months in 2005. The reduction in supply has meant few opportunities to restructure the portfolio. For the most part, we are seeing supply concentrated in the 15-year - 20-year area, most of these being insured issues with 4% to 4.5% coupons. We remain committed to structuring bonds with 5% to 5.25% coupons, although the cost for new issues with these characteristics has been prohibitive. For the six-month period ended April 30, 2006, the Fund's Auction Market Preferred Shares (AMPS) had average yields of 3.01% for Series A, 2.94% for Series B and 3.00% for Series C. The Fed raised the short-term interest rate target 100 basis points during the six-month period, and this continued to affect the Fund's borrowing costs. We would expect additional increases in the cost of funds to be more limited as the Fed nears a pause in its monetary tightening campaign. Despite the interest rate increases during the period, the tax-exempt yield curve maintained a positive slope, allowing us to borrow at a lower rate than where we invest. This continued to generate an income benefit to the holders of Common Shares from the leveraging of Preferred Shares. However, should the spread between short-term and long-term interest rates narrow, the benefits of leveraging will decline and, as a result, reduce the yield on the Fund's Common Shares. At the end of the period, the Fund's leverage amount, due to AMPS, was 35.43% of total net assets, before the deduction of Preferred Shares. (For a more complete explanation of the benefits and risks of leveraging, see page 70 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? We would characterize the Fund's position as fairly neutral in terms of interest rate risk. At period-end, we were looking to increase the portfolio's exposure to bonds in the 10-year - 20-year maturity range, where we see value emerging. Given the degree of yield-curve flattening that has occurred over the course of the Fed's interest rate-hiking campaign, we believe this maturity range could be ready to outperform. We remain fully invested, consistent with our efforts to augment shareholder income, and intend to use periods of volatility to pursue higher-coupon bonds whenever they are attractively priced. MuniYield Michigan Insured Fund II, Inc. Describe conditions in the State of Michigan. The State of Michigan maintained credit ratings of Aa2, AA and AA with stable outlooks from Moody's, Standard & Poor's and Fitch, respectively. All three agencies downgraded the state in late 2004 or the first quarter of 2005, citing the troubled automotive sector and weak revenue estimates. The performance of the state's economy, which continues to lag the national recovery as well as that of the Great Lakes region, is the key to future ratings action. Given the possibilities of more job losses in the automotive sector and a fiscal crisis in Detroit, at least one of the rating agencies could downgrade Michigan in 2006 or place a negative outlook on the state's credit. The state recorded its fifth consecutive year of increasing unemployment in 2005, although the rate of annual job losses has declined each year since 2001. While the state has successfully managed its budget through conservative revenue estimates and large spending cuts, the job losses have weighed on revenue collections and could indicate longer-term economic problems for the state. As a short-term measure to avoid further spending cuts, the governor recently vetoed a repeal of the $1 billion business tax. On the upside, Michigan's debt ratios are quite low for a populous state and indicate relative flexibility in the ability to respond to economic downturns. The state's pension system is well funded. How did the Fund perform during the period? For the six-month period ended April 30, 2006, the Common Stock of MuniYield Michigan Insured Fund II, Inc. had net annualized yields of 5.64% and 5.75%, based on a period-end per share net asset value of $14.31 and a per share market price of $14.03, respectively, and $.400 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +1.26%, based on a change in per share net asset value from $14.54 to $14.31, and assuming reinvestment of all distributions. SEMI-ANNUAL REPORTS APRIL 30, 2006 A Discussion With Your Funds' Portfolio Managers (continued) The Fund's total return, based on net asset value, lagged the +1.94% average return of the Lipper Michigan Municipal Debt Funds category for the six-month period. (Funds in this Lipper category limit their investment to securities exempt from taxation in Michigan or a city in Michigan.) The Fund's above- average credit quality profile, as an insured fund, continued to negatively impact total return performance. Lower-rated issues continued to be among the best-performing assets during the period. Recent performance also has been impacted by the Fund's considerable exposure to the intermediate sector of the municipal bond yield curve, which has significantly underperformed as the curve has flattened. Nevertheless, we retained many of these bonds in the portfolio, as they provide a meaningful income benefit and their sale could result in material taxable gains as well as declines in the Fund's dividend stream. For a description of the Fund's total investment return based on a change in the per share market value of the Fund's Common Stock (as measured by the trading price of the Fund's shares on the New York Stock Exchange), and assuming reinvestment of dividends, please refer to the Financial Highlights section of this report. As a closed-end fund, the Fund's shares may trade in the secondary market at a premium or discount to the Fund's net asset value. As a result, total investment returns based on changes in the market value of the Fund's Common Stock can vary significantly from total investment returns based on changes in the Fund's net asset value. What changes were made to the portfolio during the period? Despite the underperformance of the intermediate sector of the yield curve, we chose not to take any drastic action with respect to our exposure to this sector. We believe the current interest rate tightening cycle will end by mid-2006, causing the municipal yield curve to again steepen somewhat and potentially leading to strong performance in the intermediate maturity range. This would allow the Fund's exposure to this portion of the curve to again be a positive contributor to overall performance, as well as a source of significant incremental income. Portfolio activity in recent months largely involved the execution of bond swaps that allowed us to add to the Fund's income stream. We have continued to maintain the Fund's high credit quality, as the incremental yield gained from buying lower-rated investment grade issues has remained historically narrow. At April 30, 2006, approximately 86.7% of the Fund's assets was rated AAA. For the six-month period ended April 30, 2006, the Fund's Auction Market Preferred Stock (AMPS) had average yields of 2.95% for Series A, 2.87% for Series B and 2.99% for Series C. The Fed raised the short-term interest rate target 100 basis points during the six-month period, and this continued to affect the Fund's borrowing costs. We would expect additional increases in the cost of funds to be more limited as the Fed nears a pause in its monetary tightening campaign. Despite the interest rate increases during the period, the tax-exempt yield curve maintained a positive slope, allowing us to borrow at a lower rate than where we invest. This continued to generate an income benefit to the holders of Common Stock from the leveraging of Preferred Stock. However should the spread between short-term and long-term interest rates narrow, the benefits of leveraging will decline and, as a result, reduce the yield on the Fund's Common Stock. At the end of the period, the Fund's leverage amount, due to AMPS, was 36.44% of total net assets, before the deduction of Preferred Stock. (For a more complete explanation of the benefits and risks of leveraging, see page 70 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? We recently adopted a more positive stance on the municipal market. After 16 consecutive interest rate hikes, the Fed may be nearing a pause in its monetary tightening campaign. We would expect the end of Fed tightening, combined with modest economic growth and muted inflationary pressures, to promote a gradual improvement in tax-exempt bond prices later this year, underpinning our more constructive outlook. Conversely, we would view accelerated economic activity and/or rising wage pressures as signals to return to a more defensive positioning. Overall, we intend to maintain the Fund's fully invested stance as we seek to enhance shareholder income. Portfolio activity in the months ahead is likely to be driven by our efforts to maintain the Fund's already attractive distribution yield. SEMI-ANNUAL REPORTS APRIL 30, 2006 MuniYield New York Insured Fund, Inc. Describe conditions in the State of New York. In December, credit-rating agency Moody's upgraded New York's rating to Aa3, the state's highest rating from Moody's since 1975. Standard and Poor's and Fitch maintained ratings of AA and AA-, respectively, and all three agencies assign a stable outlook to the state's ratings. The New York economy continues to improve and revenue collections are increasing. State tax collections remain largely dependent on the performance of the financial sector, but tax receipts over the past few years have been strong. New York's 2006 fiscal year ended on March 31, and preliminary operating results indicate a $2 billion surplus and a $945 million rainy day fund. The 2006 budget had closed an estimated $4 billion deficit. Crafting balanced budgets beyond fiscal year 2006 will present a challenge given political resistance to additional tax hikes and cuts in popular programs, as well as pressure from local governments for pension and Medicaid relief, and new education spending. Governor Pataki's $111 billion budget proposal for fiscal year 2007 (which began April 1) includes an estimated $840 million in tax cuts and applies the $2 billion surplus from 2006 toward out-year gaps. The Legislature has not yet approved the 2007 budget, which currently does not include any money for compliance with a court order on school funding. Preliminary February 2006 employment numbers reflect a 1% increase from February 2005 levels. New York ranks fifth highest among all states in per capita income. Economic growth is disproportionately stronger in downstate New York, while the upstate economy remains lackluster. How did the Fund perform during the period? For the six-month period ended April 30, 2006, the Common Stock of MuniYield New York Insured Fund, Inc. had net annualized yields of 5.68% and 5.86%, based on a period-end per share net asset value of $14.02 and a per share market price of $13.60, respectively, and $.395 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +1.19%, based on a change in per share net asset value from $14.26 to $14.02, and assuming reinvestment of all distributions. The Fund's total return, based on net asset value, lagged the +1.68% average return of the Lipper New York Insured Municipal Debt Funds category for the six-month period. (Funds in this Lipper category invest primarily in securities exempt from taxation in New York and insured as to timely payment.) The portfolio tended to be slightly longer durationthan its Lipper peers. Because the municipal yield curve has maintained its positive slope, the Fund has looked to enhance yield by favoring the long end of curve, where we also perceived greater liquidity and long-term performance potential. Our focus on longer-dated bonds was a positive as they outperformed shorter-term issues; however, the longer overall duration made the portfolio more susceptible to interest rate risk as rates rose late in the period. Also detracting from Fund results somewhat were a number of bond calls, including some housing bonds and higher-coupon, lower-rated issues that had been booked in the portfolio at attractive yields. Nevertheless, the Fund continued to earn an above-average distribution rate, allowing us to continue providing shareholders with an attractive level of tax-exempt income. For a description of the Fund's total investment return based on a change in the per share market value of the Fund's Common Stock (as measured by the trading price of the Fund's shares on the New York Stock Exchange), and assuming reinvestment of dividends, please refer to the Financial Highlights section of this report. As a closed-end fund, the Fund's shares may trade in the secondary market at a premium or discount to the Fund's net asset value. As a result, total investment returns based on changes in the market value of the Fund's Common Stock can vary significantly from total investment returns based on changes in the Fund's net asset value. What changes were made to the portfolio during the period? The two resounding themes during the period centered on tax-exempt bonds' outperformance of their taxable counterparts and, contributing to the strong performance, the limited new issuance in the municipal market. In New York, new issuance was down 21% versus the same six-month period a year ago. The reduced supply, combined with strong demand, meant heightened prices and strong relative performance on the part of municipal bonds, but it also limited our ability to restructure and diversify the portfolio to the extent that we would have liked, as there were few new names from which to choose. SEMI-ANNUAL REPORTS APRIL 30, 2006 A Discussion With Your Funds' Portfolio Managers (concluded) Nevertheless, we were able to add two new issues to the portfolio. The first was bonds of a Puerto Rico convention center, a newcomer to the market with credit enhancement from insurer CIFG. This purchase allowed us to diversify the portfolio somewhat, an especially important consideration in a single state fund, and afforded us the valuable liquidity inherent in Puerto Rico debt. The fact that the bonds came with insurance was particularly beneficial, as we had been looking to reduce exposure to uninsured Puerto Rico credits in favor of insured bonds. Overall, we reduced exposure to BBB-rated Puerto Rico paper from 5.1% of net assets to 1% and increased our AAA exposure from 87.7% to 89.7%, thereby maintaining our desired allocation to the Puerto Rico market. The other new addition to the portfolio was bonds issued for the rehabilitation and expansion of the Jacob Javitz Convention Center in New York City. Overall, the new issues we purchased were 30-year bonds and had both 5% and 4.5% coupons. Also during the period, we sought to execute some tax loss swaps when yields backed up and attractive opportunities presented themselves. This was somewhat of a challenge given the limited supply. Overall, we aimed to balance our desire to maintain an attractive yield with our goal of enhancing the portfolio's total return potential. For the six-month period ended April 30, 2006, the Fund's Auction Market Preferred Stock (AMPS) had average yields as follows: 2.98% for Series A, 2.74% for Series B, 2.89% for Series C, 2.73% for Series D, 3.14% for Series E and 2.92% for Series F. The Fed raised the short-term interest rate target another 100 basis points during the six-month period, and this continued to affect the Fund's borrowing costs. We would expect additional increases in the cost of funds to be more limited as the Fed nears a pause in its monetary tightening campaign. Despite the interest rate increases during the period, the tax-exempt yield curve maintained a positive slope, allowing us to borrow at a lower interest rate than where we invest. This continued to generate an income benefit to the holders of Common Stock from the leveraging of Preferred Stock. However, should the spread between short-term and long-term interest rates narrow, the benefits of leveraging will decline and, as a result, reduce the yield on the Fund's Common Stock. At the end of the period, the Fund's leverage amount, due to AMPS, was 35.46% of total net assets, before the deduction of Preferred Stock. (For a more complete explanation of the benefits and risks of leveraging, see page 70 of this report to shareholders.) How would you characterize the portfolio's position at the close of the period? In terms of duration (that is, sensitivity to interest rate risk), the Fund ended the period neutral to slightly long relative to its New York insured peers. With the most recent interest rate hike on May 10, 2006, which brought the federal funds rate to 5%, the central bank appears prepared to shift gears from its "measured" program of interest rate hikes to a more data dependant policy. Fed Chairman Ben Bernanke, in an effort to avoid overtightening, has indicated some willingness to observe the economy's reaction to the two-year interest rate-hiking campaign and refine monetary policy later as conditions dictate. With that, we would expect to see value restored in the intermediate part of the curve, which had suffered the most as the yield curve flattened during the monetary tightening campaign, and a more moderate rally in the longer end. Based on this scenario, we are targeting the intermediate to long maturity range, essentially 20 years - 30 years. We expect new municipal supply to remain fairly muted, creating a positive technical environment that should allow municipal bonds to continue outperforming Treasury issues in the months ahead. We continue to look for opportunities to diversify the Fund while also seeking to balance yield and total return potential in the portfolio. Michael A. Kalinoski, CFA Vice President and Portfolio Manager MuniYield Arizona Fund, Inc. Walter C. O'Connor, CFA Vice President and Portfolio Manager MuniYield California Fund, Inc. MuniYield California Insured Fund, Inc. Robert D. Sneeden Vice President and Portfolio Manager MuniYield Florida Fund Fred K. Stuebe Vice President and Portfolio Manager MuniYield Michigan Insured Fund II, Inc. Timothy T. Browse, CFA Vice President and Portfolio Manager MuniYield New York Insured Fund, Inc. May 23, 2006 SEMI-ANNUAL REPORTS APRIL 30, 2006 Portfolio Information Quality Profiles as of April 30, 2006 Percent of MuniYield Arizona Fund, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 52.3% AA/Aa 7.8 A/A 13.6 BBB/Baa 20.8 BB/Ba 2.0 NR (Not Rated) 3.5 Other* 0.0** * Includes portfolio holdings in short-term investments. ** Amount is less than 0.1%. Percent of MuniYield California Fund, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 75.1% AA/Aa 5.5 A/A 10.5 BBB/Baa 4.5 NR (Not Rated) 1.1 Other* 3.3 * Includes portfolio holdings in short-term investments. Percent of MuniYield California Insured Fund, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 94.6% AA/Aa 1.4 A/A 2.0 Other* 2.0 * Includes portfolio holdings in variable rate demand notes and short-term investments. Percent of MuniYield Florida Fund Total By S&P/Moody's Rating Investments AAA/Aaa 77.1% AA/Aa 2.5 A/A 6.7 BBB/Baa 9.7 NR (Not Rated) 2.3 Other* 1.7 * Includes portfolio holdings in variable rate demand notes and short-term investments. Percent of MuniYield Michigan Insured Fund II, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 86.7% AA/Aa 4.6 A/A 4.9 BBB/Baa 3.1 Other* 0.7 * Includes portfolio holdings in short-term investments. Percent of MuniYield New York Insured Fund, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 89.7% AA/Aa 1.4 A/A 5.9 BBB/Baa 1.0 Other* 2.0 * Includes portfolio holdings in variable rate demand notes and short-term investments. SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments MuniYield Arizona Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value Arizona--140.4% $ 1,000 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Refunding Bonds, AMT, Junior Sub-Series, 6.30% due 12/01/2008 $ 1,016 1,800 Arizona Health Facilities Authority, Hospital System Revenue Bonds (Phoenix Children's Hospital), Series A, 6.125% due 11/15/2022 1,870 1,785 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625% due 7/01/2020 1,973 4,335 Arizona State University Revenue Bonds, DRIVERS, Series 270, 6.863% due 7/01/2021 (e)(k) 5,099 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT: 3,285 Junior Subordinated Series B-1, 6.15% due 5/01/2029 3,484 1,000 Senior Series A-1, 5.90% due 5/01/2024 1,053 Arizona Tourism and Sports Authority, Tax Revenue Bonds: 1,000 (Baseball Training Facilities Project), 5% due 7/01/2016 1,012 2,000 (Multi-Purpose Stadium Facility), Series A, 5.375% due 7/01/2023 (b) 2,132 1,000 Cottonwood, Arizona, Senior Lien Water System Revenue Bonds, 5% due 7/01/2035 (m) 1,026 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds (e): 1,250 Senior Series A, 5.25% due 7/01/2025 1,330 1,500 Senior Series A, 5% due 7/01/2036 1,535 1,500 Sub-Series B, 5% due 7/01/2036 1,535 3,000 Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series B, 5% due 8/01/2030 (b) 3,096 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation): 1,670 6.125% due 4/01/2007 (i) 1,738 735 6.125% due 4/01/2018 759 1,000 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.625% due 7/01/2020 996 (In Thousands) Face Amount Municipal Bonds Value Arizona (continued) $ 1,000 Maricopa County, Arizona, IDA, Health Facilities Revenue Bonds (Mayo Clinic), 5% due 11/15/2036 $ 1,021 2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan Health Services), Series A, 7% due 12/01/2016 (b)(d) 2,898 2,000 Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds (Place Five and Greenery Apartments), Series A, 6.625% due 1/01/2027 (d) 2,137 1,000 Maricopa County, Arizona, Peoria Unified School District Number 11, GO, Second Series, 5% due 7/01/2025 (e) 1,042 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 1,542 2,250 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB, Series 511X, 6.93% due 7/01/2014 (a)(k) 2,584 1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60% due 7/01/2012 2,095 500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO, Refunding, 7.50% due 7/01/2010 (e) 570 1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement, GO (Saddle Mountain), Series A, 5% due 7/01/2014 1,020 1,000 Mesa, Arizona, IDA Revenue Bonds (Discovery Health Systems), Series A, 5.625% due 1/01/2010 (b)(i) 1,070 1,000 Nogales Arizona Municipal Development Authority, Inc. Revenue Bonds, 5% due 6/01/2030 (a) 1,026 4,500 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2034 (e) 4,856 Phoenix, Arizona, Civic Improvement Corporation, Excise Tax Revenue Bonds (Civic Plaza Expansion Project), Sub-Series A (e): 2,500 5% due 7/01/2030 2,583 2,000 5% due 7/01/2035 2,059 Portfolio Abbreviations To simplify the listings of portfolio holdings in the Schedules of Investments, we have abbreviated the names of many of the securities according to the list at right. AMT Alternative Minimum Tax (subject to) COP Certificates of Participation DRIVERS Derivative Inverse Tax-Exempt Receipts 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 RIB Residual Interest Bonds RITR Residual Interest Trust Receipts ROLS Reset Option Long Securities S/F Single-Family VRDN Variable Rate Demand Notes SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield Arizona Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value Arizona (continued) Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding Bonds, Junior Lien: $ 2,500 5.50% due 7/01/2020 (e) $ 2,683 2,000 5% due 7/01/2029 (b) 2,070 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project), Series C: 750 6.70% due 7/01/2021 789 1,000 6.75% due 7/01/2031 1,042 1,000 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project II), Series A, 6.75% due 7/01/2021 1,054 1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A, 5.625% due 4/01/2014 (b) 1,034 280 Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.20% due 11/01/2030 (f)(g) 291 3,050 Pima County, Arizona, Unified School District Number 1, Tucson, GO, Refunding, 7.50% due 7/01/2009 (e) 3,385 Pinal County, Arizona, COP: 1,250 5% due 12/01/2026 1,268 1,250 5% due 12/01/2029 1,259 1,000 Pinal County, Arizona, IDA, Correctional Facilities Contract Revenue Bonds (Florence West Prison Project), Series A, 5.25% due 10/01/2023 (c) 1,034 2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due 12/01/2031 2,379 Scottsdale, Arizona, Municipal Property Corporation, Excise Tax Revenue Bonds: 1,000 5% due 7/01/2029 1,037 1,500 5% due 7/01/2030 1,557 1,195 Show Low, Arizona, IDA, Hospital Revenue Bonds (Navapache Regional Medical Center), 5% due 12/01/2035 (j) 1,211 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 (b) 1,625 425 Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds (Mortgage-Backed Securities Program), AMT, Series A-1, 6% due 7/01/2021 (f)(g) 429 (In Thousands) 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 7/01/2024 (j) $ 1,078 1,105 University of Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a) 1,144 2,000 University of Arizona, COP, Series B, 5% due 6/01/2028 (a) 2,047 Vistancia Community Facilities District, Arizona, GO: 1,275 6.75% due 7/15/2022 1,358 750 5.75% due 7/15/2024 756 500 Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds, 6% due 7/01/2030 496 2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional Medical Center), Series A, 6% due 8/01/2033 2,114 Guam--1.6% 1,000 Guam Government Waterworks Authority, Water and Wastewater System, Revenue Refunding Bonds, 5.875% due 7/01/2035 1,045 Puerto Rico--19.9% 500 Puerto Rico Commonwealth, GO, Refunding, RITR, Class R, Series 3, 7.409% due 7/01/2016 (b)(k) 576 1,700 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds, Series G, 5% due 7/01/2033 1,716 2,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031 2,026 Puerto Rico Electric Power Authority, Power Revenue Bonds: 1,000 Series II, 5.25% due 7/01/2031 1,035 1,500 Series NN, 5.125% due 7/01/2029 1,541 1,000 Series NN, 5% due 7/01/2032 (b) 1,032 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 1,638 2,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series I, 5.25% due 7/01/2033 2,075 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (concluded) MuniYield Arizona Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value Puerto Rico (concluded) $ 1,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.50% due 8/01/2029 $ 1,048 Total Municipal Bonds (Cost--$100,014)--161.9% 103,029 (In Thousands) Shares Held Short-Term Securities Value 1 CMA Arizona Municipal Money Fund, 3.07% (h)(l) $ 1 Total Short-Term Securities (Cost--$1)--0.0% 1 Total Investments (Cost--$100,015*)--161.9% 103,030 Other Assets Less Liabilities--1.5% 939 Preferred Stock, at Redemption Value--(63.4%) (40,321) --------- Net Assets Applicable to Common Stock--100.0% $ 63,648 ========= * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2006, as computed for federal income tax purposes, were as follows: Aggregate cost $ 100,024 =============== Gross unrealized appreciation $ 3,324 Gross unrealized depreciation (318) --------------- Net unrealized appreciation $ 3,006 =============== (a) AMBAC Insured. (b) MBIA Insured. (c) ACA Insured. (d) Escrowed to maturity. (e) FGIC Insured. (f) FHLMC Collateralized. (g) FNMA/GNMA Collateralized. (h) 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 (1,606) $11 (i) Prerefunded. (j) Radian Insured. (k) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (l) Represents the current yield as of 4/30/2006. (m) XL Capital Insured. See Notes to Financial Statements. SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments MuniYield California Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California--150.6% $ 1,730 ABAG Finance Authority for Nonprofit Corporations, California, Revenue Refunding Bonds (Redwood Senior Homes and Services), 6% due 11/15/2022 $ 1,852 4,500 Anaheim, California, Public Financing Authority Revenue Bonds, RIB, Series 1304, 5.97% due 10/01/2031 (d)(h) 4,722 3,975 Antioch Area Public Facilities Financing Agency, California, Special Tax (Community Facilities District Number 1989-1), 5.70% due 8/01/2009 (a)(f) 4,262 2,820 Arcata, California, Joint Powers Financing Authority, Tax Allocation Revenue Refunding Bonds (Community Development Project Loan), Series A, 6% due 8/01/2023 (a) 2,821 2,500 Bakersfield, California, COP, Refunding (Convention Center Expansion Project), 5.80% due 4/01/2007 (b)(f) 2,574 3,500 Bay Area Toll Authority, California, Toll Bridge Revenue Refunding Bonds (San Francisco Bay Area), Series F, 5% due 4/01/2031 3,619 California Health Facilities Financing Authority Revenue Bonds: 2,075 (California--Nevada Methodist Homes), 5% due 7/01/2036 2,100 5,000 (Kaiser Permanente), RIB, Series 26, 6.89% due 6/01/2022 (d)(h) 5,525 1,490 California Health Facilities Financing Authority, Revenue Refunding Bonds (Pomona Valley Hospital Medical Center), Series A, 5.625% due 7/01/2019 (b) 1,549 4,990 California Infrastructure and Economic Development Bank Revenue Bonds (J. David Gladstone Institute Project), 5.50% due 10/01/2022 5,237 3,000 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds (Waste Management Inc. Project), AMT, Series A-2, 5.40% due 4/01/2025 3,095 6,435 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Refunding Bonds (Waste Management Inc. Project), AMT, Series A, 5% due 1/01/2022 6,435 60 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Series B, 6.15% due 6/01/2020 (c) 60 5,000 California State Department of Water Resources Revenue Bonds (Central Valley Project), 5.25% due 7/01/2022 5,165 California State, GO, Refunding: 3,790 5.75% due 5/01/2010 (f) 4,097 2,000 5.25% due 2/01/2030 2,068 4,210 5.75% due 5/01/2030 4,490 2,785 (Veterans), AMT, Series BJ, 5.70% due 12/01/2032 2,848 (In Thousands) 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) $ 2,080 5,000 (Department of Corrections), Series C, 5.50% due 6/01/2023 5,368 6,645 (Department of Health Services), Series A, 5.75% due 11/01/2009 (b)(f) 7,156 17,000 (Various Community College Projects), Series A, 5.625% due 3/01/2016 (a) 17,365 California State, Various Purpose, GO: 4,730 5.50% due 4/01/2030 5,117 6,850 5.50% due 11/01/2033 7,370 5,250 California Statewide Communities Development Authority, COP (John Muir/Mount Diablo Health System), 5.125% due 8/15/2022 (b) 5,429 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A: 3,270 6% due 10/01/2023 3,551 3,000 5.50% due 10/01/2033 3,104 2,380 California Statewide Communities Development Authority, Water Revenue Bonds (Pooled Financing Program), Series C, 5.25% due 10/01/2028 (d) 2,507 2,000 Chino Basin, California, Regional Financing Authority Revenue Bonds (Inland Empire Utility Agency Sewer Project), 5.75% due 11/01/2009 (b)(f) 2,157 5,105 Contra Costa, California, Community College District, GO, ROLS, Series II-R-548X, 8% due 8/01/2030 (d)(h) 5,424 2,705 Contra Costa County, California, Public Financing Lease Revenue Refunding Bonds (Various Capital Facilities), Series A, 5.30% due 8/01/2020 (b) 2,810 4,780 Corona, California, Department of Water and Power, COP, 5% due 9/01/2035 (b) 4,902 3,750 Cucamonga, California, County Water District, COP, 5.125% due 9/01/2035 (e) 3,874 2,500 Davis, California, Joint Unified School District, Community Facilities District, Special Tax Refunding Bonds, Number 1, 5.50% due 8/15/2021 (b) 2,538 2,120 Eastern Municipal Water District, California, Water and Sewer Revenue Bonds, COP, Series A, 5% due 7/01/2032 (b) 2,180 4,000 Fremont, California, Unified School District, Alameda County, GO (Election of 2002), Series B, 5% due 8/01/2030 (d) 4,138 4,650 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series A-4, 7.80% due 6/01/2042 5,514 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield California Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 5,595 Grossmont-Cuyamaca Community College District, California, GO (Election of 2002), Series B, 5% due 8/01/2029 (e) $ 5,787 5,025 Indio, California, Water Authority, Water Enterprise Revenue Bonds, 5.125% due 4/01/2030 (a) 5,266 Industry, California, Urban Development Agency, Tax Allocation Refunding Bonds (Civic-Recreational-Industrial Redevelopment Project Number 1) (b): 5,000 5.50% due 5/01/2020 5,162 14,915 5.50% due 5/01/2021 15,409 3,010 La Quinta, California, Financing Authority, Local Agency Tax Allocation and Revenue Refunding Bonds, ROLS, Series II-R-412X, 6.332% due 9/01/2034 (a)(h) 3,226 2,000 Los Angeles, California, COP (Sonnenblick Del Rio West Los Angeles), 6.20% due 11/01/2031 (a) 2,204 Los Angeles, California, Harbor Department Revenue Bonds AMT: 4,000 RITR, Series RI-7, 8.255% due 11/01/2026 (b)(h) 4,177 2,000 Series B, 6% due 8/01/2015 2,031 6,000 Series B, 5.375% due 11/01/2023 6,096 7,000 Los Angeles, California, Wastewater System Revenue Bonds, Series A, 5% due 6/01/2008 (e)(f) 7,265 4,500 Los Angeles, California, Wastewater System, Revenue Refunding Bonds, Subordinate Series A, 5% due 6/01/2027 (b) 4,632 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) 3,918 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) 5,364 3,735 Los Angeles County, California, Public Works Financing Authority, Lease Revenue Refunding Bonds (Master Refunding Project), Series A, 5% due 12/01/2028 (b) 3,853 Los Angeles County, California, Sanitation Districts Financing Authority, Revenue Refunding Bonds (Capital Projects--District Number 14), Sub-Series B (e): 2,805 5% due 10/01/2025 2,920 2,550 5% due 10/01/2030 2,639 1,000 Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series A, 5% due 7/01/2030 (d) 1,034 8,705 Modesto, California, Wastewater Treatment Facilities Revenue Bonds, 5.625% due 11/01/2007 (b)(f) 9,049 7,570 Morgan Hill, California, Unified School District, GO, 5% due 8/01/2026 (e)(k) 2,789 (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 1,750 North City-West, California, School Facilities Financing Authority, Special Tax Refunding Bonds, Series B, 5.75% due 9/01/2015 (d) $ 1,796 Oakland, California, Alameda County Unified School District, GO (b): 4,240 (Election of 2000), 5% due 8/01/2027 4,382 3,290 Series F, 5.50% due 8/01/2017 3,496 3,770 Series F, 5.50% due 8/01/2018 4,005 Oakland, California, Joint Powers Financing Authority, Lease Revenue Bonds (Oakland Administration Buildings) (a)(f): 11,395 5.75% due 8/01/2006 11,682 2,000 5.90% due 8/01/2006 2,051 5,250 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (e) 5,375 3,000 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and Headworks Projects), Series A, 5.25% due 6/01/2034 (e) 3,165 1,000 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (b) 1,090 2,000 Peralta, California, Community College District, GO (Election of 2000), Series D, 5% due 8/01/2030 (d) 2,069 1,750 Pleasant Valley, California, School District, Ventura County, GO, Series C, 5.75% due 8/01/2025 (b)(g) 1,860 2,255 Pomona, California, Public Financing Authority Revenue Refunding Bonds (Merged Redevelopment Project), Series A1, 5.75% due 2/01/2034 2,355 10,600 Port of Oakland, California, Port Revenue Refunding Bonds, Series I, 5.40% due 11/01/2017 (b) 11,063 5,807 Port of Oakland, California, RIB, Refunding, AMT, Series 717X, 6.68% due 11/01/2027 (e)(h) 6,393 4,315 Rancho Cucamonga, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Rancho Redevelopment Project), 5.25% due 9/01/2020 (d) 4,520 2,345 Richmond, California, Redevelopment Agency, Tax Allocation, Refunding Bonds (Harbour Redevelopment Project), Series A, 5.50% due 7/01/2018 (b) 2,470 5,000 Sacramento, California, Municipal Utility District, Electric Revenue Refunding Bonds, Series L, 5.125% due 7/01/2022 (b) 5,167 Sacramento, California, Municipal Utility District Financing Authority, Revenue Bonds (b): 2,500 (Consumers Project), 5.125% due 7/01/2029 2,624 8,000 DRIVERS, Series 1237Z, 6.139% due 1/01/2014 (h) 8,795 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield California Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) Sacramento County, California, Sanitation District Financing Authority, Revenue Refunding Bonds: $ 6,775 (County Sanitation District Number 1), 5% due 8/01/2035 (b) $ 7,008 3,455 Series A, 5.60% due 12/01/2017 3,493 10,100 San Bernardino, California, City Unified School District, GO, Refunding, Series A, 5.875% due 8/01/2009 (e)(f) 10,882 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) 3,064 4,000 San Bernardino County, California, Redevelopment Agency, Tax Allocation Refunding Bonds (San Sevaine Redevelopment Project), Series A, 5% due 9/01/2035 (i) 4,065 8,000 San Diego, California, Certificates of Undivided Interest, Revenue Bonds, ROLS, Series II-R-551X, 8% due 8/01/2024 (e)(h) 8,515 1,665 San Diego, California, Community College District, GO (Election of 2002), 5% due 5/01/2030 (d) 1,721 3,600 San Diego, California, Unified School District, GO (Election of 1998), Series F, 5% due 7/01/2029 (d) 3,712 5,010 San Diego County, California, Water Authority, Water Revenue Bonds, COP, Series A, 5% due 5/01/2031 (d) 5,149 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds (b): 2,715 RIB, Series 1318-X, 5.97% due 7/01/2034 (h) 2,902 6,000 Series A, 5% due 7/01/2030 6,205 1,720 San Francisco, California, City and County Educational Facilities, GO (Community College), Series A, 5.75% due 6/15/2019 1,821 1,310 San Francisco, California, City and County Zoo Facilities, GO, Series B, 5.75% due 6/15/2019 1,387 4,615 San Jose, California, Airport Revenue Bonds, Series D, 5% due 3/01/2028 (b) 4,738 San Jose-Evergreen, California, Community College District, Capital Appreciation, GO (Election of 2004), Refunding, Series A (b)(k): 10,005 5.12% due 9/01/2023 4,171 5,000 5.33% due 9/01/2028 1,561 5,000 San Juan, California, Unified School District, GO (Election of 2002), 5% due 8/01/2028 (b) 5,147 5,040 San Ysidro, California, School District, Capital Appreciation, GO (Election of 1997), Series D, 5.249% due 8/01/2027 (e)(k) 1,758 (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 2,020 Santa Clara, California, Unified School District, GO, 5.50% due 7/01/2021 (e) $ 2,156 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 3,585 1,170 Santa Clarita, California, Community College District, GO (Election 2001), 5% due 8/01/2028 (d) 1,212 8,315 Santa Monica, California, Community College District, GO (Election of 2002), Refunding, Series C, 5.07% due 8/01/2028 (b)(k) 2,639 4,000 Santa Monica, California, Community College District, GO (Election of 2004), Series A, 5% due 5/01/2030 (b) 4,135 4,000 Santa Monica, California, Redevelopment Agency, Tax Allocation Bonds (Earthquake Recovery Redevelopment Project), 6% due 7/01/2009 (a)(f) 4,317 2,500 Sequoia, California, Unified High School District, GO, Refunding, 5% due 7/01/2028 (d) 2,597 6,875 Sonoma County, California, Junior College District, GO (Election 2002), Refunding, Series B, 5% due 8/01/2028 (d) 7,122 2,265 South Bayside, California, Waste Management Authority, Waste System Revenue Bonds, 5.75% due 3/01/2020 (a) 2,424 6,750 South Tahoe, California, Joint Powers Financing Authority, Revenue Refunding Bonds (South Tahoe Redevelopment Project Area Number 1), Series A, 5% due 10/01/2028 (a) 6,965 1,600 Stockton, California, Public Financing Authority, Water Revenue Bonds (Water System Capital Improvement Projects), Series A, 5% due 10/01/2031 (b) 1,655 3,235 Taft, California, Public Financing Authority, Lease Revenue Bonds (Community Correctional Facility), Series A, 6.05% due 1/01/2017 (b) 3,317 1,310 Torrance, California, Hospital Revenue Refunding Bonds (Torrance Memorial Medical Center), Series A, 6% due 6/01/2022 1,416 4,245 University of California Revenue Bonds, ROLS, Series II-R-524, 6.088% due 5/15/2033 (d)(h) 4,511 1,000 Ventura, California, Unified School District, GO (Election of 1997), Series H, 5.125% due 8/01/2034 (d) 1,039 3,990 Vernon, California, Electric System Revenue Bonds (Malburg Generating Station Project), 5.50% due 4/01/2008 (f) 4,132 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (concluded) MuniYield California Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (concluded) $ 5,000 Vista, California, Joint Powers Financing Authority, Lease Revenue Refunding Bonds, 5.625% due 5/01/2016 (b) $ 5,190 5,055 West Contra Costa, California, Unified School District, Capital Appreciation, GO (Election of 2002), Series C, 4.849% due 8/01/2027 (e)(k) 1,755 Puerto Rico--4.1% 2,140 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Bonds, Series Y, 5.50% due 7/01/2006 (b)(f) 2,179 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A (e): 9,750 4.66% due 7/01/2033 2,542 9,375 4.77% due 7/01/2043 1,469 6,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125% due 7/01/2029 6,678 (In Thousands) Face Amount Municipal Bonds Value U.S. Virgin Islands--1.1% $ 3,000 Virgin Islands Government Refinery Facilities, Revenue Refunding Bonds (Hovensa Coker Project), AMT, 6.50% due 7/01/2021 $ 3,370 Total Municipal Bonds (Cost--$473,830)--155.8% 485,986 Shares Held Short-Term Securities 16,388 CMA California Municipal Money Fund, 3.14% (j)(l) 16,388 Total Short-Term Securities (Cost--$16,388)--5.3% 16,388 Total Investments (Cost--$490,218*)--161.1% 502,374 Liabilities in Excess of Other Assets--(4.9%) (15,354) Preferred Stock, at Redemption Value--(56.2%) (175,134) --------- Net Assets Applicable to Common Stock--100.0% $ 311,886 ========= * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2006, as computed for federal income tax purposes, were as follows: Aggregate cost $ 490,154 =============== Gross unrealized appreciation $ 15,077 Gross unrealized depreciation (2,857) --------------- Net unrealized appreciation $ 12,220 =============== (a) AMBAC Insured. (b) MBIA Insured. (c) FNMA/GNMA Collateralized. (d) FSA Insured. (e) FGIC Insured. (f) Prerefunded. (g) Escrowed to maturity. (h) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (i) Radian Insured. (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 15,571 $65 (k) Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase. (l) Represents the current yield as of 4/30/2006. See Notes to Financial Statements. SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California--145.4% $ 7,000 ABAG Finance Authority for Nonprofit Corporations, California, COP (Children's Hospital Medical Center), 6% due 12/01/2029 (a) $ 7,554 2,350 Alameda, California, GO, 5% due 8/01/2033 (f) 2,425 5,665 Alhambra, California, Unified School District, GO (Election of 2004), Series A, 5% due 8/01/2029 (b) 5,860 3,580 Anaheim, California, Public Financing Authority, Electric System Distribution Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (e) 3,668 2,400 Anaheim, California, Union High School District, GO (Election of 2002), 5% due 8/01/2027 (f) 2,472 3,675 Bakersfield, California, COP, Refunding (Convention Center Expansion Project), 5.80% due 4/01/2007 (f)(g) 3,783 255 Bay Area Government Association, California, Tax Allocation Revenue Refunding Bonds (California Redevelopment Agency Pool), Series A, 6% due 12/15/2024 (e) 258 2,700 Bay Area Toll Authority, California, Toll Bridge Revenue Refunding Bonds (San Francisco Bay Area), Series F, 5% due 4/01/2031 2,792 3,990 Brentwood, California, Infrastructure Refinancing Authority, Infrastructure Revenue Refunding Bonds, Series A, 5.20% due 9/02/2029 (e) 4,146 California Community College Financing Authority, Lease Revenue Bonds, Series A (f): 3,215 5.95% due 12/01/2022 3,498 1,100 6% due 12/01/2029 1,199 5,000 California Educational Facilities Authority Revenue Bonds (University of San Diego), Series A, 5.50% due 10/01/2032 5,298 11,565 California Educational Facilities Authority, Student Loan Revenue Bonds (CalEdge Loan Program), AMT, 5.55% due 4/01/2028 (a) 11,953 California HFA, Home Mortgage Revenue Bonds, VRDN (i): 5,700 AMT, Series B, 3.75% due 8/01/2033 (e) 5,700 9,700 Series F, 3.68% due 2/01/2033 (a) 9,700 2,750 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente), Series A, 5.50% due 6/01/2022 (e)(j) 2,894 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT (d): 550 Series A, 6.35% due 12/01/2029 (c) 558 235 Series B, 6.25% due 12/01/2031 235 12,680 California State Department of Veteran Affairs, Home Purpose Revenue Refunding Bonds, Series A, 5.35% due 12/01/2027 (a) 13,389 860 California State, GO, 6.25% due 10/01/2019 (f)(g) 869 California State, GO, Refunding: 9,935 DRIVERS, AMT, Series 239, 7.263% due 12/01/2032 (a)(h) 10,453 3,000 Series BX, 5.50% due 12/01/2031 (e) 3,034 (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 4,530 California State Public Works Board, Lease Revenue Bonds (Department of Corrections--Ten Administrative Segregation Housing Units), Series A, 5.25% due 3/01/2020 (a) $ 4,753 16,675 California State Public Works Board, Lease Revenue Refunding Bonds (Department of Corrections), Series B, 5.625% due 11/01/2016 (f) 17,163 2,660 California State University, Systemwide Revenue Bonds, Series A, 5.375% due 11/01/2018 (b) 2,868 2,720 California State University, Systemwide Revenue Refunding Bonds, Series A, 5.125% due 11/01/2026 (a) 2,824 5,950 California State, Various Purpose, GO, 5.50% due 11/01/2033 6,401 4,100 California Statewide Communities Development Authority, COP (Kaiser Permanente), 5.30% due 12/01/2015 (e)(j) 4,194 3,685 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 6% due 10/01/2023 4,001 8,155 Calleguas-Las Virgenes, California, Public Financing Authority Revenue Bonds (Calleguas Municipal Water District Project), Series A, 5% due 7/01/2033 (f) 8,347 7,000 Capistrano, California, Unified School District, Community Facility District, Special Tax Refunding Bonds, 5% due 9/01/2029 (b) 7,200 Ceres, California, Redevelopment Agency, Tax Allocation Bonds (Ceres Redevelopment Project Area Number 1) (f): 4,600 5.75% due 11/01/2030 5,005 4,000 5% due 11/01/2033 4,115 6,000 Chaffey, California, Union High School District, GO, Series C, 5.375% due 5/01/2023 (e) 6,412 5,910 Chula Vista, California, Elementary School District, COP, 5% due 9/01/2029 (f) 6,068 2,540 Coalinga, California, Redevelopment Agency Tax Allocation Bonds, 5.90% due 9/15/2025 (f) 2,808 2,000 Compton, California, Unified School District, GO (Election of 2002), Series B, 5% due 6/01/2029 (f) 2,062 4,135 Contra Costa, California, Water District, Water Revenue Refunding Bonds, Series L, 5% due 10/01/2032 (e) 4,236 12,180 Contra Costa County, California, COP, Refunding (Merrithew Memorial Hospital Project), 5.375% due 11/01/2017 (f) 12,691 8,500 Corona, California, COP (Clearwater Cogeneration Project), 5% due 9/01/2028 (f) 8,720 2,000 Coronado, California, Community Development Agency, Tax Allocation Bonds (Coronado Community Development Project), 5.60% due 9/01/2030 (f) 2,146 5,000 East Bay Municipal Utility District, California, Water System Revenue Bonds, RIB, Series 1317-X, 5.97% due 6/01/2035 (f)(h) 5,317 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 9,045 El Monte, California, Unified School District, GO (Election of 2002), Series B, 5% due 3/01/2029 (f) $ 9,345 2,500 Fontana, California, Public Financing Authority, Subordinate Lien Tax Allocation Revenue Bonds (North Fontana Redevelopment Project), Series A, 5% due 10/01/2022 (a) 2,603 Fremont, California, Unified School District, Alameda County, GO: 6,000 (Election of 2002), Series B, 5% due 8/01/2030 (e) 6,206 10,755 Series A, 5.50% due 8/01/2026 (b) 11,571 4,295 Fresno, California, Joint Powers Financing Authority, Lease Revenue Bonds, Series A, 5.75% due 6/01/2026 (e) 4,647 6,930 Fullerton, California, Public Financing Authority, Tax Allocation Revenue Bonds, 5% due 9/01/2027 (a) 7,149 4,390 Glendale, California, Electric Revenue Bonds, 5% due 2/01/2032 (f) 4,490 Glendora, California, Unified School District, GO (Election of 2005), Series A (f): 1,350 5% due 8/01/2027 1,402 2,700 5.25% due 8/01/2030 2,885 3,810 Hercules, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Hercules Merged Project Area), 5% due 8/01/2029 (a) 3,912 5,000 Hesperia, California, Community Redevelopment Agency, Tax Allocation Bonds, Series A, 5% due 9/01/2025 (k) 5,162 5,000 Irvine, California, Unified School District Financing Authority, Special Tax Bonds, Series A, 5% due 9/01/2034 (a) 5,128 2,500 La Quinta, California, Financing Authority, Local Agency Revenue Bonds, Series A, 5.25% due 9/01/2024 (a) 2,656 3,050 Little Lake, California, City School District, GO, Refunding, 5.50% due 7/01/2025 (e) 3,349 10,260 Lodi, California, Unified School District, GO (Election of 2002), 5% due 8/01/2029 (e) 10,548 6,825 Long Beach, California, Bond Finance Authority Revenue Bonds (Redevelopment, Housing and Gas Utility Financings), Series A-1, 5% due 8/01/2030 (a) 7,008 7,575 Long Beach, California, Harbor Revenue Bonds, RIB, AMT, Series 786-X, 6.68% due 5/15/2024 (h) 8,185 2,735 Long Beach, California, Harbor Revenue Refunding Bonds, AMT, Series A, 5% due 5/15/2022 (f) 2,821 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) 10,295 (In Thousands) Face Amount Municipal Bonds Value California (continued) Los Angeles, California, Department of Airports, Airport Revenue Bonds (b): $ 290 (Los Angeles International Airport), AMT, Series D, 5.625% due 5/15/2012 $ 292 2,500 (Ontario International Airport), AMT, Series A, 6% due 5/15/2017 2,529 5,275 Series A, 5.25% due 5/15/2019 5,571 Los Angeles, California, Harbor Department Revenue Bonds, AMT (f)(h): 7,365 RIB, Series 349, 8.38% due 11/01/2026 7,690 7,000 Trust Receipts, Class R, Series 7, 8.389% due 11/01/2026 7,309 Los Angeles, California, Unified School District, GO: 2,880 (Election of 2004), Series C, 5% due 7/01/2027 (b) 2,975 5,000 (Election of 2004), Series F, 5% due 7/01/2030 (b) 5,194 7,000 Series E, 5% due 7/01/2030 (a) 7,239 5,000 Los Angeles, California, Water and Power Revenue Bonds (Power System), Sub-Series A-1, 5% due 7/01/2031 (e) 5,167 Los Angeles, California, Water and Power Revenue Refunding Bonds (f): 8,000 DRIVERS, Series 1302Z, 5.889% due 1/01/2012 (h) 8,475 3,165 (Power System), Series A-A-2, 5.375% due 7/01/2021 3,363 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) 5,431 6,500 Proposition A, First Tier Senior Series A, 5% due 7/01/2035 (a) 6,722 2,000 Proposition C, Second Tier Senior Series A, 5.25% due 7/01/2030 (b) 2,101 5,000 Los Angeles County, California, Public Works Financing Authority, Lease Revenue Refunding Bonds (Master Refunding Project), Series A, 5% due 12/01/2028 (f) 5,157 3,000 Los Rios, California, Community College District, GO (Election of 2002), Series B, 5% due 8/01/2027 (f) 3,096 Metropolitan Water District of Southern California, Waterworks Revenue Bonds: 5,370 Series B-1, 5% due 10/01/2033 (b) 5,517 1,090 Series B-3, 5% due 10/01/2029 (f) 1,125 4,245 Nevada County, California, COP, Refunding, 5.25% due 10/01/2019 (f) 4,471 2,000 New Haven, California, Unified School District, GO, Refunding, 5.75% due 8/01/2020 (e) 2,195 2,720 Oakland, California, GO (Measure DD), Series A, 5% due 1/15/2026 (f) 2,803 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) 2,090 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 1,245 Orange County, California, Airport Revenue Refunding Bonds, AMT, 5.625% due 7/01/2012 (f) $ 1,290 6,360 Orange County, California, Public Financing Authority, Lease Revenue Refunding Bonds (Juvenile Justice Center Facility), 5.375% due 6/01/2018 (a) 6,837 5,000 Orange County, California, Recovery COP, Refunding, Series A, 6% due 7/01/2006 (f)(g) 5,119 10,000 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and Headworks Projects), Series A, 5.25% due 6/01/2034 (b) 10,549 9,645 Oxnard, California, Unified High School District, GO, Refunding, Series A, 6.20% due 8/01/2030 (f) 11,102 1,275 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (f) 1,389 4,640 Palmdale, California, Water District Public Facility Corporation, COP, 5% due 10/01/2029 (b) 4,762 Placentia-Yorba Linda, California, Unified School District: 5,000 COP, 5% due 10/01/2030 (b) 5,144 5,000 GO (Election of 2002), Series C, 5% due 8/01/2029 (f) 5,172 Port of Oakland, California, AMT (b)(h): 9,520 RIB, Series 1192, 6.68% due 11/01/2027 10,480 10,000 RITR, Class R, Series 5, 7.424% due 11/01/2012 11,251 7,500 Port of Oakland, California, Revenue Bonds, AMT, Series K, 5.75% due 11/01/2029 (b) 7,927 3,500 Rio Hondo, California, Community College District, GO, Series A, 5.25% due 8/01/2014 (f)(g) 3,802 3,000 Riverside, California, COP, 5% due 9/01/2028 (a) 3,078 Riverside, California, Unified School District, GO (Election of 2001): 6,000 Series A, 5.25% due 2/01/2023 (b) 6,370 7,515 Series B, 5% due 8/01/2030 (f) 7,795 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) 4,978 3,100 Roseville, California, Financing Authority, Senior Lien, Revenue Refunding Bonds, Series A, 5% due 9/01/2025 (a) 3,209 2,565 Saddleback Valley, California, Unified School District, GO, 5% due 8/01/2029 (e) 2,645 5,000 San Bernardino, California, City Unified School District, GO, Series A, 5% due 8/01/2028 (e) 5,157 490 San Bernardino County, California, S/F Home Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.25% due 12/01/2031 (d) 491 12,355 San Diego, California, Certificates of Undivided Interest, Revenue Bonds, ROLS, Series II-R-551X, 8% due 8/01/2024 (b)(h) 13,150 2,665 San Diego, California, Community College District, GO (Election of 2002), 5% due 5/01/2030 (e) 2,755 (In Thousands) Face Amount Municipal Bonds Value California (continued) San Diego County, California, COP (Salk Institute for Bio Studies) (f): $ 3,570 5.75% due 7/01/2022 $ 3,874 5,200 5.75% due 7/01/2031 5,647 San Diego County, California, Water Authority, Water Revenue Bonds, COP, Series A (e): 7,350 5% due 5/01/2030 7,559 10,000 5% due 5/01/2031 10,277 San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds (f): 5,250 RIB, Series 1318-X, 5.97% due 7/01/2034 (h) 5,612 9,630 Series A, 5% due 7/01/2030 9,959 San Francisco, California, City and County Airport Commission, International Airport Revenue Refunding Bonds, Second Series 28B (f): 3,000 5.25% due 5/01/2023 3,171 6,455 5.25% due 5/01/2024 6,823 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 1,054 985 6.125% due 1/01/2027 1,038 San Francisco, California, Community College District, GO, Refunding, Series A (b): 1,735 5.375% due 6/15/2019 1,860 1,730 5.375% due 6/15/2020 1,855 1,925 5.375% due 6/15/2021 2,054 4,135 San Jose, California, Airport Revenue Bonds, Series D, 5% due 3/01/2028 (f) 4,245 5,700 San Jose, California, Financing Authority, Lease Revenue Refunding Bonds, DRIVERS, Series 1280Z, 5.889% due 12/01/2010 (a)(h) 5,937 3,650 San Jose, California, Redevelopment Agency, Tax Allocation Bonds, RIB, AMT, Series 149, 7.58% due 8/01/2027 (f)(h) 3,964 4,250 San Juan, California, Unified School District, GO (Election of 2002), 5% due 8/01/2028 (f) 4,375 1,700 San Mateo County, California, Community College District, COP, 5% due 10/01/2014 (f)(g) 1,745 4,350 San Mateo County, California, Transit District, Sales Tax Revenue Refunding Bonds, Series A, 5% due 6/01/2029 (f) 4,491 2,595 Santa Clara, California, Redevelopment Agency, Tax Allocation Bonds (Bayshore North Project), Series A, 5.25% due 6/01/2019 (a) 2,721 5,500 Santa Clara, California, Subordinated Electric Revenue Bonds, Series A, 5% due 7/01/2028 (f) 5,660 1,100 Santa Clara Valley, California, Water District, Water Utility System Revenue, Series A, 5.125% due 6/01/2031 (b) 1,142 Santa Rosa, California, High School District, GO: 3,000 5.375% due 8/01/2026 (e) 3,191 2,500 (Election of 2002), 5% due 8/01/2028 (f) 2,573 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (concluded) MuniYield California Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value California (continued) $ 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 South Tahoe, California, Joint Powers Financing Authority, Revenue Refunding Bonds (South Tahoe Redevelopment Project Area Number 1), Series A (e): 1,645 5% due 10/01/2029 1,688 5,830 5% due 10/01/2034 5,968 5,000 Southern California Public Power Authority, Power Project Revenue Bonds (Magnolia Power Project), Series A-1, 5% due 7/01/2033 (a) 5,133 2,600 Stockton, California, Public Financing Authority, Water Revenue Bonds (Water System Capital Improvement Projects), Series A, 5% due 10/01/2031 (f) 2,689 1,055 Stockton, California, Public Financing Revenue Refunding Bonds, Series A, 5.875% due 9/02/2016 (e) 1,062 2,315 Sweetwater, California, Union High School District, Public Financing Authority, Special Tax Revenue Bonds, Series A, 5% due 9/01/2029 (e) 2,377 1,500 Tehachapi, California, COP, Refunding (Installment Sale), 5.75% due 11/01/2016 (e) 1,659 6,000 Tracy, California, Community Development Agency, Tax Allocation Refunding Bonds, Series A, 5% due 3/01/2034 (a) 6,128 3,000 Turlock, California, Public Finance Authority, Sewer Revenue Bonds, Series A, 5% due 9/15/2033 (b) 3,082 University of California Revenue Bonds: 8,720 (Multiple Purpose Projects), Series Q, 5% due 9/01/2024 (e) 9,027 6,110 (Multiple Purpose Projects), Series Q, 5% due 9/01/2033 (e) 6,287 4,790 Series O, 5.125% due 9/01/2031 (b) 4,944 3,395 Ventura County, California, Community College District, GO, Refunding, Series A, 5% due 8/01/2027 (f) 3,497 (In Thousands) Face Amount Municipal Bonds Value California (concluded) $ 2,550 Vista, California, Unified School District, GO, Series B, 5% due 8/01/2028 (b) $ 2,625 2,185 Walnut, California, Public Financing Authority, Tax Allocation Revenue Bonds (Walnut Improvement Project), 5.375% due 9/01/2021 (a) 2,325 6,690 West Contra Costa, California, Unified School District, GO (Election of 2002), Series B, 5% due 8/01/2032 (e) 6,850 Puerto Rico--9.4% 20,000 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A, 4.56% due 7/01/2029 (a)(m) 6,359 8,410 Puerto Rico Commonwealth, Public Improvement, GO, 5.75% due 7/01/2010 (f) 9,057 10,000 Puerto Rico Municipal Finance Agency, GO, RIB, Series 225, 7.41% due 8/01/2012 (e)(h) 11,424 20,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.75% due 2/01/2007 (g) 20,312 Total Municipal Bonds (Cost--$762,040)--154.8% 779,619 Shares Held Short-Term Securities 36 CMA California Municipal Money Fund, 3.14% (l)(n) 36 Total Short-Term Securities (Cost--$36)--0.0% 36 Total Investments (Cost--$762,076*)--154.8% 779,655 Liabilities in Excess of Other Assets--(0.2%) (866) Preferred Stock, at Redemption Value--(54.6%) (275,181) ---------- Net Assets Applicable to Common Stock--100.0% $ 503,608 ========== * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2006, as computed for federal income tax purposes, were as follows: Aggregate cost $ 762,043 =============== Gross unrealized appreciation $ 21,072 Gross unrealized depreciation (3,460) --------------- Net unrealized appreciation $ 17,612 =============== (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) 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. (j) Escrowed to maturity. (k) XL Capital Insured. (l) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: Net Dividend Affiliate Activity Income CMA California Municipal Money Fund 29 $45 (m) Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase. (n) Represents the current yield as of 4/30/2006. See Notes to Financial Statements. SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments MuniYield Florida Fund (In Thousands) Face Amount Municipal Bonds Value 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) $ 1,028 Florida--139.7% 2,100 Alachua County, Florida, School Board, COP, 5.25% due 7/01/2029 (b) 2,212 2,000 Beacon Tradeport Community Development District, Florida, Special Assessment Revenue Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (o) 2,144 2,870 Broward County, Florida, Airport System Revenue Bonds, AMT, Series I, 5.75% due 10/01/2018 (b) 3,091 Broward County, Florida, Educational Facilities Authority Revenue Bonds (Nova Southeastern University): 2,750 5% due 4/01/2031 (c) 2,837 1,000 Series B, 5.625% due 4/01/2034 1,030 Citrus County, Florida, Hospital Board Revenue Refunding Bonds (Citrus Memorial Hospital): 2,385 6.25% due 8/15/2023 2,567 2,850 6.375% due 8/15/2032 3,060 3,160 Collier County, Florida, IDA, IDR, Refunding (Southern States Utilities), AMT, 6.50% due 10/01/2025 3,232 Duval County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT (i): 1,370 5.40% due 10/01/2021 1,376 2,310 5.85% due 10/01/2027 (m) 2,355 1,000 Flagler County, Florida, School Board, COP, Series A, 5% due 8/01/2024 (j) 1,034 515 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series 4, 6.25% due 7/01/2022 (j) 526 Florida Municipal Loan Council Revenue Bonds (m): 1,580 Series A-1, 5.125% due 7/01/2034 1,637 4,250 Series B, 5.375% due 11/01/2030 4,490 1,220 Florida State Board of Education, Capital Outlay, GO, Public Education, Series A, 6% due 1/01/2010 (n) 1,324 2,500 Florida State Board of Education, GO (Public Education Capital Outlay), Series J, 5% due 6/01/2031 2,575 1,000 Florida State Board of Education, Lottery Revenue Bonds, Series A, 6% due 7/01/2014 (f) 1,093 1,000 Florida State Governmental Utility Authority, Utility Revenue Bonds (Lehigh Utility System), 5.125% due 10/01/2033 (b) 1,036 1,075 Gainesville, Florida, Utilities System Revenue Bonds, Series A, 5.25% due 10/01/2022 1,145 5,000 Hernando County, Florida, School Board, COP, 5% due 7/01/2035 (m) 5,151 5,900 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health System), Series A, 6% due 11/15/2011 (n) 6,559 (In Thousands) Face Amount Municipal Bonds Value Florida (continued) Hillsborough County, Florida, Court Facilities Revenue Bonds (b)(n): $ 3,945 5.40% due 11/01/2007 $ 4,081 1,055 5.40% due 11/01/2012 1,146 Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum Company), AMT: 2,500 Series A, 7.125% due 4/01/2030 2,759 3,750 Series B, 7.125% due 4/01/2030 4,138 1,000 Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee Moffitt Cancer Center Project), Series C, 5.50% due 7/01/2032 1,024 1,500 Hillsborough County, Florida, School Board, COP, 5% due 7/01/2029 (m) 1,537 1,000 Jacksonville, Florida, Economic Development Commission, Health Care Facilities Revenue Bonds (Mayo Clinic--Jacksonville), Series A, 5.50% due 11/15/2036 (m) 1,072 Jacksonville, Florida, Economic Development Commission, IDR (Metropolitan Parking Solutions Project), AMT (a): 1,140 5.50% due 10/01/2030 1,188 2,800 5.875% due 6/01/2031 3,011 1,500 Jacksonville, Florida, Excise Taxes Revenue Bonds, Series B, 5.125% due 10/01/2032 (f) 1,549 2,315 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and Improvement Bonds, 5.25% due 10/01/2032 (f) 2,427 3,500 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland Regional Health System), Series A, 5.50% due 11/15/2026 (m) 3,686 3,375 Lee County, Florida, Capital Revenue Bonds, 5.25% due 10/01/2023 (b) 3,602 40 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT, Series A-1, 7.125% due 3/01/2028 (i) 40 200 Lee County, Florida, Hospital Board of Directors, Hospital Revenue Bonds (Memorial Health System), VRDN, Series A, 3.76% due 4/01/2025 (p) 200 125 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT, Series B, 7.30% due 1/01/2028 (g)(k) 126 155 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Sub-Series 2, 7.75% due 5/01/2026 (g)(k) 160 235 Manatee County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Sub-Series 1, 6.25% due 11/01/2028 (k) 239 1,000 Marco Island, Florida, Utility System Revenue Bonds, 5% due 10/01/2033 (m) 1,029 Martin County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Martin Memorial Medical Center), Series A: 1,350 5.75% due 11/15/2022 1,435 3,535 5.875% due 11/15/2032 3,747 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield Florida Fund (In Thousands) Face Amount Municipal Bonds Value Florida (continued) $ 3,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due 9/01/2025 (b) $ 3,240 Miami-Dade County, Florida, Aviation Revenue Bonds (Miami International Airport), AMT, Series A: 4,300 6% due 10/01/2029 (f) 4,631 4,335 5% due 10/01/2033 (j) 4,389 1,650 5% due 10/01/2033 (f) 1,671 10,040 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, Series A, 5% due 10/01/2038 (d) 10,198 1,750 Miami-Dade County, Florida, Educational Facilities Authority Revenue Bonds (University of Miami), Series A, 5.75% due 4/01/2029 (b) 1,879 Miami-Dade County, Florida, Expressway Authority, Toll System Revenue Bonds (f): 8,000 DRIVERS, Series 160, 8.86% due 7/01/2010 (n)(q) 9,673 4,750 Series B, 5% due 7/01/2033 4,891 535 Miami-Dade County, Florida, HFA, Home Ownership Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.30% due 10/01/2020 (i) 554 3,300 Miami-Dade County, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds, DRIVERS, Series 208, 7.124% due 8/15/2017 (b)(q) 3,772 Miami-Dade County, Florida, School Board, COP: 3,200 Series A, 5.50% due 10/01/2009 (j)(n) 3,378 1,250 Series A, 5% due 11/01/2022 (b) 1,306 3,500 Series A, 5% due 11/01/2026 (b) 3,633 2,500 Series B, 5% due 11/01/2031 (b) 2,576 2,800 Miami-Dade County, Florida, Solid Waste System Revenue Bonds, 5.25% due 10/01/2030 (m) 2,977 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds: 1,750 (Adventist Health System), 6.25% due 11/15/2024 1,915 5,140 (Orlando Regional Healthcare), 6% due 12/01/2012 (n) 5,741 10,500 Orange County, Florida, School Board, COP, Series A, 5.25% due 8/01/2009 (m)(n) 11,071 8,615 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50% due 10/01/2032 (b) 9,193 Orlando and Orange County, Florida, Expressway Authority Revenue Bonds, Series B (b): 3,000 5% due 7/01/2030 3,084 10,185 5% due 7/01/2035 10,456 1,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding Bonds, Series C, 5.25% due 10/01/2023 1,059 1,955 Osceola County, Florida, School Board, COP, Series A, 5.25% due 6/01/2027 (b) 2,054 1,760 Osceola County, Florida, Tourist Development Tax Revenue Bonds, Series A, 5.50% due 10/01/2027 (f) 1,885 (In Thousands) Face Amount Municipal Bonds Value Florida (continued) $ 3,390 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20% due 6/01/2015 (f) $ 4,153 6,000 Palm Beach County, Florida, School Board, COP, Series A, 6.25% due 8/01/2010 (f)(n) 6,631 1,435 Palm Coast, Florida, Utility System Revenue Bonds, 5% due 10/01/2027 (m) 1,475 Peace River/Manasota Regional Water Supply Authority, Florida, Utility System Revenue Bonds, Series A (j): 3,500 5% due 10/01/2025 3,644 2,075 5% due 10/01/2030 2,147 8,000 5% due 10/01/2035 8,267 Pinellas County, Florida, HFA, S/F Housing Revenue Refunding Bonds (Multi-County Program), AMT, Series A-1 (i): 485 6.30% due 9/01/2020 488 735 6.35% due 9/01/2025 739 3,000 Pinellas County, Florida, Health Facilities Authority Revenue Bonds (BayCare Health System Inc.), 5.75% due 5/15/2013 (n) 3,294 Polk County, Florida, Public Facilities Revenue Bonds (m): 1,300 5% due 12/01/2025 1,352 1,480 5% due 12/01/2033 1,528 4,385 Polk County, Florida, School Board COP, Master Lease, Series A, 5.50% due 1/01/2025 (j) 4,681 1,200 Port Everglades Authority, Florida, Port Revenue Bonds, 7.125% due 11/01/2016 (e) 1,413 1,215 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25% due 9/01/2025 (m) 1,292 1,325 Reedy Creek, Florida, Improvement District, Utilities Revenue Bonds, Series 1, 5% due 10/01/2021 (b) 1,387 1,900 Saint Johns County, Florida, Ponte Vedra Utility System Revenue Bonds, 5% due 10/01/2030 (j) 1,966 Saint Johns County, Florida, Sales Tax Revenue Bonds, (b): 2,400 Series A, 5.25% due 10/01/2032 2,535 1,200 Series A, 5.25% due 10/01/2034 1,268 1,015 Series B, 5.25% due 10/01/2032 1,072 1,500 Santa Rosa County, Florida, School Board, COP, DRIVERS, Series 1293Z, 6.38% due 2/01/2014 (f)(q) 1,684 1,000 Seminole County, Florida, Sales Tax Revenue Bonds, Series A, 5% due 10/01/2031 (m) 1,034 4,250 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS, Series 337, 7.129% due 5/01/2032 (m)(q) 4,906 South Lake County, Florida, Hospital District Revenue Bonds (South Lake Hospital Inc.): 1,000 5.80% due 10/01/2034 1,032 1,150 6.375% due 10/01/2034 1,245 2,800 Tallahassee, Florida, Energy System Revenue Bonds, 5% due 10/01/2035 (m) 2,889 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield Florida Fund (In Thousands) Face Amount Municipal Bonds Value Florida (concluded) $ 500 Tamarac, Florida, Capital Improvement Revenue Bonds, 5% due 10/01/2030 (m) $ 516 5,000 Tampa Bay, Florida, Water Utility System Revenue Bonds, 5.75% due 10/01/2011 (f)(n) 5,474 3,235 University of Central Florida (UCF) Athletics Association Inc., COP, Series A, 5.25% due 10/01/2034 (f) 3,397 Village Center Community Development District, Florida, Recreational Revenue Bonds, Series A (m): 1,995 5.375% due 11/01/2034 2,142 1,000 5.125% due 11/01/2036 1,042 5,040 Village Center Community Development District, Florida, Utility Revenue Bonds, 5.125% due 10/01/2028 (m) 5,241 1,000 Volusia County, Florida, IDA, Student Housing Revenue Bonds (Stetson University Project), Series A, 5% due 6/01/2035 (d) 1,032 5,000 Volusia County, Florida, School Board, COP (Master Lease Program), 5.50% due 8/01/2024 (j) 5,292 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) 3,345 Maryland--0.7% 1,375 Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Senior Series A, 5.25% due 9/01/2039 (h) 1,451 (In Thousands) Face Amount Municipal Bonds Value New Jersey--3.6% New Jersey EDA, Cigarette Tax Revenue Bonds: $ 3,500 5.50% due 6/15/2024 $ 3,625 1,735 5.75% due 6/15/2029 1,833 505 5.50% due 6/15/2031 523 1,000 Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Bonds, 7% due 6/01/2041 1,131 Puerto Rico--4.0% 2,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series I, 5% due 7/01/2036 2,015 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E: 1,715 5.70% due 2/01/2010 (n) 1,832 4,025 5.50% due 8/01/2029 4,220 Total Municipal Bonds (Cost--$289,141)--150.2% 301,157 Shares Held Short-Term Securities 5,335 CMA Florida Municipal Money Fund, 3.14% (l)(r) 5,335 10 Merrill Lynch Institutional Tax-Exempt Fund, 3.49% (l)(r) 10 Total Short-Term Securities (Cost--$5,345)--2.7% 5,345 Total Investments (Cost--$294,486*)--152.9% 306,502 Other Assets Less Liabilities--2.0% 4,038 Preferred Shares, at Redemption Value--(54.9%) (110,039) ---------- Net Assets Applicable to Common Shares--100.0% $ 200,501 ========== SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (concluded) MuniYield Florida Fund (In Thousands) * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2006, as computed for federal income tax purposes, were as follows: Aggregate cost $ 294,389 =============== Gross unrealized appreciation $ 12,606 Gross unrealized depreciation (493) --------------- Net unrealized appreciation $ 12,113 =============== (a) ACA Insured. (b) AMBAC Insured. (c) Assured Guaranty Insured. (d) CIFG Insured. (e) Escrowed to maturity. (f) FGIC Insured. (g) FHLMC Collateralized. (h) XL Capital Insured. (i) FNMA/GNMA Collateralized. (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 5,335 $36 Merrill Lynch Institutional Tax-Exempt Fund (490) --* * Amount is less than $1,000. (m) MBIA Insured. (n) Prerefunded. (o) Radian Insured. (p) 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. (q) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (r) Represents the current yield as of 4/30/2006. o Forward interest rate swaps outstanding as of April 30, 2006 were as follows: Notional Unrealized Amount Appreciation Pay a fixed rate of 3.976% and receive a floating rate based on a 1-week Bond Market Association rate Broker, JPMorgan Chase Bank Expires May 2021 $17,400 $ 454 See Notes to Financial Statements. SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments MuniYield Michigan Insured Fund II, Inc. (In Thousands) Face Amount Municipal Bonds Value Michigan--147.6% $ 2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2034 (d) $ 2,464 Anchor Bay, Michigan, School District, School Building and Site, GO (c)(f): 2,000 Series I, 6% due 5/01/2009 2,127 3,165 Series II, 5.75% due 5/01/2010 3,398 2,150 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2010 (e)(f) 2,289 1,000 Central Montcalm, Michigan, Public Schools, GO, 5.75% due 5/01/2009 (e)(f) 1,057 3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2009 (c)(f) 4,027 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) 2,722 Detroit, Michigan, City School District (School Building and Site Improvement), GO, Series A (c)(f): 2,000 5% due 5/01/2013 2,125 1,480 5.375% due 5/01/2013 1,606 Detroit, Michigan, Water Supply System Revenue Bonds: 1,000 DRIVERS, Series 200, 5.75% due 7/01/2011 (c)(f)(g) 1,200 4,600 Senior Lien, Series A, 5% due 7/01/2034 (e) 4,697 2,000 Series B, 5.25% due 7/01/2032 (e) 2,100 4,400 Series B, 5% due 7/01/2034 (e) 4,498 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 2,656 2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds, 5.80% due 11/01/2024 (h) 2,265 East Grand Rapids, Michigan, Public School District, GO (d)(f): 1,610 5.75% due 5/01/2009 1,701 6,300 6% due 5/01/2009 6,699 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d): 2,000 5.25% due 5/01/2023 2,125 1,000 5% due 5/01/2026 1,034 1,250 5% due 5/01/2029 1,287 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), Series A (h): 385 5.375% due 7/01/2020 392 775 6% due 7/01/2020 831 1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 1,853 3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due 5/01/2028 (c) 3,762 (In Thousands) Face Amount Municipal Bonds Value Michigan (continued) Grand Blanc, Michigan, Community Schools, GO (c): $ 1,000 5.625% due 5/01/2017 $ 1,078 1,000 5.625% due 5/01/2018 1,078 1,100 5.625% due 5/01/2019 1,186 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A (a): 665 5.50% due 10/01/2012 (f) 725 805 5.50% due 10/01/2018 867 190 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) 1,682 225 Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding, 5% due 5/01/2034 (c) 231 4,500 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 4,871 1,275 Haslett, Michigan, Public School District, Building and Site, GO, 5.625% due 11/01/2011 (e)(f) 1,389 2,000 Howell, Michigan, Public Schools, GO, 5.875% due 5/01/2009 (e)(f) 2,120 2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (d) 2,739 3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,213 3,750 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2008 (e)(f) 3,914 1,490 Kenowa Hills, Michigan, Public Schools, GO, Refunding, 5% due 5/01/2025 (c) 1,548 3,000 Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health), Series A, 5.50% due 7/15/2011 (e)(f) 3,259 1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,531 1,125 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds (Hillsdale College Project), 5% due 3/01/2035 1,135 1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,041 Michigan Higher Education Facilities Authority Revenue Refunding Bonds (College for Creative Studies): 550 5.85% due 12/01/2022 579 1,000 5.90% due 12/01/2027 1,048 3,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT, Series XVII-B, 5.40% due 6/01/2018 (a) 3,071 Michigan State Building Authority Revenue Bonds (Facilities Program), Series II: 1,185 4.67% due 10/15/2009 (a)(b)(j) 1,036 1,675 4.77% due 10/15/2010 (a)(b)(j) 1,407 2,675 GO, RIB, Series 481, 6.93% due 4/15/2009 (e)(g) 2,976 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield Michigan Insured Fund II, Inc. (In Thousands) Face Amount Municipal Bonds Value Michigan (continued) Michigan State Building Authority, Revenue Refunding Bonds: $ 2,000 (Facilities Program), Series II, 5% due 10/15/2029 (e) $ 2,056 5,000 (Facilities Program), Series II, 5% due 10/15/2033 (a) 5,164 3,500 RIB, Series 517X, 6.93% due 10/15/2010 (d)(g) 4,042 Michigan State COP: 3,870 5.50% due 6/01/2010 (a)(f) 4,123 5,380 RIB, Series 530, 7.43% due 9/01/2011 (e)(g) 6,282 1,500 Michigan State Comprehensive Transportation Revenue Refunding Bonds, Series A, 5.50% due 11/01/2018 (d) 1,606 460 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due 10/01/2037 (e) 463 1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan Obligation Group), Series A, 5.50% due 4/15/2018 (a) 1,058 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds: 1,300 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 1,368 1,250 (Sparrow Obligation Group), 5.625% due 11/15/2031 1,293 2,000 Michigan State Hospital Finance Authority Revenue Bonds (Mercy Health Services), Series R, 5.375% due 8/15/2026 (a)(b) 2,029 Michigan State Hospital Finance Authority, Revenue Refunding Bonds: 7,000 5% due 11/15/2036 (e) 7,169 8,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 8,680 3,760 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (e)(f) 4,095 3,215 (Mercy Health Services), Series X, 6% due 8/15/2009 (e)(f) 3,475 1,000 (Mercy-Mount Clemens), Series A, 6% due 5/15/2014 (e) 1,067 2,000 (Mercy-Mount Clemens), Series A, 5.75% due 5/15/2029 (e) 2,111 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 3,594 1,900 (Trinity Health Credit), Series D, 5% due 8/15/2034 1,932 5,500 (Trinity Health), Series A, 6% due 12/01/2027 (a) 5,993 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds: 9,500 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (e) 9,945 2,000 (Detroit Edison Company Fund--Pollution), Series AA, 6.95% due 5/01/2011 (c) 2,269 3,200 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,272 1,375 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 1,457 (In Thousands) Face Amount Municipal Bonds Value Michigan (continued) $ 2,700 Michigan State Trunk Line Fund Revenue Bonds, 5% due 9/01/2014 (c)(f) $ 2,873 6,500 Monroe County, Michigan, Economic Development Corp., Limited Obligation Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 8,304 1,200 New Lothrop, Michigan, Area Public Schools, School Building and Site, GO, 5% due 5/01/2035 (d) 1,236 600 Oak Park, Michigan, Street Improvement, GO, 5% due 5/01/2030 (e) 621 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) 1,038 1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due 5/01/2014 (d)(f) 1,063 1,900 Rochester, Michigan, Community School District, GO, Series II, 5.50% due 11/01/2011 (e)(f) 2,059 1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,585 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c): 1,450 5% due 7/01/2024 1,504 1,000 5% due 7/01/2034 1,027 6,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Company), RIB, Series 282, 8.68% due 8/01/2024 (a)(g) 7,436 2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due 5/01/2010 (e)(f) 2,845 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A (d): 1,950 5.25% due 5/01/2027 2,062 1,000 5% due 5/01/2029 1,030 1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,029 2,015 Sturgis, Michigan, Public School District, GO, Refunding, 5% due 5/01/2030 (c) 2,080 6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County), AMT, Series A, 5.375% due 12/01/2015 (e) 6,741 1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel, Series A, 5% due 12/01/2030 (e) 1,211 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (concluded) MuniYield Michigan Insured Fund II, Inc. (In Thousands) Face Amount Municipal Bonds Value Michigan (concluded) Wayne County, Michigan, Airport Authority Revenue Bonds, AMT (e): $ 7,100 (Detroit Metropolitan Wayne County Airport), 5% due 12/01/2034 $ 7,202 4,090 DRIVERS, Series 1081-Z, 6.349% due 6/01/2013 (g) 4,502 5,300 Wyoming, Michigan, Sewage Disposal System Revenue Bonds, 5% due 6/01/2030 (e) 5,472 1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (e) 1,370 Puerto Rico--6.3% 3,000 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series K, 5% due 7/01/2040 2,995 11,700 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A, 4.66% due 7/01/2036 (a)(j) 2,604 (In Thousands) Face Amount Municipal Bonds Value Puerto Rico (concluded) Puerto Rico Electric Power Authority, Power Revenue Bonds: $ 2,575 Series RR, 5% due 7/01/2035 (c) $ 2,669 2,270 Trust Receipts, Class R, Series 16 HH, 7.405% due 7/01/2013 (d)(g) 2,658 Total Municipal Bonds (Cost--$252,941)--153.9% 265,733 Shares Held Short-Term Securities 1,764 CMA Michigan Municipal Money Fund, 3.10% (i)(k) 1,764 Total Short-Term Securities (Cost--$1,764)--1.0% 1,764 Total Investments (Cost--$254,705*)--154.9% 267,497 Other Assets Less Liabilities--2.5% 4,236 Preferred Stock, at Redemption Value--(57.4%) (99,046) ---------- Net Assets Applicable to Common Stock--100.0% $ 172,687 ========== * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2006, as computed for federal income tax purposes, were as follows: Aggregate cost $ 254,537 =============== Gross unrealized appreciation $ 13,872 Gross unrealized depreciation (912) --------------- Net unrealized appreciation $ 12,960 =============== (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 (4,849) $ 41 (j) Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase. (k) Represents the current yield as of 4/30/2006. o Forward interest rate swaps outstanding as of April 30, 2006 were as follows: Notional Unrealized Amount Depreciation Pay a fixed rate of 4.416% and receive a floating rate based on a 1-week Bond Market Association rate Broker, JPMorgan Chase Bank Expires July 2026 $6,800 $ (42) See Notes to Financial Statements. SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments MuniYield New York Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value New York--140.8% $23,790 Albany County, New York, Airport Authority, Airport Revenue Bonds, AMT, 6% due 12/15/2023 (c) $ 24,998 Buffalo, New York, School, GO, Series D (b): 1,250 5.50% due 12/15/2014 1,353 1,500 5.50% due 12/15/2016 1,627 4,300 Buffalo, New York, Sewer Authority, Revenue Refunding Bonds, Series F, 6% due 7/01/2013 (b) 4,829 1,700 Dutchess County, New York, Resource Recovery Agency Revenue Bonds (Solid Waste System-Forward), Series A, 5.40% due 1/01/2013 (d) 1,821 Erie County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project) (c): 1,900 5.75% due 5/01/2020 2,076 5,250 5.75% due 5/01/2024 5,603 Huntington, New York, GO, Refunding (a): 485 5.50% due 4/15/2011 522 460 5.50% due 4/15/2012 502 455 5.50% due 4/15/2013 497 450 5.50% due 4/15/2014 494 450 5.50% due 4/15/2015 496 1,675 Ilion, New York, Central School District, GO, Series B, 5.50% due 6/15/2010 (b) 1,806 Long Island Power Authority, New York, Electric System Revenue Bonds, Series A (a): 7,000 5% due 9/01/2029 7,221 8,500 5% due 9/01/2034 8,740 3,000 Long Island Power Authority, New York, Electric System Revenue Refunding Bonds, Series B, 5% due 12/01/2035 3,069 2,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series A, 5.75% due 1/01/2008 (d)(e) 2,096 10,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Refunding Bonds, Series B, 4.875% due 7/01/2018 (b)(h) 10,303 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds, Series A: 5,000 5% due 11/15/2011 (b)(e) 5,319 1,015 5% due 11/15/2032 (c) 1,040 10,600 Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Revenue Refunding Bonds, Series A, 5% due 11/15/2030 (d) 10,873 Metropolitan Transportation Authority, New York, Revenue Bonds: 5,750 Series A, 5% due 11/15/2033 (a) 5,935 5,000 Series B, 5% due 11/15/2035 (d) 5,157 Metropolitan Transportation Authority, New York, Revenue Refunding Bonds: 28,900 RIB, Series 724X, 7.45% due 11/15/2032 (c)(g) 34,236 1,740 Series A, 5.125% due 11/15/2022 (b) 1,828 17,105 Series A, 5% due 11/15/2030 (c) 17,520 2,500 Series A, 5.25% due 11/15/2031 (b) 2,630 1,500 Series B, 5% due 11/15/2028 (d) 1,545 (In Thousands) Face Amount Municipal Bonds Value New York (continued) $ 2,000 Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds, Series A, 5% due 7/01/2025 (b) $ 2,062 Metropolitan Transportation Authority, New York, Transit Facilities Revenue Refunding Bonds, Series C (c)(e): 2,885 5.125% due 1/01/2012 3,083 1,640 5.125% due 7/01/2012 1,757 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series A: 2,545 5% due 11/15/2026 (c) 2,629 3,000 5% due 11/15/2032 (b) 3,081 Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series F (d): 6,235 5.25% due 11/15/2027 6,589 5,000 5% due 11/15/2031 5,126 Monroe County, New York, IDA Revenue Bonds (Southview Towers Project), AMT: 1,400 6.125% due 2/01/2020 1,501 1,125 6.25% due 2/01/2031 1,209 1,160 Montgomery County, New York, IDA, Lease Revenue Bonds (Hamilton Fulton Montgomery Board of Cooperative Educational Services Project), Series A, 5% due 7/01/2034 (l) 1,187 10,830 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75% due 8/01/2009 (c)(e) 11,708 1,500 New York City, New York, City Housing Development Corporation, M/F Housing Revenue Bonds, Series F-1, 4.65% due 11/01/2025 1,487 1,275 New York City, New York, City IDA, Civic Facility Revenue Refunding Bonds (Nightingale--Bamford School), 5.25% due 1/15/2018 (a) 1,356 7,710 New York City, New York, City IDA, IDR (Japan Airlines Company), AMT, 6% due 11/01/2015 (c) 7,866 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) 8,780 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 1,574 500 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System, Crossover Revenue Refunding Bonds, Series F, 5% due 6/15/2029 (c) 510 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds: 12,500 RIB, Series 726X, 7.45% due 6/15/2027 (d)(g) 14,727 2,850 Series A, 5.75% due 6/15/2009 (b)(e) 3,046 17,200 Series B, 5.75% due 6/15/2007 (d)(e) 17,759 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) 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) $ 5,383 1,250 Series A, 5.125% due 6/15/2034 (d) 1,293 5,500 Series A, 5% due 6/15/2035 (a) 5,635 7,015 Series B, 5.75% due 6/15/2026 (d) 7,103 4,000 Series B, 5% due 6/15/2036 (c) 4,116 4,700 VRDN, Series A, 3.67% due 6/15/2025 (b)(f) 4,700 5,200 VRDN, Series G, 3.70% due 6/15/2024 (b)(f) 5,200 1,020 New York City, New York, City Transit Authority, Metropolitan Transportation Authority, Triborough, COP, Series A, 5.625% due 1/01/2012 (a) 1,093 New York City, New York, City Transitional Finance Authority, Future Tax Secured Revenue Bonds: 6,805 Series B, 6.25% due 5/15/2010 (b)(e) 7,506 800 Series B, 6.25% due 5/15/2010 (e) 883 1,260 Series C, 5.50% due 5/01/2009 (e) 1,335 16,195 Series C, 5% due 2/01/2033 (b) 16,634 2,500 Series E, 5.25% due 2/01/2022 (d) 2,645 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) 3,174 1,000 New York City, New York, City Transitional Finance Authority, Revenue Refunding Bonds, Series A, 5% due 11/15/2026 (b) 1,030 New York City, New York, GO: 11,043 RIB, Series 725X, 7.45% due 3/15/2027 (c)(g) 12,933 3,000 Series A, 5.75% due 5/15/2010 (b)(e) 3,254 2,500 Series B, 5.75% due 8/01/2013 (d) 2,708 3,750 Series D, 5.25% due 10/15/2023 3,944 5,200 Series D, 5% due 11/01/2034 5,298 8,000 Series J, 5% due 5/15/2023 8,218 9,500 Series M, 5% due 4/01/2035 9,685 1,150 Sub-Series C-1, 5.25% due 8/15/2026 1,210 3,000 VRDN, Sub-Series A-6, 3.67% due 11/01/2026 (c)(f) 3,000 New York City, New York, GO, Refunding: 895 Series A, 6.375% due 5/15/2010 (b)(e) 991 70 Series B, 7% due 2/01/2018 (a) 71 3,100 VRDN, Series H, Sub-Series H-2, 3.70% due 8/01/2013 (d)(f) 3,100 3,360 New York City, New York, IDA, Civic Facility Revenue Bonds (Ethical Culture Fieldston School Project), Sub-Series B-1, 4.50% due 6/01/2035 (l) 3,264 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds (a): 6,500 DRIVERS, Series 1133Z, 6.379% due 10/15/2012 (g) 7,311 3,000 Series A, 5% due 10/15/2029 3,109 24,200 Series A, 5% due 10/15/2032 25,043 400 Series A, 4.50% due 10/15/2033 389 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) 4,385 (In Thousands) Face Amount Municipal Bonds Value New York (continued) New York Convention Center Development Corporation, New York, Revenue Bonds (a): $16,875 DRIVERS, Series 1247Z, 6.706% due 11/15/2013 (g) $ 17,881 3,400 (Hotel Unit Fee Secured), 5% due 11/15/2035 3,501 1,000 New York State Dormitory Authority, Consolidated Revenue Refunding Bonds (City University System), Series 1, 5.625% due 1/01/2008 (c)(e) 1,051 New York State Dormitory Authority Revenue Bonds: 3,700 (Eger Health Care and Rehabilitation Center), 6.10% due 8/01/2037 (i) 4,021 1,500 (Long Island University), Series B, 5.25% due 9/01/2028 (k) 1,561 2,000 (New School for Social Research), 5.75% due 7/01/2007 (d)(e) 2,087 1,180 (New York State Rehabilitation Association), Series A, 5.25% due 7/01/2019 (j) 1,243 1,000 (New York State Rehabilitation Association), Series A, 5.125% due 7/01/2023 (j) 1,035 6,900 (School Districts Financing Program), Series E, 5.75% due 10/01/2030 (d) 7,528 1,000 Series B, 6.50% due 2/15/2011 (d)(h) 1,122 3,560 (State University Adult Facilities), Series B, 5.75% due 5/15/2010 (c)(e) 3,868 1,780 (Upstate Community Colleges), Series A, 6% due 7/01/2010 (c)(e) 1,954 New York State Dormitory Authority, Revenue Refunding Bonds: 3,810 (City University System), Series C, 7.50% due 7/01/2010 (b) 4,111 4,255 (Mental Health Services Facilities Improvement), Series A, 5.75% due 2/15/2007 (d)(e) 4,409 1,370 (School District Financing Program), Series I, 5.75% due 10/01/2018 (d) 1,503 6,000 (Siena College), 5.75% due 7/01/2007 (d)(e) 6,257 4,500 New York State Dormitory Authority, State Personal Income Tax Revenue Bonds (Education), Series A, 5% due 3/15/2036 4,645 New York State Dormitory Authority, Supported Debt Revenue Bonds (Mental Health Facilities), Series B: 1,570 5.25% due 2/15/2014 (e) 1,690 270 5.25% due 2/15/2023 284 1,000 New York State Dormitory Authority, Supported Debt Revenue Refunding Bonds (Department of Health), Series A, 5% due 7/01/2025 (j) 1,032 14,250 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) 14,112 3,500 New York State Environmental Facilities Corporation, Special Obligation Revenue Refunding Bonds (Riverbank State Park), 6.25% due 4/01/2012 (a) 3,930 1,000 New York State, GO, Series A, 4% due 3/15/2022 (b) 948 800 New York State Housing Finance Agency, State Personal Income Tax Revenue Bonds (Economic Development and Housing), Series A, 5% due 9/15/2023 (d) 829 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value New York (continued) $ 2,000 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, AMT, Series 130, 4.80% due 10/01/2037 $ 1,948 9,530 New York State Mortgage Agency, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series 67, 5.80% due 10/01/2028 (d) 9,752 335 New York State Mortgage Agency Revenue Bonds, DRIVERS, AMT, Series 295, 7.51% due 4/01/2030 (d)(g) 352 New York State Municipal Bond Bank Agency, Special School Purpose Revenue Bonds, Series C: 3,470 5.25% due 6/01/2019 3,654 3,920 5.25% due 6/01/2020 4,099 6,000 New York State Thruway Authority, General Revenue Bonds, Series F, 5% due 1/01/2030 (a) 6,196 New York State Thruway Authority, General Revenue Refunding Bonds, Series G (c): 8,000 4.75% due 1/01/2029 8,047 17,750 4.75% due 1/01/2030 17,828 2,500 5% due 1/01/2030 2,589 2,820 New York State Thruway Authority, Highway and Bridge Trust Fund Revenue Bonds, Series A, 6.25% due 4/01/2011 (c) 3,103 New York State Thruway Authority, Local Highway and Bridge Service Contract Revenue Bonds (e): 3,000 5.75% due 4/01/2010 (a) 3,249 2,000 Series A-2, 5.375% due 4/01/2008 (d) 2,080 2,170 New York State Thruway Authority, Local Highway and Bridge Service Contract, Revenue Refunding Bonds, 6% due 4/01/2007 (d)(e) 2,258 3,045 New York State Thruway Authority, Second General Highway and Bridge Trust Fund Revenue Bonds, Series A, 5.25% due 4/01/2013 (d)(e) 3,285 1,455 New York State Thruway Authority, State Personal Income Tax, Transportation Revenue Refunding Bonds, Series A, 5% due 3/15/2024 (c) 1,514 New York State Urban Development Corporation, Personal Income Tax Revenue Bonds: 1,700 Series B, 5% due 3/15/2035 1,748 4,750 Series C-1, 5% due 3/15/2013 (d)(e) 5,052 5,000 (State Facilities), Series A-1, 5% due 3/15/2029 (b) 5,151 3,190 New York State Urban Development Corporation, Revenue Refunding Bonds (Correctional Capital Facilities), Series A, 6.50% due 1/01/2011 (c) 3,554 1,000 Niagara Falls, New York, City School District, COP, Refunding (High School Facility), 5% due 6/15/2028 (c) 1,027 1,000 Niagara Falls, New York, GO (Water Treatment Plant), AMT, 7.25% due 11/01/2010 (d) 1,130 2,705 Niagara, New York, Frontier Authority, Airport Revenue Bonds (Buffalo Niagara International Airport), Series B, 5.50% due 4/01/2019 (d) 2,846 1,260 North Country, New York, Development Authority, Solid Waste Management System, Revenue Refunding Bonds, 6% due 5/15/2015 (c) 1,399 (In Thousands) Face Amount Municipal Bonds Value New York (continued) North Hempstead, New York, GO, Refunding, Series B (b): $ 1,745 6.40% due 4/01/2013 $ 1,996 555 6.40% due 4/01/2017 655 1,665 Oneida County, New York, IDA, Civic Facilities Revenue Bonds (Mohawk Valley), Series A, 5.20% due 2/01/2013 (c) 1,730 2,500 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 137th Series, 5.125% due 7/15/2030 (c) 2,583 4,000 Port Authority of New York and New Jersey, Consolidated Revenue Refunding Bonds, AMT, 119th Series, 5.50% due 9/15/2016 (b) 4,063 15,000 Port Authority of New York and New Jersey Revenue Refunding Bonds, AMT, 120th Series, 6% due 10/15/2032 (d) 15,593 Port Authority of New York and New Jersey, Special Obligation Revenue Bonds, AMT (d): 1,750 DRIVERS, Series 192, 7.343% due 12/01/2025 (g) 1,848 5,080 DRIVERS, Series 278, 7.343% due 12/01/2022 (g) 5,555 14,750 (JFK International Air Terminal), Series 6, 6.25% due 12/01/2010 16,010 7,175 (JFK International Air Terminal LLC), Series 6, 6.25% due 12/01/2011 7,877 4,425 (Special Project--JFK International Air Terminal), Series 6, 6.25% due 12/01/2013 4,926 7,380 (Special Project--JFK International Air Terminal), Series 6, 6.25% due 12/01/2014 8,276 1,255 Rensselaer County, New York, IDA, Civic Facility Revenue Bonds (Rensselaer Polytechnic Institute), Series B, 5.50% due 8/01/2022 (a) 1,329 4,625 Suffolk County, New York, IDA, IDR (Keyspan--Port Jefferson), AMT, 5.25% due 6/01/2027 4,729 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 9,253 9,170 6.15% due 10/01/2011 10,134 6,470 6.25% due 10/01/2012 7,262 2,250 Suffolk County, New York, Public Improvement, GO, Series B, 4.50% due 11/01/2024 (d) 2,225 1,155 Suffolk County, New York, Water Authority, Waterworks Revenue Bonds, Series C, 4.50% due 6/01/2029 (d) 1,131 Tobacco Settlement Financing Corporation of New York Revenue Bonds: 5,000 Series A-1, 5.25% due 6/01/2020 (a) 5,288 5,000 Series A-1, 5.25% due 6/01/2021 (a) 5,281 2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,110 2,000 Series C-1, 5.50% due 6/01/2021 2,139 1,900 Series C-1, 5.50% due 6/01/2022 2,027 SEMI-ANNUAL REPORTS APRIL 30, 2006 Schedule of Investments (concluded) MuniYield New York Insured Fund, Inc. (In Thousands) Face Amount Municipal Bonds Value New York (concluded) $ 2,305 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Refunding Bonds, Series Y, 6% due 1/01/2012 (d)(h) $ 2,506 Triborough Bridge and Tunnel Authority, New York, Revenue Refunding Bonds (d): 7,000 5.25% due 11/15/2023 7,430 19,675 5% due 11/15/2032 20,160 2,265 Series A, 5% due 1/01/2012 (e) 2,406 1,500 Series B, 5% due 11/15/2032 1,537 Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Bonds: 2,465 5% due 11/15/2028 (a) 2,540 6,000 Series A, 5.25% due 11/15/2030 (d) 6,317 2,010 Yonkers, New York, GO, Series A, 5.75% due 10/01/2010 (b) 2,196 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 2,329 2,050 5.25% due 10/01/2022 2,131 Puerto Rico--11.9% Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds: 2,265 Series G, 5.25% due 7/01/2019 (b) 2,421 1,000 Series G, 5.25% due 7/01/2021 (b) 1,066 1,250 Trust Receipts, Class R, Series B, 7.659% due 7/01/2035 (d)(g) 1,477 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds: 3,000 Series D, 5.75% due 7/01/2012 (e) 3,310 2,000 Series K, 5% due 7/01/2035 (n) 2,065 4,000 Series L, 5.25% due 7/01/2041 (j) 4,355 (In Thousands) Face Amount Municipal Bonds Value Puerto Rico (concluded) 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) $ 6,336 3,900 4.67% due 7/01/2035 (a) 916 8,000 4.77% due 7/01/2043 (a) 1,253 4,500 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax Revenue Bonds, Series B, 5% due 7/01/2041 (j) 4,613 7,480 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.25% due 7/01/2020 7,783 Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Revenue Bonds, Series A: 4,000 5% due 7/01/2031 (a) 4,162 3,400 4.50% due 7/01/2036 (j) 3,301 Puerto Rico Electric Power Authority, Power Revenue Bonds: 4,750 Series NN, 5.125% due 7/01/2029 4,880 7,315 Series RR, 5% due 7/01/2029 (j) 7,565 7,095 Series RR, 5% due 7/01/2030 (l) 7,337 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E: 2,300 5.50% due 2/01/2012 (e) 2,493 700 5.50% due 8/01/2029 734 Total Municipal Bonds (Cost--$826,890)--153.5% 848,918 Shares Held Short-Term Securities 722 CMA New York Municipal Money Fund, 3.10% (m)(p) 722 Total Short-Term Securities (Cost--$722)--0.1% 722 Total Investments (Cost--$827,612*)--153.6% 849,640 Other Assets Less Liabilities--1.4% 7,515 Preferred Stock, at Redemption Value--(55.0%) (304,216) ---------- Net Assets Applicable to Common Stock--100.0% $ 552,939 ========== * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2006, as computed for federal income tax purposes, were as follows: Aggregate cost $ 827,707 =============== Gross unrealized appreciation $ 25,639 Gross unrealized depreciation (3,706) --------------- Net unrealized appreciation $ 21,933 =============== (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 (379) $17 (n) AGC 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 4/30/2006. See Notes to Financial Statements. SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Net Assets
MuniYield MuniYield MuniYield California Arizona California Insured As of April 30, 2006 Fund, Inc. Fund, Inc. Fund, Inc. Assets Investments in unaffiliated securities, at value* $ 103,028,652 $ 485,986,057 $ 779,619,165 Investments in affiliated securities, at value** 923 16,387,828 35,826 Cash 16,940 55,936 32,396 Receivable for securities sold 90,000 -- 5,750,520 Interest receivable 1,928,401 7,466,881 12,444,170 Prepaid expenses 6,475 10,637 39,425 --------------- --------------- --------------- Total assets 105,071,391 509,907,339 797,921,502 --------------- --------------- --------------- Liabilities Payable for securities purchased 1,020,520 22,469,179 18,459,819 Dividends payable to Common Stock shareholders -- 129,765 240,478 Offering cost payable -- 10,000 10,000 Payable to investment adviser 39,756 183,930 298,450 Payable to other affiliates 1,266 5,892 5,376 Accrued expenses 40,100 89,023 118,583 --------------- --------------- --------------- Total liabilities 1,101,642 22,887,789 19,132,706 --------------- --------------- --------------- Preferred Stock Preferred Stock, at redemption value of AMPS+++ at $25,000 per share liquidation preference*** 40,321,447 175,133,907 275,180,576 --------------- --------------- --------------- Net Assets Applicable to Common Stock Net assets applicable to Common Stock $ 63,648,302 $ 311,885,643 $ 503,608,220 =============== =============== =============== Net Assets Consist of Undistributed investment income--net $ 602,493 $ 1,596,674 $ 2,979,554 Undistributed (accumulated) realized capital gains (losses)--net 124,132 (3,465,055) (14,610,883) Unrealized appreciation--net 3,014,140 12,155,619 17,578,763 --------------- --------------- --------------- Total accumulated earnings--net 3,740,765 10,287,238 5,947,434 Common Stock, par value $.10 per share++ 450,788 2,129,526 3,436,120 Paid-in capital in excess of par 59,456,749 299,468,879 494,224,666 --------------- --------------- --------------- Net Assets $ 63,648,302 $ 311,885,643 $ 503,608,220 =============== =============== =============== Net asset value per share of Common Stock $ 14.12 $ 14.65 $ 14.66 =============== =============== =============== Market price $ 15.55 $ 13.30 $ 14.64 =============== =============== =============== * Identified cost in unaffiliated securities $ 100,014,512 $ 473,830,438 $ 762,040,402 =============== =============== =============== ** Identified cost in affiliated securities $ 923 $ 16,387,828 $ 35,826 =============== =============== =============== *** 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 4,507,879 21,295,255 34,361,200 =============== =============== =============== +++ Auction Market Preferred Stock. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Net Assets (concluded)
MuniYield MuniYield MuniYield Michigan New York Florida Insured II Insured As of April 30, 2006 Fund Fund, Inc. Fund, Inc. Assets Investments in unaffiliated securities, at value* $ 301,157,556 $ 265,732,999 $ 848,917,566 Investments in affiliated securities, at value** 5,344,705 1,763,576 722,374 Unrealized appreciation on forward interest rate swaps 453,827 -- -- Cash 54,844 90,296 64,861 Receivable for securities sold 10,000 -- 7,398,955 Interest receivable 3,829,301 5,059,701 13,898,997 Prepaid expenses 10,989 11,052 22,491 --------------- --------------- --------------- Total assets 310,861,222 272,657,624 871,025,244 --------------- --------------- --------------- Liabilities Unrealized depreciation on forward interest rate swaps -- 41,698 -- Payable for securities purchased 90,937 622,664 13,130,022 Dividends payable to Common Stock shareholders/Common Shareholders 47,569 82,381 286,591 Offering cost payable -- 10,000 -- Payable to investment adviser 118,034 103,042 328,916 Payable to other affiliates 3,794 3,339 9,048 Accrued expenses 60,433 60,715 115,404 --------------- --------------- --------------- Total liabilities 320,767 923,839 13,869,981 --------------- --------------- --------------- Preferred Stock/Shares Preferred Stock/Shares, at redemption value of AMPS+++ at $25,000 per share liquidation preference*** 110,039,304 99,046,327 304,216,478 --------------- --------------- --------------- Net Assets Applicable to Common Stock/Shares Net assets applicable to Common Stock/Shares $ 200,501,151 $ 172,687,458 $ 552,938,785 =============== =============== =============== Net Assets Consist of Undistributed investment income--net $ 1,505,334 $ 1,121,078 $ 4,333,738 Accumulated realized capital losses--net (9,360,283) (6,555,611) (34,435,705) Unrealized appreciation--net 12,470,299 12,750,308 22,028,097 --------------- --------------- --------------- Total accumulated earnings (losses)--net 4,615,350 7,315,775 (8,073,870) 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 $ 200,501,151 $ 172,687,458 $ 552,938,785 =============== =============== =============== Net asset value per share of Common Stock/Shares $ 14.79 $ 14.31 $ 14.02 =============== =============== =============== Market price $ 13.86 $ 14.03 $ 13.60 =============== =============== =============== * Identified cost in unaffiliated securities $ 289,141,084 $ 252,940,993 $ 826,889,469 =============== =============== =============== ** Identified cost in affiliated securities $ 5,344,705 $ 1,763,576 $ 722,374 =============== =============== =============== *** Preferred Stock/Shares 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 $.10 per share -- -- 1,800 =============== =============== =============== ++ Common Stock/Shares issued and outstanding 13,558,024 12,069,721 39,445,962 =============== =============== =============== +++ Auction Market Preferred Stock/Shares. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Operations
MuniYield MuniYield MuniYield California Arizona California Insured For the Six Months Ended April 30, 2006 Fund, Inc. Fund, Inc. Fund, Inc. Investment Income Interest and amortization of premium and discount earned $ 2,635,331 $ 11,930,079 $ 19,143,365 Dividends from affiliates 10,997 65,070 45,054 --------------- --------------- --------------- Total income 2,646,328 11,995,149 19,188,419 --------------- --------------- --------------- Expenses Investment advisory fees 259,931 1,216,894 1,949,265 Commission fees 51,020 225,996 357,105 Accounting services 30,287 80,093 119,778 Transfer agent fees 25,120 39,082 46,627 Professional fees 25,307 27,325 31,655 Printing and shareholder reports 3,625 14,696 23,548 Listing fees 965 8,175 10,685 Custodian fees 4,489 13,135 19,993 Pricing fees 4,455 9,001 12,331 Directors' fees and expenses 7,013 12,078 16,295 Other 17,108 29,667 30,523 --------------- --------------- --------------- Total expenses before reimbursement 429,320 1,676,142 2,617,805 Reimbursement of expenses (2,279) (10,268) (7,911) --------------- --------------- --------------- Total expenses after reimbursement 427,041 1,665,874 2,609,894 --------------- --------------- --------------- Investment income--net 2,219,287 10,329,275 16,578,525 --------------- --------------- --------------- Realized & Unrealized Gain (Loss)--Net Realized gain on investments--net 306,228 1,045,807 2,805,152 Change in unrealized appreciation on investments--net (747,236) (3,140,317) (6,325,440) --------------- --------------- --------------- Total realized and unrealized loss--net (441,008) (2,094,510) (3,520,288) --------------- --------------- --------------- Dividends & Distributions to Preferred Stock Shareholders Dividends and distributions to Preferred Stock shareholders from: Investment income--net (519,314) (2,534,225) (3,873,858) Realized gain--net (84,465) -- -- --------------- --------------- --------------- Total dividends and distributions to Preferred Stock shareholders (603,779) (2,534,225) (3,873,858) --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 1,174,500 $ 5,700,540 $ 9,184,379 =============== =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Operations (concluded)
MuniYield MuniYield MuniYield Michigan New York Florida Insured II Insured For the Six Months Ended April 30, 2006 Fund Fund, Inc. Fund, Inc. Investment Income Interest and amortization of premium and discount earned $ 7,738,237 $ 6,793,301 $ 21,100,605 Dividends from affiliates 35,678 41,471 16,874 --------------- --------------- --------------- Total income 7,773,915 6,834,772 21,117,479 --------------- --------------- --------------- Expenses Investment advisory fees 774,010 680,278 2,147,244 Commission fees 140,161 129,811 380,863 Accounting services 58,330 53,260 126,455 Transfer agent fees 34,392 35,691 62,223 Professional fees 34,302 27,650 32,681 Printing and shareholder reports 9,883 8,888 24,850 Listing fees 8,298 8,347 11,973 Custodian fees 10,429 8,549 22,422 Pricing fees 8,910 7,572 13,998 Directors'/Trustees' fees and expenses 9,767 9,265 16,880 Other 23,159 28,361 29,561 --------------- --------------- --------------- Total expenses before reimbursement 1,111,641 997,672 2,869,150 Reimbursement of expenses (6,895) (8,533) (2,930) --------------- --------------- --------------- Total expenses after reimbursement 1,104,746 989,139 2,866,220 --------------- --------------- --------------- Investment income--net 6,669,169 5,845,633 18,251,259 --------------- --------------- --------------- Realized & Unrealized Gain (Loss)--Net Realized gain (loss) on: Investments--net 684,034 903,166 (1,031,883) Forward interest rate swaps--net (182) (107,522) -- --------------- --------------- --------------- Total realized gain (loss)--net 683,852 795,644 (1,031,883) --------------- --------------- --------------- Change in unrealized appreciation/depreciation on: Investments--net (1,840,699) (3,043,721) (6,592,865) Forward interest rate swaps--net 208,214 (41,698) -- --------------- --------------- --------------- Total change in unrealized appreciation/depreciation--net (1,632,485) (3,085,419) (6,592,865) --------------- --------------- --------------- Total realized and unrealized loss--net (948,633) (2,289,775) (7,624,748) --------------- --------------- --------------- Dividends to Preferred Stock Shareholders/Preferred Shareholders Investment income--net (1,628,330) (1,438,132) (4,377,941) --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 4,092,206 $ 2,117,726 $ 6,248,570 =============== =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Changes in Net Assets MuniYield Arizona Fund, Inc.
For the Six For the Months Ended Year Ended April 30, October 31, Increase (Decrease) in Net Assets: 2006 2005 Operations Investment income--net $ 2,219,287 $ 4,351,984 Realized gain--net 306,228 686,663 Change in unrealized appreciation--net (747,236) (2,891,468) Dividends and distributions to Preferred Stock shareholders (603,779) (613,942) --------------- --------------- Net increase in net assets resulting from operations 1,174,500 1,533,237 --------------- --------------- Dividends & Distributions to Common Stock Shareholders Investment income--net (1,898,874) (4,139,688) Realized gain--net (523,554) (98,063) --------------- --------------- Net decrease in net assets resulting from dividends and distributions to Common Stock shareholders (2,422,428) (4,237,751) --------------- --------------- Stock Transactions Value of shares issued to Common Stock shareholders in reinvestment of dividends 223,571 347,232 Offering and underwriting costs resulting from issuance of Preferred Stock -- (229,567) Adjustment of offering costs resulting from issuance of Preferred Stock 42,343 -- --------------- --------------- Net increase in net assets resulting from stock transactions 265,914 117,665 --------------- --------------- Net Assets Applicable to Common Stock Total decrease in net assets applicable to Common Stock (982,014) (2,586,849) Beginning of period 64,630,316 67,217,165 --------------- --------------- End of period* $ 63,648,302 $ 64,630,316 =============== =============== * Undistributed investment income--net $ 602,493 $ 801,394 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Changes in Net Assets MuniYield California Fund, Inc.
For the Six For the Months Ended Year Ended April 30, October 31, Increase (Decrease) in Net Assets: 2006 2005 Operations Investment income--net $ 10,329,275 $ 19,769,525 Realized gain--net 1,045,807 3,286,924 Change in unrealized appreciation--net (3,140,317) (12,950,108) Dividends to Preferred Stock shareholders (2,534,225) (2,698,791) --------------- --------------- Net increase in net assets resulting from operations 5,700,540 7,407,550 --------------- --------------- Dividends to Common Stock Shareholders Investment income--net (7,538,520) (18,399,100) --------------- --------------- Net decrease in net assets resulting from dividends to Common Stock shareholders (7,538,520) (18,399,100) --------------- --------------- Stock Transactions Offering and underwriting costs resulting from issuance of Preferred Stock -- (504,510) Adjustment of offering costs resulting from issuance of Preferred Stock 15,461 -- --------------- --------------- Net increase (decrease) in net assets resulting from stock transactions 15,461 (504,510) --------------- --------------- Net Assets Applicable to Common Stock Total decrease in net assets applicable to Common Stock (1,822,519) (11,496,060) Beginning of period 313,708,162 325,204,222 --------------- --------------- End of period* $ 311,885,643 $ 313,708,162 =============== =============== * Undistributed investment income--net $ 1,596,674 $ 1,340,144 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Changes in Net Assets MuniYield California Insured Fund, Inc.
For the Six For the Months Ended Year Ended April 30, October 31, Increase (Decrease) in Net Assets: 2006 2005 Operations Investment income--net $ 16,578,525 $ 32,771,189 Realized gain--net 2,805,152 4,558,434 Change in unrealized appreciation--net (6,325,440) (16,405,544) Dividends to Preferred Stock shareholders (3,873,858) (4,367,576) --------------- --------------- Net increase in net assets resulting from operations 9,184,379 16,556,503 --------------- --------------- Dividends to Common Stock Shareholders Investment income--net (14,637,871) (30,100,411) --------------- --------------- Net decrease in net assets resulting from dividends to Common Stock shareholders (14,637,871) (30,100,411) --------------- --------------- Stock Transactions Offering and underwriting costs resulting from issuance of Preferred Stock -- (595,687) Adjustment of offering costs resulting from the issuance of Preferred Stock (4,270) -- --------------- --------------- Net decrease in net assets resulting from stock transactions (4,270) (595,687) --------------- --------------- Net Assets Applicable to Common Stock Total decrease in net assets applicable to Common Stock (5,457,762) (14,139,595) Beginning of period 509,065,982 523,205,577 --------------- --------------- End of period* $ 503,608,220 $ 509,065,982 =============== =============== * Undistributed investment income--net $ 2,979,554 $ 4,912,758 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Changes in Net Assets MuniYield Florida Fund
For the Six For the Months Ended Year Ended April 30, October 31, Increase (Decrease) in Net Assets: 2006 2005 Operations Investment income--net $ 6,669,169 $ 13,339,050 Realized gain--net 683,852 1,319,459 Change in unrealized appreciation--net (1,632,485) (4,748,326) Dividends to Preferred Shareholders (1,628,330) (1,961,036) --------------- --------------- Net increase in net assets resulting from operations 4,092,206 7,949,147 --------------- --------------- Dividends to Common Shareholders Investment income--net (5,721,200) (12,521,937) --------------- --------------- Net decrease in net assets resulting from dividends to Common Shareholders (5,721,200) (12,521,937) --------------- --------------- Share Transactions Value of shares issued to Common Shareholders in reinvestment of dividends 91,289 -- Offering and underwriting costs resulting from issuance of Preferred Shares -- (280,155) Adjustment of offering costs resulting from issuance of Preferred Shares (3,184) -- --------------- --------------- Net increase (decrease) in net assets resulting from share transactions 88,105 (280,155) --------------- --------------- Net Assets Applicable to Common Shares Total decrease in net assets applicable to Common Shares (1,540,889) (4,852,945) Beginning of period 202,042,040 206,894,985 --------------- --------------- End of period* $ 200,501,151 $ 202,042,040 =============== =============== * Undistributed investment income--net $ 1,505,334 $ 2,185,695 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Changes in Net Assets MuniYield Michigan Insured Fund II, Inc.
For the Six For the Months Ended Year Ended April 30, October 31, Increase (Decrease) in Net Assets: 2006 2005 Operations Investment income--net $ 5,845,633 $ 11,882,846 Realized gain--net 795,644 2,125,649 Change in unrealized appreciation/depreciation--net (3,085,419) (9,184,637) Dividends to Preferred Stock shareholders (1,438,132) (1,750,817) --------------- --------------- Net increase in net assets resulting from operations 2,117,726 3,073,041 --------------- --------------- Dividends to Common Stock Shareholders Investment income--net (4,946,350) (10,914,778) --------------- --------------- Net decrease in net assets resulting from dividends to Common Stock shareholders (4,946,350) (10,914,778) --------------- --------------- Stock Transactions Value of shares issued to Common Stock shareholders in reinvestment of dividends 227,419 112,030 Offering and underwriting costs resulting from the issuance of Preferred Stock -- (229,567) Adjustment of offering costs resulting from the issuance of Preferred Stock 24,274 -- --------------- --------------- Net increase (decrease) in net assets resulting from stock transactions 251,693 (117,537) --------------- --------------- Net Assets Applicable to Common Stock Total decrease in net assets applicable to Common Stock (2,576,931) (7,959,274) Beginning of period 175,264,389 183,223,663 --------------- --------------- End of period* $ 172,687,458 $ 175,264,389 =============== =============== * Undistributed investment income--net $ 1,121,078 $ 1,659,927 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Statements of Changes in Net Assets MuniYield New York Insured Fund, Inc.
For the Six For the Months Ended Year Ended April 30, October 31, Increase (Decrease) in Net Assets: 2006 2005 Operations Investment income--net $ 18,251,259 $ 36,961,564 Realized gain (loss)--net (1,031,883) 875,940 Change in unrealized appreciation--net (6,592,865) (20,848,183) Dividends to Preferred Stock shareholders (4,377,941) (5,032,367) --------------- --------------- Net increase in net assets resulting from operations 6,248,570 11,956,954 --------------- --------------- Dividends to Common Stock Shareholders Investment income--net (15,778,385) (33,134,608) --------------- --------------- Net decrease in net assets resulting from dividends to Common Stock shareholders (15,778,385) (33,134,608) --------------- --------------- Stock Transactions Offering and underwriting costs resulting from issuance of Preferred Stock -- (595,687) Adjustment of offering costs resulting from issuance of Preferred Stock (5,720) -- --------------- --------------- Net decrease in net assets resulting from stock transactions (5,720) (595,687) --------------- --------------- Net Assets Applicable to Common Stock Total decrease in net assets applicable to Common Stock (9,535,535) (21,773,341) Beginning of period 562,474,320 584,247,661 --------------- --------------- End of period* $ 552,938,785 $ 562,474,320 =============== =============== * Undistributed investment income--net $ 4,333,738 $ 6,238,805 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights MuniYield Arizona Fund, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Per Share Operating Performance Net asset value, beginning of period $ 14.39 $ 15.04 $ 14.64 $ 14.53 $ 14.19 ---------- ---------- ---------- ---------- ---------- Investment income--net .49++ .97++ .98++ 1.00++ .97 Realized and unrealized gain (loss)--net (.09) (.49) .40 .05 .26 Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.12) (.14) (.06) (.06) (.09) Realized gain--net (.02) --++++ -- -- -- ---------- ---------- ---------- ---------- ---------- Total from investment operations .26 .34 1.32 .99 1.14 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.42) (.92) (.92) (.88) (.80) Realized gain--net (.12) (.02) -- -- -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.54) (.94) (.92) (.88) (.80) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs resulting from the issuance of Preferred Stock -- (.05) -- -- -- ---------- ---------- ---------- ---------- ---------- Adjustment of offering costs resulting from the issuance of Preferred Stock .01 -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 14.12 $ 14.39 $ 15.04 $ 14.64 $ 14.53 ========== ========== ========== ========== ========== Market price per share, end of period $ 15.55 $ 16.03 $ 15.10 $ 14.13 $ 13.25 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 1.75%+++ 1.91% 9.40% 7.19% 8.60% ========== ========== ========== ========== ========== Based on market price per share .59%+++ 13.07% 13.80% 13.45% 6.54% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement*** 1.33%* 1.20% 1.19% 1.18% 1.28% ========== ========== ========== ========== ========== Total expenses*** 1.34%* 1.20% 1.20% 1.19% 1.28% ========== ========== ========== ========== ========== Total investment income--net*** 6.93%* 6.54% 6.65% 6.79% 6.86% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 1.62%* .91% .42% .42% .61% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 5.31%* 5.63% 6.23% 6.37% 6.25% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 2.60%* 1.90% .92% .91% 1.26% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights (concluded) MuniYield Arizona Fund, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 63,648 $ 64,630 $ 67,217 $ 65,234 $ 64,699 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 40,300 $ 40,300 $ 30,300 $ 30,300 $ 30,300 ========== ========== ========== ========== ========== Portfolio turnover 22.20% 28.08% 23.69% 26.99% 42.51% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,579 $ 2,604 $ 3,218 $ 3,153 $ 3,135 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 312 $ 462 $ 222 $ 220 $ 305 ========== ========== ========== ========== ========== Series B--Investment income--net $ 310 $ 473 $ 236 $ 237 $ 324 ========== ========== ========== ========== ========== Series C++++++--Investment income--net $ 356 $ 99 -- -- -- ========== ========== ========== ========== ========== * Annualized. ** Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. *** Do not reflect the effect of dividends to Preferred Stock shareholders. ++ Based on average shares outstanding. ++++ Amount is less than $(.01) per share. ++++++ Series C was issued on August 31, 2005. +++ Aggregate total investment return. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights MuniYield California Fund, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Per Share Operating Performance Net asset value, beginning of period $ 14.73 $ 15.27 $ 15.17 $ 15.14 $ 15.22 ---------- ---------- ---------- ---------- ---------- Investment income--net* .49 .93 1.02 1.06 1.07 Realized and unrealized gain (loss)--net (.10) (.46) .12 .04 (.06) Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.12) (.13) (.07) (.10) (.12) Realized gain--net -- -- -- --++ --++ ---------- ---------- ---------- ---------- ---------- Total from investment operations .27 .34 1.07 1.00 .89 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.35) (.86) (.97) (.97) (.97) Realized gain--net -- -- -- --++ --++ ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.35) (.86) (.97) (.97) (.97) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs resulting from the issuance of Preferred Stock -- (.02) -- -- -- ---------- ---------- ---------- ---------- ---------- Adjustment of offering costs resulting from the issuance of Preferred Stock --++++++ -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 14.65 $ 14.73 $ 15.27 $ 15.17 $ 15.14 ========== ========== ========== ========== ========== Market price per share, end of period $ 13.30 $ 13.37 $ 14.43 $ 14.15 $ 14.46 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 2.13%+++++ 2.59% 7.74% 7.14% 6.14% ========== ========== ========== ========== ========== Based on market price per share 2.15%+++++ (1.46%) 9.16% 4.64% 2.18% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Expenses, net of reimbursement*** 1.06%+++ .98% .96% .95% .99% ========== ========== ========== ========== ========== Total expenses*** 1.07%+++ .98% .96% .96% .99% ========== ========== ========== ========== ========== Total investment income--net*** 6.60%+++ 6.16% 6.79% 6.93% 7.13% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 1.62%+++ .84% .44% .63% .77% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 4.98%+++ 5.32% 6.35% 6.30% 6.36% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 2.92%+++ 1.88% 1.02% 1.46% 1.76% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights (concluded) MuniYield California Fund, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 311,886 $ 313,708 $ 325,204 $ 323,155 $ 322,345 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 175,000 $ 175,000 $ 140,000 $ 140,000 $ 140,000 ========== ========== ========== ========== ========== Portfolio turnover 25.39% 53.99% 33.60% 20.24% 49.87% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,782 $ 2,793 $ 3,323 $ 3,308 $ 3,302 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 396 $ 482 $ 270 $ 569 $ 607 ========== ========== ========== ========== ========== Series B--Investment income--net $ 343 $ 451 $ 241 $ 217 $ 322 ========== ========== ========== ========== ========== Series C--Investment income--net $ 340 $ 453 $ 250 $ 207 $ 292 ========== ========== ========== ========== ========== Series D++++--Investment income--net $ 350 $ 70 -- -- -- ========== ========== ========== ========== ========== * 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. ++++ Series D was issued on September 21, 2005. ++++++ Amount is less than $.01 per share. +++ Annualized. +++++ Aggregate total investment return. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights MuniYield California Insured Fund, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Per Share Operating Performance Net asset value, beginning of period $ 14.82 $ 15.23 $ 15.10 $ 15.26 $ 15.44 ---------- ---------- ---------- ---------- ---------- Investment income--net .48+++ .95+++ .94+++ .95+++ .95 Realized and unrealized gain (loss)--net (.10) (.33) .13 (.18) (.22) Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.11) (.13) (.06) (.06) (.09) Realized gain--net -- -- -- -- --++++ ---------- ---------- ---------- ---------- ---------- Total from investment operations .27 .49 1.01 .71 .64 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.43) (.88) (.88) (.87) (.81) Realized gain--net -- -- -- -- (.01) ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.43) (.88) (.88) (.87) (.82) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs resulting from the issuance of Preferred Stock -- (.02) -- -- -- ---------- ---------- ---------- ---------- ---------- Adjustment of offering costs resulting from the issuance of Preferred Stock --++++ -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 14.66 $ 14.82 $ 15.23 $ 15.10 $ 15.26 ========== ========== ========== ========== ========== Market price per share, end of period $ 14.64 $ 14.16 $ 13.73 $ 13.82 $ 13.68 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 1.84%+++++ 3.55% 7.54% 5.29% 4.68% ========== ========== ========== ========== ========== Based on market price per share 6.44%+++++ 9.75% 5.93% 7.50% .20% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement and excluding reorganization expenses*** 1.03%* .96% .95% .94% .96% ========== ========== ========== ========== ========== Total expenses, excluding reorganization expenses*** 1.03%* .96% .95% .94% .96% ========== ========== ========== ========== ========== Total expenses*** 1.03%* .96% .95% .94% 1.00% ========== ========== ========== ========== ========== Total investment income--net*** 6.54%* 6.29% 6.29% 6.20% 6.38% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 1.53%* .84% .43% .37% .56% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 5.01%* 5.45% 5.86% 5.83% 5.82% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 2.84%* 1.86% .96% .85% 1.25% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights (concluded) MuniYield California Insured Fund, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 503,608 $ 509,066 $ 523,206 $ 518,786 $ 524,485 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 275,000 $ 275,000 $ 230,000 $ 230,000 $ 230,000 ========== ========== ========== ========== ========== Portfolio turnover 21.82% 42.13% 68.05% 52.17% 77.13% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,831 $ 2,851 $ 3,275 $ 3,256 $ 3,280 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 343 $ 478 $ 246 $ 216 $ 359 ========== ========== ========== ========== ========== Series B--Investment income--net $ 335 $ 463 $ 238 $ 212 $ 324 ========== ========== ========== ========== ========== Series C--Investment income--net $ 339 $ 441 $ 224 $ 204 $ 320 ========== ========== ========== ========== ========== Series D--Investment income--net $ 389 $ 480 $ 249 $ 242 $ 203 ========== ========== ========== ========== ========== Series E--Investment income--net $ 339 $ 448 $ 236 $ 196 $ 201 ========== ========== ========== ========== ========== Series F++--Investment income--net $ 364 $ 62 -- -- -- ========== ========== ========== ========== ========== * Annualized. ** Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. *** Do not reflect the effect of dividends to Preferred Stock shareholders. ++ Series F was issued on September 21, 2005. ++++ Amount is less than $(.01) per share. +++ Based on average shares outstanding. +++++ Aggregate total investment return. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights MuniYield Florida Fund
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Per Share Operating Performance Net asset value, beginning of period $ 14.91 $ 15.27 $ 14.97 $ 14.97 $ 14.81 ------------ ---------- ---------- ---------- ---------- Investment income--net .49+++ .98+++ 1.00+++ 1.06+++ 1.03 Realized and unrealized gain (loss)--net (.07) (.26) .29 (.07) .09 Less dividends and distributions to Preferred Shareholders: Investment income--net (.12) (.14) (.07) (.07) (.09) Realized gain--net -- -- -- -- --++ ------------ ---------- ---------- ---------- ---------- Total from investment operations .30 .58 1.22 .92 1.03 ------------ ---------- ---------- ---------- ---------- Less dividends and distributions to Common Shareholders: Investment income--net (.42) (.92) (.92) (.92) (.87) Realized gain--net -- -- -- -- --++ ------------ ---------- ---------- ---------- ---------- Total dividends and distributions to Common Shareholders (.42) (.92) (.92) (.92) (.87) ------------ ---------- ---------- ---------- ---------- Offering and underwriting costs resulting from the issuance of Preferred Shares -- (.02) -- -- -- ------------ ---------- ---------- ---------- ---------- Adjustment of offering costs resulting from the issuance of Preferred Shares --++ -- -- -- -- ------------ ---------- ---------- ---------- ---------- Net asset value, end of period $ 14.79 $ 14.91 $ 15.27 $ 14.97 $ 14.97 ============ ========== ========== ========== ========== Market price per share, end of period $ 13.86 $ 14.93 $ 14.28 $ 13.80 $ 13.34 ============ ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 2.11%+++++ 3.98% 8.99% 6.76% 7.80% ============ ========== ========== ========== ========== Based on market price per share (4.44%)+++++ 11.34% 10.57% 10.44% 1.77% ============ ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Shares Total expenses, net of reimbursement*** 1.10%* 1.05% 1.03% 1.04% 1.06% ============ ========== ========== ========== ========== Total expenses*** 1.11%* 1.05% 1.03% 1.04% 1.06% ============ ========== ========== ========== ========== Total investment income--net*** 6.65%* 6.46% 6.67% 7.01% 7.00% ============ ========== ========== ========== ========== Amount of dividends to Preferred Shareholders 1.62%* .95% .48% .45% .64% ============ ========== ========== ========== ========== Investment income--net, to Common Shareholders 5.03%* 5.51% 6.19% 6.56% 6.36% ============ ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Shares Dividends to Preferred Shareholders 2.99%* 2.01% 1.03% .97% 1.34% ============ ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights (concluded) MuniYield Florida Fund
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Supplemental Data Net assets applicable to Common Shares, end of period (in thousands) $ 200,501 $ 202,042 $ 206,895 $ 202,890 $ 202,919 ========== ========== ========== ========== ========== Preferred Shares outstanding, end of period (in thousands) $ 110,000 $ 110,000 $ 95,000 $ 95,000 $ 95,000 ========== ========== ========== ========== ========== Portfolio turnover 27.72% 41.96% 36.11% 40.45% 39.54% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,823 $ 2,837 $ 3,178 $ 3,136 $ 3,136 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Shares Outstanding Series A--Investment income--net $ 374 $ 507 $ 254 $ 247 $ 337 ========== ========== ========== ========== ========== Series B--Investment income--net $ 365 $ 487 $ 263 $ 242 $ 333 ========== ========== ========== ========== ========== Series C++++--Investment income--net $ 371 $ 110 -- -- -- ========== ========== ========== ========== ========== * Annualized. ** Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. *** Do not reflect the effect of dividends to Preferred Shareholders. ++ Amount is less than $(.01) per share. ++++ Series C was issued on August 31, 2005. +++ Based on average shares outstanding. +++++ Aggregate total investment return. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights MuniYield Michigan Insured Fund II, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Per Share Operating Performance Net asset value, beginning of period $ 14.54 $ 15.21 $ 15.21 $ 14.91 $ 14.97 ---------- ---------- ---------- ---------- ---------- Investment income--net .48+++ .99+++ 1.00+++ 1.02+++ 1.00 Realized and unrealized gain (loss)--net (.18) (.58) --++++ .24 (.07) Less dividends to Preferred Stock shareholders from investment income (.12) (.15) (.07) (.07) (.10) ---------- ---------- ---------- ---------- ---------- Total from investment operations .18 .26 .93 1.19 .83 ---------- ---------- ---------- ---------- ---------- Less dividends to Common Stock shareholders from investment income (.41) (.91) (.93) (.89) (.89) Offering and underwriting costs resulting from the issuance of Preferred Stock -- (.02) -- -- -- ---------- ---------- ---------- ---------- ---------- Adjustment of offering costs resulting from the issuance of Preferred Stock --+++++++ -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 14.31 $ 14.54 $ 15.21 $ 15.21 $ 14.91 ========== ========== ========== ========== ========== Market price per share, end of period $ 14.03 $ 14.41 $ 14.54 $ 13.75 $ 13.45 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 1.26%+++++ 1.73% 6.78% 8.82% 6.36% ========== ========== ========== ========== ========== Based on market price per share .18%+++++ 5.47% 12.91% 9.06% 3.70% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement*** 1.14%* 1.07% 1.05% 1.01% 1.12% ========== ========== ========== ========== ========== Total expenses*** 1.15%* 1.07% 1.07% 1.02% 1.12% ========== ========== ========== ========== ========== Total investment income--net*** 6.72%* 6.57% 6.61% 6.73% 6.91% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 1.65%* .97% .47% .47% .66% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 5.07%* 5.60% 6.14% 6.26% 6.25% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 2.93%* 1.96% .96% .97% 1.36% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights (concluded) MuniYield Michigan Insured Fund II, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 172,687 $ 175,264 $ 183,224 $ 183,237 $ 179,607 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 99,000 $ 99,000 $ 89,000 $ 89,000 $ 89,000 ========== ========== ========== ========== ========== Portfolio turnover 5.38% 23.18% 39.26% 30.84% 41.77% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,744 $ 2,770 $ 3,059 $ 3,059 $ 3,018 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 366 $ 488 $ 236 $ 243 $ 343 ========== ========== ========== ========== ========== Series B--Investment income--net $ 356 $ 494 $ 247 $ 245 $ 136 ========== ========== ========== ========== ========== Series C++--Investment income--net $ 371 $ 14 -- -- -- ========== ========== ========== ========== ========== * Annualized. ** Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. *** Do not reflect the effect of dividends to Preferred Stock shareholders. ++ Series C was issued on October 19, 2005. ++++ Amount is less than $(.01) per share. +++ Based on average shares outstanding. +++++ Aggregate total investment return. +++++++ Amount is less than $.01 per share. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights MuniYield New York Insured Fund, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Per Share Operating Performance Net asset value, beginning of period $ 14.26 $ 14.81 $ 14.81 $ 14.83 $ 15.01 ---------- ---------- ---------- ---------- ---------- Investment income--net .46+++ .94+++ .91+++ .97+++ .94 Realized and unrealized loss--net (.19) (.50) (.01) (.09) (.19) Dividends and distributions to Preferred Stock shareholders: Investment income--net (.11) (.13) (.06) (.07) (.10) Realized gain--net -- -- -- -- --++ ---------- ---------- ---------- ---------- ---------- Total from investment operations .16 .31 .84 .81 .65 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.40) (.84) (.84) (.83) (.83) Realized gain--net -- -- -- -- --++ ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.40) (.84) (.84) (.83) (.83) ---------- ---------- ---------- ---------- ---------- Offering and underwriting costs resulting from the issuance of Preferred Stock -- (.02) -- -- -- ---------- ---------- ---------- ---------- ---------- Adjustment of offering costs resulting from the issuance of Preferred Stock --++ -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 14.02 $ 14.26 $ 14.81 $ 14.81 $ 14.83 ========== ========== ========== ========== ========== Market price per share, end of period $ 13.60 $ 13.17 $ 13.20 $ 13.25 $ 13.36 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 1.19%+++++ 2.53% 6.53% 6.19% 4.97% ========== ========== ========== ========== ========== Based on market price per share 6.28%+++++ 6.24% 6.13% 5.45% 1.24% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement*** 1.03%* .96% .94% .94% .96% ========== ========== ========== ========== ========== Total expenses*** 1.03%* .96% .95% .94% .96% ========== ========== ========== ========== ========== Total investment income--net*** 6.55%* 6.37% 6.23% 6.49% 6.37% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders 1.57%* .87% .42% .50% .66% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 4.98%* 5.50% 5.81% 5.99% 5.71% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 2.90%* 1.91% .95% 1.13% 1.49% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006 Financial Highlights (concluded) MuniYield New York Insured Fund, Inc.
For the Six Months Ended The following per share data and ratios have been derived April 30, For the Year Ended October 31, from information provided in the financial statements. 2006 2005 2004 2003 2002 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 552,939 $ 562,474 $ 584,248 $ 584,025 $ 584,793 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 304,000 $ 304,000 $ 259,000 $ 259,000 $ 259,000 ========== ========== ========== ========== ========== Portfolio turnover 29.16% 46.41% 19.91% 51.89% 87.56% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 2,819 $ 2,850 $ 3,256 $ 3,255 $ 3,258 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 369 $ 493 $ 254 $ 249 $ 334 ========== ========== ========== ========== ========== Series B--Investment income--net $ 340 $ 448 $ 203 $ 232 $ 305 ========== ========== ========== ========== ========== Series C--Investment income--net $ 358 $ 469 $ 240 $ 214 $ 356 ========== ========== ========== ========== ========== Series D--Investment income--net $ 338 $ 464 $ 231 $ 454 $ 503 ========== ========== ========== ========== ========== Series E--Investment income--net $ 389 $ 496 $ 251 $ 255 $ 356 ========== ========== ========== ========== ========== Series F++++--Investment income--net $ 362 $ 65 -- -- -- ========== ========== ========== ========== ========== * Annualized. ** Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. *** Do not reflect the effect of dividends to Preferred Stock shareholders. ++ Amount is less than $(.01) per share. ++++ Series F was issued on September 21, 2005. +++ Based on average shares outstanding. +++++ Aggregate total investment return. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006 Notes to Financial Statements 1. Significant Accounting Policies: MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield California Insured Fund, Inc., MuniYield Florida Fund, MuniYield Michigan Insured Fund II, Inc. and 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. These unaudited financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the interim period. All such adjustments are of a normal, recurring nature. The Funds determine and make available for publication the net asset 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 MuniYield California Fund, Inc., MCA for MuniYield California Insured Fund, Inc., MYF for MuniYield Florida Fund, MYM for MuniYield Michigan Insured Fund II, Inc. and MYN for MuniYield New York Insured Fund, Inc. Common Stock is listed on the American Stock Exchange under the symbol MZA for 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 the Funds under the general direction of the Board of Directors/Trustees. Such valuations and procedures are reviewed periodically by the Board of Directors/Trustees of the Funds. Financial futures contracts and options thereon, which are traded on exchanges, are valued at their closing prices as of the close of such exchanges. Options written or purchased are valued at the last sale price in the case of exchange-traded options. 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 valuations received daily by the Funds' pricing service. Short-term investments with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value, under which method the investment is valued at cost and any premium or discount is amortized on a straight line basis to maturity. 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 the Board of Directors/Trustees of the Funds. (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, their exposure to interest rate movements and movements in the securities markets. Losses may arise due to changes in the value of the contract or if the counterparty does not perform under the contract. * Financial futures contracts--Each Fund may purchase or sell financial futures contracts and options on such futures contracts. 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. SEMI-ANNUAL REPORTS APRIL 30, 2006 Notes to Financial Statements (continued) When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Fund enters into a closing transaction), the Fund realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). Written and purchased options are non-income producing investments. * 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. (c) 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. (d) 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. (e) Dividends and distributions--Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. (f) Offering costs--Direct expenses relating to the public offering of the Fund's Preferred Stock/Shares were charged to capital at the time of issuance of the shares. Any adjustments to estimates of offering costs were recorded back to capital. 2. Investment Advisory Agreement and Transactions with Affiliates: Each Fund has entered into an Investment Advisory Agreement with Fund Asset Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc. ("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner. FAM 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 weekly net assets, including proceeds from the issuance of Preferred Stock/Shares. For the six months ended April 30,2006, the Investment Adviser agreed to reimburse its management fee by the amount of management fees each Fund pays to FAM indirectly through its investment(s) described below: Investment(s) Reimbursement MuniYield Arizona CMA Arizona Municipal Fund, Inc. Money Fund $ 2,279 MuniYield California CMA California Municipal Fund, Inc. Money Fund $ 10,268 MuniYield California CMA California Municipal Insured Fund, Inc. Money Fund $ 7,911 MuniYield Florida Merrill Lynch Institutional Fund Tax-Exempt Fund/ CMA Florida Municipal Money Fund $ 6,895 MuniYield Michigan CMA Michigan Municipal Insured Fund II, Inc. Money Fund $ 8,533 MuniYield New York CMA New York Municipal Insured Fund, Inc. Money Fund $ 2,930 For the six months ended April 30, 2006, the Funds reimbursed FAM for certain accounting services. The reimbursements were as follows: Reimbursement MuniYield Arizona Fund, Inc. $1,118 MuniYield California Fund, Inc. $5,144 MuniYield California Insured Fund, Inc. $8,455 MuniYield Florida Fund $3,465 MuniYield Michigan Insured Fund II, Inc. $3,018 MuniYield New York Insured Fund, Inc. $9,380 Certain officers and/or directors/trustees of the Funds are officers and/or directors of FAM, PSI, and/or ML & Co. SEMI-ANNUAL REPORTS APRIL 30, 2006 Notes to Financial Statements (continued) In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to contribute ML & Co.'s investment management business, including FAM, to the investment management business of BlackRock, Inc. The transaction is expected to close in the third quarter of 2006. 3. Investments: Purchases and sales of investments, excluding short-term securities, for the six months ended April 30, 2006 were as follows: Total Total Purchases Sales MuniYield Arizona Fund, Inc. $ 23,519,475 $ 22,905,149 MuniYield California Fund, Inc. $131,290,008 $ 122,246,707 MuniYield California Insured Fund, Inc. $175,549,616 $ 167,604,499 MuniYield Florida Fund $ 85,073,702 $ 89,439,370 MuniYield Michigan Insured Fund II, Inc. $ 14,444,749 $ 16,508,046 MuniYield New York Insured Fund, Inc. $245,252,560 $ 259,068,792 4. Stock/Share Transactions: MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield California Insured Fund, Inc., MuniYield Michigan Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc. are authorized to issue 200,000,000 shares of stock, including Preferred Stock, par value $.10 per share, all of which were initially classified as Common Stock. The Board of Directors is authorized, however, to reclassify any unissued shares of stock without approval of holders of Common Stock. MuniYield Florida Fund is authorized to issue an unlimited number of Common Shares of beneficial interest, including Preferred Shares, par value $.10 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 MuniYield Arizona Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2006 and during the year ended October 31, 2005 increased by 15,110 and 23,152, respectively, as a result of dividend reinvestment. MuniYield California Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2006 and during the year ended October 31, 2005 remained constant. MuniYield California Insured Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2006 and during the year ended October 31, 2005 remained constant. MuniYield Florida Fund Shares issued and outstanding during the six months ended April 30, 2006 increased by 6,144 as a result of dividend reinvestment and during the year ended October 31, 2005 remained constant. MuniYield Michigan Insured Fund II, Inc. Shares issued and outstanding during the six months ended April 30, 2006 and during the year ended October 31, 2005 increased by 15,590 and 7,539 respectively, as a result of dividend reinvestment. MuniYield New York Insured Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2006 and during the year ended October 31, 2005 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. SEMI-ANNUAL REPORTS APRIL 30, 2006 Notes to Financial Statements (continued) The yields in effect at April 30, 2006 were as follows: MuniYield MuniYield MuniYield California Arizona California Insured Fund, Inc. Fund, Inc. Fund, Inc. Series A 3.55% 3.37% 2.99% Series B 3.40% 3.55% 3.55% Series C 3.50% 2.99% 3.60% Series D -- 3.50% 3.38% Series E -- -- 3.60% Series F -- -- 3.55% MuniYield MuniYield MuniYield Michigan New York Florida Insured II Insured Fund Fund, Inc. Fund, Inc. Series A 3.33% 2.855% 2.87% Series B 3.60% 3.60% 3.00% Series C 3.60% 3.42% 3.50% Series D -- -- 3.60% Series E -- -- 3.70% Series F -- -- 3.20% MuniYield Arizona Insured Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2006 remained constant. Shares issued and outstanding during the year ended October 31, 2005 increased by 400 shares from the issuance of an additional series of Preferred Stock. MuniYield California Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2006 remained constant. Shares issued and outstanding during the year ended October 31, 2005 increased by 1,400 shares from the issuance of an additional series of Preferred Stock. MuniYield California Insured Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2006 remained constant. Shares issued and outstanding during the year ended October 31, 2005 increased by 1,800 shares from the issuance of an additional series of Preferred Stock. MuniYield Florida Fund Shares issued and outstanding during the six months ended April 30, 2006 remained constant. Shares issued and outstanding during the year ended October 31, 2005 increased by 600 shares from the issuance of an additional series of Preferred Shares. MuniYield Michigan Insured Fund II, Inc. Shares issued and outstanding during the six months ended April 30, 2006 remained constant. Shares issued and outstanding during the year ended October 31, 2005 increased by 400 shares from the issuance of an additional series of Preferred Stock. MuniYield New York Insured Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2006 remained constant. Shares issued and outstanding during the year ended October 31, 2005 increased by 1,800 shares from the issuance of an additional series of Preferred Stock. The Funds pay commissions to certain broker-dealers at the end of each auction at an annual rate ranging from .25% to .375%, calculated on the proceeds of each auction. For the six months ended April 30, 2006, MLPF&S earned commissions as follows: Commissions MuniYield Arizona Fund, Inc. $ 28,220 MuniYield California Fund, Inc. $110,448 MuniYield California Insured Fund, Inc. $144,472 MuniYield Florida Fund $ 75,958 MuniYield Michigan Insured Fund II, Inc. $ 60,393 MuniYield New York Insured Fund, Inc. $182,438 5. Capital Loss Carryforward: MuniYield California Fund, Inc. On October 31, 2005, the Fund had a net capital loss carryforward of $3,505,291, of which $3,151,445 expires in 2008 and $353,846 expires in 2011. This amount will be available to offset like amounts of any future taxable gains. SEMI-ANNUAL REPORTS APRIL 30, 2006 Notes to Financial Statements (concluded) MuniYield California Insured Fund, Inc. On October 31, 2005, the Fund had a net capital loss carryforward of $13,381,827, of which $72,467 expires in 2007, $5,722,655 expires in 2008, $9,668 expires in 2009, $4,901,089 expires in 2011 and $2,675,948 expires in 2012. This amount will be available to offset like amounts of any future taxable gains. MuniYield Florida Fund On October 31, 2005, the Fund had a net capital loss carryforward of $9,417,859, of which $906,731 expires in 2007, $7,036,191 expires in 2008 and $1,474,937 expires in 2012. This amount will be available to offset like amounts of any future taxable gains. MuniYield Michigan Insured Fund II, Inc. On October 31, 2005, the Fund had a net capital loss carryforward of $5,180,885, of which $2,841,781 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. MuniYield New York Insured Fund, Inc. On October 31, 2005, the Fund had a net capital loss carryforward of $27,642,246, of which $8,051,889 expires in 2008, $3,007,157 expires in 2010 and $16,583,200 expires in 2012. This amount will be available to offset like amounts of any future taxable gains. 6. Subsequent Event: The Funds paid a tax-exempt income dividend to holders of Common Stock/Shares on May 30, 2006 to stock/shareholders of record on May 15, 2006. The amount of the tax-exempt dividend was as follows: Per Share Amount MuniYield Arizona Fund, Inc. $.067000 MuniYield California Fund, Inc. $.057000 MuniYield California Insured Fund, Inc. $.070000 MuniYield Florida Fund $.067000 MuniYield Michigan Insured Fund II, Inc $.065000 MuniYield New York Insured Fund, Inc. $.065000 SEMI-ANNUAL REPORTS APRIL 30, 2006 Proxy Results MuniYield Arizona Fund, Inc. During the six-month period ended April 30, 2006, MuniYield Arizona Fund, Inc.'s Common Stock shareholders voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Directors: Robert C. Doll, Jr. 4,357,959 57,907 James H. Bodurtha 4,351,610 64,256 Kenneth A. Froot 4,357,959 57,907 Joe Grills 4,352,339 63,527 Roberta Cooper Ramo 4,356,859 59,007 During the six-month period ended April 30, 2006, MuniYield Arizona Fund, Inc.'s Preferred Stock shareholders (Series A - C) voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows: Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Board of Directors: Robert C. Doll, Jr., James H. Bodurtha, Kenneth A. Froot, Joe Grills, Herbert I. London, Roberta Cooper Ramo and Robert S. Salomon, Jr. 1,323 145
MuniYield California Fund, Inc. During the six-month period ended April 30, 2006, MuniYield California Fund, Inc.'s Common Stock shareholders voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Directors: Robert C. Doll, Jr. 19,746,052 989,072 James H. Bodurtha 19,735,378 999,746 Kenneth A. Froot 19,743,128 991,996 Joe Grills 19,735,856 999,268 Roberta Cooper Ramo 19,748,209 986,915 During the six-month period ended April 30, 2006, MuniYield California Fund, Inc.'s Preferred Stock shareholders (Series A - D) voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows: Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Board of Directors: Robert C. Doll, Jr. 6,069 21 James H. Bodurtha 6,071 19 Kenneth A. Froot 6,071 19 Joe Grills 6,071 19 Herbert I. London 6,071 19 Roberta Cooper Ramo 6,071 19 Robert S. Salomon, Jr. 6,071 19
SEMI-ANNUAL REPORTS APRIL 30, 2006 Proxy Results (continued) MuniYield California Insured Fund, Inc. During the six-month period ended April 30, 2006, MuniYield California Insured Fund, Inc.'s Common Stock shareholders voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted were as follows:
Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Directors: Robert C. Doll, Jr. 32,843,165 690,561 James H. Bodurtha 32,830,300 703,426 Kenneth A. Froot 32,836,449 697,277 Joe Grills 32,833,341 700,385 Roberta Cooper Ramo 32,840,252 693,474 During the six-month period ended April 30, 2006, MuniYield California Insured Fund, Inc.'s Preferred Stock shareholders (Series A - F) voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows: Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Board of Directors: Robert C. Doll, Jr. 9,480 13 James H. Bodurtha 9,480 13 Kenneth A. Froot 9,465 28 Joe Grills 9,480 13 Herbert I. London 9,480 13 Roberta Cooper Ramo 9,480 13 Robert S. Salomon, Jr. 9,480 13
MuniYield Florida Fund During the six-month period ended April 30, 2006, MuniYield Florida Fund's Common Shareholders voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr. 13,137,941 140,403 James H. Bodurtha 13,136,106 142,238 Kenneth A. Froot 13,122,443 155,901 Joe Grills 13,134,076 144,268 Roberta Cooper Ramo 13,122,449 155,895 During the six-month period ended April 30, 2006, MuniYield Florida Fund's Preferred Shareholders (Series A - C) voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows: Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr., James H. Bodurtha, Kenneth A. Froot, Joe Grills, Herbert I. London, Roberta Cooper Ramo and Robert S. Salomon, Jr. 4,241 19
SEMI-ANNUAL REPORTS APRIL 30, 2006 Proxy Results (concluded) MuniYield Michigan Insured Fund II, Inc. During the six-month period ended April 30, 2006, MuniYield Michigan Insured Fund II, Inc.'s Common Stock shareholders voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Directors: Robert C. Doll, Jr. 11,373,866 313,677 James H. Bodurtha 11,373,866 313,677 Kenneth A. Froot 11,363,957 323,586 Joe Grills 11,364,432 323,111 Roberta Cooper Ramo 11,374,449 313,094 During the six-month period ended April 30, 2006, MuniYield Michigan Insured Fund II, Inc.'s Preferred Stock shareholders (Series A - C) voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows: Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Board of Directors: Robert C. Doll, Jr., James H. Bodurtha, Kenneth A. Froot, Joe Grills, Herbert I. London, Roberta Cooper Ramo and Robert S. Salomon, Jr. 3,723 0
MuniYield New York Insured Fund, Inc. During the six-month period ended April 30, 2006, MuniYield New York Insured Fund, Inc.'s Common Stock shareholders voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Directors: Robert C. Doll, Jr. 37,541,475 710,065 James H. Bodurtha 37,530,086 721,454 Kenneth A. Froot 37,535,149 716,391 Joe Grills 37,529,034 722,506 Roberta Cooper Ramo 37,549,399 702,141 During the six-month period ended April 30, 2006, MuniYield New York Insured Fund, Inc.'s Preferred Stock shareholders (Series A - F) voted on the following proposal. The proposal was approved at a shareholders' meeting on April 27, 2006. A description of the proposal and number of shares voted are as follows: Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Board of Directors: Robert C. Doll, Jr. 11,805 171 James H. Bodurtha 11,805 171 Kenneth A. Froot 11,789 187 Joe Grills 11,789 187 Herbert I. London 11,789 187 Roberta Cooper Ramo 11,789 187 Robert S. Salomon, Jr 11,789 187
SEMI-ANNUAL REPORTS APRIL 30, 2006 Investment Objectives AMEX Symbol MuniYield Arizona Fund, Inc. seeks to provide shareholders with MZA 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. NYSE Symbol MuniYield California Fund, Inc. seeks to provide shareholders with MYC 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. NYSE Symbol MuniYield California Insured Fund, Inc. seeks to provide MCA 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. NYSE Symbol MuniYield Florida Fund seeks to provide shareholders with as high MYF 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. NYSE Symbol MuniYield Michigan Insured Fund II, Inc. seeks to provide MYM 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. NYSE Symbol MuniYield New York Insured Fund, Inc. seeks to provide MYN 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. SEMI-ANNUAL REPORTS APRIL 30, 2006 Officers and Directors/Trustees Robert C. Doll, Jr., President and Director/Trustee James H. Bodurtha, Director/Trustee Kenneth A. Froot, Director/Trustee Joe Grills, Director/Trustee Herbert I. London, Director/Trustee Roberta Cooper Ramo, Director/Trustee Robert S. Salomon, Jr., Director/Trustee Donald C. Burke, Vice President and Treasurer Kenneth A. Jacob, Senior Vice President John M. Loffredo, Senior Vice President Timothy T. Browse, Vice President Michael A. Kalinoski, Vice President Walter C. O'Connor, Vice President Robert D. Sneeden, Vice President Fred K. Stuebe, Vice President Jeffrey Hiller, Chief Compliance Officer Alice A. Pellegrino, Secretary MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield Florida Fund, MuniYield Michigan Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc.: Custodian The Bank of New York 100 Church Street New York, NY 10286 Transfer Agents Common Stock/Shares: Preferred Stock/Shares: The Bank of New York The Bank of New York 101 Barclay Street - 11 East 101 Barclay Street - 7 West New York, NY 10286 New York, NY 10286 MuniYield California Insured Fund, Inc.: Custodian State Street Bank and Trust Company P.O. Box 351 Boston, MA 02101 Transfer Agents Common Stock: Preferred Stock: Computershare Trust The Bank of New York Company, N.A. 101 Barclay Street - 7 West P.O. Box 43010 New York, NY 10286 Providence, RI 02940-3010 1-800-426-5523 Effective January 1, 2006, Stephen B. Swensrud retired as Director/Trustee of MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield California Insured Fund, Inc., MuniYield Florida Fund, MuniYield Michigan Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc. The Funds' Board of Directors/Trustees wishes Mr. Swensrud well in his retirement. SEMI-ANNUAL REPORTS APRIL 30, 2006 The Benefits and Risks of Leveraging The Funds utilize leveraging to seek to enhance the yield and net asset value of their Common Shares/Common Stock. However, these objectives cannot be achieved in all interest rate environments. To leverage, the Funds issue Preferred Shares/Stock, which pay dividends at prevailing short-term interest rates, and invests the proceeds in long-term municipal bonds. The interest earned on these investments, net of dividends to Preferred Shares/Stock, is paid to Common Shareholders/Common Stock shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share net asset value of the Funds' Common Shares/Stock. However, in order to benefit Common Shareholders/Common Stock shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long- term interest rates. At the same time, a period of generally declining interest rates will benefit Common Shareholders/Common Stock shareholders. If either of these conditions change, then the risks of leveraging will begin to outweigh the benefits. To illustrate these concepts, assume a fund's Common Shares/Stock capitalization of $100 million and the issuance of Preferred Shares/Stock for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are approximately 3% and long-term interest rates are approximately 6%, the yield curve has a strongly positive slope. The fund pays dividends on the $50 million of Preferred Shares/Stock based on the lower short-term interest rates. At the same time, the fund's total portfolio of $150 million earns the income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders/ Preferred Stock shareholders are significantly lower than the income earned on the fund's long- term investments, and therefore the Common Shareholders/Common Stock shareholders are the beneficiaries of the incremental yield. However, if short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Shares/Stock will be reduced or eliminated completely. At the same time, the market value of the fund's Common Shares/Stock (that is, its price as listed on the American Stock Exchange) may, as a result, decline. Furthermore, if long-term interest rates rise, the Common Shares'/Stocks' net asset value will reflect the full decline in the price of the portfolio's investments, since the value of the fund's Preferred Shares/Stock does not fluctuate. In addition to the decline in net asset value, the market value of the fund's Common Shares/Stock may also decline. 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. As of April 30, 2006, the percentages of MuniYield Arizona Fund, Inc.'s, MuniYield California Fund, Inc.'s, MuniYield California Insured Fund, Inc.'s, MuniYield Florida Fund's, MuniYield Michigan Insured Fund II, Inc.'s and MuniYield New York Insured Fund, Inc.'s total net assets invested in inverse floaters were 7.95%, 11.13%, 14.03%, 6.45%, 10.71% and 11.24%, respectively, before the deduction of Preferred Shares/Stock. SEMI-ANNUAL REPORTS APRIL 30, 2006 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 The Funds offer electronic delivery of communications to their shareholders. In order to receive this service, you must register your account and provide us with e-mail information. To sign up for this service, simply access this Web site at http://www.icsdelivery.com/live and follow the instructions. When you visit this site, you will obtain a personal identification number (PIN). You will need this PIN should you wish to update your e-mail address, choose to discontinue this service and/or make any other changes to the service. This service is not available for certain retirement accounts at this time. SEMI-ANNUAL REPORTS APRIL 30, 2006 Item 2 - Code of Ethics - Not Applicable to this semi-annual report Item 3 - Audit Committee Financial Expert - Not Applicable to this semi- annual report Item 4 - Principal Accountant Fees and Services - Not Applicable to this semi-annual report Item 5 - Audit Committee of Listed Registrants - Not Applicable to this semi- annual report Item 6 - Schedule of Investments - Not Applicable Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - Not Applicable to this semi- annual report Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not Applicable to this semi-annual report Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers - Not Applicable Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable Item 11 - Controls and Procedures 11(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 11(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal half- year of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12 - Exhibits attached hereto 12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report 12(a)(2) - Certifications - Attached hereto 12(a)(3) - Not Applicable 12(b) - Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MuniYield California Fund, Inc. By: /s/ Robert C. Doll, Jr. --------------------------- Robert C. Doll, Jr., Chief Executive Officer of MuniYield California Fund, Inc. Date: June 22, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert C. Doll, Jr. --------------------------- Robert C. Doll, Jr., Chief Executive Officer of MuniYield California Fund, Inc. Date: June 22, 2006 By: /s/ Donald C. Burke --------------------------- Donald C. Burke, Chief Financial Officer of MuniYield California Fund, Inc. Date: June 22, 2006