N-CSRS 1 az.txt MUNIYIELD ARIZONA FUND, INC 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 811-07083 Name of Fund: MuniYield Arizona 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 Arizona 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: 10/31/05 Date of reporting period: 11/01/04 - 04/30/05 Item 1 - Report to Stockholders 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. Semi-Annual Reports April 30, 2005 (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-MER-FUND (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. (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. 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 pays 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, 2005, 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 12.33%, 5.51%, 8.31%, 6.47%, 11.76% and 11.66%, respectively, before the deduction of Preferred Shares/Stock. SEMI-ANNUAL REPORTS, APRIL 30, 2005 A Letter From the President Dear Shareholder Financial markets faced a number of crosscurrents over the past several months, but most major benchmarks managed to post positive returns for the annual and semi-annual reporting periods ended April 30, 2005:
Total Returns as of April 30, 2005 6-month 12-month U.S. equities (Standard & Poor's 500 Index) +3.28% + 6.34% Small-cap U.S. equities (Russell 2000 Index) -0.15% + 4.71% International equities (MSCI Europe Australasia Far East Index) +8.71% +14.95% Fixed income (Lehman Brothers Aggregate Bond Index) +0.98% + 5.26% Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.93% + 6.81% High yield bonds (Credit Suisse First Boston High Yield Index) +0.65% + 6.92%
After expanding at an annualized rate of 4.4% in 2004, U.S. gross domestic product growth for the first quarter of 2005 came in at an estimated 3.1% (although that figure was later revised upward to 3.5%). Nevertheless, the Federal Reserve Board continued increasing interest rates at a measured pace to combat emergent inflation. The most recent hike came on May 3, and brought the federal funds rate to 3%. Recently, signs of inflation have taken the form of rising business costs and increasing consumer prices, particularly in the areas of gasoline, healthcare, housing and education. U.S. equities ended 2004 in a strong rally, but stumbled into negative territory in 2005. The market weakness was largely fueled by the potential for slowing economic and corporate earnings growth, renewed energy price concerns and a lack of investor conviction. On the positive side, certain sectors of the market have been performing well (particularly energy) and corporate transactions, such as mergers and acquisitions, stock buy-backs and dividend payouts, have all increased. International equities, especially in Asia, have benefited from higher economic growth rates. In the bond market, we witnessed a yield curve flattening trend over the past several months as short-term yields increased and longer-term interest rates remained more stable or fell. At the end of April 2005, the two-year Treasury note yielded 3.66% and the 10-year Treasury note yielded 4.21%, a difference of 55 basis points (.55%). This compared to a spread of 149 basis points six months earlier and 222 basis points 12 months ago. Looking ahead, the environment is likely to be a challenging one for investors. With this in mind, we encourage you to meet with your financial advisor to review your goals and asset allocation and to rebalance your portfolio, as necessary, to ensure it remains aligned with your objectives and risk tolerance. As always, we thank you for trusting Merrill Lynch Investment Managers with your investment assets, and we look forward to serving you in the months and years ahead. Sincerely, (Robert C. Doll, Jr.) Robert C. Doll, Jr. President and Director/Trustee SEMI-ANNUAL REPORTS, APRIL 30, 2005 A Discussion With Your Funds' Portfolio Managers We looked to security and sector selection as the drivers of Fund returns, while remaining committed to our goals of preserving net asset value and providing our shareholders with competitive yields. Describe the recent market environment relative to municipal bonds. Amid significant volatility, long-term bond yields moved lower over the past six months as shorter-term rates increased. For all of 2004, real gross domestic product (GDP) grew at an annualized rate of 4.4%, well ahead of 2003's annual rate of 3%. An advanced estimate of first quarter 2005 GDP growth came in at an unexpectedly low 3.1%, although that figure was later revised upward to 3.5%. Nevertheless, it appeared that continued economic improvements were generally disregarded as investors focused on inflationary trends, currency-related demand for long-term U.S. securities, and interest rate action on the part of the Federal Reserve Board (the Fed). Over the past six months, 30-year Treasury bond yields declined 28 basis points (.28%) to 4.51%, while 10-year Treasury note yields rose 16 basis points to 4.21%. The Fed, in the meantime, continued to raise short-term interest rates at each of its meetings throughout the period, and most recently rose the federal funds rate from 2.75% to 3% on May 3. As short-term interest rates increased while longer- term interest rates fell, the yield curve continued to flatten. Tax-exempt bond yields exhibited a similar pattern during the period. Yields on 30-year revenue bonds, as measured by the Bond Buyer Revenue Bond Index, fell 14 basis points to 4.83%. According to Municipal Market Data, yields on AAA-rated issues maturing in 30 years declined 23 basis points to 4.37%, while AAA-rated bonds maturing in 10 years saw their yields rise 17 basis points to 3.57%. During the past six months, more than $186 billion in tax-exempt bonds was underwritten, an increase of 7.5% versus the same period a year earlier. Issuance so far in 2005 has been boosted by a 32% increase in refunding issues as municipalities have sought to refinance existing higher-coupon debt. These refunding issues have been heavily weighted in the 10-year - 20-year maturity range to lower the overall interest costs. This concentration has put pressure on intermediate tax-exempt bond yields while supporting longer-term bond prices. Investor demand for municipal product remained generally positive during the period. Investment Company Institute statistics indicate that, year-to- date through March 31, 2005, net new cash flows into long-term municipal bond funds exceeded $1.3 billion. This represented a significant improvement from the $516 million seen during the same period in 2004. However, AMG Data Services reports that weekly figures for the month of April have shown a modest reversal in the positive flows seen in the first three months of the year. MuniYield Arizona Fund, Inc. Describe conditions in the State of Arizona. In March 2005, credit rating agency Moody's issued its first-ever issuer rating on the State of Arizona, a measure that reflects the overall credit quality of the state. Moody's rating of Aa3, with a stable outlook, was based on Arizona's trend of economic growth and diversification, particularly in high-technology manufacturing and tourism; a track record of reasonably strong budgetary and financial management; and moderate state debt levels that are coming under slight pressure from school construction needs. Indicators for Arizona's fiscal year 2005 (which ends June 30, 2005) show continued economic improvement in the state and increasing revenue collections. Through March 2005, General Fund collections exceeded the fiscal year-to-date forecast by $411.5 million and, after adjusting for one- time revenues, were $835.5 million ahead of collections as of the same time last year. The strong performance continues to be driven by growth in sales taxes, a particularly favorable indicator of economic improvement, as well as growth in individual and corporate income taxes. Other major economic indicators - state job growth, the tourism barometer and the number of families receiving public subsidies - also are showing signs of recovery. Although the state's unemployment rate rose to 4.7% in March 2005 from 4.1% in January 2005, the increase is attributed to a surge in the number of job seekers rather than declining employment and still represents an improvement from year-ago levels. SEMI-ANNUAL REPORTS, APRIL 30, 2005 How did the Fund perform during the period? For the six-month period ended April 30, 2005, the Common Stock of MuniYield Arizona Fund, Inc. had net annualized yields of 6.25% and 6.23%, based on a period-end per share net asset value of $14.90 and a per share market price of $14.95, respectively, and $.462 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +2.34%, based on a change in per share net asset value from $15.04 to $14.90, and assuming reinvestment of all distributions. The Fund provided a positive total return for the period, despite our maintaining a defensive market posture. That is, we were positioned for rising interest rates, while long-term interest rates actually declined over the past six months. Benefiting performance was the Fund's above- average yield, which allowed us to continue providing a stable monthly dividend to shareholders. The advance refunding of a sizable credit in the portfolio also aided performance. When municipal bonds are refinanced ahead of their maturity date, their prices generally increase sharply. Hindering Fund returns during the period was our underexposure to longer- maturity bonds. As the yield curve flattened over the past six months, longer-maturity bonds significantly outperformed shorter-maturity issues. While we have been pursuing a strategy of moving further out on the yield curve, generally into the 25-year maturity range, we were not able to effect this trade as much as we would have liked in the current low interest rate environment. Because many of the shorter-maturity bonds booked in the portfolio have greater yields than those available in the current environment, we were reluctant to give them up in order to extend our average portfolio maturity. Further compounding our inability to purchase longer-dated bonds was the fact that recent supply has been largely concentrated in the short-term and intermediate-term range. Finally, the Fund experienced an extraordinary redemption of a holding during the period. Working with our Municipal Research Group, we will be looking to recommit these monies to the long end of the Arizona tax-exempt market. 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 did not significantly alter the Fund's structure or our strategy over the past six months. We continued to selectively purchase higher-yielding credits in an effort to enhance the Fund's yield. As in previous periods, we continued to favor premium-coupon bonds, when available, and maturities in the 20-year - 25-year range. This supports our defensive market posture, in that these bonds offer coupon protection when interest rates move higher. We generally maintained the Fund's fully invested position throughout the period, seeking to enhance shareholder income. As mentioned earlier, the major market phenomenon over the past six months was a flattening of the yield curve. Yields on shorter-term bonds, specifically those with maturities less than 15 years or 20 years, rose rather significantly. Yields on longer-term bonds, generally those past the 20-year range, actually declined. Given that bond prices move in the opposite direction of yields, the result has been that bonds on the long end of the municipal yield curve performed well while short-term bonds lagged. Thus, our strategy of targeting new purchases in the 25-year area has been prudent. Supply of new Arizona debt, while fairly regular, offered few bonds with the maturities and yield characteristics we desired. Nevertheless, we were able to take advantage of Puerto Rico-issued municipal debt during the period as opportunities presented themselves. For the six-month period ended April 30, 2005, the Fund's Auction Market Preferred Stock (AMPS) had an average yield of 1.61% for Series A and 1.66% for Series B. At this point in the Fed's monetary tightening cycle, interest rate increases are having a material impact on the Fund's borrowing costs. The Fed raised the short-term interest rate target 100 basis points during the six-month period. Still, the tax-exempt yield curve remained relatively steep and 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 31.22% of total net assets. (For a more complete explanation of the benefits and risks of leveraging, see page 2 of this report to shareholders.) SEMI-ANNUAL REPORTS, APRIL 30, 2005 A Discussion With Your Funds' Portfolio Managers (continued) How would you characterize the Fund's position at the close of the period? We remain focused on premium-coupon bonds and continue to favor maturities in the 25-year range. We maintained a slightly defensive market posture at the close of the period in recognition of generally healthy economic conditions. We believe this positioning prepares the Fund for relative outperformance once long-term market rates eventually begin to follow short- term rates higher. In the meantime, our fully invested stance should continue to provide an income benefit to Common Stock shareholders. MuniYield California Fund, Inc. Describe conditions in the State of California. California began 2005 facing a budget shortfall of approximately $8.6 billion. In his January State of the State address, Governor Arnold Schwarzenegger outlined steps to address the state's fiscal woes. These steps included new debt in the form of additional "economic recovery" bonds and notes, tribal gaming revenue bonds, a possible pension obligation bond, cutbacks in state spending on local school districts and other nonspecific budget cuts. The original 2005 budget passed by the state's legislature relied heavily on an improving economy to generate sizable revenue improvements, but planned spending cuts proved more difficult to enact. During 2004, each of the three major rating agencies upgraded California's long-term credit rating, recognizing that last year's budget was met through a relatively aggressive borrowing program accomplished in a period of attractive financing rates. However, the credit-rating upgrades were not based on any significant progress in mending the underlying budget problems. Credit spreads for California general obligation debt have continued to narrow, suggesting strong demand despite the lack of any increased fiscal responsibility in the state. At the height of the state's budget troubles, California general obligation bonds offered as much as 80 additional basis points in income over comparable AAA-rated tax-exempt securities. By period- end, that spread had narrowed to between 10 basis points and 20 basis points. "Cushion securities" - higher-coupon, defensively structured bonds that are popular when the market is anticipating higher interest rates - were spread even tighter. How did the Fund perform during the period? For the six-month period ended April 30, 2005, the Common Stock of MuniYield California Fund, Inc. had net annualized yields of 6.07% and 6.58%, based on a period-end per share net asset value of $15.06 and a per share market price of $13.88, respectively, and $.453 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +1.93%, based on a change in per share net asset value from $15.27 to $15.06, and assuming reinvestment of all distributions. The Fund's total return, based on net asset value, trailed its comparable Lipper category of California Municipal Debt Funds, which had an average return of +4.17% 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 Fund's underperformance can be attributed in part to having a lower degree of leverage than many of its peers, which detracted from results as long-term interest rates declined significantly in California in response to strong demand for the state's bonds. In addition, the Fund was underweighted in bonds backed by tobacco company revenues, a stance that hurt relative performance as credit spreads narrowed and these lower-rated securities outperformed. Throughout the period, we continued to emphasize a relatively high degree of credit quality and a below-average duration, or sensitivity to changes in interest rates. Our short duration benefited performance during periods when long-term interest rates rose, such as in March, but hindered results as the overall trend during the period was toward lower long-term interest rates. 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. SEMI-ANNUAL REPORTS, APRIL 30, 2005 What changes were made to the portfolio during the period? During the past six months, we emphasized a defensive market positioning, keeping the Fund's duration below that of its peers. Although this strategy had a negative impact on results as long-term interest rates fell early in the period, it helped performance in March as the market experienced its first sustained trend of rising long-term interest rates. With yields on 10-year Treasury securities reaching as high as 4.68% during the period, we began to take advantage of market weakness to move the portfolio toward a more neutral duration stance - a process we expect to continue if interest rates increase further. To increase the Fund's duration, we bought some more aggressively structured bonds, including zero- coupon bonds. We kept the Fund's cash reserves at minimal levels (generally less than 1%) throughout the period given the extraordinarily high demand relative to supply in the short-term California tax-exempt marketplace. The Fund's credit quality changed little during the period, with 84% of portfolio assets rated AA or higher at period-end. For the six-month period ended April 30, 2005, the Fund's Auction Market Preferred Stock (AMPS) had average yields as follows: 1.82% for Series A, 1.52% for Series B and 1.24% for Series C. At this point in the Fed's monetary tightening cycle, interest rate increases are having a material impact on the Fund's borrowing costs. The Fed raised the short-term interest rate target 100 basis points during the six-month period. Still, the tax-exempt yield curve remained relatively steep and 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 30.39% of total net assets. (For a more complete explanation of the benefits and risks of leveraging, see page 2 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? The portfolio was defensively positioned at period-end, although we are seeking opportunities to bolster the Fund's current yield and add to its income stream. We will continue to monitor the economic landscape for possible interest rate back-ups, which may present an opportunity to increase the Fund's duration to neutral or possibly even an aggressive stance. Credit spreads for lower investment grade bonds have reached historically tight ratios, which we believe makes it inadvisable to lower the portfolio's credit profile in our search for higher yields. Accordingly, we plan to maintain the Fund's high degree of credit quality. MuniYield California Insured Fund, Inc. Describe conditions in the State of California. California began 2005 facing a budget shortfall of approximately $8.6 billion. In his January State of the State address, Governor Arnold Schwarzenegger outlined steps to address the state's fiscal woes. These steps included new debt in the form of additional "economic recovery" bonds and notes, tribal gaming revenue bonds, a possible pension obligation bond, cutbacks in state spending on local school districts and other nonspecific budget cuts. The original 2005 budget passed by the state's legislature relied heavily on an improving economy to generate sizable revenue improvements, but planned spending cuts proved more difficult to enact. During 2004, each of the three major rating agencies upgraded California's long-term credit rating, recognizing that last year's budget was met through a relatively aggressive borrowing program accomplished in a period of attractive financing rates. However, the credit-rating upgrades were not based on any significant progress in mending the underlying budget problems. Credit spreads for California general obligation debt have continued to narrow, suggesting strong demand despite the lack of any increased fiscal responsibility in the state. At the height of the state's budget troubles, California general obligation bonds offered as much as 80 additional basis points in income over comparable AAA-rated tax-exempt securities. By period- end, that spread had narrowed to between 10 basis points and 20 basis points. "Cushion securities" - higher-coupon, defensively structured bonds that are popular when the market is anticipating higher interest rates - were spread even tighter. SEMI-ANNUAL REPORTS, APRIL 30, 2005 A Discussion With Your Funds' Portfolio Managers (continued) How did the Fund perform during the period? For the six-month period ended April 30, 2005, the Common Stock of MuniYield California Insured Fund, Inc. had net annualized yields of 5.80% and 6.35%, based on a period-end per share net asset value of $15.23 and a per share market price of $13.91, respectively, and $.438 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +3.24%, based on an unchanged per share net asset value of $15.23, and assuming reinvestment of all distributions. The Fund's total return, based on net asset value, modestly trailed its comparable Lipper category of California Insured Municipal Debt Funds, which had an average return of +3.36% 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.) The Fund's performance during the period reflects a relatively high degree of credit quality in the portfolio's asset mix and a below-average duration, or level of interest rate sensitivity. Given our high-quality portfolio, we did not have as much exposure as some of our peers to lower-quality issues, which performed strongly as credit spreads continued to narrow. Likewise, our relatively short duration, although it benefited performance in March as long-term interest rates increased, hindered results during this particular six-month period as the general trend in interest rates was downward. Overall, however, the Fund continued to provide a competitive yield while maintaining a high credit quality portfolio. 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? During the past six months, we emphasized a defensive market positioning, keeping the Fund's duration below that of its peers. Although this strategy had a negative impact on results as long-term interest rates fell early in the period, it helped performance in March as the market experienced its first sustained trend of rising long-term interest rates. With yields on 10-year Treasury securities reaching as high as 4.68% during the period, we began to take advantage of market weakness to move the portfolio to a more neutral duration stance - a process we expect to continue if rates increase further. To that end, we bought some more aggressively structured bonds, including zero-coupon bonds, to increase the Fund's duration. Toward the end of the period, we also engaged in selective swap transactions designed to improve the portfolio's call structure and relative liquidity. The Fund's already high credit quality improved during the period, with nearly 94% of portfolio assets rated AAA with bond insurance at period-end. For the six-month period ended April 30, 2005, the Fund's Auction Market Preferred Stock (AMPS) had average yields as follows: 1.47% for Series A, 1.61% for Series B, 1.48% for Series C, 1.84% for Series D and 1.53% for Series E. At this point in the Fed's monetary tightening cycle, interest rate increases are having a material impact on the Fund's borrowing costs. The Fed raised the short-term interest rate target 100 basis points during the six-month period. Still, the tax-exempt yield curve remained relatively steep and 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 30.53% of total net assets. (For a more complete explanation of the benefits and risks of leveraging, see page 2 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? The Fund remained defensively positioned at period-end, although a move toward neutral has already begun. We will continue to monitor the economic landscape and take advantage of appropriate market conditions to increase the Fund's duration to neutral or possibly even an aggressive stance. Further moves in that direction will require weakness in the bond market, allowing us to take advantage of the relatively attractive prices. SEMI-ANNUAL REPORTS, APRIL 30, 2005 We are looking to bolster the Fund's current yield and add to its income stream when opportunities present themselves. However, we are not inclined to lower the portfolio's credit profile in search of higher yields, as credit spreads for uninsured bonds have already reached historically tight ratios. Accordingly, we plan to maintain the Fund's high degree of credit quality and continue our emphasis of AAA-rated insured bonds. MuniYield Florida Fund Describe conditions in the State of Florida. During the past several months, ratings agency Moody's increased Florida's credit rating from AA2 to AA1, and Standard & Poor's increased its rating from AA+ to AAA. At period-end, Fitch maintained a rating of AA. The favorable ratings are based on the state's solid economic and financial performance, in addition to moderate debt and a proactive government that responds to economic downturns faster than other states. Last year's hurricane season had little impact on the state's finances. Florida's continued economic strength is bolstered by robust population growth, which is attributed to its attractive physical environment and favorable business climate. Although the growth in population has put a strain on services such as education, transportation and healthcare, it also has allowed the state to recover more quickly from sub par economic trends. Currently, the state's revenues are higher than budgeted and expenditures remain under control due to prudent fiscal oversight. The fiscal year 2005 budget was brought into balance through tight expenditure controls, including outsourcing work and requiring local governments to pick up costs historically incurred by the state. To pay for these additional expenses, municipalities imposed increases to property taxes and/or local sales taxes through voter initiatives. Given the government's concerns over the high healthcare costs facing the state - roughly $15 billion or 26% in the upcoming budget - Governor Jeb Bush has proposed a partially private health insurance plan. Florida continues to maintain sound and solid fund balances with consistent General Fund operations. In addition, the state has a working Capital Reserve Fund and a Budget Stabilization Fund in excess of $1.8 billion. How did the Fund perform during the period? For the six-month period ended April 30, 2005, the Common Shares of MuniYield Florida Fund had net annualized yields of 6.09% and 6.56%, based on a period-end per share net asset value of $15.30 and a per share market price of $14.20, respectively, and $.462 per share income dividends. Over the same period, the total investment return on the Fund's Common Shares was +3.49%, based on a change in per share net asset value from $15.27 to $15.30, and assuming reinvestment of all distributions. The Fund's total return, based on net asset value, outpaced the +3.23% average return of the Lipper Florida Municipal Debt Funds category for the six-month period. (Funds in this Lipper category limit their investment to securities exempt from taxation in Florida or a city in Florida). Contributing most to performance during the period was our yield curve positioning. Essentially, we continued to focus on the longer end of the curve, which significantly outperformed the short end as the yield curve flattened and shorter-term bond prices suffered. Also benefiting performance were the Fund's uninsured credits, which performed particularly well during the period, especially our investments in the Florida hospital sector. Finally, our commitment to an above-average coupon structure ultimately contributed to returns. 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 make any material changes to our strategy or to the portfolio's structure over the past six months. Although the market was quite volatile, ultimately, it moved very little from where we started the period. We continued to focus on increasing the income provided to shareholders and muting the Fund's net asset value volatility. SEMI-ANNUAL REPORTS, APRIL 30, 2005 A Discussion With Your Funds' Portfolio Managers (continued) To that end, we sought to sell bonds in the 10-year - 15-year maturity range, although this proved more challenging in recent months as the yield curve flattened and bonds in the intermediate range began to cheapen relative to longer-dated securities. In making new purchases, we focused on premium-coupon bonds in the 20-year - 30-year maturity range. Efforts on this front also were somewhat limited, as few new issues met our desired investment characteristics. While issuance of Florida municipal bonds increased 29% versus the same six-month period a year ago, the majority of the new issues offered maturities of only 15 years - 20 years and yields below 5%. We were not inclined to give up bonds booked in the portfolio at higher yields in order to take advantage of the new-issue calendar. For the six-month period ended April 30, 2005, the Fund's Auction Market Preferred Shares (AMPS) had an average yield of 1.63% for Series A and 1.52% for Series B. At this point in the Fed's monetary tightening cycle, interest rate increases are having a material impact on the Fund's borrowing costs. The Fed raised the short-term interest rate target 100 basis points during the six-month period. Despite the recent Fed rate increases, the tax-exempt yield curve has remained relatively steep and has 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 leverage 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 31.42% of total net assets. (For a complete explanation of the benefits and risks of leveraging, see page 2 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? We maintained a slightly defensive market posture at the close of the period. The Fed is expected to continue its monetary tightening program, which should eventually prompt long-term market rates to follow short-term rates higher. We believe our defensive stance should ready the Fund for relative outperformance under these circumstances. As long as the municipal yield curve remains fairly steep, we will continue in our efforts to sell the intermediate part of the curve and use periods of volatility to pursue higher-coupon bonds whenever they are attractively priced. We believe this strategy has served the Fund well against the prevailing market and economic backdrop. MuniYield Michigan Insured Fund II, Inc. Describe conditions in the State of Michigan. At period-end, Michigan maintained credit ratings of Aa2, AA and AA from Moody's, Standard & Poor's and Fitch, respectively, each with a stable outlook. All three agencies downgraded the state during the period, citing the troubled automotive sector and worse-than-expected revenue collection estimates. However, Michigan's debt levels are quite low for a populous state and provide it with valuable financial flexibility in responding to economic downturns. Another positive is that the state's pension system is well funded. Michigan's 2004 fiscal year ended with a surplus exceeding $155 million, all of which was used, along with money from spending cuts and the Medicaid trust fund, to close a $375 million budget shortfall for fiscal year 2005. The state's proposed 2006 budget eliminates a $770 million general fund deficit mostly through spending cuts with some additional new taxes. The budget relies very little on the use of one-time revenue sources that will be unavailable in future years. Michigan's economy continues to lag the national recovery as well as that of other Great Lakes states. Employment in the state fell in 2004, representing the fourth consecutive annual decline. The manufacturing sector, led by the auto industry and General Motors Corp. in particular, is responsible for the job losses, which have caused stagnant state revenue growth. Without growth from other job sectors, Michigan could face additional credit-rating downgrades. On the positive side, preliminary February 2005 employment data showed an increase from a year earlier, and the annual rate of job losses in Michigan has declined each year since 2001. How did the Fund perform during the period? For the six-month period ended April 30, 2005, the Common Stock of MuniYield Michigan Insured Fund II, Inc., had net annualized yields of 6.07% and 6.48%, based on a period-end per share net asset value of $15.04 and a per share market price of $14.10, respectively, and $.453 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +2.08%, based on a change in per share net asset value from $15.21 to $15.04, and assuming reinvestment of all distributions. SEMI-ANNUAL REPORTS, APRIL 30, 2005 The Fund's total return, based on net asset value, trailed the +2.96% 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.) This Lipper category includes a number of funds that can purchase lower-rated, uninsured bonds, which were among the market's best-performing securities during the past six months. Given the Fund's more conservative investment parameters, and overall higher credit quality, we were underweight in these lower-rated issues, which contributed to relative underperformance during the period. The Fund's defensive positioning during the first part of the period also detracted somewhat from performance. As long-term interest rates continued to decline during this time, the portfolio's relatively conservative level of interest rate exposure detracted from 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? During the past six months, Michigan municipalities issued $6.3 billion in long-term tax-exempt securities, an increase of 47% compared to the same six months a year earlier. Despite this increase in supply, overall activity in the portfolio was limited by the fact that current market yields are well below those provided by most of the Fund's holdings. The sale of our existing, higher-yielding bonds would result in a decline in the Fund's income stream - and, potentially, the eventual reduction of its dividend. Also, most recent issuance in the state has been heavily weighted in the 10-year - 20-year maturity range, in keeping with the national supply pattern. We continued to avoid new purchases in this range because of the unattractively low yield levels. Over the course of the period, we increasingly positioned the portfolio to be less defensive. A combination of factors - including the Fed's continued program of short-term interest rate increases, moderating economic growth expectations and declines in leading economic indicators - led us to believe that the potential for significant interest rate increases later in 2005 and into 2006 was less than previously anticipated. Accordingly, we sought to take advantage of periods of price volatility by adding to our position in bonds with greater sensitivity to changes in interest rates. To generate funds for these purchases, we sold prerefunded bonds with two-year - five-year maturity dates, enabling us to lock in the significant market appreciation these bonds have enjoyed while also moving closer to our desired neutral portfolio positioning. For the six-month period ended April 30, 2005, the Fund's Auction Market Preferred Stock (AMPS) had average yields of 1.64% for Series A and 1.62% for Series B. At this point in the Fed's monetary tightening cycle, interest rate increases are having a material impact on the Fund's borrowing costs. The Fed raised the short-term interest rate target 100 basis points during the six-month period. Still, the tax-exempt yield curve remained relatively steep and 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 32.94% of total net assets. (For a more complete explanation of the benefits and risks of leveraging, see page 2 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? We ended the period in transition toward a more neutral market stance. We are monitoring economic and market conditions and would need to see additional evidence of slowing economic activity or financial stress - such as the recent credit-rating downgrades of General Motors Corp. and Ford Motor Co. - before enacting a more aggressive market strategy. In the meantime, we intend to maintain the portfolio's fully invested stance in order to enhance investment income and allow the Fund to continue to generate an above-average dividend yield. SEMI-ANNUAL REPORTS, APRIL 30, 2005 A Discussion With Your Funds' Portfolio Managers (concluded) MuniYield New York Insured Fund, Inc. Describe conditions in the State of New York. The State of New York maintains credit ratings of A1, AA and AA- from Moody's, Standard and Poor's (S&P) and Fitch, respectively. Moody's assigns a positive outlook to the state's rating, reflecting an upgrade in November, while Fitch and S&P carry stable outlooks. The state economy continues to improve and revenue collections are increasing. Recently, for the first time in more than 20 years, New York lawmakers approved a budget on time. The fiscal year 2006 budget calls for $105 billion in spending and forecasts a 5% increase in tax receipts. Aided by this revenue growth, the adopted budget includes the governor's original proposals for closing an estimated $4 billion deficit. However, this does not factor in a lawsuit recently won by the Campaign for Fiscal Equity that could add up to $2 billion in annual state education spending. 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. The economy produced good job growth in 2004, with total non-farm labor increasing .5% from the prior year. This was the first annual gain since 2000. New York ranks fifth-highest among all states in per capita income. Modest income growth during 2005 would boost personal income tax receipts, roughly 38% of general fund receipts. How did the Fund perform during the period? For the six-month period ended April 30, 2005, the Common Stock of MuniYield New York Insured Fund, Inc. had net annualized yields of 5.74% and 6.40%, based on a period-end per share net asset value of $14.76 and a per share market price of $13.23, respectively, and $.420 per share income dividends. Over the same period, the total investment return on the Fund's Common Stock was +2.91%, based on a change in per share net asset value from $14.81 to $14.76, and assuming reinvestment of all distributions. The Fund's total return, based on net asset value, was five basis points short of the +2.96% 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.) We continued to manage the Fund with a focus on yield, and were successfully able to maintain the Fund's monthly dividend distribution (whereas the majority of our competitors were forced to cut their dividends). While enhancing income for shareholders, primarily by retaining bonds booked in the portfolio at yields higher than those available in the current market, we have seen some erosion in the Fund's average duration. During the past six months, in a market characterized by a flattening yield curve, this shortening of duration was a detriment to total return. This is because shorter-maturity investments significantly underperformed the longer end of the municipal market. As part of our ongoing strategy, we continue to look for opportunities to add longer-dated bonds with attractive yields to the portfolio. 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 may 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 continued to focus on generating attractive tax-exempt income for our shareholders, essentially remaining fully invested throughout the period. The Fund is permitted to invest up to 20% of net assets in uninsured bonds and, working with the Municipal Research Group, we identified unenhanced securities within our credit parameters that offer yields above those available from AAA-rated insured paper. We believe purchases of these securities should further enhance the Fund's strong income distribution. SEMI-ANNUAL REPORTS, APRIL 30, 2005 Throughout the period, we had been looking to capitalize on the curve flattening trend by moving into longer-dated securities as opportunities presented themselves. Although issuance of New York bonds has been fairly active, most of the new issues coming to market have been in the short to intermediate maturity range. This, coupled with the market's low absolute yields, somewhat limited our ability to affect this trade as much as we would have liked. Doing so would have required us to give up bonds that, although shorter in duration, were booked at higher yields. Thus, to counteract the natural shortening of the portfolio's average duration, we reduced our hedge positions to achieve a slightly defensive posture. Going forward, we expect to look for more active trading opportunities, which will allow us to move the portfolio to a more market-neutral stance. The average yields for the Fund's Auction Market Preferred Stock (AMPS) for the six months ended April 30, 2005, were: 1.79% for Series A, 1.51% for Series B, 1.56% for Series C, 1.48% for Series D and 1.87% for Series E. At this point in the Fed's monetary tightening cycle, interest rate increases are having a material impact on the Fund's borrowing costs. The Fed raised the short-term interest rate target 100 basis points during the six-month period. Still, the tax-exempt yield curve remained relatively steep and 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 30.79% of total net assets. (For a more complete explanation of the benefits and risks of leveraging, see page 2 of this report to shareholders.) How would you characterize the Fund's position at the close of the period? After eight consecutive interest rate hikes, we believe the Fed is closer to the end than the beginning of its monetary tightening program. Thus, it would seem that the risk of significantly higher interest rates is somewhat diminished. However, we do expect a considerable amount of volatility in the financial markets in the near term given inflation concerns and increasingly mixed economic releases. We expect that this could provide an opportunity to approach a more neutral market stance. We continue to maintain a fully invested portfolio, targeting bonds with 25-year - 30-year maturities. We are looking for opportunities to diversify the portfolio, and recently accomplished that by adding bonds insured by two relatively new names in the municipal market - XL Capital Assurance (XLCA) and CIFG. Both are AAA-rated insurers and their bonds have outperformed the broader market as their yield spreads narrowed compared to more established insurers. We will continue to search for similar opportunities to add yield and further diversify 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 26, 2005 SEMI-ANNUAL REPORTS, APRIL 30, 2005 Portfolio Information Quality Profiles as of April 30, 2005 Percent of MuniYield Arizona Fund, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 48.5% AA/Aa 6.4 A/A 20.6 BBB/Baa 18.2 BB/Ba 1.0 NR (Not Rated) 5.1 Other* 0.2 Percent of MuniYield California Fund, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 70.8% AA/Aa 12.5 A/A 13.0 BBB/Baa 3.5 Other* 0.2 Percent of MuniYield California Insured Fund, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 93.9% AA/Aa 2.2 A/A 3.7 Other* 0.2 Percent of MuniYield Florida Fund Total By S&P/Moody's Rating Investments AAA/Aaa 75.5% AA/Aa 1.5 A/A 10.6 BBB/Baa 9.2 BB/Ba 2.7 Other* 0.5 Percent of MuniYield Michigan Insured Fund II, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 87.6% AA/Aa 4.0 A/A 5.0 BBB/Baa 3.0 Other* 0.4 Percent of MuniYield New York Insured Fund, Inc. Total By S&P/Moody's Rating Investments AAA/Aaa 87.9% AA/Aa 1.3 A/A 10.4 BBB/Baa 0.1 Other* 0.3 *Includes portfolio holdings in variable rate demand notes. 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, 2005 Schedule of Investments MuniYield Arizona Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value Arizona--120.1% $ 1,650 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Refunding Bonds, AMT, Junior Sub-Series, 6.30% due 12/01/2008 $ 1,666 Arizona Health Facilities Authority, Hospital System Revenue Bonds (John C. Lincoln Health Network): 500 6.875% due 12/01/2020 560 1,125 7% due 12/01/2025 1,258 1,785 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625% due 7/01/2020 1,991 3,000 Arizona School Facilities Board, State School Improvement Revenue Bonds, 5.50% due 7/01/2017 3,339 Arizona State University Revenue Bonds (e): 1,500 5.75% due 7/01/2012 (n) 1,725 4,335 DRIVERS, Series 270, 7.69% due 7/01/2021 (k) 5,497 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT: 3,285 Junior Subordinated Series B-1, 6.15% due 5/01/2029 3,543 1,000 Senior-Series A-1, 5.90% due 5/01/2024 1,072 Arizona Tourism and Sports Authority, Tax Revenue Bonds: 1,000 (Baseball Training Facilities Project), 5% due 7/01/2016 1,039 2,000 (Multi-Purpose Stadium Facility), Series A, 5.375% due 7/01/2023 (b) 2,213 500 Glendale, Arizona, Development Authority, Educational Facilities Revenue Refunding Bonds (American Graduate School International), 5.875% due 7/01/2015 (c) 520 2,405 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation), 6.125% due 4/01/2018 2,524 1,000 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.625% due 7/01/2020 996 2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan Health Services), Series A, 7% due 12/01/2016 (b)(d) 2,995 Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds: 1,000 (Metro Gardens--Mesa Ridge Apartments Project), Series 1999A, 5.15% due 7/01/2029 (b) 1,003 2,395 (Place Five and Greenery Apartments), Series A, 6.625% due 1/01/2027 (d) 2,622 200 Maricopa County, Arizona, IDA, M/F Housing Revenue Refunding Bonds (San Martin Apartments Project), VRDN, AMT, Series A-1, 3.02% due 6/15/2035 (g)(l) 200 15 Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 1B, 6.25% due 9/01/2032 (f)(i) 15 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding, Series A: 1,000 (El Paso Electric Company Project), 6.25% due 5/01/2037 1,008 1,485 (Public Service Company of New Mexico Project), 6.30% due 12/01/2026 1,585 2,250 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB, Series 511X, 7.74% due 7/01/2014 (a)(k) 2,756 1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60% due 7/01/2012 2,196 500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO, Refunding, 7.50% due 7/01/2010 (e) 601
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 DATES Daily Adjustable Tax-Exempt Securities 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 S/F Single-Family VRDN Variable Rate Demand Notes SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield Arizona Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value Arizona (concluded) $ 1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement, GO (Saddle Mountain), Series A, 5% due 7/01/2014 $ 1,050 Mesa, Arizona, IDA, Revenue Bonds (Discovery Health Systems), Series A (b): 1,000 5.875% due 1/01/2014 1,116 1,500 5.625% due 1/01/2015 1,652 1,000 Navajo County, Arizona, IDA, IDR (Stone Container Corporation Project), AMT, 7.40% due 4/01/2026 1,035 4,500 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2034 (e) 4,970 2,500 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding Bonds, Junior Lien, 5.50% due 7/01/2020 (e) 2,755 1,750 Phoenix, Arizona, GO, Refunding, DRIVERS, Series 173, 11.683% due 7/01/2008 (k) 2,228 15 Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 1A, 6.25% due 9/01/2032 (f)(i) 15 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project), Series C: 750 6.70% due 7/01/2021 790 1,000 6.75% due 7/01/2031 1,043 1,000 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project II), Series A, 6.75% due 7/01/2021 1,057 1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A, 5.625% due 4/01/2014 (b) 1,063 530 Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.20% due 11/01/2030 (f)(g)(i) 568 3,050 Pima County, Arizona, Unified School District Number 1, Tucson, GO, Refunding, 7.50% due 7/01/2009 (e) 3,568 Pinal County, Arizona, COP: 1,250 5% due 12/01/2026 1,285 1,250 5% due 12/01/2029 1,274 2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due 12/01/2031 2,413 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) 1,660 625 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)(i) 629 1,500 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project), Series A, 6.125% due 7/01/2024 (j) 1,672 1,105 University of Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a) 1,171 Vistancia Community Facilities District, Arizona, GO: 1,275 6.75% due 7/15/2022 1,378 750 5.75% due 7/15/2024 761 2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional Medical Center), Series A, 6% due 8/01/2033 2,116 Puerto Rico--22.3% 500 Puerto Rico Commonwealth, GO, Refunding, RITR, Class R, Series 3, 8.213% due 7/01/2016 (b)(k) 616 Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue Refunding Bonds: 1,000 Series D, 5.75% due 7/01/2041 1,117 1,000 Series J, 5.50% due 7/01/2023 1,100 2,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031 2,078 Puerto Rico Electric Power Authority, Power Revenue Bonds: 1,000 Series II, 5.25% due 7/01/2031 1,063 1,500 Series NN, 5.125% due 7/01/2029 1,576 1,000 Series RR, 5% due 7/01/2030 (m) 1,061 695 Trust Receipts, Class R, Series 16 HH, 8.193% due 7/01/2013 (h)(k) 872
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (concluded) MuniYield Arizona Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value Puerto Rico (concluded) $ 2,000 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 $ 2,170 2,000 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding Bonds, Series I, 5.25% due 7/01/2033 2,125 1,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.50% due 8/01/2029 1,071 Total Investments (Cost--$88,824*)--142.4% 95,042 Other Assets Less Liabilities--3.0% 2,001 Preferred Stock, at Redemption Value--(45.4%) (30,308) --------- Net Assets Applicable to Common Stock--100.0% $ 66,735 ========= * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 88,832 ============== Gross unrealized appreciation $ 6,242 Gross unrealized depreciation (32) -------------- Net unrealized appreciation $ 6,210 ============== (a) AMBAC Insured. (b) MBIA Insured. (c) Connie Lee Insured. (d) Escrowed to maturity. (e) FGIC Insured. (f) FHLMC Collateralized. (g) FNMA Collateralized. (h) FSA Insured. (i) GNMA Collateralized. (j) Radian Insured. (k) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (l) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. The rate changes periodically based upon prevailing market rates. (m) XL Capital Insured. (n) Prerefunded. Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income CMA Arizona Municipal Money Fund (914) $2 See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments MuniYield California Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value California--137.1% $ 1,730 ABAG Finance Authority for Nonprofit Corporations, California, Revenue Refunding Bonds (Redwood Senior Homes and Services), 6% due 11/15/2022 $ 1,856 3,975 Antioch Area Public Facilities Financing Agency, California, Special Tax (Community Facilities District Number 1989-1), 5.70% due 8/01/2022 (a) 4,372 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) 2,866 2,500 Bakersfield, California, COP, Refunding (Convention Center Expansion Project), 5.80% due 4/01/2017 (h) 2,658 California HFA, Home Mortgage Revenue Bonds: 405 Series D, 5.85% due 8/01/2017 426 900 VRDN, AMT, Series N, 3% due 8/01/2021 (f)(j) 900 5,000 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente), RIB, Series 26, 7.69% due 6/01/2022 (f)(k) 5,720 1,490 California Health Facilities Financing Authority, Revenue Refunding Bonds (Pomona Valley Hospital Medical Center), Series A, 5.625% due 7/01/2019 (h) 1,597 4,990 California Infrastructure and Economic Development Bank Revenue Bonds (J. David Gladstone Institute Project), 5.50% due 10/01/2022 5,338 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 3,108 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT (g): 75 Series A-1, 6.90% due 12/01/2024 (d) 78 135 Series B, 6.15% due 6/01/2020 (e) 135 California State Department of Veteran Affairs, Home Purpose Revenue Refunding Bonds, Series C: 5,970 5.875% due 12/01/2015 6,042 9,315 6.05% due 12/01/2020 9,429 2,500 6.15% due 12/01/2027 2,531 4,500 California State Department of Water Resources, Power Supply Revenue Bonds, Series A, 5.75% due 5/01/2017 5,046 6,000 California State Department of Water Resources Revenue Bonds (Central Valley Project), 5.25% due 7/01/2022 6,001 California State, GO, Refunding: 8,000 5.75% due 5/01/2030 8,868 13,500 5% due 3/01/2034 (a) 14,135 2,785 (Veterans), AMT, Series BJ, 5.70% due 12/01/2032 2,873 California State Public Works Board, Lease Revenue Bonds: 2,000 (California State University), Series C, 5.40% due 10/01/2022 (h) 2,134 5,000 (Department of Corrections), Series C, 5.50% due 6/01/2023 5,468 6,645 (Department of Health Services), Series A, 5.75% due 11/01/2017 (h) 7,369 17,000 (Various Community College Projects), Series A, 5.625% due 3/01/2016 (a) 17,731 California State University and Colleges, Housing System Revenue Refunding Bonds (c): 3,000 5.75% due 11/01/2015 3,105 3,500 5.80% due 11/01/2017 (l) 3,622 3,900 5.90% due 11/01/2021 4,039 California State, Various Purpose, GO: 4,730 5.50% due 4/01/2030 5,165 6,850 5.50% due 11/01/2033 7,436 5,250 California Statewide Communities Development Authority, COP (John Muir/Mount Diablo Health System), 5.125% due 8/15/2022 (h) 5,561 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A: 3,270 6% due 10/01/2023 3,713 3,000 5.50% due 10/01/2033 3,133 2,380 California Statewide Communities Development Authority, Water Revenue Bonds (Pooled Financing Program), Series C, 5.25% due 10/01/2028 (f) 2,547 2,000 Chino Basin, California, Regional Financing Authority Revenue Bonds (Inland Empire Utility Agency Sewer Project), 5.75% due 11/01/2009 (h)(i) 2,225
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield California Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value California (continued) $ 6,270 Coast Community College District, California, Capital Appreciation, GO, Refunding, 5.02%** due 8/01/2021 (h) $ 2,921 2,705 Contra Costa County, California, Public Financing, Lease Revenue Refunding Bonds (Various Capital Facilities), Series A, 5.30% due 8/01/2020 (h) 2,879 4,505 Covina-Valley, California, Unified School District, Capital Appreciation, GO (Election of 2001), Series B, 4.90%** due 6/01/2028 (c) 1,415 3,750 Cucamonga, California, County Water District, COP, 5.125% due 9/01/2035 (c) 3,921 2,500 Davis, California, Joint Unified School District, Community Facilities District, Special Tax Refunding Bonds, Number 1, 5.50% due 8/15/2021 (h) 2,606 4,650 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series A-4, 7.80% due 6/01/2042 5,367 5,025 Indio, California, Water Authority, Water Enterprise Revenue Bonds, 5.125% due 4/01/2030 (a) 5,388 Industry, California, Urban Development Agency, Tax Allocation Refunding Bonds (h): 14,915 (Civic Recreation Industrial), Series 1, 5.50% due 5/01/2021 15,803 5,000 (Civic-Recreational--Industrial Redevelopment Project No. 1), 5.50% due 5/01/2020 5,292 5,435 La Mesa-Spring Valley, California, School District, Capital Appreciation, GO, Refunding (Election of 2002), Series B, 5.225%** due 8/01/2028 (c) 1,708 2,000 Los Angeles, California, COP (Sonnenblick Del Rio West Los Angeles), 6.20% due 11/01/2031 (a) 2,273 10,000 Los Angeles, California, Community College District, GO, Series A, 5.50% due 8/01/2011 (h)(i) 11,306 Los Angeles, California, Harbor Department Revenue Bonds, AMT: 4,000 RITR, Series RI-7, 9.015% due 11/01/2026 (h)(k) 4,441 2,000 Series B, 6% due 8/01/2015 2,090 6,000 Series B, 5.375% due 11/01/2023 6,210 7,000 Los Angeles, California, Wastewater System Revenue Bonds, Series A, 5% due 6/01/2023 (c) 7,393 Los Angeles, California, Wastewater System, Revenue Refunding Bonds, Series A: 1,000 5% due 6/01/2028 (c) 1,044 4,500 Subordinate, 5% due 6/01/2027 (h) 4,726 4,000 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Bonds (Proposition C), Second Tier, Senior-Series A, 5.50% due 7/01/2005 (a)(i) 4,100 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)(i) 5,617 8,705 Modesto, California, Wastewater Treatment Facilities Revenue Bonds, 5.625% due 11/01/2007 (h)(i) 9,386 8,595 Napa Valley, California, Community College District, Capital Appreciation, GO (Election of 2002), Series B, 5.16%** due 8/01/2024 (h) 3,385 1,750 North City-West, California, School Facilities Financing Authority, Special Tax Refunding Bonds, Series B, 5.75% due 9/01/2015 (f) 1,852 Oakland, California, Alameda County Unified School District, GO, Series F (h): 3,290 5.50% due 8/01/2017 3,624 3,770 5.50% due 8/01/2018 4,149 Oakland, California, Joint Powers Financing Authority, Lease Revenue Bonds (Oakland Administration Buildings) (a)(i): 11,395 5.75% due 8/01/2006 12,040 2,000 5.90% due 8/01/2006 2,117 2,500 Oakland, California, Subordinated Tax Allocation Bonds (Central District Redevelopment Project), 5% due 9/01/2022 (a) 2,684 5,250 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (c) 5,436 3,000 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and Headworks Projects), Series A, 5.25% due 6/01/2034 (c) 3,226 1,000 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (h) 1,114 1,750 Pleasant Valley, California, School District, Ventura County, GO, Series C, 5.75% due 8/01/2025 (b)(h) 1,902 2,255 Pomona, California, Public Financing Authority, Revenue Refunding Bonds (Merged Redevelopment Project), Series A1, 5.75% due 2/01/2034 2,342
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield California Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value California (continued) $ 10,600 Port of Oakland, California, Port Revenue Refunding Bonds, Series I, 5.40% due 11/01/2017 (h) $ 11,422 5,808 Port of Oakland, California, RIB, Refunding, AMT, Series 717X, 7.47% due 11/01/2027 (c)(k) 6,501 4,315 Rancho Cucamonga, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Rancho Redevelopment Project), 5.25% due 9/01/2020 (f) 4,623 2,345 Richmond, California, Redevelopment Agency, Tax Allocation, Refunding Bonds (Harbour Redevelopment Project), Series A, 5.50% due 7/01/2018 (h) 2,553 5,000 Sacramento, California, Municipal Utility District, Electric Revenue Refunding Bonds, Series L, 5.125% due 7/01/2022 (h) 5,295 Sacramento County, California, Sanitation District, Financing Authority, Revenue Refunding Bonds: 4,500 RIB, Series 366, 8.462% due 12/01/2027 (k) 4,751 5,695 Series A, 5.60% due 12/01/2017 5,842 6,190 Series A, 5.75% due 12/01/2018 6,356 3,750 Trust Receipts, Class R, Series A, 8.664% due 12/01/2019 (k) 3,964 10,100 San Bernardino, California, City Unified School District, GO, Refunding, Series A, 5.875% due 8/01/2009 (c)(i) 11,392 3,000 San Bernardino, California, Joint Powers Financing Authority, Lease Revenue Bonds (Department of Transportation Lease), Series A, 5.50% due 12/01/2020 (h) 3,104 5,000 San Bernardino, California, Joint Powers Financing Authority, Tax Allocation Revenue Refunding Bonds, Series A, 5.75% due 10/01/2015 (f) 5,161 3,600 San Diego, California, Unified School District, GO (Election of 1998), Series F, 5% due 7/01/2029 (f) 3,798 1,720 San Francisco, California, City and County Educational Facilities, GO (Community College), Series A, 5.75% due 6/15/2019 1,887 1,310 San Francisco, California, City and County Zoo Facilities, GO, Series B, 5.75% due 6/15/2019 1,437 4,615 San Jose, California, Airport Revenue Bonds, Series D, 5% due 3/01/2028 (h) 4,829 5,000 San Juan, California, Unified School District, GO (Election of 2002), 5% due 8/01/2028 (h) 5,248 5,040 San Ysidro, California, School District, Capital Appreciation, GO (Election of 1997), Series D, 5.249%** due 8/01/2027 (c) 1,654 2,020 Santa Clara, California, Unified School District, GO, 5.50% due 7/01/2021 (c) 2,218 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 3,588 4,000 Santa Monica, California, Redevelopment Agency, Tax Allocation Bonds (Earthquake Recovery Redevelopment Project), 6% due 7/01/2029 (a) 4,418 2,000 Sequoia, California, Unified High School District, GO, 5.70% due 7/01/2005 (f)(i) 2,051 2,265 South Bayside, California, Waste Management Authority, Waste System Revenue Bonds, 5.75% due 3/01/2020 (a) 2,498 55 Southern California Home Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Series A, 6.75% due 9/01/2022 (e)(g) 55 3,235 Taft, California, Public Financing Authority, Lease Revenue Bonds (Community Correctional Facility), Series A, 6.05% due 1/01/2017 (h) 3,429 1,310 Torrance, California, Hospital Revenue Refunding Bonds (Torrance Memorial Medical Center), Series A, 6% due 6/01/2022 1,458 5,705 Union Elementary School District, California, Capital Appreciation, GO, Refunding, Series C, 4.88%** due 9/01/2028 (c) 1,789 3,000 University of California, General Revenue Refunding Bonds, Series A, 5% due 5/15/2036 (a) 3,130 1,000 Ventura, California, Unified School District, GO (Election of 1997), Series H, 5.125% due 8/01/2034 (f) 1,062 3,990 Vernon, California, Electric System Revenue Bonds (Malburg Generating Station Project), 5.50% due 4/01/2008 (i) 4,288 5,000 Vista, California, Joint Powers Financing Authority, Lease Revenue Refunding Bonds, 5.625% due 5/01/2016 (h) 5,359 5,055 West Contra Costa, California, Unified School District, Capital Appreciation, GO (Election of 2002), Series C, 4.849%** due 8/01/2027 (c) 1,677 5,605 Whittier, California, Union High School District, GO (Election of 1999), Series D, 5% due 8/01/2033 (f) 5,867
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (concluded) MuniYield California Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value Puerto Rico--3.6% $ 2,140 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Bonds, Series Y, 5.50% due 7/01/2006 (h)(i) $ 2,240 Puerto Rico Electric Power Authority, Power Revenue Bonds: 6,500 Series NN, 5.125% due 7/01/2029 6,829 2,600 Series X, 5.50% due 7/01/2005 (h)(i) 2,613 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 3,402 Total Investments (Cost--$429,949*)--141.8% 454,772 Other Assets Less Liabilities--1.9% 5,951 Preferred Stock, at Redemption Value--(43.7%) (140,000) --------- Net Assets Applicable to Common Stock--100.0% $ 320,723 ========= * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 429,772 ============== Gross unrealized appreciation $ 25,227 Gross unrealized depreciation (227) -------------- Net unrealized appreciation $ 25,000 ============== ** Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase by the Fund. (a) AMBAC Insured. (b) Escrowed to maturity. (c) FGIC Insured. (d) FHLMC Collateralized. (e) FNMA Collateralized. (f) FSA Insured. (g) GNMA Collateralized. (h) MBIA Insured. (i) Prerefunded. (j) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. (k) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (l) All or portion of security held as collateral in connection with open financial futures contracts. Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income CMA California Municipal Money Fund (859) $9 Financial futures contracts purchased as of April 30, 2005 were as follows: (in Thousands) Number of Expiration Face Unrealized Contracts Issue Date Value Appreciation 100 10-Year June U.S. Treasury Note 2005 $11,105 $37 See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments MuniYield California Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value California--133.4% $ 7,000 ABAG Finance Authority for Nonprofit Corporations, California, COP (Children's Hospital Medical Center), 6% due 12/01/2029 (a) $ 7,799 2,350 Alameda, California, GO, 5% due 8/01/2033 (g) 2,471 3,580 Anaheim, California, Public Financing Authority, Electric System Distribution Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (e) 3,731 2,400 Anaheim, California, Union High School District, GO (Election of 2002), 5% due 8/01/2027 (g) 2,522 5,630 Antelope Valley, California, Community College District, GO (Election of 2004), Series A, 5% due 8/01/2029 (g) 5,949 1,985 Arcadia, California, Unified School District, GO, Series B, 6.50% due 7/01/2005 (b)(h) 2,038 3,675 Bakersfield, California, COP, Refunding (Convention Center Expansion Project), 5.80% due 4/01/2017 (g) 3,908 560 Bay Area Government Association, California, Tax Allocation Revenue Refunding Bonds (California Redevelopment Agency Pool), Series A, 6% due 12/15/2024 (e) 573 3,990 Brentwood, California, Infrastructure Refinancing Authority, Infrastructure Revenue Refunding Bonds, Series A, 5.20% due 9/02/2029 (e) 4,214 California Community College Financing Authority, Lease Revenue Bonds, Series A (g): 3,215 5.95% due 12/01/2022 3,629 1,100 6% due 12/01/2029 1,238 California Educational Facilities Authority Revenue Bonds, Series A: 28,000 (Pepperdine University), 5.50% due 8/01/2032 (g) 30,057 5,000 (University of San Diego), 5.50% due 10/01/2032 5,320 3,500 California Educational Facilities Authority, Revenue Refunding Bonds (Occidental College), Series A, 5% due 10/01/2036 (g) 3,689 14,655 California Educational Facilities Authority, Student Loan Revenue Bonds (Caledge Loan Program), AMT, 5.55% due 4/01/2028 (a) 15,270 California HFA, Home Mortgage Revenue Bonds, VRDN, AMT, Series R (a)(j): 400 3.01% due 8/01/2023 400 800 3.01% due 8/01/2032 800 2,750 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente), Series A, 5.50% due 6/01/2022 (e)(k) 2,948 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT (f): 875 Series A, 6.35% due 12/01/2029 (c)(d) 877 115 Series A-1, 6.90% due 12/01/2024 (c) 120 500 Series B, 6.25% due 12/01/2031 (d) 501 California State Department of Veteran Affairs, Home Purpose Revenue Refunding Bonds: 12,680 Series A, 5.35% due 12/01/2027 (a) 13,314 7,500 Series C, 6.15% due 12/01/2027 7,593 7,500 California State Department of Water Resources, Power Supply Revenue Bonds, Series A, 5.75% due 5/01/2017 8,410 California State, GO: 860 6.25% due 10/01/2019 (g)(h) 872 5,950 Various Purpose, 5.50% due 11/01/2033 6,459 California State, GO, Refunding: 2,025 5% due 2/01/2024 2,113 9,935 DRIVERS, AMT, Series 239, 8.09% due 12/01/2032 (a)(i) 10,026 3,000 Series BX, 5.50% due 12/01/2031 (e) 3,067 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) 4,863 16,675 California State Public Works Board, Lease Revenue Refunding Bonds (Department of Corrections), Series B, 5.625% due 11/01/2016 (g) 17,692 2,375 California State University and Colleges, Housing System Revenue Refunding Bonds, 5.90% due 11/01/2021 (b) 2,460 1,000 California State University, Sacramento Foundation, Auxiliary Organization Revenue Bonds, Series A, 5.50% due 10/01/2037 (g) 1,102
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield California Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value California (continued) $ 4,100 California Statewide Communities Development Authority, COP (Kaiser Permanente), 5.30% due 12/01/2015 (e)(k) $ 4,301 3,685 California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 6% due 10/01/2023 4,184 8,155 Calleguas-Las Virgenes, California, Public Financing Authority Revenue Bonds (Calleguas Municipal Water District Project), Series A, 5% due 7/01/2033 (g) 8,516 Capistrano, California, Unified School District, Community Facility District, Special Tax Refunding Bonds (b): 5,015 5% due 9/01/2020 5,445 6,000 5% due 9/01/2029 6,352 Ceres, California, Redevelopment Agency, Tax Allocation Bonds (Ceres Redevelopment Project Area Number 1) (g): 4,600 5.75% due 11/01/2030 5,141 4,000 5% due 11/01/2033 4,215 6,000 Chaffey, California, Union High School District, GO, Series C, 5.375% due 5/01/2023 (e) 6,666 5,910 Chula Vista, California, Elementary School District, COP, 5% due 9/01/2029 (g) 6,193 2,540 Coalinga, California, Redevelopment Agency Tax Allocation Bonds, 5.90% due 9/15/2025 (g) 2,864 2,000 Compton, California, Unified School District, GO (Election of 2002), Series B, 5% due 6/01/2029 (g) 2,106 4,135 Contra Costa, California, Water District, Water Revenue Refunding Bonds, Series L, 5% due 10/01/2032 (e) 4,313 12,180 Contra Costa County, California, COP, Refunding (Merrithew Memorial Hospital Project), 5.375% due 11/01/2017 (g) 13,087 8,500 Corona, California, COP (Clearwater Cogeneration Project), 5% due 9/01/2028 (g) 8,858 2,000 Coronado, California, Community Development Agency, Tax Allocation Bonds (Coronado Community Development Project), 5.60% due 9/01/2030 (g) 2,204 2,500 El Monte, California, City School District, GO, Refunding, Series A, 6.25% due 5/01/2010 (e)(h) 2,834 El Monte, California, School District, GO, Series B (b): 3,025 5.375% due 5/01/2022 3,361 2,525 5.375% due 5/01/2027 2,764 10,755 Fremont, California, Unified School District, Alameda County, GO, Series A, 5.50% due 8/01/2026 (b) 11,950 4,295 Fresno, California, Joint Powers Financing Authority, Lease Revenue Bonds, Series A, 5.75% due 6/01/2026 (e) 4,766 4,390 Glendale, California, Electric Revenue Bonds, 5% due 2/01/2032 (g) 4,579 2,500 La Quinta, California, Financing Authority, Local Agency Revenue Bonds, Series A, 5.25% due 9/01/2024 (a) 2,721 3,800 Las Lomitas, California, School District, GO (Election of 2001), 5.50% due 7/01/2022 (e) 4,272 3,050 Little Lake, California, City School District, GO, Refunding, 5.50% due 7/01/2025 (e) 3,429 10,260 Lodi, California, Unified School District, GO (Election of 2002), 5% due 8/01/2029 (e) 10,761 7,385 Long Beach, California, Bond Finance Authority Revenue Bonds (Redevelopment, Housing and Gas Utility Financings), Series A-1, 5% due 8/01/2035 (a) 7,698 7,575 Long Beach, California, Harbor Revenue Bonds, RIB, AMT, Series 786-X, 7.47% due 5/15/2024 (i) 8,392 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) 10,513 Los Angeles, California, Department of Airports, Airport Revenue Bonds, AMT (b): 290 (Los Angeles International Airport), Series D, 5.625% due 5/15/2012 293 2,500 (Ontario International Airport), Series A, 6% due 5/15/2017 2,595 Los Angeles, California, Harbor Department Revenue Bonds, AMT (g)(i): 7,365 RIB, Series 349, 9.17% due 11/01/2026 8,176 7,000 Trust Receipts, Class R, Series 7, 9.182% due 11/01/2026 7,771 3,165 Los Angeles, California, Water and Power Revenue Refunding Bonds (Power System), Series A-A-2, 5.375% due 7/01/2021 (g) 3,430 2,000 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition C, Second Tier Senior-Series A, 5.25% due 7/01/2030 (b) 2,139 2,500 Los Angeles County, California, Public Works Financing Authority, Lease Revenue Refunding Bonds, Series A, 5% due 12/01/2025 (g) 2,652
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield California Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value California (continued) Los Gatos, California, Joint Union High School District, GO (Election of 1998), Series C (e)(h): $ 1,000 5% due 6/01/2012 $ 1,117 5,830 5.375% due 6/01/2012 6,647 3,000 Los Rios, California, Community College District, GO (Election of 2002), Series B, 5% due 8/01/2027 (g) 3,168 5,370 Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series B-1, 5% due 10/01/2033 (b) 5,625 2,175 Mount Pleasant, California, Elementary School District, GO, Series B, 6.35% due 12/01/2009 (e)(h) 2,517 4,245 Nevada County, California, COP, Refunding, 5.25% due 10/01/2019 (g) 4,631 2,000 New Haven, California, Unified School District, GO, Refunding, 5.75% due 8/01/2020 (e) 2,247 2,000 Oakland, California, State Building Authority, Lease Revenue Bonds (Elihu M. Harris State Office Building), Series A, 5.50% due 4/01/2014 (a) 2,157 1,245 Orange County, California, Airport Revenue Refunding Bonds, AMT, 5.625% due 7/01/2012 (g) 1,327 6,360 Orange County, California, Public Financing Authority, Lease Revenue Refunding Bonds (Juvenile Justice Center Facility), 5.375% due 6/01/2018 (a) 7,063 16,920 Orange County, California, Recovery COP, Refunding, Series A, 6% due 7/01/2026 (g) 17,812 4,360 Orchard, California, School District, GO, Series A, 6.50% due 8/01/2005 (b)(h) 4,491 10,000 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and Headworks Projects), Series A, 5.25% due 6/01/2034 (b) 10,755 9,645 Oxnard, California, Unified High School District, GO, Refunding, Series A, 6.20% due 8/01/2030 (g) 11,378 1,275 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention Center Project), Series A, 5.50% due 11/01/2035 (g) 1,420 4,640 Palmdale, California, Water District Public Facility Corporation, COP, 5% due 10/01/2029 (b) 4,864 10,000 Port of Oakland, California, RITR, AMT, Class R, Series 5, 8.218% due 11/01/2012 (b)(i) 11,807 7,500 Port of Oakland, California, Revenue Bonds, AMT, Series K, 5.75% due 11/01/2029 (b) 8,093 19,035 Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L, 5.375% due 11/01/2027 (b) 20,172 Rio Hondo, California, Community College District, GO, Series A (g): 3,000 5% due 8/01/2026 3,175 3,500 5.25% due 6/01/2029 3,785 3,000 Riverside, California, COP, 5% due 9/01/2028 (a) 3,133 6,000 Riverside, California, Unified School District, GO (Election of 2001), Series A, 5.25% due 2/01/2023 (b) 6,529 4,500 Riverside County, California, Asset Leasing Corporation, Leasehold Revenue Refunding Bonds (Riverside County Hospital Project), Series B, 5.70% due 6/01/2016 (g) 5,115 5,000 Sacramento, California, Municipal Utility District, Electric Revenue Bonds, Series R, 5% due 8/15/2033 (g) 5,235 2,565 Saddleback Valley, California, Unified School District, GO, 5% due 8/01/2029 (e) 2,703 5,000 San Bernardino, California, City Unified School District, GO, Series A, 5% due 8/01/2028 (e)(f) 5,265 805 San Bernardino County, California, S/F Home Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.25% due 12/01/2031 (d) 807 San Diego County, California, COP (Salk Institute for Bio Studies) (g): 3,570 5.75% due 7/01/2022 3,990 5,200 5.75% due 7/01/2031 5,789 7,350 San Diego County, California, Water Authority, Water Revenue Bonds, COP, Series A, 5% due 5/01/2030 (e) 7,746 3,000 San Francisco, California, City and County Airport Commission, International Airport Revenue Bonds, Second Series, Issue 12-B, 5.625% due 5/01/2021 (b) 3,110 San Francisco, California, City and County Airport Commission, International Airport Revenue Refunding Bonds, Second Series 28B (g): 3,000 5.25% due 5/01/2023 3,240 6,455 5.25% due 5/01/2024 6,972 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 1,084 985 6.125% due 1/01/2027 1,069
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield California Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value California (concluded) San Francisco, California, Community College District, GO, Refunding, Series A (b): $ 1,735 5.375% due 6/15/2019 $ 1,917 1,730 5.375% due 6/15/2020 1,888 1,925 5.375% due 6/15/2021 2,101 4,135 San Jose, California, Airport Revenue Bonds, Series D, 5% due 3/01/2028 (g) 4,327 3,650 San Jose, California, Redevelopment Agency, Tax Allocation Bonds, RIB, AMT, Series 149, 8.37% due 8/01/2027 (g)(i) 4,168 4,250 San Juan, California, Unified School District, GO (Election of 2002), 5% due 8/01/2028 (g) 4,461 1,000 San Mateo, California, Union High School District, GO, Refunding, 5% due 9/01/2023 (e) 1,069 1,700 San Mateo County, California, Community College District, COP, 5% due 10/01/2029 (g) 1,782 2,595 Santa Clara, California, Redevelopment Agency, Tax Allocation Bonds (Bayshore North Project), Series A, 5.25% due 6/01/2019 (a) 2,806 5,500 Santa Clara, California, Subordinated Electric Revenue Bonds, Series A, 5% due 7/01/2028 (g) 5,770 1,100 Santa Clara Valley, California, Water District, Water Utility System Revenue, Series A, 5.125% due 6/01/2031 (b) 1,158 Santa Rosa, California, High School District, GO: 3,000 5.375% due 8/01/2026 (e) 3,263 2,500 (Election of 2002), 5% due 8/01/2028 (g) 2,624 6,750 Shasta, California, Joint Powers Financing Authority, Lease Revenue Bonds (County Administration Building Project), Series A, 5% due 4/01/2033 (g) 7,018 5,000 Southern California Public Power Authority, Power Project Revenue Bonds (Magnolia Power Project), Series A-1, 5% due 7/01/2033 (a) 5,228 6,500 South Gate, California, Utilities Authority, Water and Sewer System Project Revenue Bonds, 5% due 10/01/2032 (b) 6,796 South Tahoe, California, Joint Powers Financing Authority, Revenue Refunding Bonds (South Tahoe Redevelopment Project Area No. 1), Series A (e): 1,645 5% due 10/01/2029 1,724 5,830 5% due 10/01/2034 6,097 1,055 Stockton, California, Public Financing Revenue Refunding Bonds, Series A, 5.875% due 9/02/2016 (e) 1,072 Sweetwater, California, Union High School District, Public Financing Authority, Special Tax Revenue Bonds, Series A (e): 3,510 5% due 9/01/2023 3,749 2,565 5% due 9/01/2024 2,731 1,500 Tehachapi, California, COP, Refunding (Installment Sale), 5.75% due 11/01/2016 (e) 1,711 6,000 Tracy, California, Community Development Agency, Tax Allocation Refunding Bonds, Series A, 5% due 3/01/2034 (a) 6,236 3,000 Turlock, California, Public Finance Authority, Sewer Revenue Bonds, Series A, 5% due 9/15/2033 (b) 3,142 University of California, General Revenue Refunding Bonds, Series A (a): 5,000 5% due 5/15/2028 5,243 5,495 5% due 5/15/2036 5,732 University of California Revenue Bonds: 8,720 (Multiple Purpose Projects), Series Q, 5% due 9/01/2024 (e) 9,201 6,110 (Multiple Purpose Projects), Series Q, 5% due 9/01/2033 (e) 6,384 4,790 Series O, 5.125% due 9/01/2031 (b) 5,015 6,130 Vacaville, California, Unified School District, GO (Election of 2001), 5.25% due 8/01/2028 (e) 6,686 3,395 Ventura County, California, Community College District, GO, Refunding, Series A, 5% due 8/01/2027 (g) 3,568 2,550 Vista, California, Unified School District, GO, Series B, 5% due 8/01/2028 (b) 2,676 2,185 Walnut, California, Public Financing Authority, Tax Allocation Revenue Bonds (Walnut Improvement Project), 5.375% due 9/01/2021 (a) 2,379 6,690 West Contra Costa, California, Unified School District, GO (Election of 2002), Series B, 5% due 8/01/2032 (e) 6,972
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (concluded) MuniYield California Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value Puerto Rico--8.4% $ 8,410 Puerto Rico Commonwealth, Public Improvement, GO, 5.75% due 7/01/2010 (g)(h) $ 9,407 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125% due 7/01/2029 1,051 10,000 Puerto Rico Municipal Finance Agency, GO, RIB, Series 225, 8.21% due 8/01/2012 (e)(i) 12,230 20,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.75% due 2/01/2007 (h) 21,018 Total Investments (Cost--$702,003*)--141.8% 742,004 Other Assets Less Liabilities--2.2% 11,406 Preferred Stock, at Redemption Value--(44.0%) (230,021) --------- Net Assets Applicable to Common Stock--100.0% $ 523,389 ========= * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 701,977 ============== Gross unrealized appreciation $ 40,157 Gross unrealized depreciation (130) -------------- Net unrealized appreciation $ 40,027 ============== (a) AMBAC Insured. (b) FGIC Insured. (c) FHLMC Collateralized. (d) FNMA Collateralized. (e) FSA Insured. (f) GNMA Collateralized. (g) MBIA Insured. (h) Prerefunded. (i) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (j) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. (k) Escrowed to maturity. Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income CMA California Municipal Money Fund (33) $8 See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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 (c) $ 1,042 Florida--126.2% 2,100 Alachua County, Florida, School Board, COP, 5.25% due 7/01/2029 (a) 2,266 2,000 Beacon Tradeport Community Development District, Florida, Special Assessment Revenue Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (k) 2,175 2,870 Broward County, Florida, Airport System Revenue Bonds, AMT, Series I, 5.75% due 10/01/2018 (a) 3,193 1,000 Broward County, Florida, Educational Facilities Authority Revenue Bonds (Nova Southeastern University), Series B, 5.625% due 4/01/2034 1,046 Citrus County, Florida, Hospital Board Revenue Refunding Bonds (Citrus Memorial Hospital): 2,460 6.25% due 8/15/2023 2,673 2,850 6.375% due 8/15/2032 3,085 3,160 Collier County, Florida, IDA, IDR, Refunding (Southern States Utilities), AMT, 6.50% due 10/01/2025 3,270 2,040 Duval County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, 5.40% due 10/01/2021 (d)(i) 2,123 8,830 Escambia County, Florida, Health Facilities Authority, Health Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95% due 7/01/2020 (a) 8,945 690 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series 4, 6.25% due 7/01/2022 (e) 709 Florida Municipal Loan Council Revenue Bonds (b): 1,580 Series A-1, 5.125% due 7/01/2034 1,669 4,250 Series B, 5.375% due 11/01/2030 4,589 1,220 Florida State Board of Education, Capital Outlay, GO, Series A, 6% due 1/01/2014 1,376 1,000 Florida State Board of Education, Lottery Revenue Bonds, Series A, 6% due 7/01/2014 (c) 1,134 1,000 Florida State Governmental Utility Authority, Utility Revenue Bonds (Lehigh Utility System), 5.125% due 10/01/2033 (a) 1,056 1,075 Gainesville, Florida, Utilities System Revenue Bonds, Series A, 5.25% due 10/01/2022 1,185 5,900 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health System), Series A, 6% due 11/15/2031 6,385 5,000 Hillsborough County, Florida, Court Facilities Revenue Bonds, 5.40% due 5/01/2030 (a) 5,278 Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum), AMT: 2,500 Series A, 7.125% due 4/01/2030 2,809 3,750 Series B, 7.125% due 4/01/2030 4,214 1,000 Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee Moffitt Cancer Center Project), Series C, 5.50% due 7/01/2032 1,030 1,500 Hillsborough County, Florida, School Board, COP, 5% due 7/01/2029 (b) 1,572 4,000 Hillsborough County, Florida, School District, Sales Tax Revenue Refunding Bonds, 5.375% due 10/01/2011 (a)(f) 4,474 8,240 Jacksonville Electric Authority, Florida, Electric System Revenue Bonds, Series 3-A, 5.375% due 10/01/2007 (f)(l) 8,714 14,800 Jacksonville Electric Authority, Florida, Water and Sewer System Revenue Bonds, Series C, 5.25% due 10/01/2037 (b) 15,183 1,000 Jacksonville, Florida, Economic Development Commission, Health Care Facilities Revenue Bonds (Mayo Clinic--Jacksonville), Series A, 5.50% due 11/15/2036 (b) 1,101 1,140 Jacksonville, Florida, Economic Development Commission, IDR (Metropolitan Parking Solutions Project), 5.50% due 10/01/2030 (g) 1,190 1,500 Jacksonville, Florida, Excise Taxes Revenue Bonds, Series B, 5.125% due 10/01/2032 (c) 1,576 2,315 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and Improvement Bonds, 5.25% due 10/01/2032 (c) 2,480
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield Florida Fund (In Thousands)
Face Amount Municipal Bonds Value Florida (continued) $ 3,500 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland Regional Health System), Series A, 5.50% due 11/15/2026 (b) $ 3,777 2,075 Lee County, Florida, Capital Revenue Bonds, 5.25% due 10/01/2023 (a) 2,277 80 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT, Series A-1, 7.125% due 3/01/2028 (d)(i) 81 215 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT, Series B, 7.30% due 1/01/2028 (d)(j) 216 345 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Sub-Series 2, 7.75% due 5/01/2026 (d)(j) 351 390 Manatee County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Sub-Series 1, 6.25% due 11/01/2028 (d) 395 Martin County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Martin Memorial Medical Center), Series A: 1,350 5.75% due 11/15/2022 1,434 3,535 5.875% due 11/15/2032 3,725 3,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due 9/01/2025 (a) 3,332 Miami-Dade County, Florida, Aviation Revenue Bonds, AMT: 4,300 (Miami International Airport), Series A, 6% due 10/01/2029 (c) 4,773 1,520 (Miami International Airport), Series A, 5% due 10/01/2030 (c) 1,561 7,500 (Miami International Airport), Series B, 5% due 10/01/2037 (c) 7,800 3,730 Series A, 5% due 10/01/2033 (e) 3,809 1,750 Miami-Dade County, Florida, Educational Facilities Authority Revenue Bonds (University of Miami), Series A, 5.75% due 4/01/2029 (a) 1,931 Miami-Dade County, Florida, Expressway Authority, Toll System Revenue Bonds (c): 8,000 DRIVERS, Series 160, 6.375% due 7/01/2010 (f)(n) 10,489 3,750 Series B, 5% due 7/01/2033 3,930 585 Miami-Dade County, Florida, HFA, Home Ownership Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.30% due 10/01/2020 (d)(i) 611 3,300 Miami-Dade County, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds, DRIVERS, Series 208, 7.94% due 8/15/2017 (a)(n) 3,998 3,200 Miami-Dade County, Florida, School Board COP, Series A, 5.50% due 10/01/2009 (e)(f) 3,522 2,800 Miami-Dade County, Florida, Solid Waste System Revenue Bonds, 5.25% due 10/01/2030 (b) 3,039 1,140 Northern Palm Beach County Improvement District, Florida, Water Control and Improvement, Revenue Refunding Bonds (Unit of Development No. 9B), 5% due 8/01/2029 (b) 1,213 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds: 1,750 (Adventist Health System), 6.25% due 11/15/2024 1,950 5,140 (Orlando Regional Healthcare), 6% due 12/01/2028 5,596 10,500 Orange County, Florida, School Board, COP, Series A, 5.25% due 8/01/2023 (b) 11,238 8,615 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50% due 10/01/2032 (a) 9,444 Orlando and Orange County, Florida, Expressway Authority Revenue Bonds, Series B (a): 3,000 5% due 7/01/2030 3,141 7,335 5% due 7/01/2035 7,660 1,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding Bonds, Series C, 5.25% due 10/01/2023 1,087 1,955 Osceola County, Florida, School Board, COP, Series A, 5.25% due 6/01/2027 (a) 2,099 1,760 Osceola County, Florida, Tourist Development Tax Revenue Bonds, Series A, 5.50% due 10/01/2027 (c) 1,940 3,390 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20% due 6/01/2015 (c) 4,372 190 Palm Beach County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series A, 6.80% due 10/01/2027 (d)(i) 194
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield Florida Fund (In Thousands)
Face Amount Municipal Bonds Value Florida (concluded) $ 1,260 Palm Beach County, Florida, Public Improvement Revenue Bonds (Convention Center Project), 5.625% due 11/01/2011 (c)(f) $ 1,429 6,000 Palm Beach County, Florida, School Board COP, Series A, 6.25% due 8/01/2010 (c)(f) 6,947 Pinellas County, Florida, HFA, S/F Housing Revenue Refunding Bonds (Multi-County Program), AMT, Series A-1 (d)(i): 625 6.30% due 9/01/2020 630 960 6.35% due 9/01/2025 968 3,000 Pinellas County, Florida, Health Facilities Authority Revenue Bonds (BayCare Health System Inc.), 5.75% due 11/15/2029 3,234 600 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds (Pooled Hospital Loan Program), DATES, 2.98% due 12/01/2015 (a)(m) 600 4,385 Polk County, Florida, School Board COP, Master Lease, Series A, 5.50% due 1/01/2025 (e) 4,779 1,200 Port Everglades Authority, Florida, Port Revenue Bonds, 7.125% due 11/01/2016 (h) 1,474 1,215 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25% due 9/01/2025 (b) 1,322 Saint Johns County, Florida, Sales Tax Revenue Bonds, GO (a): 1,200 Series A, 5.25% due 10/01/2034 1,294 1,015 Series B, 5.25% due 10/01/2032 1,095 4,250 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS, Series 337, 7.945% due 5/01/2032 (b)(n) 5,073 South Lake County, Florida, Hospital District Revenue Bonds (South Lake Hospital Inc.): 1,000 5.80% due 10/01/2034 1,042 1,150 6.375% due 10/01/2034 1,221 5,000 Tampa Bay, Florida, Water Utility System Revenue Bonds, 5.75% due 10/01/2011 (c)(f) 5,701 3,235 University of Central Florida (UCF) Athletics Association Inc., COP, Series A, 5.25% due 10/01/2034 (c) 3,463 Village Center Community Development District, Florida, Recreational Revenue Bonds, Series A (b): 1,995 5.375% due 11/01/2034 2,184 1,000 5.125% due 11/01/2036 1,063 5,040 Village Center Community Development District, Florida, Utility Revenue Bonds, 5.125% due 10/01/2028 (b) 5,351 5,000 Volusia County, Florida, School Board, COP (Master Lease Program), 5.50% due 8/01/2024 (e) 5,421 Nevada--1.2% 2,505 Clark County, Nevada, IDR (Southwest Gas Corporation Project), Refunding, AMT, Series B, 5% due 12/01/2033 (c) 2,558 New Jersey--3.5% New Jersey EDA, Cigarette Tax Revenue Bonds: 3,500 5.50% due 6/15/2024 3,703 1,735 5.75% due 6/15/2029 1,860 505 5.50% due 6/15/2031 527 1,000 Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds, 7% due 6/01/2041 1,081 Tennessee--0.4% Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local Government Public Improvement IV, VRDN (m): 300 Series B-6, 3.01% due 6/01/2020 (e) 300 500 Series E-5, 3.01% due 6/01/2020 (a) 500
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (concluded) MuniYield Florida Fund (In Thousands)
Face Amount Municipal Bonds Value Puerto Rico--8.3% $ 8,000 Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series D, 5.75% due 7/01/2041 $ 8,934 2,000 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding Bonds, Series I, 5% due 7/01/2036 2,073 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E: 1,715 5.70% due 2/01/2010 (f) 1,910 4,025 5.50% due 8/01/2029 4,313 Total Investments (Cost--$272,130*)--140.1% 290,577 Other Assets Less Liabilities--5.7% 11,813 Preferred Shares, at Redemption Value--(45.8%) (95,000) --------- Net Assets Applicable to Common Shares--100.0% $ 207,390 ========= * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 272,034 ============== Gross unrealized appreciation $ 19,035 Gross unrealized depreciation (492) -------------- Net unrealized appreciation $ 18,543 ============== (a) AMBAC Insured. (b) MBIA Insured. (c) FGIC Insured. (d) GNMA Collateralized. (e) FSA Insured. (f) Prerefunded. (g) ACA Insured. (h) Escrowed to maturity. (i) FNMA Collateralized. (j) FHLMC Collateralized. (k) Radian Insured. (l) XL Capital Insured. (m) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. (n) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income Merrill Lynch Institutional Tax-Exempt Fund (7,630) $10 Forward interest rate swaps outstanding as of April 30, 2005 were as follows: (in Thousands) Unrealized Notional Appreciation Amount (Depreciation) Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate of 3.567% Broker, JPMorgan Chase Bank Expires May 2015 $23,300 $ 30 Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate of 3.891% Broker, JPMorgan Chase Bank Expires July 2015 $11,400 (249) ------- Total $ (219) ======= See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face Amount Municipal Bonds Value Michigan--145.5% $ 2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2034 (d) $ 2,513 Anchor Bay, Michigan, School District, GO (School Building and Site) (c)(f): 4,250 Series I, 6% due 5/01/2009 4,717 3,165 Series II, 5.75% due 5/01/2010 3,547 Bullock Creek, Michigan, School District, GO (e): 50 5.50% due 5/01/2010 (f) 56 2,100 5.50% due 5/01/2026 2,264 2,175 Carman-Ainsworth, Michigan, Community School, GO, 5.50% due 5/01/2018 (c) 2,415 1,000 Central Montcalm, Michigan, Public Schools, GO, 5.75% due 5/01/2009 (e)(f) 1,101 3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2009 (c)(f) 4,092 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) 2,715 Detroit, Michigan, City School District (School Building and Site Improvement), GO, Series A (c): 1,480 5.375% due 5/01/2024 1,635 2,000 5% due 5/01/2032 2,082 1,000 Detroit, Michigan, Sewer Disposal Revenue Bonds, Senior Lien, VRDN, Series A, 3% due 7/01/2033 (d)(i) 1,000 Detroit, Michigan, Water Supply System Revenue Bonds: 1,000 DRIVERS, Series 200, 8.19% due 7/01/2011 (c)(f)(g) 1,281 4,600 Senior Lien, Series A, 5% due 7/01/2034 (e) 4,791 2,000 Series B, 5.25% due 7/01/2032 (e) 2,133 4,400 Series B, 5% due 7/01/2034 (e) 4,582 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 2,688 2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds, 5.80% due 11/01/2024 (h) 2,289 East Grand Rapids, Michigan, Public School District, GO (d)(f): 1,610 5.75% due 5/01/2009 1,772 6,300 6% due 5/01/2009 6,992 1,300 East Lansing, Michigan, School District, GO, Refunding, Series B, 5% due 5/01/2030 (e) 1,370 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d): 2,000 5.25% due 5/01/2023 2,171 1,000 5% due 5/01/2026 1,053 1,250 5% due 5/01/2029 1,312 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), Series A (h): 385 5.375% due 7/01/2020 397 775 6% due 7/01/2020 846 1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 1,889 3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due 5/01/2028 (c) 3,839 Grand Blanc, Michigan, Community Schools, GO (c): 1,000 5.625% due 5/01/2017 1,120 1,000 5.625% due 5/01/2018 1,119 1,100 5.625% due 5/01/2019 1,231 1,660 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due 10/1/2012 (a)(f) 1,852 1,500 Grand Rapids, Michigan, Sanitation Sewer System, Revenue Refunding and Improvement Bonds, Series A, 5.50% due 1/01/2022 (c) 1,746
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face Amount Municipal Bonds Value Michigan (continued) $ 225 Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding, 5% due 5/01/2034 (c) $ 236 7,425 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 8,407 1,275 Haslett, Michigan, Public School District, Building and Site, GO, 5.625% due 5/01/2018 (e) 1,425 2,000 Howell, Michigan, Public Schools, GO, 5.875% due 5/01/2009 (e)(f) 2,210 2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (d) 2,792 3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,386 7,550 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2028 (e) 8,027 3,000 Kent, Michigan, Hospital Finance Authority, Revenue Bonds (Spectrum Health), Series A, 5.50% due 1/15/2031 (e) 3,226 1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,582 1,455 Mayville, Michigan, Community Schools, School Building and Site, GO, 5% due 5/01/2034 (c) 1,527 1,125 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds (Hillsdale College Project), 5% due 3/01/2035 1,156 1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,062 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for Creative Studies): 550 5.85% due 12/01/2022 569 1,000 5.90% due 12/01/2027 1,029 3,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT, Series XVII-B, 5.40% due 6/01/2018 (a) 3,115 Michigan State Building Authority Revenue Bonds: 1,185 (Facilities Program), Series II, 4.67%** due 10/15/2009 (a)(b) 1,019 1,675 (Facilities Program), Series II, 4.77%** due 10/15/2010 (a)(b) 1,381 2,675 GO, RIB, Series 481, 7.74% due 4/15/2009 (e)(g) 3,268 Michigan State Building Authority, Revenue Refunding Bonds: 2,000 (Facilities Program), Series II, 5% due 10/15/2029 (e) 2,096 3,500 RIB, Series 517X, 7.74% due 10/15/2010 (d)(g) 4,326 Michigan State, COP: 3,870 5.50% due 6/01/2027 (a) 4,175 5,380 RIB, Series 530, 8.21% due 9/01/2011 (e)(g) 6,732 1,500 Michigan State Comprehensive Transportation, Revenue Refunding Bonds, Series A, 5.50% due 11/01/2018 (d) 1,665 635 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due 10/01/2037 (e) 650 655 Michigan State, HDA, Revenue Refunding Bonds, AMT, Series B, 5.50% due 6/01/2030 (e) 680 1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan Obligation Group), Series A, 5.50% due 4/15/2018 (a) 1,089 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds: 1,300 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 1,387 1,250 (Sparrow Obligation Group), 5.625% due 11/15/2031 1,319 2,000 Michigan State Hospital Finance Authority, Revenue Bonds (Mercy Health Services), Series R, 5.375% due 8/15/2026 (a)(b) 2,065
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face Amount Municipal Bonds Value Michigan (concluded) Michigan State Hospital Finance Authority, Revenue Refunding Bonds: $ 5,125 5% due 11/15/2036 $ 5,336 8,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 9,063 2,500 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (f) 2,832 3,760 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (e)(f) 4,279 3,215 (Mercy Health Services), Series X, 6% due 8/15/2014 (e) 3,568 1,000 (Mercy-Mount Clemens), Series A, 6% due 5/15/2014 (e) 1,106 2,000 (Mercy-Mount Clemens), Series A, 5.75% due 5/15/2029 (e) 2,163 1,250 (Mid-Michigan Obligation Group), Series A, 5.375% due 6/01/2027 (d) 1,328 5,500 (Trinity Health), Series A, 6% due 12/01/2027 (a) 6,178 1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,059 3,450 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 3,624 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds: 8,000 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (e) 8,476 2,000 (Detroit Edison Company Fund--Pollution), Series AA, 6.95% due 5/01/2011 (c) 2,375 3,200 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,357 1,375 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 1,485 5,000 RIB, Series 382, 9.49% due 9/01/2025 (e)(g) 5,311 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) 8,631 1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site, GO, 5.50% due 5/01/2018 (d) 1,117 1,000 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds (Development Area Number 3), 5.375% due 6/01/2017 (h) 1,060 1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due 5/01/2026 (d) 1,053 1,900 Rochester, Michigan, Community School District, GO, Series II, 5.50% due 5/01/2018 (e) 2,110 1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,651 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c): 1,450 5% due 7/01/2024 1,538 1,000 5% due 7/01/2034 1,048 6,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Company), RIB, Series 282, 9.49% due 8/01/2024 (a)(g) 8,019 2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due 5/01/2010 (e)(f) 2,970 Southfield, Michigan, Public Schools, School Building and Site, GO, Series B (d): 1,950 5.25% due 5/01/2027 2,105 1,000 5% due 5/01/2029 1,049 1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,049 2,015 Sturgis, Michigan, Public School District, GO, Refunding, 5% due 5/01/2030 (c) 2,123 1,000 Tecumseh, Michigan, Public Schools, GO, Refunding, 5.125% due 5/01/2030 (c) 1,066 6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County), AMT, Series A, 5.375% due 12/01/2015 (e) 6,912 1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel, Series A, 5% due 12/01/2030 (e) 1,227 Wayne County, Michigan, Airport Authority, Revenue Bonds (Detroit Metropolitan Wayne County Airport), AMT (e): 4,475 5.25% due 12/01/2025 4,759 3,700 5.25% due 12/01/2026 3,919 1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (e) 1,396
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (concluded) MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face Amount Municipal Bonds Value Puerto Rico--1.6% $ 2,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts, Class R, Series 16 HH, 8.193% due 7/01/2013 (d)(g) $ 2,847 Total Investments (Cost--$244,314*)--147.1% 266,400 Other Assets Less Liabilities--2.1% 3,779 Preferred Stock, at Redemption Value--(49.2%) (89,027) --------- Net Assets Applicable to Common Stock--100.0% $ 181,152 ========= * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 244,139 ============== Gross unrealized appreciation $ 22,478 Gross unrealized depreciation (217) -------------- Net unrealized appreciation $ 22,261 ============== ** Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase by the Fund. (a) AMBAC Insured. (b) Escrowed to maturity. (c) FGIC Insured. (d) FSA Insured. (e) MBIA Insured. (f) Prerefunded. (g) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (h) ACA Insured. (i) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income CMA Michigan Municipal Money Fund (4,166) $11 Forward interest rate swaps outstanding as of April 30, 2005 were as follows: (in Thousands) Notional Unrealized Amount Depreciation Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate equal to 3.702% Broker, JPMorgan Chase Bank Expires July 2015 $13,500 $(87) See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments MuniYield New York Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value New York--131.4% $ 23,790 Albany County, New York, Airport Authority, Airport Revenue Bonds, AMT, 6% due 12/15/2023 (c) $ 25,829 8,200 Buffalo and Fort Erie, New York, Public Bridge Authority, Toll Bridge System Revenue Bonds, 5.75% due 1/01/2025 (d) 8,300 Buffalo, New York, School, GO, Series D (b): 1,250 5.50% due 12/15/2014 1,399 1,500 5.50% due 12/15/2016 1,686 4,300 Buffalo, New York, Sewer Authority, Revenue Refunding Bonds, Series F, 6% due 7/01/2013 (b) 5,055 1,700 Dutchess County, New York, Resource Recovery Agency Revenue Bonds (Solid Waste System--Forward), Series A, 5.40% due 1/01/2013 (d) 1,882 Erie County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project) (c): 1,900 5.75% due 5/01/2020 2,130 5,250 5.75% due 5/01/2024 5,786 Huntington, New York, GO, Refunding (a): 485 5.50% due 4/15/2011 544 460 5.50% due 4/15/2012 523 455 5.50% due 4/15/2013 518 450 5.50% due 4/15/2014 515 450 5.50% due 4/15/2015 516 1,675 Ilion, New York, Central School District, GO, Series B, 5.50% due 6/15/2010 (b)(e) 1,882 Long Island Power Authority, New York, Electric System Revenue Bonds, Series A (a): 7,000 5% due 9/01/2029 7,379 8,500 5% due 9/01/2034 8,920 2,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series A, 5.75% due 1/01/2008 (d)(e) 2,178 10,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Refunding Bonds, Series B, 4.875% due 7/01/2018 (b)(h) 10,459 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds, Series A: 7,280 5% due 11/15/2011 (b)(e) 8,001 1,015 5% due 11/15/2032 (c) 1,058 10,000 Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Revenue Refunding Bonds, Series A, 5% due 11/15/2030 (d) 10,434 Metropolitan Transportation Authority, New York, Revenue Bonds, Series A: 2,715 5% due 11/15/2033 (a) 2,863 2,500 4.50% due 11/15/2034 (a) 2,484 2,150 4.50% due 11/15/2035 (d) 2,136 Metropolitan Transportation Authority, New York, Revenue Refunding Bonds: 28,900 RIB, Series 724X, 8.26% due 11/15/2032 (c)(g) 36,313 2,500 Series A, 5.50% due 11/15/2018 (a) 2,803 1,740 Series A, 5.125% due 11/15/2022 (b) 1,876 2,500 Series A, 5.25% due 11/15/2031 (b) 2,683 1,500 Series B, 5% due 11/15/2028 (d) 1,578 2,000 Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds, Series A, 5% due 7/01/2025 (b) 2,107
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value New York (continued) Metropolitan Transportation Authority, New York, Transit Facilities Revenue Refunding Bonds, Series C (c)(e): $ 2,885 5.125% due 1/01/2012 $ 3,193 1,640 5.125% due 7/01/2012 1,822 2,500 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series A, 5% due 11/15/2032 (b) 2,617 Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series F (d): 6,235 5.25% due 11/15/2027 6,736 5,000 5% due 11/15/2031 5,210 Monroe County, New York, IDA, Revenue Bonds (Southview Towers Project), AMT: 1,400 6.125% due 2/01/2020 1,537 1,125 6.25% due 2/01/2031 1,235 1,410 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) 1,470 12,130 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75% due 8/01/2009 (c)(e)(m) 13,672 455 New York City, New York, City Health and Hospital Corporation, Health System Revenue Bonds, Series A, 5.375% due 2/15/2026 473 1,275 New York City, New York, City IDA, Civic Facility Revenue Refunding Bonds (Nightingale--Bamford School), 5.25% due 1/15/2018 (a) 1,397 13,175 New York City, New York, City IDA, IDR (Japan Airlines Company), AMT, 6% due 11/01/2015 (c) 13,591 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) 9,052 14,970 New York City, New York, City IDA, Special Facilities Revenue Bonds (Terminal One Group), AMT, 6.125% due 1/01/2024 (d) 15,194 500 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) 519 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds: 12,500 RIB, Series 726X, 8.26% due 6/15/2027 (d)(g) 15,752 2,850 Series A, 5.75% due 6/15/2009 (b)(e) 3,184 4,085 Series B, 5.75% due 6/15/2006 (d)(e) 4,264 17,200 Series B, 5.75% due 6/15/2007 (d)(e) 18,385 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds: 5,000 5.50% due 6/15/2033 (d) 5,441 1,250 Series A, 5.125% due 6/15/2034 (d) 1,308 7,015 Series B, 5.75% due 6/15/2026 (d) 7,321 3,000 VRDN, Series A, 2.98% due 6/15/2025 (b)(f) 3,000 1,020 New York City, New York, City Transit Authority, Metropolitan Transportation Authority, Triborough, COP, Series A, 5.625% due 1/01/2012 (a) 1,134 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) 3,285
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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 Transitional Finance Authority Revenue Bonds, Future Tax Secured: $ 6,805 Series B, 6.25% due 5/15/2010 (b)(e) $ 7,883 800 Series B, 6.25% due 5/15/2010 (e) 928 3,160 Series C, 5.50% due 5/01/2025 3,395 16,195 Series C, 5% due 2/01/2033 (b) 16,942 2,500 Series E, 5.25% due 2/01/2022 (d) 2,738 1,000 New York City, New York, City Transitional Finance Authority, Revenue Refunding Bonds, Series A, 5% due 11/15/2026 (b) 1,047 New York City, New York, GO: 11,043 RIB, Series 725X, 8.26% due 3/15/2027 (c)(g) 13,626 645 Series A, 5.75% due 5/15/2010 (b)(e) 732 2,355 Series A, 5.75% due 5/15/2024 (b) 2,673 2,500 Series B, 5.75% due 8/01/2013 (d) 2,804 3,750 Series D, 5.25% due 10/15/2023 3,998 2,500 Series D, 5% due 11/01/2026 2,602 5,200 Series D, 5% due 11/01/2034 5,379 8,000 Series J, 5% due 5/15/2023 8,379 9,000 Series M, 5% due 4/01/2035 9,320 2,295 Sub-Series C-1, 4.75% due 8/15/2025 2,343 1,150 Sub-Series C-1, 5.25% due 8/15/2026 1,233 New York City, New York, GO, Refunding: 895 Series A, 6.375% due 5/15/2010 (b)(e) 1,042 105 Series A, 6.375% due 5/15/2013 (b) 121 70 Series B, 7% due 2/01/2018 (a) 70 2,600 Series G, 5.75% due 2/01/2006 (e) 2,699 3,000 Series G, 5% due 12/01/2020 3,173 1,050 Series G, 5.75% due 2/01/2020 1,084 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A (a): 13,000 5.25% due 10/15/2027 14,216 26,050 5% due 10/15/2032 27,517 750 4.50% due 10/15/2033 751 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) 4,472 New York State Dormitory Authority Revenue Bonds: 3,935 (Eger Health Care and Rehabilitation Center), 6.10% due 8/01/2037 (i) 4,431 1,500 (Long Island University), Series B, 5.25% due 9/01/2028 (k) 1,588 2,000 (New School for Social Research), 5.75% due 7/01/2026 (d) 2,145 1,180 (New York State Rehabilitation Association), Series A, 5.25% due 7/01/2019 (j) 1,277 1,000 (New York State Rehabilitation Association), Series A, 5.125% due 7/01/2023 (j) 1,061 6,900 (School Districts Financing Program), Series E, 5.75% due 10/01/2030 (d) 7,772 1,000 Series B, 6.50% due 2/15/2011 (d)(h) 1,174 3,560 (State University Adult Facilities), Series B, 5.75% due 5/15/2010 (c)(e) 4,038 1,780 (Upstate Community Colleges), Series A, 6% due 7/01/2010 (c)(e) 2,043 New York State Dormitory Authority, Revenue Refunding Bonds: 1,000 (City University System), Consolidated, Series 1, 5.625% due 1/01/2008 (c)(e) 1,090 4,400 (City University System), Series C, 7.50% due 7/01/2010 (b) 4,931 4,255 (Mental Health Services Facilities Improvement), Series A, 5.75% due 2/15/2007 (d)(e) 4,552 150 (Mental Health Services Facilities Improvement), Series A, 5.75% due 2/15/2027 (d) 159 1,370 (School District Financing Program), Series I, 5.75% due 10/01/2018 (d) 1,555 1,750 Series B, 5.25% due 11/15/2029 (b) 1,927 6,000 (Siena College), 5.75% due 7/01/2026 (d) 6,434
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value New York (continued) $ 1,285 New York State Dormitory Authority, State Personal Income Tax Revenue Bonds (Education), Series A, 4.25% due 3/15/2030 (a) $ 1,231 New York State Dormitory Authority, Supported Debt Revenue Bonds (Mental Health Facilities), Series B: 1,570 5.25% due 2/15/2014 (e) 1,760 270 5.25% due 2/15/2023 289 1,000 New York State Dormitory Authority, Supported Debt Revenue Refunding Bonds (Department of Health), Series A, 5% due 7/01/2025 (j) 1,056 12,750 New York State Energy Research and Development Authority, Facilities Revenue Refunding Bonds (Consolidated Edison Company of New York, Inc. Project), Series A, 6.10% due 8/15/2020 (a) 13,075 4,555 New York State Energy Research and Development Authority, Gas Facilities Revenue Bonds (Brooklyn Union Gas Company), AMT, Series B, 6.75% due 2/01/2024 (d) 4,593 3,500 New York State Environmental Facilities Corporation, Special Obligation Revenue Refunding Bonds (Riverbank State Park), 6.25% due 4/01/2012 (a) 4,106 3,900 New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds (Pooled Financing Program), Series A, 4.50% due 11/15/2034 3,879 2,405 New York State HFA Revenue Refunding Bonds (Housing Mortgage Project), Series A, 6.10% due 11/01/2015 (c) 2,533 800 New York State Housing Finance Agency, State Personal Income Tax Revenue Bonds (Economic Development and Housing), Series A, 5% due 9/15/2023 (d) 849 1,000 New York State Housing Finance Agency, State Personal Income Tax, Revenue Refunding Bonds (Economic Development and Housing), Series A, 5% due 9/15/2034 (b) 1,048 5,375 New York State Medical Care Facilities Finance Agency, Revenue Bonds (Health Center Project--Second Mortgage), Series A, 6.375% due 11/15/2019 (a) 5,580 2,000 New York State Medical Care Facilities Finance Agency, Revenue Refunding Bonds (Hospital & Nursing Homes), Series B, 6.25% due 2/15/2025 (i) 2,059 9,590 New York State Mortgage Agency, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series 67, 5.80% due 10/01/2028 (d) 9,836 2,850 New York State Mortgage Agency Revenue Bonds, DRIVERS, AMT, Series 295, 8.436% due 4/01/2030 (d)(g) 3,159 New York State Municipal Bond Bank Agency, Special School Purpose Revenue Bonds, Series C: 3,470 5.25% due 6/01/2019 3,752 3,920 5.25% due 6/01/2020 4,230 2,250 5.25% due 6/01/2021 2,422 5,000 New York State Thruway Authority, General Revenue Bonds, Series F, 5% due 1/01/2030 (a) 5,266 2,820 New York State Thruway Authority, Highway and Bridge Trust Fund Revenue Bonds, Series A, 6.25% due 4/01/2011 (c) 3,227 New York State Thruway Authority, Local Highway and Bridge Service Contract Revenue Bonds (e): 3,000 5.75% due 4/01/2010 (a) 3,398 2,000 Series A-2, 5.375% due 4/01/2008 (d) 2,160 New York State Thruway Authority, Local Highway and Bridge Service Contract, Revenue Refunding Bonds (d): 2,170 6% due 4/01/2007 (e) 2,339 1,330 6% due 4/01/2011 1,431 2,075 6% due 4/01/2012 2,232
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value New York (continued) $ 3,045 New York State Thruway Authority, Second General Highway and Bridge Trust Fund Revenue Bonds, Series A, 5.25% due 4/01/2023 (d) $ 3,338 1,525 New York State Thruway, Transportation Authority, State Personal Income Tax Revenue Bonds, Series A, 5% due 3/15/2020 (d) 1,642 4,750 New York State Urban Development Corporation, Personal Income Tax Revenue Bonds, Series C-1, 5% due 3/15/2013 (d)(e) 5,246 3,190 New York State Urban Development Corporation, Revenue Refunding Bonds (Correctional Capital Facilities), Series A, 6.50% due 1/01/2011 (c) 3,716 1,000 Niagara Falls, New York, City School District, COP, Refunding (High School Facility), 5% due 6/15/2028 (c) 1,050 1,000 Niagara Falls, New York, GO (Water Treatment Plant), AMT, 7.25% due 11/01/2010 (d)(e) 1,184 2,705 Niagara, New York, Frontier Authority, Airport Revenue Bonds (Buffalo Niagara International Airport), Series B, 5.50% due 4/01/2019 (d) 2,947 1,260 North Country, New York, Development Authority, Solid Waste Management System, Revenue Refunding Bonds, 6% due 5/15/2015 (c) 1,459 North Hempstead, New York, GO, Refunding, Series B (b): 1,745 6.40% due 4/01/2013 2,094 555 6.40% due 4/01/2017 687 1,665 Oneida County, New York, IDA, Civic Facilities Revenue Bonds (Mohawk Valley), Series A, 5.20% due 2/01/2013 (c) 1,778 2,500 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 137th Series, 5.125% due 7/15/2030 (c) 2,634 4,000 Port Authority of New York and New Jersey, Consolidated Revenue Refunding Bonds, AMT, 119th Series, 5.50% due 9/15/2016 (b) 4,157 4,075 Port Authority of New York and New Jersey, Revenue Bonds, Trust Receipts, AMT, Class R, Series 10, 8.463% due 1/15/2017 (c)(g) 4,509 7,500 Port Authority of New York and New Jersey, Revenue Refunding Bonds, DRIVERS, AMT, Series 177, 8.681% due 10/15/2032 (d)(g) 8,618 Port Authority of New York and New Jersey, Special Obligation Revenue Bonds, AMT (d): 1,750 DRIVERS, Series 192, 8.191% due 12/01/2025 (g) 1,956 5,080 DRIVERS, Series 278, 8.179% due 12/01/2022 (g) 5,863 14,750 (JFK International Air Terminal), Series 6, 6.25% due 12/01/2010 16,577 7,175 (JFK International Air Terminal LLC), Series 6, 6.25% due 12/01/2011 8,158 4,425 (Special Project--JFK International Air Terminal), Series 6, 6.25% due 12/01/2013 5,102 7,380 (Special Project--JFK International Air Terminal), Series 6, 6.25% due 12/01/2014 8,597 1,255 Rensselaer County, New York, IDA, Civic Facility Revenue Bonds (Rensselaer Polytechnic Institute), Series B, 5.50% due 8/01/2022 (a) 1,365 4,625 Suffolk County, New York, IDA, IDR (Keyspan--Port Jefferson), AMT, 5.25% due 6/01/2027 4,803 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 9,592 9,170 6.15% due 10/01/2011 10,511 6,470 6.25% due 10/01/2012 7,527
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value New York (concluded) Tobacco Settlement Financing Corporation of New York Revenue Bonds: $ 5,000 Series A-1, 5.25% due 6/01/2020 (a) $ 5,421 5,000 Series A-1, 5.25% due 6/01/2021 (a) 5,403 2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,154 2,000 Series C-1, 5.50% due 6/01/2021 2,195 1,900 Series C-1, 5.50% due 6/01/2022 2,073 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Refunding Bonds (d): 2,500 Series A, 5% due 1/01/2032 2,594 2,305 Series Y, 6% due 1/01/2012 (h) 2,613 Triborough Bridge and Tunnel Authority, New York, Revenue Refunding Bonds (d): 7,000 5.25% due 11/15/2023 7,627 19,675 5% due 11/15/2032 20,502 1,500 Series B, 5% due 11/15/2032 1,563 Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Bonds: 2,465 5% due 11/15/2028 (a) 2,593 6,000 Series A, 5.25% due 11/15/2030 (d) 6,444 2,500 United Nations Development Corporation, New York, Revenue Refunding Bonds, Senior Lien, Series A, 5.25% due 7/01/2020 2,599 2,010 Yonkers, New York, GO, Series A, 5.75% due 10/01/2017 (b) 2,264 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 2,386 2,050 5.25% due 10/01/2022 2,184 Puerto Rico--9.9% Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds: 1,900 5.25% due 7/01/2018 (b) 2,100 2,265 Series G, 5.25% due 7/01/2019 (b) 2,500 1,000 Series G, 5.25% due 7/01/2021 (b) 1,104 1,250 Trust Receipts, Class R, Series B, 8.463% due 7/01/2035 (d)(g) 1,558 8,495 Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series D, 5.75% due 7/01/2041 9,486 Puerto Rico Commonwealth, Public Improvement, GO, Series A: 4,605 5.25% due 7/01/2019 4,983 7,480 5.25% due 7/01/2020 8,077 Puerto Rico Electric Power Authority, Power Revenue Bonds: 4,750 Series NN, 5.125% due 7/01/2029 4,991 5,000 Series RR, 5% due 7/01/2029 (j) 5,286 5,095 Series RR, 5% due 7/01/2030 (l) 5,403 2,000 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding Bonds, Series J, 5% due 7/01/2036 (a) 2,202
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Schedule of Investments (concluded) MuniYield New York Insured Fund, Inc. (In Thousands)
Face Amount Municipal Bonds Value Puerto Rico (concluded) Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E: $ 2,300 5.50% due 2/01/2012 (e) $ 2,593 700 5.50% due 8/01/2029 750 6,100 Puerto Rico Public Finance Corporation Revenue Bonds, DRIVERS, Series 272, 8.069% due 8/01/2030 (g) 6,721 Total Investments (Cost--$778,965*)--142.1% 826,962 Other Assets Less Liabilities--2.4% 14,275 Preferred Stock, at Redemption Value--(44.5%) (259,120) --------- Net Assets Applicable to Common Stock--100.0% $ 582,117 ========= * The cost and unrealized appreciation (depreciation) of investments as of April 30, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 779,071 ============== Gross unrealized appreciation $ 47,961 Gross unrealized depreciation (70) -------------- Net unrealized appreciation $ 47,891 ============== (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 which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. (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) All or portion of security held as collateral in connection with open future contracts. Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income CMA New York Municipal Money Fund (52) $4 Forward interest rate swaps outstanding as of April 30, 2005 were as follows: (in Thousands) Notional Unrealized Amount Depreciation Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate equal to 3.684% Broker, Morgan Stanley Capital Services, Inc. Expires June 2015 $41,500 $(269) Financial futures contracts sold as of April 30, 2005 were as follows: (in Thousands) Number of Expiration Face Unrealized Contracts Issue Date Value Depreciation 410 10-Year U.S. June Treasury Note 2005 $45,043 $(640) See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Statements of Net Assets
MuniYield MuniYield MuniYield California Arizona California Insured As of April 30, 2005 Fund, Inc. Fund, Inc. Fund, Inc. Assets Investments in unaffiliated securities, at value* $ 95,041,748 $ 454,771,779 $ 742,003,801 Cash 20,132 24,573 77,796 Interest receivable 1,842,746 8,089,144 12,789,495 Receivable for securities sold 219,300 2,020,000 15,261,828 Prepaid expenses 3,068 8,165 12,055 --------------- --------------- --------------- Total assets 97,126,994 464,913,661 770,144,975 --------------- --------------- --------------- Liabilities Payable for securities purchased -- 3,753,136 16,118,070 Payable to investment adviser 37,009 176,011 287,237 Dividends payable to Common Stock shareholders 30,478 170,389 267,341 Payable to other affiliates 1,020 3,226 5,258 Variation margin payable -- 25,000 -- Accrued expenses 15,296 63,391 56,534 --------------- --------------- --------------- Total liabilities 83,803 4,191,153 16,734,440 --------------- --------------- --------------- Preferred Stock Preferred Stock, at redemption value of AMPS+++ at $25,000 per share liquidation preference** 30,308,155 140,000,000 230,021,150 --------------- --------------- --------------- Net Assets Applicable to Common Stock Net assets applicable to Common Stock $ 66,735,036 $ 320,722,508 $ 523,389,385 =============== =============== =============== Net Assets Consist of Undistributed investment income--net $ 1,072,027 $ 1,420,770 $ 6,230,533 Accumulated realized capital losses--net (209,452) (7,645,876) (21,102,366) Unrealized appreciation--net 6,217,764 24,860,160 40,000,475 --------------- --------------- --------------- Total accumulated earnings--net 7,080,339 18,635,054 25,128,642 Common Stock, par value $.10 per share++ 447,838 2,129,526 3,436,120 Paid-in capital in excess of par 59,206,859 299,957,928 494,824,623 --------------- --------------- --------------- Net Assets $ 66,735,036 $ 320,722,508 $ 523,389,385 =============== =============== =============== Net asset value per share of Common Stock $ 14.90 $ 15.06 $ 15.23 =============== =============== =============== Market Price $ 14.95 $ 13.88 $ 13.91 =============== =============== =============== * Identified cost $ 88,823,984 $ 429,948,840 $ 702,003,326 =============== =============== =============== ** 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 -- 800 1,600 =============== =============== =============== Series D Shares, par value $.10 per share -- -- 2,000 =============== =============== =============== Series E Shares, par value $.10 per share -- -- 2,000 =============== =============== =============== ++ Common Stock issued and outstanding 4,478,382 21,295,255 34,361,200 =============== =============== =============== +++ Auction Market Preferred Stock. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Statements of Net Assets
MuniYield MuniYield MuniYield Michigan New York Florida Insured Insured As of April 30, 2005 Fund Fund II, Inc. Fund, Inc. Assets Investments in unaffiliated securities, at value* $ 290,576,627 $ 266,399,601 $ 826,962,467 Cash 86,042 59,728 22,501 Receivable for securities sold 9,948,734 2,915,278 3,132,823 Interest receivable 3,890,483 5,080,464 13,498,097 Variation margin receivable -- -- 102,500 Prepaid expenses 6,681 6,430 13,376 --------------- --------------- --------------- Total assets 304,508,567 274,461,501 843,731,764 --------------- --------------- --------------- Liabilities Unrealized depreciation on forward interest rate swaps 219,363 87,453 268,920 Payable for securities purchased 1,688,141 3,921,477 1,030,380 Payable to investment adviser 115,373 103,105 321,168 Dividends payable to Common Stock shareholders/Common Shareholders 58,995 115,324 330,544 Payable to other affiliates 3,328 2,989 9,301 Swaps payable -- -- 439,097 Accrued expenses and other liabilities 33,476 52,326 95,765 --------------- --------------- --------------- Total liabilities 2,118,676 4,282,674 2,495,175 --------------- --------------- --------------- Preferred Stock/Shares Preferred Stock/Shares, at redemption value of AMPS+++ at $25,000 per share liquidation preference** 95,000,000 89,026,907 259,119,632 --------------- --------------- --------------- Net Assets Applicable to Common Stock/Shares Net assets applicable to Common Stock/Shares $ 207,389,891 $ 181,151,920 $ 582,116,957 =============== =============== =============== Net Assets Consist of Undistributed investment income--net $ 3,058,235 $ 2,238,674 $ 7,232,123 Accumulated realized capital losses--net (9,973,068) (8,322,830) (33,817,432) Unrealized appreciation--net 18,226,873 21,998,549 47,088,204 --------------- --------------- --------------- Total accumulated earnings--net 11,312,040 15,914,393 20,502,895 Common Stock/Shares, par value $.10 per share++ 1,355,188 1,204,659 3,944,596 Paid-in capital in excess of par 194,722,663 164,032,868 557,669,466 --------------- --------------- --------------- Net Assets $ 207,389,891 $ 181,151,920 $ 582,116,957 =============== =============== =============== Net asset value per share of Common Stock/Shares $ 15.30 $ 15.04 $ 14.76 =============== =============== =============== Market price $ 14.20 $ 14.10 $ 13.23 =============== =============== =============== * Identified cost $ 272,130,391 $ 244,313,599 $ 778,964,980 =============== =============== =============== ** Preferred Stock/Shares authorized, issued and outstanding Series A Stock/Shares, par value $.05 per share 2,200 2,200 1,700 =============== =============== =============== Series B Stock/Shares, par value $.05 per share 1,600 -- 1,700 =============== =============== =============== Series B Stock/Shares, par value $.10 per share -- 1,360 -- =============== =============== =============== Series C Stock/Shares, par value $.05 per share -- -- 2,800 =============== =============== =============== Series D Stock/Shares, par value $.05 per share -- -- 1,960 =============== =============== =============== Series E Stock/Shares, par value $.05 per share -- -- 2,200 =============== =============== =============== ++ Common Stock/Shares issued and outstanding 13,551,880 12,046,592 39,445,962 =============== =============== =============== +++ Auction Market Preferred Stock/Shares. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Statement of Operations
MuniYield MuniYield MuniYield California Arizona California Insured For the Six Months Ended April 30, 2005 Fund, Inc. Fund, Inc. Fund, Inc. Investment Income Interest and amortization of premium and discount earned $ 2,571,652 $ 11,329,730 $ 18,938,685 Dividends from affiliates 2,023 9,472 8,176 --------------- --------------- --------------- Total income 2,573,675 11,339,202 18,946,861 --------------- --------------- --------------- Expenses Investment advisory fees 241,637 1,150,396 1,871,574 Commission fees 37,852 176,018 289,304 Accounting services 29,940 79,118 115,570 Professional fees 21,872 25,525 27,848 Transfer agent fees 18,545 29,559 44,030 Printing and shareholder reports 16,078 18,838 21,978 Directors' fees and expenses 6,669 10,890 13,978 Pricing fees 4,231 7,873 11,128 Custodian fees 3,697 12,858 18,626 Listing fees 967 9,499 13,241 Other 12,500 21,731 25,705 --------------- --------------- --------------- Total expenses before reimbursement 393,988 1,542,305 2,452,982 Reimbursement of expenses (1,098) (3,664) (3,140) --------------- --------------- --------------- Total expenses after reimbursement 392,890 1,538,641 2,449,842 --------------- --------------- --------------- Investment income--net 2,180,785 9,800,561 16,497,019 --------------- --------------- --------------- Realized & Unrealized Gain (Loss)--Net Realized gain on: Investments--net 54,378 151,910 835,161 Futures contracts--net -- -- 36,942 --------------- --------------- --------------- Total realized gain--net 54,378 151,910 872,103 --------------- --------------- --------------- Change in unrealized appreciation/depreciation on: Investments--net (435,080) (3,423,105) (309,272) Futures contracts--net -- 37,221 -- --------------- --------------- --------------- Total change in unrealized appreciation/depreciation--net (435,080) (3,385,884) (309,272) --------------- --------------- --------------- Total realized and unrealized gain (loss)--net (380,702) (3,233,974) 562,831 --------------- --------------- --------------- Dividends & Distributions to Preferred Stock Shareholders Dividends & distributions to Preferred Stock shareholders from: Investment income--net (241,116) (1,124,712) (1,825,836) Realized gain--net (6,427) -- -- --------------- --------------- --------------- Total dividends and distributions to Preferred Stock shareholders (247,543) (1,124,712) (1,825,836) --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 1,552,540 $ 5,441,875 $ 15,234,014 =============== =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Statement of Operations
MuniYield MuniYield MuniYield Michigan New York Florida Insured Insured For the Six Months Ended April 30, 2005 Fund Fund II, Inc. Fund, Inc. Investment Income Interest and amortization of premium and discount earned $ 7,789,440 $ 6,965,793 $ 21,206,642 Dividends from affiliates 10,272 11,456 4,493 --------------- --------------- --------------- Total income 7,799,712 6,977,249 21,211,135 --------------- --------------- --------------- Expenses Investment advisory fees 751,316 674,156 2,096,244 Commission fees 117,048 111,254 323,836 Accounting services 56,391 53,068 124,803 Professional fees 35,174 24,904 27,544 Transfer agent fees 26,224 27,667 52,360 Printing and shareholder reports 20,314 22,034 24,593 Listing fees 10,321 10,468 14,983 Directors'/Trustees' fees and expenses 8,914 8,678 15,344 Custodian fees 8,853 7,846 21,033 Pricing fees 7,663 10,105 14,000 Other 19,812 19,980 22,598 --------------- --------------- --------------- Total expenses before reimbursement 1,062,030 970,160 2,737,338 Reimbursement of expenses (1,572) (5,731) (1,827) --------------- --------------- --------------- Total expenses after reimbursement 1,060,458 964,429 2,735,511 --------------- --------------- --------------- Investment income--net 6,739,254 6,012,820 18,475,624 --------------- --------------- --------------- Realized & Unrealized Gain (Loss)--Net Realized gain (loss) on: Investments--net 1,828,562 1,121,032 1,283,009 Futures contracts and forward interest rate swaps--net (438,036) 33,042 (820,679) --------------- --------------- --------------- Total realized gain--net 1,390,526 1,154,074 462,330 --------------- --------------- --------------- Change in unrealized appreciation/depreciation on: Investments--net (952,138) (3,099,130) (3,390,166) Futures contracts and forward interest rate swaps--net 327,901 77,315 1,009,225 --------------- --------------- --------------- Total change in unrealized appreciation/depreciation--net (624,237) (3,021,815) (2,380,941) --------------- --------------- --------------- Total realized and unrealized gain (loss)--net 766,289 (1,867,741) (1,918,611) --------------- --------------- --------------- Dividends to Preferred Stock Shareholders/Preferred Shareholders Investment income--net (749,668) (723,576) (2,120,413) --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 6,755,875 $ 3,421,503 $ 14,436,600 =============== =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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: 2005 2004 Operations Investment income--net $ 2,180,785 $ 4,374,915 Realized gain--net 54,378 622,237 Change in unrealized appreciation--net (435,080) 1,148,593 Dividends and distributions to Preferred Stock shareholders (247,543) (278,765) --------------- --------------- Net increase in net assets resulting from operations 1,552,540 5,866,980 --------------- --------------- Dividends & Distributions to Common Stock Shareholders Investment income--net (2,067,345) (4,095,919) Realized gain--net (98,063) -- --------------- --------------- Net decrease in net assets resulting from dividends and distributions to Common Stock shareholders (2,165,408) (4,095,919) --------------- --------------- Common Stock Transactions Value of shares issued to Common Stock shareholders in reinvestment of dividends 130,739 212,430 --------------- --------------- Net Assets Applicable to Common Stock/Shares Total increase (decrease) in net assets applicable to Common Stock (482,129) 1,983,491 Beginning of period 67,217,165 65,233,674 --------------- --------------- End of period* $ 66,735,036 $ 67,217,165 =============== =============== * Undistributed investment income--net $ 1,072,027 $ 1,199,703 =============== =============== See Notes to Financial Statements.
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: 2005 2004 Operations Investment income--net $ 9,800,561 $ 21,821,368 Realized gain--net 151,910 1,796,120 Change in unrealized appreciation--net (3,385,884) 554,785 Dividends to Preferred Stock shareholders (1,124,712) (1,424,248) --------------- --------------- Net increase in net assets resulting from operations 5,441,875 22,748,025 --------------- --------------- Dividends to Common Stock Shareholders Investment income--net (9,923,589) (20,698,988) --------------- --------------- Net decrease in net assets resulting from dividends to Common Stock shareholders (9,923,589) (20,698,988) --------------- --------------- Net Assets Applicable to Common Stock Total increase (decrease) in net assets applicable to Common Stock (4,481,714) 2,049,037 Beginning of period 325,204,222 323,155,185 --------------- --------------- End of period* $ 320,722,508 $ 325,204,222 =============== =============== * Undistributed investment income--net $ 1,420,770 $ 2,668,510 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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: 2005 2004 Operations Investment income--net $ 16,497,019 $ 32,456,607 Realized gain (loss)--net 872,103 (393,889) Change in unrealized appreciation/depreciation--net (309,272) 4,656,645 Dividends to Preferred Stock shareholders (1,825,836) (2,199,184) --------------- --------------- Net increase in net assets resulting from operations 15,234,014 34,520,179 --------------- --------------- Dividends to Common Stock Shareholders Investment income--net (15,050,206) (30,100,412) --------------- --------------- Net decrease in net assets resulting from dividends to Common Stock shareholders (15,050,206) (30,100,412) --------------- --------------- Net Assets Applicable to Common Stock Total increase in net assets applicable to Common Stock 183,808 4,419,767 Beginning of period 523,205,577 518,785,810 --------------- --------------- End of period* $ 523,389,385 $ 523,205,577 =============== =============== * Undistributed investment income--net $ 6,230,533 $ 6,609,556 =============== =============== See Notes to Financial Statements.
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: 2005 2004 Operations Investment income--net $ 6,739,254 $ 13,551,874 Realized gain (loss)--net 1,390,526 (1,088,496) Change in unrealized appreciation--net (624,237) 5,043,296 Dividends to Preferred Shareholders (749,668) (979,988) --------------- --------------- Net increase in net assets resulting from operations 6,755,875 16,526,686 --------------- --------------- Dividends to Common Shareholders Investment income--net (6,260,969) (12,521,937) --------------- --------------- Net decrease in net assets resulting from dividends to Common Shareholders (6,260,969) (12,521,937) --------------- --------------- Net Assets Applicable to Common Shares Total increase in net assets applicable to Common Shares 494,906 4,004,749 Beginning of period 206,894,985 202,890,236 --------------- --------------- End of period* $ 207,389,891 $ 206,894,985 =============== =============== * Undistributed investment income--net $ 3,058,235 $ 3,329,618 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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: 2005 2004 Operations Investment income--net $ 6,012,820 $ 12,033,282 Realized gain (loss)--net 1,154,074 (1,293,828) Change in unrealized appreciation--net (3,021,815) 1,251,894 Dividends to Preferred Stock shareholders (723,576) (855,584) --------------- --------------- Net increase in net assets resulting from operations 3,421,503 11,135,764 --------------- --------------- Dividends to Common Stock Shareholders Investment income--net (5,493,246) (11,149,121) --------------- --------------- Net decrease in net assets resulting from dividends to Common Stock shareholders (5,493,246) (11,149,121) --------------- --------------- Net Assets Applicable to Common Stock Total decrease in net assets applicable to Common Stock (2,071,743) (13,357) Beginning of period 183,223,663 183,237,020 --------------- --------------- End of period* $ 181,151,920 $ 183,223,663 =============== =============== * Undistributed investment income--net $ 2,238,674 $ 2,442,676 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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: 2005 2004 Operations Investment income--net $ 18,475,624 $ 36,051,644 Realized gain (loss)--net 462,330 (15,384,933) Change in unrealized appreciation/depreciation--net (2,380,941) 15,015,826 Dividends to Preferred Stock shareholders (2,120,413) (2,455,390) --------------- --------------- Net increase in net assets resulting from operations 14,436,600 33,227,147 --------------- --------------- Dividends to Common Stock Shareholders Investment income--net (16,567,304) (33,004,436) --------------- --------------- Net decrease in net assets resulting from dividends to Common Stock shareholders (16,567,304) (33,004,436) --------------- --------------- Net Assets Applicable to Common Stock Total increase (decrease) in net assets applicable to Common Stock (2,130,704) 222,711 Beginning of period 584,247,661 584,024,950 --------------- --------------- End of period* $ 582,116,957 $ 584,247,661 =============== =============== * Undistributed investment income--net $ 7,232,123 $ 7,444,216 =============== =============== See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Per Share Operating Performance Net asset value, beginning of period $ 15.04 $ 14.64 $ 14.53 $ 14.19 $ 13.11 ---------- ---------- ---------- ---------- ---------- Investment income--net .49+++ .98+++ 1.00+++ .97 .94 Realized and unrealized gain (loss)--net (.10) .40 .05 .26 1.02 Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.05) (.06) (.06) (.09) (.20) Realized gain--net --++ -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total from investment operations .34 1.32 .99 1.14 1.76 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.46) (.92) (.88) (.80) (.68) Realized gain--net (.02) -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.48) (.92) (.88) (.80) (.68) ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 14.90 $ 15.04 $ 14.64 $ 14.53 $ 14.19 ========== ========== ========== ========== ========== Market price per share, end of period $ 14.95 $ 15.10 $ 14.13 $ 13.25 $ 13.19 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 2.34%+++++ 9.40% 7.19% 8.60% 14.20% ========== ========== ========== ========== ========== Based on market price per share 2.28%+++++ 13.80% 13.45% 6.54% 25.09% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement*** 1.18%* 1.19% 1.18% 1.28% 1.33% ========== ========== ========== ========== ========== Total expenses*** 1.19%* 1.20% 1.19% 1.28% 1.33% ========== ========== ========== ========== ========== Total investment income--net*** 6.57%* 6.65% 6.79% 6.86% 6.88% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders .73%* .42% .42% .61% 1.48% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 5.84%* 6.37% 6.37% 6.25% 5.41% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 1.59%* .92% .91% 1.26% 2.97% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 66,735 $ 67,217 $ 65,234 $ 64,699 $ 63,160 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 30,300 $ 30,300 $ 30,300 $ 30,300 $ 30,300 ========== ========== ========== ========== ========== Portfolio turnover 10.28% 23.69% 26.99% 42.51% 45.89% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 3,202 $ 3,218 $ 3,153 $ 3,135 $ 3,085 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 196 $ 222 $ 220 $ 305 $ 742 ========== ========== ========== ========== ========== Series B--Investment income--net $ 201 $ 236 $ 237 $ 324 $ 742 ========== ========== ========== ========== ========== * 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. +++ Based on average shares outstanding. +++++ Aggregate total investment return. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Per Share Operating Performance Net asset value, beginning of period $ 15.27 $ 15.17 $ 15.14 $ 15.22 $ 14.19 ----------- ---------- ---------- ---------- ---------- Investment income--net .46+++ 1.02+++ 1.06+++ 1.07+++ 1.03 Realized and unrealized gain (loss)--net (.15) .12 .04 (.06) 1.05 Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.05) (.07) (.10) (.12) (.20) Realized gain--net -- -- --++ --++ -- ----------- ---------- ---------- ---------- ---------- Total from investment operations .26 1.07 1.00 .89 1.88 ----------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.47) (.97) (.97) (.97) (.85) Realized gain--net -- -- --++ --++ -- ----------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.47) (.97) (.97) (.97) (.85) ----------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 15.06 $ 15.27 $ 15.17 $ 15.14 $ 15.22 =========== ========== ========== ========== ========== Market price per share, end of period $ 13.88 $ 14.43 $ 14.15 $ 14.46 $ 15.10 =========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 1.93%+++++ 7.74% 7.14% 6.14% 13.85% =========== ========== ========== ========== ========== Based on market price per share (.59%)+++++ 9.16% 4.64% 2.18% 22.71% =========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement*** .96%* .96% .95% .99% 1.00% =========== ========== ========== ========== ========== Total expenses*** .96%* .96% .96% .99% 1.00% =========== ========== ========== ========== ========== Total investment income--net*** 6.11%* 6.79% 6.93% 7.13% 7.00% =========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders .70%* .44% .63% .77% 1.37% =========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 5.41%* 6.35% 6.30% 6.36% 5.63% =========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 1.61%* 1.02% 1.46% 1.76% 3.04% =========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 320,723 $ 325,204 $ 323,155 $ 322,345 $ 322,524 =========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 =========== ========== ========== ========== ========== Portfolio turnover 22.04% 33.60% 20.24% 49.87% 58.17% =========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 3,291 $ 3,323 $ 3,308 $ 3,302 $ 3,304 =========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 227 $ 270 $ 569 $ 607 $ 802 =========== ========== ========== ========== ========== Series B--Investment income--net $ 190 $ 241 $ 217 $ 322 $ 721 =========== ========== ========== ========== ========== Series C--Investment income--net $ 154 $ 250 $ 207 $ 292 $ 745 =========== ========== ========== ========== ========== * 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. +++ Based on average shares outstanding. +++++ Aggregate total investment return. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Per Share Operating Performance Net asset value, beginning of period $ 15.23 $ 15.10 $ 15.26 $ 15.44 $ 14.24 ---------- ---------- ---------- ---------- ---------- Investment income--net .48+++++ .94+++++ .95+++++ .95 1.00 Realized and unrealized gain (loss)--net .01 .13 (.18) (.22) 1.21 Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.05) (.06) (.06) (.09) (.20) Realized gain--net -- -- -- --++++ -- ---------- ---------- ---------- ---------- ---------- Total from investment operations .44 1.01 .71 .64 2.01 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.44) (.88) (.87) (.81) (.81) Realized gain--net -- -- -- (.01) -- In excess of realized gain--net -- -- -- -- --++++ ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.44) (.88) (.87) (.82) (.81) ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 15.23 $ 15.23 $ 15.10 $ 15.26 $ 15.44 ========== ========== ========== ========== ========== Market price per share, end of period $ 13.91 $ 13.73 $ 13.82 $ 13.68 $ 14.46 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 3.24%+++ 7.54% 5.29% 4.68% 14.76% ========== ========== ========== ========== ========== Based on market price per share 4.59%+++ 5.93% 7.50% .20% 12.33% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement and excluding reorganization expenses*** .94%* .95% .94% .96% 1.06% ========== ========== ========== ========== ========== Total expenses, excluding reorganization expenses*** .94%* .95% .94% .96% 1.06% ========== ========== ========== ========== ========== Total expenses*** .94%* .95% .94% 1.00% 1.06% ========== ========== ========== ========== ========== Total investment income--net*** 6.35%* 6.29% 6.20% 6.38% 6.74% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders .70%* .43% .37% .56% 1.36% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 5.65%* 5.86% 5.83% 5.82% 5.38% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 1.59%* .96% .85% 1.25% 2.86% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 523,389 $ 523,206 $ 518,786 $ 524,485 $ 283,553 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 230,000 $ 230,000 $ 230,000 $ 230,000 $ 130,000 ========== ========== ========== ========== ========== Portfolio turnover 19.99% 68.05% 52.17% 77.13% 59.36% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 3,276 $ 3,275 $ 3,256 $ 3,280 $ 3,181 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 184 $ 246 $ 216 $ 359 $ 758 ========== ========== ========== ========== ========== Series B--Investment income--net $ 201 $ 238 $ 212 $ 324 $ 700 ========== ========== ========== ========== ========== Series C--Investment income--net $ 185 $ 224 $ 204 $ 320 $ 683 ========== ========== ========== ========== ========== Series D++--Investment income--net $ 229 $ 249 $ 242 $ 203 -- ========== ========== ========== ========== ========== Series E++--Investment income--net $ 190 $ 236 $ 196 $ 201 -- ========== ========== ========== ========== ========== * 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 D and E were issued on February 4, 2002. ++++ Amount is less than $(.01) per share. +++ Aggregate total investment return. +++++ Based on average shares outstanding. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Per Share Operating Performance Net asset value, beginning of period $ 15.27 $ 14.97 $ 14.97 $ 14.81 $ 13.78 ---------- ---------- ---------- ---------- ---------- Investment income--net .50+++ 1.00+++ 1.06+++ 1.03 1.00 Realized and unrealized gain (loss)--net .05 .29 (.07) .09 1.04 Less dividends and distributions to Preferred Shareholders: Investment income--net (.06) (.07) (.07) (.09) (.22) Realized gain--net -- -- -- --++ -- ---------- ---------- ---------- ---------- ---------- Total from investment operations .49 1.22 .92 1.03 1.82 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Shareholders: Investment income--net (.46) (.92) (.92) (.87) (.79) Realized gain--net -- -- -- --++ -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Shareholders (.46) (.92) (.92) (.87) (.79) ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 15.30 $ 15.27 $ 14.97 $ 14.97 $ 14.81 ========== ========== ========== ========== ========== Market price per share, end of period $ 14.20 $ 14.28 $ 13.80 $ 13.34 $ 13.98 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 3.49%+++++ 8.99% 6.76% 7.80% 14.24% ========== ========== ========== ========== ========== Based on market price per share 2.71%+++++ 10.57% 10.44% 1.77% 31.36% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Shares Total expenses, net of reimbursement*** 1.03%* 1.03% 1.04% 1.06% 1.06% ========== ========== ========== ========== ========== Total expenses*** 1.03%* 1.03% 1.04% 1.06% 1.06% ========== ========== ========== ========== ========== Total investment income--net*** 6.55%* 6.67% 7.01% 7.00% 6.98% ========== ========== ========== ========== ========== Amount of dividends to Preferred Shareholders .73%* .48% .45% .64% 1.53% ========== ========== ========== ========== ========== Investment income--net, to Common Shareholders 5.82%* 6.19% 6.56% 6.36% 5.45% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Shares Dividends to Preferred Shareholders 1.58%* 1.03% .97% 1.34% 3.14% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Supplemental Data Net assets applicable to Common Shares, end of period (in thousands) $ 207,390 $ 206,895 $ 202,890 $ 202,919 $ 200,729 ========== ========== ========== ========== ========== Preferred Shares outstanding, end of period (in thousands) $ 95,000 $ 95,000 $ 95,000 $ 95,000 $ 95,000 ========== ========== ========== ========== ========== Portfolio turnover 19.75% 36.11% 40.45% 39.54% 86.85% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 3,183 $ 3,178 $ 3,136 $ 3,136 $ 3,113 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Shares Outstanding Series A--Investment income--net $ 203 $ 254 $ 247 $ 337 $ 771 ========== ========== ========== ========== ========== Series B--Investment income--net $ 189 $ 263 $ 242 $ 333 $ 801 ========== ========== ========== ========== ========== * 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. +++ Based on average shares outstanding. +++++ Aggregate total investment return. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Per Share Operating Performance Net asset value, beginning of period $ 15.21 $ 15.21 $ 14.91 $ 14.97 $ 13.83 ---------- ---------- ---------- ---------- ---------- Investment income--net .50+++++ 1.00+++++ 1.02+++++ 1.00 1.00 Realized and unrealized gain (loss)--net (.15) --++++ .24 (.07) 1.15 Less dividends to Preferred Stock shareholders from investment income--net (.06) (.07) (.07) (.10) (.22) ---------- ---------- ---------- ---------- ---------- Total from investment operations .29 .93 1.19 .83 1.93 ---------- ---------- ---------- ---------- ---------- Less dividends to Common Stock shareholders from investment income--net (.46) (.93) (.89) (.89) (.79) ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 15.04 $ 15.21 $ 15.21 $ 14.91 $ 14.97 ========== ========== ========== ========== ========== Market price per share, end of period $ 14.10 $ 14.54 $ 13.75 $ 13.45 $ 13.85 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 2.08%+++ 12.91% 9.06% 3.70% 25.13% ========== ========== ========== ========== ========== Based on market price per share .11%+++ 6.78% 8.82% 6.36% 14.91% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement*** 1.07%* 1.05% 1.01% 1.12% 1.15% ========== ========== ========== ========== ========== Total expenses*** 1.07%* 1.07% 1.02% 1.12% 1.15% ========== ========== ========== ========== ========== Total investment income--net*** 6.65%* 6.61% 6.73% 6.91% 6.96% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders .80%* .47% .47% .66% 1.53% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 5.85%* 6.14% 6.26% 6.25% 5.43% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 1.63%* .96% .97% 1.36% 3.19% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 181,152 $ 183,224 $ 183,237 $ 179,607 $ 118,508 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 89,000 $ 89,000 $ 89,000 $ 89,000 $ 55,000 ========== ========== ========== ========== ========== Portfolio turnover 9.87% 39.26% 30.84% 41.77% 72.58% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 3,035 $ 3,059 $ 3,059 $ 3,018 $ 3,155 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 204 $ 236 $ 243 $ 343 $ 798 ========== ========== ========== ========== ========== Series B++--Investment income--net $ 202 $ 247 $ 245 $ 136 -- ========== ========== ========== ========== ========== * 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 B was issued on May 31, 2002. ++++ Amount is less than $(.01) per share. +++ Aggregate total investment return. +++++ Based on average shares outstanding. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Per Share Operating Performance Net asset value, beginning of period $ 14.81 $ 14.81 $ 14.83 $ 15.01 $ 13.76 ---------- ---------- ---------- ---------- ---------- Investment income--net .47+++++ .91+++++ .97+++++ .94 .96 Realized and unrealized gain (loss)--net (.05) (.01) (.09) (.19) 1.26 Less dividends and distributions to Preferred Stock shareholders: Investment income--net (.05) (.06) (.07) (.10) (.20) Realized gain--net -- -- -- --++ -- ---------- ---------- ---------- ---------- ---------- Total from investment operations .37 .84 .81 .65 2.02 ---------- ---------- ---------- ---------- ---------- Less dividends and distributions to Common Stock shareholders: Investment income--net (.42) (.84) (.83) (.83) (.77) Realized gain--net -- -- -- --++ -- ---------- ---------- ---------- ---------- ---------- Total dividends and distributions to Common Stock shareholders (.42) (.84) (.83) (.83) (.77) ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 14.76 $ 14.81 $ 14.81 $ 14.83 $ 15.01 ========== ========== ========== ========== ========== Market price per share, end of period $ 13.23 $ 13.20 $ 13.25 $ 13.36 $ 14.02 ========== ========== ========== ========== ========== Total Investment Return** Based on net asset value per share 2.91%+++ 6.53% 6.19% 4.97% 15.57% ========== ========== ========== ========== ========== Based on market price per share 3.49%+++ 6.13% 5.45% 1.24% 21.26% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Common Stock Total expenses, net of reimbursement*** .94%* .94% .94% .96% .97% ========== ========== ========== ========== ========== Total expenses*** .94%* .95% .94% .96% .97% ========== ========== ========== ========== ========== Total investment income--net*** 6.37%* 6.23% 6.49% 6.37% 6.66% ========== ========== ========== ========== ========== Amount of dividends to Preferred Stock shareholders .73%* .42% .50% .66% 1.38% ========== ========== ========== ========== ========== Investment income--net, to Common Stock shareholders 5.64%* 5.81% 5.99% 5.71% 5.28% ========== ========== ========== ========== ========== Ratios Based on Average Net Assets of Preferred Stock Dividends to Preferred Stock shareholders 1.64%* .95% 1.13% 1.49% 3.07% ========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. 2005 2004 2003 2002 2001 Supplemental Data Net assets applicable to Common Stock, end of period (in thousands) $ 582,117 $ 584,248 $ 584,025 $ 584,793 $ 591,942 ========== ========== ========== ========== ========== Preferred Stock outstanding, end of period (in thousands) $ 259,000 $ 259,000 $ 259,000 $ 259,000 $ 259,000 ========== ========== ========== ========== ========== Portfolio turnover 15.64% 19.91% 51.89% 87.56% 83.08% ========== ========== ========== ========== ========== Leverage Asset coverage per $1,000 $ 3,248 $ 3,256 $ 3,255 $ 3,258 $ 3,285 ========== ========== ========== ========== ========== Dividends Per Share on Preferred Stock Outstanding Series A--Investment income--net $ 224 $ 254 $ 249 $ 334 $ 791 ========== ========== ========== ========== ========== Series B--Investment income--net $ 189 $ 203 $ 232 $ 305 $ 731 ========== ========== ========== ========== ========== Series C--Investment income--net $ 194 $ 240 $ 214 $ 356 $ 774 ========== ========== ========== ========== ========== Series D--Investment income--net $ 185 $ 231 $ 454 $ 503 $ 715 ========== ========== ========== ========== ========== Series E--Investment income--net $ 233 $ 251 $ 255 $ 356 $ 812 ========== ========== ========== ========== ========== * 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. +++ Aggregate total investment return. +++++ Based on average shares outstanding. See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005 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 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 values 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. 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). SEMI-ANNUAL REPORTS, APRIL 30, 2005 Notes to Financial Statements (continued) 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. 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, 2005, the Investment Adviser agreed to reimburse its management fee by the amount of management fees each Fund pays to FAM indirectly through its investment described below: Fund Investment Reimbursement MuniYield Arizona CMA Arizona Municipal Fund, Inc. Money Fund $1,098 MuniYield California CMA California Municipal Fund, Inc. Money Fund $3,664 MuniYield California CMA California Municipal Insured Fund, Inc. Money Fund $3,140 MuniYield Florida Merrill Lynch Institutional Fund Tax-Exempt Fund $1,572 MuniYield Michigan CMA Michigan Municipal Insured Fund II, Inc. Money Fund $5,731 MuniYield New York CMA New York Municipal Insured Fund, Inc. Money Fund $1,827 For the six months ended April 30, 2005, the Funds reimbursed FAM for certain accounting services. The reimbursements were as follows: Fund Reimbursement MuniYield Arizona Fund, Inc. $1,206 MuniYield California Fund, Inc. $5,373 MuniYield California Insured Fund, Inc. $8,478 MuniYield Florida Fund $3,256 MuniYield Michigan Insured Fund II, Inc. $2,973 MuniYield New York Insured Fund, Inc. $8,920 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, 2005 Notes to Financial Statements (continued) 3. Investments: Purchases and sales of investments, excluding short-term securities, for the six months ended April 30, 2005 were as follows: Total Total Purchases Sales MuniYield Arizona Fund, Inc. $ 10,425,049 $ 9,770,145 MuniYield California Fund, Inc. $102,650,879 $100,032,652 MuniYield California Insured Fund, Inc. $156,102,752 $145,021,188 MuniYield Florida Fund $ 57,303,749 $ 60,634,560 MuniYield Michigan Insured Fund II, Inc. $ 31,584,428 $ 25,977,439 MuniYield New York Insured Fund, Inc. $128,948,497 $130,353,410 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, 2005 and for the year ended October 31, 2004 increased by 8,765 and 14,166, respectively, as a result of dividend reinvestment. MuniYield California Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2005 and the year ended October 31, 2004 remained constant. MuniYield California Insured Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2005 and the year ended October 31, 2004 remained constant. MuniYield Florida Fund Shares issued and outstanding during the six months ended April 30, 2005 and the year ended October 31, 2004 remained constant. MuniYield Michigan Insured Fund II, Inc. Shares issued and outstanding during the six months ended April 30, 2005 and the year ended October 31, 2004 remained constant. MuniYield New York Insured Fund, Inc. Shares issued and outstanding during the six months ended April 30, 2005 and the year ended October 31, 2004 remained constant. Preferred Stock/Shares Auction Market Preferred Stock/Shares are redeemable Preferred 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. MuniYield Florida Fund and MuniYield New York Insured Fund, Inc. have a par value of $.05 per share. MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc. and MuniYield California Insured Fund, Inc. have a par value of $.10 per share. MuniYield Michigan Insured Fund II, Inc. has a par value of $.05 and $.10 per share. The yields in effect at April 30, 2005 were as follows: MuniYield MuniYield MuniYield California Arizona California Insured Fund, Inc. Fund, Inc. Fund, Inc. Series A 2.05% 2.36% 2.30% Series B 2.45% 2.10% 2.45% Series C -- 2.40% 1.84% Series D -- -- 2.49% Series E -- -- 2.40% SEMI-ANNUAL REPORTS, APRIL 30, 2005 Notes to Financial Statements (concluded) MuniYield MuniYield MuniYield Michigan New York Florida Insured II Insured Fund Fund, Inc. Fund, Inc. Series A 2.63% 2.55% 2.25% Series B 2.75% 2.50% 1.97% Series C -- -- 2.25% Series D -- -- 2.00% Series E -- -- 2.50% 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, 2005, Merrill Lynch, Pierce, Fenner & Smith Incorporated, an affiliate of FAM, earned commissions as follows: Fund Commissions MuniYield Arizona Fund, Inc. $ 12,330 MuniYield California Fund, Inc. $ 71,407 MuniYield California Insured Fund, Inc. $ 91,475 MuniYield Florida Fund $ 62,595 MuniYield Michigan Insured Fund II, Inc. $ 46,715 MuniYield New York Insured Fund, Inc. $123,943 5. Capital Loss Carryforward: MuniYield California Fund, Inc. On October 31, 2004, the Fund had a net capital loss carryforward of $6,759,497, of which $6,405,651 expires in 2008 and $353,846 expires in 2011. This amount will be available to offset like amounts of any future taxable gains. MuniYield California Insured Fund, Inc. On October 31, 2004, the Fund had a net capital loss carryforward of $15,358,482, of which $2,049,122 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, 2004, the Fund had a net capital loss carryforward of $10,460,026, of which $1,948,898 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, 2004, the Fund had a net capital loss carryforward of $6,678,866, of which $4,339,762 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, 2004, the Fund had a net capital loss carryforward of $28,156,850, of which $8,566,493 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 27, 2005 to stock/shareholders of record on May 13, 2005. The amount of the tax-exempt dividend was as follows: Per Share Fund Amount MuniYield Arizona Fund, Inc. $.077000 MuniYield California Fund, Inc. $.068000 MuniYield California Insured Fund, Inc. $.073000 MuniYield Florida Fund $.077000 MuniYield Michigan Insured Fund II, Inc. $.075000 MuniYield New York Insured Fund, Inc. $.070000 SEMI-ANNUAL REPORTS, APRIL 30, 2005 Proxy Results MuniYield Arizona Fund, Inc. During the six-month period ended April 30, 2005, MuniYield Arizona Fund, Inc.'s Common Stock shareholders voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposals 2 and 3, the proposals were adjourned until May 27, 2005, at which time they passed. A description of the proposals 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. 2,494,713 88,137 James H. Bodurtha 2,495,021 87,829 Joe Grills 2,490,101 92,749 Roberta Cooper Ramo 2,497,121 85,729 Stephen B. Swensrud 2,489,093 93,757 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 2,396,741 177,882 120,772 3. To approve an amendment to articles supplementary or certificate of designation. 2,332,526 237,540 125,329 During the six-month period ended April 30, 2005, MuniYield Arizona Fund, Inc.'s Preferred Stock shareholders (Series A - B) voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposals 2 and 3, the proposals were adjourned until May 27, 2005, at which time they passed. A description of the proposals and number of shares voted were 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, Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud 1,031 16 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 1,177 31 -- 3. To approve an amendment to articles supplementary or certificate of designation. 1,043 165 --
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Proxy Results MuniYield California Fund, Inc. During the six-month period ended April 30, 2005, MuniYield California Fund, Inc.'s Common Stock shareholders voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposal 2, the Proposal was adjourned until May 27, 2005, at which time it passed. Proposal 3 was adjourned until June 27, 2005. A description of the proposals 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. 10,692,824 230,836 James H. Bodurtha 10,693,833 229,827 Joe Grills 10,681,309 242,351 Roberta Cooper Ramo 10,692,740 230,920 Stephen B. Swensrud 10,679,841 243,819 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 9,644,204 433,873 513,768 3. To approve an amendment to articles supplementary or certificate of designation. Adjourned Adjourned Adjourned During the six-month period ended April 30, 2005, MuniYield California Fund, Inc.'s Preferred Stock shareholders (Series A - F) voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposal 2, the proposal was adjourned until May 27, 2005, at which time it passed. Proposal 3 was adjourned until June 27, 2005. A description of the proposals and number of shares voted were 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, Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud 4,509 17 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 5,377 136 56 3. To approve an amendment to articles supplementary or certificate of designation. Adjourned Adjourned Adjourned
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Proxy Results MuniYield California Insured Fund, Inc. During the six-month period ended April 30, 2005, MuniYield California Insured Fund, Inc.'s Common Stock shareholders voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposal 2, the proposal was adjourned until May 27, 2005, at which time it passed. Proposal 3 was adjourned until June 27, 2005. A description of the proposals 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. 18,713,214 373,318 James H. Bodurtha 18,709,448 377,084 Joe Grills 18,677,732 408,800 Roberta Cooper Ramo 18,711,933 374,599 Stephen B. Swensrud 18,670,712 415,820 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 13,905,411 606,342 624,350 3. To approve an amendment to articles supplementary or certificate of designation. Adjourned Adjourned Adjourned During the six-month period ended April 30, 2005, MuniYield California Insured Fund, Inc.'s Preferred Stock shareholders (Series A - E) voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposal 2, the proposal was adjourned until May 27, 2005, at which time it passed. Proposal 3 was adjourned until June 27, 2005. A description of the proposals and number of shares voted were 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, Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud 6,956 37 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 8,287 829 67 3. To approve an amendment to articles supplementary or certificate of designation. Adjourned Adjourned Adjourned
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Proxy Results MuniYield Florida Fund During the six-month period ended April 30, 2005, MuniYield Florida Fund's Common Shareholders voted on the following proposals. Proposals 1 and 2 were approved at a shareholders' meeting on April 28, 2005. With respect to Proposal 3, the proposal was adjourned until May 27, 2005, at which time it passed. A description of the proposals and number of shares voted were as follows:
Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Trustees: Robert C. Doll, Jr. 7,886,370 155,994 James H. Bodurtha 7,886,320 156,044 Joe Grills 7,884,570 157,794 Roberta Cooper Ramo 7,888,445 153,919 Stephen B. Swensrud 7,885,879 156,485 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 6,128,774 200,719 223,967 3. To approve an amendment to articles supplementary or certificate of designation. 6,631,414 534,725 231,258 During the six-month period ended April 30, 2005, MuniYield Florida Fund's Preferred Shareholders (Series A - B) voted on the following proposals. Proposals 1 and 2 were approved at a shareholders' meeting on April 28, 2005. With respect to Proposal 3, the proposal was adjourned until May 27, 2005, at which time it passed. A description of the proposals and number of shares voted were as follows: Shares Voted Shares Withheld For From Voting 1. To elect the Fund's Trustees: Robert C. Doll, Jr., James H. Bodurtha, Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud 3,759 39 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 3,628 29 141 3. To approve an amendment to articles supplementary or certificate of designation. 3,337 327 134
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Proxy Results MuniYield Michigan Insured Fund II, Inc. During the six-month period ended April 30, 2005, MuniYield Michigan Insured Fund II, Inc.'s Common Stock shareholders voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposals 2 and 3, the proposals were adjourned until May 27, 2005, at which time they passed. A description of the proposals 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. 7,042,457 189,007 James H. Bodurtha 7,041,217 190,247 Joe Grills 7,033,691 197,773 Roberta Cooper Ramo 7,041,517 189,947 Stephen B. Swensrud 7,038,691 192,773 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 5,927,225 523,001 274,337 3. To approve an amendment to articles supplementary or certificate of designation. 5,826,955 614,612 282,996 During the six-month period ended April 30, 2005, MuniYield Michigan Insured Fund II, Inc.'s Preferred Stock shareholders (Series A - B) voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposals 2 and 3, the proposals were adjourned until May 27, 2005, at which time they passed. A description of the proposals and number of shares voted were 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, Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud 2,340 53 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 3,223 221 99 3. To approve an amendment to articles supplementary or certificate of designation. 3,152 223 168
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Proxy Results MuniYield New York Insured Fund, Inc. During the six-month period ended April 30, 2005, MuniYield New York Insured Fund, Inc.'s Common Stock shareholders voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposal 2, the proposal was adjourned until May 27, 2005, at which time it passed. Proposal 3 was adjourned until June 27, 2005. A description of the proposals 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. 19,294,078 1,212,047 James H. Bodurtha 19,315,754 1,190,371 Joe Grills 19,304,008 1,202,117 Roberta Cooper Ramo 19,319,779 1,186,346 Stephen B. Swensrud 19,305,300 1,200,825 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 17,512,485 1,241,350 689,173 3. To approve an amendment to articles supplementary or certificate of designation. Adjourned Adjourned Adjourned During the six-month period ended April 30, 2005, MuniYield New York Insured Fund, Inc.'s Preferred Stock shareholders (Series A - E) voted on the following proposals. Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With respect to Proposal 2, the proposal was adjourned until May 27, 2005, at which time it passed. Proposal 3 was adjourned until June 27, 2005. A description of the proposals and number of shares voted were as follows: Shares Voted Shares Withheld For From Voting 1.To elect the Fund's Board of Directors: James H. Bodurtha, Joe Grills, Herbert I. London, Andre F. Perold, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud 7,301 72 Shares Voted Shares Voted Shares Voted For Against Abstain 2. To approve an amendment to fundamental investment restrictions. 9,793 509 46 3. To approve an amendment to articles supplementary or certificate of designation. Adjourned Adjourned Adjourned
SEMI-ANNUAL REPORTS, APRIL 30, 2005 Officers and Directors/Trustees Robert C. Doll, Jr., President and Director/Trustee James H. Bodurtha, Director/Trustee Joe Grills, Director/Trustee Herbert I. London, Director/Trustee Roberta Cooper Ramo, Director/Trustee Robert S. Salomon, Jr., Director/Trustee Stephen B. Swensrud, Director/Trustee 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 Donald C. Burke, Vice President and Treasurer 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: EquiServe The Bank of New York P.O. Box 43010 101 Barclay Street - 7 West Providence, RI 02940-3010 New York, NY 10286 Effective January 1, 2005, Terry K. Glenn retired as President and Director/ Trustee of MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield Florida Fund, MuniYield California Insured Fund, Inc., MuniYield Michigan Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc. The Funds' Board of Directors/Trustees wishes Mr. Glenn well in his retirement. Effective January 1, 2005, Robert C. Doll, Jr. became President and Director/ Trustee of the Funds. SEMI-ANNUAL REPORTS, APRIL 30, 2005 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 MYC with as high a level of current income exempt from federal and California income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal and California income taxes. 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. 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. SEMI-ANNUAL REPORTS, APRIL 30, 2005 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. SEMI-ANNUAL REPORTS, APRIL 30, 2005 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, 2005 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 Arizona Fund, Inc. By: /s/ Robert C. Doll, Jr. ------------------------------- Robert C. Doll, Jr., Chief Executive Officer of MuniYield Arizona Fund, Inc. Date: June 20, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert C. Doll, Jr. ------------------------------- Robert C. Doll, Jr., Chief Executive Officer of MuniYield Arizona Fund, Inc. Date: June 20, 2005 By: /s/ Donald C. Burke ------------------------------- Donald C. Burke, Chief Financial Officer of MuniYield Arizona Fund, Inc. Date: June 20, 2005